Previously writing on internet top-level domains owner and operator Minds + Machines Group (MMX), earlier this month with the shares at 5.25p I concluded an “investigation will focus principally on a specific contract”, not ‘solely’, and that overall stated revenue for the half-year was $8.4 million and for full-year 2019 $18.9 million. With a market cap of still more than £47 million, and ahead of “further announcements will be made in due course”, avoid / sell. Today “Statement re: Contract, Investigation & Board”…
In Part 3 of this series about Reporting Accountants and Auditors of companies coming to AIM and ISDX from China Graham Chester looks at the record of Team Lau and its current firm of Moore Stephens. As with Team Stevens in Part 2, watch the scores-on-the-doors here as the losses pile up.
In Part 1 Graham Chester examined the role of the Reporting Accountant when bringing a China play to the Casino. In Part 2 it is time to look at some of the players involved. What better place to start than at Team Stevens, now at the fine firm of Crowe Clark Whitehill – auditor to quite a portfolio of Filthy Forty companies, and a few more besides. Watch the scores-on-the-doors here in terms of share price performance: it is shocking stuff.
The Globo (GBO) scandal brings up the issue once again of what an auditor is there to do. Yesterday’s admission that, essentially, Globo’s accounts could not be relied upon suggests that there has been a massive failure. Auditor there: Grant Thornton. But Globo is by no means the only case of investors being misled as to the true picture in a company’s accounts.