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tags: potential/short, analyst/jehosaphat-research

Techtronic Industries

Jehoshaphat Research published on Techtronic Industries (Hong Kong: 0669 — HKD$144 billion), a power tool and outdoor equipment company. Jehoshaphat Research accused the company of widespread accounting fraud, primarily by “snowballing expenses into assets for over a decade [which results in] billions of dollars of assets [that] appear on the balance sheet that don’t really ‘exist’ except in an accounting sense.” Jehoshaphat Research alleged the company’s accounting fraud has resulted in suspiciously stable and growing margins for a seasonal business and recent layoffs imply the “tide is going out” on the company.