The BORN Deception: Is Another Chinese Stock Scamming Investors?

A report on

indicates that perhaps the Chinese company China New Borun

may be another in a line of companies that soaks shareholders behind a wall of accounting tricks and deceptive practices. The discrepancy between different types of tax and revenue reporting for the company is what triggered concern for the Seeking Alpha author, and led the author to pursue the story more fully. According to the author's research, the BORN is pulling in gross margins that are improbable, if not impossible, given the conditions of the market BORN operates in. The author also cites discrepancies in the paperwork, where sales reported to go to certain producers, but rather to industrial users; this highlights some pretty glaring red flags about the company's overall accounting scheme. Benzinga is seeing

as rumors swirl that BORN might be the next to die at the altar of broken dreams.