"Deloitte observation" joins the questioning camp

Absrtact: Andrew left, founder of Citron, an independent research agency, Andreul-les-Fots the first financial daily reporter that I will continue to take action to prove to the world that Qihoo 360 is suspected of fraud.

"I will continue to take action to prove to the world that Qihoo 360 is suspected of fraud," said Andrew left, founder of Andrew Lefort Citron, an independent research agency, to the first financial daily reporter. Then it will be the fifth time since last November, the "shelling" of Qihoo.

"He does not know the Internet, let alone the Chinese Internet, four previous reports of attacks have failed, and now the company does not need to respond." "That night, Qihoo 360 chairman Zhou (Micro Bo) to this newspaper reporter said," The most important thing is to do a good company. ”

Now and expected

On the phone, Lester had a cough, in order to catch the U.S. stock before the opening of the report, who lives in Los Angeles, the United States West Coast, he got up four o'clock in the morning every day, "I have been doing this business for more than 10 years, still full of enthusiasm, I believe I said the truth, if Qihoo to sue me, come." ”

This time, he told reporters, "for Qihoo 360, my latest view is that I have always adhered to the view that the company is suspected of expanding profitability and that the profit model is not clear" and on Hao.360.cn's homepage advertising revenue data, non-tracking links, exaggerated gaming revenue, Web traffic is hard to verify, and questions have been raised in previous reports.

"These questions, which I asked management at the investor conference call in Qihoo 360," lefort that as a US investor, he has the right to ask any question from a company that is listed in the US, and if he can't get a convincing answer, he can doubt the integrity of the listed company.

On the same day, China Merchants Securities (Hong Kong) issued a new research report on Qihoo 360, said the company's business growth in line with expectations, affirmed the Qihoo 360 products are subversive traditional commercial anti-virus software, has accumulated a large and viscous user base, for the company to further introduce other products pave the way to the odd tiger stock maintain buy ratings, The target price is 25.4 dollars per share.

"I have read the research report, and as before, analysts are based on the company's future development prospects, and do not risk offending executives to investigate the truth." "If Qihoo 360 doesn't even have a current situation, then the prospect of future development cannot be discussed," said Andrew. ”

Although Zhou does not want to be too immersed in a meaningless "war of words", but as one of the events, he confessed to reporters, "Qihoo 360 start than Baidu, Tencent late, to the accumulation of users into profits still need time, the development of the company in the process of questioning ' fraud ', it seems that some logic impassability. ”

"Deloitte observation" joins the questioning camp

Just on the eve of the same interview with Andrew, another less well-known American shorting agency, Deloitte-watch.com, wrote to Deloitte's accounting firm, alleging that Deloitte's audit of Qihoo 360 's financial statements was questionable and that some of the questions in its earnings were questionable, It is recommended that Deloitte conduct a more thorough and comprehensive investigation and audit.

The report questioned very directly, "Qihoo 360 does not have a unique compelling product to create revenue, as the company's core business, the site directory to sell links, and other homogeneous sites no difference, so when Qihoo 360 announced revenue and advertising rates reached three-digit growth, Other major rivals ' business growth has not been similar.

At the same time, the company believes Deloitte should focus on the problems of substantial revenue, low operating costs, non-cash exchange arrangements, and stock transactions between advertisers.

"We tried to investigate the agency, but found that the registration information for the site's domain name was unusually well hidden," Zhou, "if you really have questions about the company, you can investigate it openly and without sneaking around." "At the beginning of the year Qihoo 360 has invited hundreds of investors around the world to the Beijing headquarters field research company.

Coincidentally, according to its website information, "Deloitte observation" has been involved in shorting another two Chinese companies listed in the U.S., China's high-speed channel and the southeast, and the two companies have been successfully questioned by the company and short, resulting in the final card.

"War of Words" is part of the game?

The "War of words", which began last November, did not seem to have ended under Lefort's active "Declaration of war", but it did not hurt its share price by publishing four of reports questioning Qihoo 360 on its website.

"Of course I'm still shorting Qihoo's share price. "Lefort once again admitted to reporters that he was involved in market operations, but said that this is not the main reason for his attack, he denied, saying," Short Qihoo price is because I believe that my judgment is correct. ”

"I understand that the shorting mechanism allowed in US capital markets can help investors oversee listed companies, and some of the early-case listings of Chinese companies listed in the U.S. did give these short institutions a taste, but that does not mean that all Chinese companies can be casually shorted." "In Zhou's opinion, the first report of the company made the new NYSE 360 listed as NASDAQ, this so-called research is not professional," full of assumptions and ignorance of speculation, "and their top priority to do, in addition to operating a good company business, but also to the institutional investors to do a timely communication, Avoid damaging shareholder interests by making false statements.

A US hedge fund partner who declined to be named said in an interview with our correspondent: "You can't say that the report is completely framed, of course, can not be the qualitative Qihoo 360 This company is certainly fraud, both sides obviously have a position, fundamentally, this ' War of words ' is part of the game in the U.S. capital market. "In the US capital markets, investors are questioning the commonplace of listed companies, and the report of the company only magnifies what he believes to be suspicious, and to believe it or not, look at investor and market feedback."