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Jumia IPO and Short Seller Criticism
passiveinvestor
#1 Posted : Friday, May 10, 2019 10:39:06 AM
Rank: Member


Joined: 12/8/2006
Posts: 65
After Jumia's IPO, some people have rushed to claim Jumia as African. However, others have argued that Jumia's non-African listing, ownership and, legal domicile and bulk of senior decision makers render it a non-african business operating in Africa.
And now, THIS:
https://seekingalpha.com...hares-tumble-13-percent

AND access to the Citron report:
https://citronresearch.c...-equal-jumia-is-a-fraud/
maka
#2 Posted : Friday, May 10, 2019 10:48:30 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,044
Location: Nairobi
[quote=passiveinvestor]After Jumia's IPO, some people have rushed to claim Jumia as African. However, others have argued that Jumia's non-African listing, ownership and, legal domicile and bulk of senior decision makers render it a non-african business operating in Africa.
And now, THIS:
https://seekingalpha.com...hares-tumble-13-percent

AND access to the Citron report:
https://citronresearch.c...equal-jumia-is-a-fraud/[/quote]


Was just reading that same article this morning... Very interesting..."In 18 years of publishing Citron has never seen such an obvious fraud as Jumia,"
possunt quia posse videntur
passiveinvestor
#3 Posted : Friday, May 10, 2019 10:52:54 AM
Rank: Member


Joined: 12/8/2006
Posts: 65
maka wrote:
[quote=passiveinvestor]After Jumia's IPO, some people have rushed to claim Jumia as African. However, others have argued that Jumia's non-African listing, ownership and, legal domicile and bulk of senior decision makers render it a non-african business operating in Africa.
And now, THIS:
https://seekingalpha.com...hares-tumble-13-percent

AND access to the Citron report:
https://citronresearch.c...equal-jumia-is-a-fraud/[/quote]


Was just reading that same article this morning... Very interesting..."In 18 years of publishing Citron has never seen such an obvious fraud as Jumia,"


Naija, oh! Look at the section on Jforce Consultants providing sales services using their ID's on behalf of other sellers.
Kenya, ah! Majority of EUR720M paid in cash after delivery so NO commissions paid to Jumia!

I am abit miffed though about the generalization of Africa so terrible a market that Amazon and Naspers avoided / exited it. First not true. Naspers still operates in Africa and Amazon is making gradual acquisitions, notably Souq.com covering Middle East and some North African countries. I suspect this is the track / argument Jumia will take in their rebuttal conference call next week.
But don't know how anyone took their ADR filing seriously, even their financials were in 2 different currencies for the past 2 comparable years.
Totally sloppy filing!
maka
#4 Posted : Friday, May 10, 2019 11:02:58 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,044
Location: Nairobi
passiveinvestor wrote:
maka wrote:
[quote=passiveinvestor]After Jumia's IPO, some people have rushed to claim Jumia as African. However, others have argued that Jumia's non-African listing, ownership and, legal domicile and bulk of senior decision makers render it a non-african business operating in Africa.
And now, THIS:
https://seekingalpha.com...hares-tumble-13-percent

AND access to the Citron report:
https://citronresearch.c...equal-jumia-is-a-fraud/[/quote]


Was just reading that same article this morning... Very interesting..."In 18 years of publishing Citron has never seen such an obvious fraud as Jumia,"


Naija, oh! Look at the section on Jforce Consultants providing sales services using their ID's on behalf of other sellers.
Kenya, ah! Majority of EUR720M paid in cash after delivery so NO commissions paid to Jumia!

I am abit miffed though about the generalization of Africa so terrible a market that Amazon and Naspers avoided / exited it. First not true. Naspers still operates in Africa and Amazon is making gradual acquisitions, notably Souq.com covering Middle East and some North African countries. I suspect this is the track / argument Jumia will take in their rebuttal conference call next week.
But don't know how anyone took their ADR filing seriously, even their financials were in 2 different currencies for the past 2 comparable years.
Totally sloppy filing!



possunt quia posse videntur
alma1
#5 Posted : Friday, May 10, 2019 11:33:03 AM
Rank: Elder


Joined: 9/19/2015
Posts: 2,397
Location: hapo
When you know you know.

Jumia's game plan was there for all to see. Run loses for years then go the IPO route. After all suckers will call it the "Amazon" of Africa, and they did.

Rocket Internet investing your business is the beginning of the end.

But don't believe me. Last time I decided to get their weekly mobile deals. Or so they said. Only to realise that they had hiked the price of the phone and then discounted it to it's normal price.

Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly
Thieves are not good people. Tumeelewana?
Mike Ock
#6 Posted : Friday, May 10, 2019 1:33:14 PM
Rank: Member


Joined: 1/22/2015
Posts: 631
Looks to me like an activist investor looking for a correction.
passiveinvestor
#7 Posted : Monday, May 20, 2019 6:22:18 PM
Rank: Member


Joined: 12/8/2006
Posts: 65
alma1 wrote:
When you know you know.

Jumia's game plan was there for all to see. Run loses for years then go the IPO route. After all suckers will call it the "Amazon" of Africa, and they did.

Rocket Internet investing your business is the beginning of the end.

But don't believe me. Last time I decided to get their weekly mobile deals. Or so they said. Only to realise that they had hiked the price of the phone and then discounted it to it's normal price.

Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly

....and the slide continues. $19 now!
https://www.google.com/s...LiXMGzFPKZlwSV1LDoBA2:0

Shameful call by management not to respond to Citron.
https://finance.yahoo.co...uire-p-c-230000510.html
VituVingiSana
#8 Posted : Tuesday, May 21, 2019 4:29:31 AM
Rank: Chief


Joined: 1/3/2007
Posts: 15,895
Location: Nairobi
Mike Ock wrote:
Looks to me like an activist investor looking for a correction.
Andrew Left of Citron isn't an activist but a short-seller.
Activists usually want to see change and may hold their shares for long(er) periods. They want the stock to rise in price.
Short Sellers want the price to fall.

As @SuraMbaya said above, Citron would have taken a short position and now want to drive the price down. Then they will close out their positions and move to the next firm.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
passiveinvestor
#9 Posted : Wednesday, May 22, 2019 12:59:37 PM
Rank: Member


Joined: 12/8/2006
Posts: 65
VituVingiSana wrote:
Mike Ock wrote:
Looks to me like an activist investor looking for a correction.
Andrew Left of Citron isn't an activist but a short-seller.
Activists usually want to see change and may hold their shares for long(er) periods. They want the stock to rise in price.
Short Sellers want the price to fall.

As @SuraMbaya said above, Citron would have taken a short position and now want to drive the price down. Then they will close out their positions and move to the next firm.

Now up 14%! Driven by this below (where they state that Jumia is based in Germany?)
https://www.uspostnews.c...s-ag-jmia-fundamentals/

Or this link (which leads nowhere but has the blazing headline about new research)?
https://www.benzinga.com...36-tgt-based-on-expecta
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