Lenovo: No Turn Around in Sight. The Risk of Failure Is Too High - Fair Value HK$2.87 (31)%, SELL

Sell Lenovo (992 HK): Drowning In Debt. Don't Wait for the Rescue

Poor Performance on Mobile and Data Center Dragging Lenovo's Q3 Earnings; FVE Remains

Lenovo Group: They Came, They Saw, They Exited

Director | Exposing Creative Accounting, Bucephalus Research Partnership

Robert Medd

Director | Exposing Creative Accounting

Exposing Creative Accounting

Bucephalus Research Partnership

Bucephalus Research Partnership Limited. Exposing Creative Accounting.

At the Bucephalus Research Partnership (BRP) we analyse financial statements using our accountant's practical experience and our own quantitative algorithms for corporate governance, accounting risk and peer performance.

Our thematic research refines our unique algorithms while our single stock research focuses on examples where we discover a significant gap between published accounts and business reality.

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Forensic Accounting

<p>Their first quarter numbers reaffirm our thesis that they are drowning in debt. They are manipulating working capital, factoring receivables and not paying payables to produce cash. Inventory is rising, not good in a short inventory lifecycle business and debt is rising. We think there is a good chance that the perpetual notes are being bought by connected parties and are effectively support through the back door.</p><p>There is no good news. We have annotated the results, see the attached note. The…</p>

Their first quarter numbers reaffirm our thesis that they are drowning in debt. They are manipulating working capital, factoring receivables and not paying payables to produce cash. Inventory is rising, not good in a short inventory lifecycle business and debt is rising. We think there is a good chance that the perpetual notes are being bought by connected parties and are effectively support through the back door.There is no good news. We have annotated the results, see the attached note. The…

Lenovo 992 HK, The Water Continues to Rise