So Is Longtop Financial Technologies A Fraud Or Not? (LFT)

Longtop Financial Technologies Ltd LFT shares are jumping 15% in pre-market trading after the company announced a $50 million buyback program to raise it to $100 million, as well as having a conference call at 8:30 to discuss the Citron Research report that says that the company is a fraud. Earlier in the week, Citron Research put out a negative report, saying that "every financial statement from its IPO to this date is fraudulent." The company's 10-K is out soon, and investors will be scrutinizing it extra close, as the company has margins that are double its competitors. Another red flag is the company's auditor is Deloitte, which was the auditor for other Chinese companies that have been deemed frauds, such as China Media Express CCME. There are 9 institutions which hold 70% of the company's shares, the largest being Maverick Capital, holding 6.9% of the company's stock. It will be interesting to see what the company has to say in the conference call, and Benzinga will bring you the highlights from it.