bought and called the brokers bluff, page-27

Someone said MS Asia are shorting the stock... come on let's be realistic. You don't buy up 11% of a company to thump the shares into oblivion. As shareholders they hurt the most from a falling share price and with the share price falling some 50% since they bought in they are sitting on a huge loss on their investment. The idea is unbelievable. not to mention their reputation loss. They've stated the reasons why they bought into the company - they think it's a good long term growth story. I don't think anyone would want to deal with Morgan Stanley if they went so drastically against their word, saying they'll be there to support the company for the long term but turns around immediately and backstabs them.

I think the real reason why the stock is going down, is because of an argument put forth by some analysts over the years about its accounting opaqueness. It's an idea elaborated on by w_buffet on hotcopper. Basically he claims the rebates and similar smokescreens are inflating the profit figures because they're not real earnings. They're just shareholders own money, given back to them by a related party and then counted as earnings. There've been much discussion about the idea (do a search of w_buffet's posts) and to date there have not been anything to discredit the theory. If the theory is right that means ABC just barely broke even in 1H08. Is that the kind of situation you'd want to be in when you have a crapload of debt on your books?

I'd be really careful with this stock.