Citron Research Covers China New Borun (BORN)- Is this Company All Wet???

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We are going to keep this sweet, simple and to the point.  China New Borun (BORN) is a producer of corn-based alcohol for baijiu liquor in China.  Basically, the sell a commodity … nothing real sexy.  In June of 2010 they lowered the pricing of their IPO by a whopping 40% from initial estimates of $12-14 and sold 5.5 million shares at $7.  The stock immediately broke syndicate and spent the summer in the $5 range.

According to the company and its supporters, it is not just your run-of-the-mill corn based alcohol producer.  They have created a new mousetrap, a secret sauce if you wish, called the “wet process” which according to their prospectus, “has led to a consistently higher yield of edible alcohol from corn.  The Holy Grail of Baijiu.  This is the sizzle of the company. Read more

Regulation – it takes a while but when it comes – Kaboom – Watch out World Acceptance Corp. (WRLD)

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Last year Citron Research wrote about Apollo Group (APOL), predicting the inevitability of forthcoming regulation to curb their extremely aggressive sales practices.  The shareholders didn’t listen, and analysts raised their targets.  But in one year the largest private educator in the country saw its stock cut in half.

Also last year Citron warned about holding Amedisys(AMED) in light of forthcoming regulation of their overly aggressive Medicare billing practices. The shareholders didn’t want to listen and analysts raised their targets.  But the government stepped in and the stock price of the largest provider of home healthcare in the county is down 50% from its highs. Read more