Anyone think that a company committing fraud would say anything but this? I guess that we'll hear more in "due course". So the cloud will remain until at least "due course". Frankly, I don't know what to think about this self-serving statement. Thoughts?
Montage Tech issues a statement in response to allegation and misinformation in report; says 'company believes that the allegations and accusations in the report lack merit and contain numerous errors of fact, misleading speculation and misinterpretation of events' (MONT) :
•Co issued a statement in response to allegations raised in a research report dated February 6, 2014 issued by a group called Gravity Research.
•'The company believes that the allegations and accusations in the report lack merit and contain numerous errors of fact, misleading speculation and misinterpretation of events. Montage fully stands behind the integrity of its audited financial statements, which have been audited by its independent accountants, PricewaterhouseCoopers Zhong Tian LLP. Montage also disclaims any suggestion that LQW Technology Company, an independent distributor of semiconductor products to the end customers of Montage and other technology companies, is an affiliate of Montage. Montage plans to release additional information refuting the allegations made by Gravity Research in due course. Montage is committed to providing full and accurate disclosure to investors and to preserving confidence in Montage's business, management, financial performance, operations and corporate structure.'
Semiconductor is not easy to cheat. The end customers are there. They ship out chips everyday from OEM.
The report is to short this stock as they claimed on the first page.
All Chinese companies have weird registration structure to avoid government control. If you check other companies it will be similar.