Century interconnection strong counterattack short report: Stock price up 8%

September 16 Morning News, the Internet yesterday evening, the official release of the detailed report of the investment agency Trinity earlier issued a short report. In a 94-page report, the century interconnection clarified many of Trinity's false messages and eventually won investors ' approval, with shares rising 8% per cent in regular trading in Monday, to 21.46 dollars.

Encounter short

Last Wednesday (Beijing time September 10) evening, investment agency Trinity study Group ("Trinity") issued a short report on the interconnection of the century. Trinity said in the report, the century interconnection may be a hoax, the share price is expected to fall to 0. Trinity also said: "The irrefutable evidence that the century interconnection exists financial and operational performance fraud." ”

In this report, Trinity points out that there are 5 major problems in the interconnection of the century: 1, the revenue accounted for two-thirds of the data center business was significantly exaggerated, 2, accounted for One-third of the broadband sales business illegal; 3, the acquisition of broadband companies April to the valuation is too high; 4, the acquisition of the Ijoy company is an empty shell company 5, the continuous use of mergers and acquisitions of false promises exaggerated growth.

The short report, like a bomb, led to a sharp fall in conventional U.S. stock trading on the same day as the share price of the century, which fell by 35% per cent. Although the share price rebounded in the ensuing century, the shares fell 8% per cent at the end of the day, closing at a price of 20.12 dollars.

The eager counterattack of the century interconnection in Beijing time September 11 20:00 The whole conference call, counter Trinity Short report, said these accusations groundless. While executives answered some of the questions from investors, the lack of clarity led to a failure to reverse the downward trend on the day and eventually plunged 22.86% per cent to 15.52 dollars.

Beijing Time September 12 (last Friday) evening, the century interconnection issued a notice, said Trinity to the century interconnection of the short report is organized short team tried to sing empty and short-term profit behavior. The Trinity report has many false and one-sided information, erroneous interpretations of industry development, and some extremely absurd speculations.

At the same time, with investment banks such as Morgan Stanley and JPMorgan Chase, the share price of the century began to rebound sharply. As of Friday, the stock market closed, the century interconnection shares rose 28%, the price of 19.87 U.S. dollars.

A strong counterattack.

After a weekend of intense work, the century Internet official released a detailed report on the evening of September 15 to counter short. The century interconnection responded in detail to the question of Trinity and produced compelling evidence.

Century Internet CEO Sheng also issued an open letter to shareholders, stressing that the company has been operating in good faith over the past 15 years and has refuted the so-called "Ponzi scheme" of the short term interconnection.

Sheng said in a new shareholder that every transaction of the century interconnection was a normal transaction, with the necessary legal and financial advice and due diligence. "No one can guarantee that every investment will be successful, but I can guarantee that every transaction is properly due diligence." ”

Sheng also said that the century interconnection also decided to provide more detailed information decomposition, so as to provide investors with the highest transparency. He added that the company had a cash and cash equivalent of $2.7 billion as of September 5 to meet all requirements, including financial and other contracts, and that there was no risk of breach of the debt contract.

On the evening of September 15, the Monday Stock Exchange in the U.S. opened. Century interconnected stock prices rocked upward, and ended up with a 21.46 dollar closing, up 8%. (Loliang)