Market Overview

Citron Research Accusing China Borun Corp. Of Fraud (BORN)


Citron Research has released a research report which levels some fairly substantial accusations at China New Borun Corp. (NASDAQ: BORN). The report states that "Last month Citron exposed potential disclosure problems with China New Borun Corporation, a corn alcohol manufacturer, whose reports of tremendous profits boast far-above-average margins in a heavily commoditized and competitive industry." The firm is questioning the legitimacy of these profits, saying the company is using "an antiquated and largely unprofitable manufacturing process."

Even more damning, Citron says that their research suggests that BORN is sitting on undisclosed debt to the tune of $270 million RMB "as reflected in tax filings that predate its May IPO." This liability would offset nearly all of the company's retained earnings according to Citron. Furthermore, since these revelations have surfaced there have apparently been defections from the Board of Directors.

The firm concluded their report by saying that "It is the opinion of Citron that BORN is committing fraud on the marketplace."

Posted-In: Analyst Color Short Sellers Price Target Intraday Update Analyst Ratings Movers


Related Articles (BORN)

View Comments and Join the Discussion!

Latest Ratings

PLCEB. Riley FBRDowngrades59.0
ASPUCanaccord GenuityMaintains11.0
AAPLEvercore ISI GroupMaintains305.0
THTXMackie ResearchUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Market Roundup

Week Ahead Market Report: 11/15/2010