Hi Shane! Unfortunately I don't know much about Boyaa Interactive. Looking at it for a few minutes, it reminds me very much of 500.com Limited (WBAI US) - also based in Shenzhen and also operating in the grey area of online gambling. Looking at the financials, Boyaa seems to be valued at a very low level, though with China you can never be sure that true bank balances are the same as reported in HKSE filings. 500.com managed to transition into a crypto "play" and the stock has been on a tear ever since. Perhaps something similar could day happen to Boyaa?
Huge thanks for the reply. Yeah, the valuation is comically low. Do you know anything about the base rates of fraud in HKSE listed companies, in particular as it relates to misrepresenting bank account balances?
Tricky question. I don't have an exact answer for you.
A long-standing joke about Chinese companies is that they keep three sets of books: one for the tax authority, one for foreign investors, and one that represents actual reality.
But I'm not sure whether misrepresenting bank account balances is all that common. What could be the case is that the cash is real but that liabilities against the cash are not properly consolidated.
Either way, I don't think you can trust that the financials for private Chinese companies are accurate at all. And even if they were accurate, it doesn't mean that you'll ever get to see any of that cash.
It's probably best not be involved in Chinese net-nets. And if you are there should be a specific catalyst such as a liquidation or an ongoing take-over process. The stock could also go up if earnings improve significantly.
Do you have any thoughts on HKSE listed Boyaa Interactive?
Hi Shane! Unfortunately I don't know much about Boyaa Interactive. Looking at it for a few minutes, it reminds me very much of 500.com Limited (WBAI US) - also based in Shenzhen and also operating in the grey area of online gambling. Looking at the financials, Boyaa seems to be valued at a very low level, though with China you can never be sure that true bank balances are the same as reported in HKSE filings. 500.com managed to transition into a crypto "play" and the stock has been on a tear ever since. Perhaps something similar could day happen to Boyaa?
Huge thanks for the reply. Yeah, the valuation is comically low. Do you know anything about the base rates of fraud in HKSE listed companies, in particular as it relates to misrepresenting bank account balances?
Tricky question. I don't have an exact answer for you.
A long-standing joke about Chinese companies is that they keep three sets of books: one for the tax authority, one for foreign investors, and one that represents actual reality.
But I'm not sure whether misrepresenting bank account balances is all that common. What could be the case is that the cash is real but that liabilities against the cash are not properly consolidated.
Either way, I don't think you can trust that the financials for private Chinese companies are accurate at all. And even if they were accurate, it doesn't mean that you'll ever get to see any of that cash.
It's probably best not be involved in Chinese net-nets. And if you are there should be a specific catalyst such as a liquidation or an ongoing take-over process. The stock could also go up if earnings improve significantly.