Glaucus Research Initiates Shougang Fushan with Strong Sell Rating (0639.HK)

Glaucus Research has released a negative report on Shougang Fushan (0639.HK), a company traded on the Hong Kong exchange under the symbol 639 and very thinly traded on the U.S. pinksheet market under the symbol FSHYF. Glaucus Research initiates coverage today on the firm with a Strong Sell rating.

In the written material released a few minutes after the Hong Kong exchange opened for morning trading, lead researcher Matthew Wiechert claims that Shougang Fushan is a "pump and dump" engaging in sales to related parties at artificially inflated profit margins, heavy insider selling of equity, and self-financing via charitable contributions. A video accompanies the written report.

Shougang Fushan is a multi-billion dollar coal mining company with analyst coverage at over a dozen research firms, the majority of which maintain bullish ratings on the stock. Common stock trades on average volume of over 30 million shares per day.

To access the report and related video, visit GlaucusResearch.com. Further background on Glaucus Research can be found in Benzinga's Q&A interview, accessible here.