Naked Capitalism Link of the Day

Today's Link: China Agritech: more miracles in the plant, at Bronte Capital.  This is the latest in a series of accusations of stock fraud in China.  It is a pretty funny piece, with pictures:

This plant represents half of the dry fetilizer the company produces - and a substantial portion of the company revenue.

The stock price of China Agritech has fallen from 30 dollars to 8 dollars (with most that fall happening before any shortseller went public about their concerns).  The market cap is still 165 million dollars.

If you look at the equipment and plant shown in these slides you do not see anything that looks like even 5 million dollars - let alone a substantial fraction of the market cap.  But that is not what you are buying.

You are buying Adonis - nah - Adonis times 105 (the total manufacturing staff of the company).  No workers anywhere in the world demonstrate this sort of productivity.

Market cap of the company: 165 million dollars
Value of the plant: not very much
Owning your bit of 105 Adonis: Priceless.