omniture

Prescience Point Issues a Negative Report on Cheetah Mobile (NYSE: CMCM)

Prescience Investment Group, LLC
2017-10-26 22:16 1278

- CMCM recently invested $40m into OrionStar, a company owned by CMCM's CEO. At the time the deal was announced, OrionStar had existed for only 8 months, casting serious doubt on the legitimacy of its lofty ~$100m pre-money valuation. Separately, SEC filings indicate that insiders have registered to sell $17.3m worth of CMCM stock over the past 5 months.

- CMCM's Beijing-based auditor E&Y Hua Ming was the auditor of record for Sino-Forest and many other now-defunct Chinese companies accused of fraud, such as SinoTech Energy and China Agritech. Former CMCM CFO Mr. Ka Wei Andy Yeung, a seasoned US-trained executive, suddenly departed CMCM in March.

- Prescience Point's FOIA requests to the SEC regarding CMCM returned an Exemption (b)(7)(A) denial.

- Facebook, CMCM's largest customer, has been phasing out CMCM from its ad network. 

- Prescience Point is the research publication arm of Prescience Investment Group, a firm registered with FINRA

BATON ROUGE, Louisiana, Oct. 26, 2017 /PRNewswire/ -- Prescience Point, a forensic research firm, has published a new report on Cheetah Mobile (NYSE: CMCM), a China-based developer of mobile (iOS and Android) and PC applications with a market value in excess of $1 billion. Prescience Point conducted a 5-month long business and forensic accounting review, encompassing a thorough scrub of public filings, Freedom of Information Requests (FOIAs), conversations with several former employees (including many former managers), engagement of several private investigators, and an analysis of mobile data provided by App Annie.  Prescience Point believes Cheetah Mobile is worth 80% lower than the current share price, as the company faces a litany of near-term challenges.
Read our complete report at www.presci.us/Cheet

Prescience Point has a short position in Cheetah Mobile and stands to benefit if its share price falls.

About Prescience Point
Prescience Point, LLC (www.presciencepoint.com) conducts forensic financial research to uncover companies misleading or defrauding investors. The firm's research process incorporates partnering with leading hedge funds, private investigators, accountants, lawyers and industry experts. Prescience Point is an investor activist that communicates its findings to regulators, shareholders, and other public constituents.

Prescience Investment Group, LLC is a member of the Financial Industry Regulatory Authority, CRD number 152721.

Source: Prescience Investment Group, LLC
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