Skystar Bio-pharmaceutical Co. (fka SKBI)

[tbirdman]

Wonder if this interview is actually from November 27th 2015?


https://www.twst.com/interview/interview-with-the-director-of-corporate-development-and-u-s-representative-skystar-bio-pharmaceutical-company-nasdaqskbi

[tbirdman]

[236T568]

oops, they are going to get an initiation as to how to do extensive research on a company

Something about failing to file the 10K and 3 10Q's due after the 10K, supplying fraudulent bank statements to the auditor, running out of cash and dropping revenues by about 70% from the previous quarter, that is hard to miss...and then there is the little subject of NASDAQ suspension and de-listing.

Funny thing is I saw a few pumpers hopping on the China low float theme underway right now... They have no idea what's happening. Waiting to add to my short if it rips higher.

[tbirdman]

Funny thing is I saw a few pumpers hopping on the China low float theme underway right now... They have no idea what's happening. Waiting to add to my short if it rips higher.

[236T568]

Bad results of NASDAQ hearing tomorrow for SKBI will be delayed in announcing by SKBI....

so expect NASDAQ to make first announcement about de-listing and susprension in trading for SKBI...

its not going to be fun for people holding this stock

Wonder if we find out the determination Thursday..surely must be at least a day delay.

[tbirdman]

Wonder if we find out the determination Thursday..surely must be at least a day delay.

[236T568]

Its going to get ugly on Thursday

real ugly

Tick tock, Thursday Judgement Day...

[tbirdman]

Tick tock, Thursday Judgement Day...

[RealDutch]

I know
I think there's a 95% probability that they will be delisted.

[tbirdman]

Don't get me wrong, I'm still short the pos, lol

[RealDutch]

Yes, I got one too today.
Gregory probably can't trade as an insider until they file the Q's at least.

[tbirdman]

That's it - just rubs me the wrong way when companies file after hours heading into the weekend (least likely to be seen)...

[RealDutch]

They are simly disclosing that they received another notification from Nasdaq of non-compliance. Unless I missed something.

[tbirdman]

$SKBI - Another classy after hours friday filing...makes me think they are just delaying the inevitable to allow bag-holder John Gregory to bail..been tough for the poor chap lately with no volume to dump into. One last pump before the show is over?

http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204-15-067227%2Etxt&FilePath=%5C2015%5C11%5C20%5C&CoName=SKYSTAR+BIO-PHARMACEUTICAL+CO&FormType=8-K&RcvdDate=11%2F20%2F2015&pdf=

[tbirdman]

Its tough to look good when the real numbers come out..typical chiscam.

[236T568]

How bad are things over at SKBI?

bad, real bad!

from SKBI's NT-10Q filed today with the SEC:



http://ih.advfn.com/p.php?pid=nmona&article=69342553&symbol=SKBI

(3) Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof?
x Yes ¨ No

If so, attach an explanation of the anticipated change, both narratively and quantitatively, and, if appropriate, state the reasons why a reasonable estimate of the results cannot be made.

Since 2014, the Registrant extended payment terms to its distributors that are responsible for collecting payments from the Registrant’s customers. As a result, the Registrant expects that its accounts receivable will increase by approximately $16 million and unrestricted cash will decrease by approximately $14 million as of September 30, 2015 as compared to the same period of the last fiscal year. Because of slowing market demand, the Registrant expects that its sales for the three months ended September 30, 2015 will decrease by $11 million as compared to the same period of the last fiscal year.



------



So SBKI's unrestricted cash position was at $0 as of Sept 30, 2015 compared to the same quarter last year of $14 million


and


SBKI's revenues for the 2015 3rd quarter have now fallen an incredible 61% to $7 million from $18 million compared to the same quarter last year - a very very significant drop!

[236T568]

SKBI fails to file 3rd quarter 10Q with SEC and instead files another notice of late filing, NT-10Q:

http://ih.advfn.com/p.php?pid=nmona&article=69342553&symbol=SKBI


So far SBKI has

failed to file the 2014 10K

failed to file the 2015 Q1 10Q

failed to file the 2015 Q2 10Q

failed to file the 2015 Q3 10Q

[RealDutch]

Hahaha... yes, he deserves some criticism. And he still doesn't own HERB even though he buys the cheap ones.

[tbirdman]

I think it's right up his alley (not quite sure what that alley is).

[RealDutch]

Because of slowing market demand, the Registrant expects that its sales for the three months ended September 30, 2015 will decrease by $11 million as compared to the same period of the last fiscal year.

Down $11M, from $18.35M. Hmm, seems like the market missed it.
I think Surfer should reconsider owning this stock, if I may say so

[tbirdman]

$SKBI - I don't see any reason to be long this stock even if they skirt delisting..

Say they don't have any more fraud. Say they catch up on the delinquint filings that continue to stack up. Biz is in the shitter. Real POS.

http://ih.advfn.com/p.php?pid=nmona&article=69342553

That all being said, I think its likely we'll get a nice pop if they are granted further extension, so not entirely without risk to be short here.

[236T568]

SKBI suspension delayed until Dec. 3rd NASDAQ delisting hearing


http://money.cnn.com/news/newsfeeds/articles/marketwire/1227156.htm

Skystar Bio-Pharmaceutical Company Request to Stay Nasdaq Trading Suspension Granted

Marketwired
November 06, 2015: 09:00 AM ET

Skystar Bio-Pharmaceutical Company (NASDAQ: SKBI), a China-based manufacturer and distributor of veterinary medicine, vaccines, micro-organisms and feed additives, announced today that on November 4, 2015 it received a letter from the Nasdaq Hearings Panel that granted the request of Skystar Bio-Pharmaceutical Company to extend the automatic 15-day stay of suspension from The Nasdaq Stock Market, until the hearing on the merits scheduled for December 3, 2015, and a determination regarding the Company's listing status.

About Skystar Bio-Pharmaceutical Company
Skystar is a China-based developer, manufacturer and distributor of veterinary healthcare and medical care products. Skystar has four product lines: veterinary medicines, probiotics, vaccines and feed additives formulated and packaged in house across several modern manufacturing and distributions facilities. Skystar's distribution network includes almost 3,000 distribution agents of which 360 are franchised stores with exclusivity agreements covering 29 provinces throughout China. For additional information, please visit www.skystarbio-pharmaceutical.com.
Safe Harbor Statements
When used in this release, the words "intends," "believes," "anticipated" and "expects" and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, without limitation, the Company's ability to complete its IgG kit effort as well as other related efforts at the Huxian facilities, the Company's ability to timely, effectively and accurately assess the efficacy and commercial potential of any technologies that may results from such R&D efforts, the Company's ability to timely and effectively commercialize any such technologies. The Company undertakes no obligation to publicly release the result of any revision to these forward-looking statements which may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

[tbirdman]

Bid jumped up again...games being played.

[tbirdman]

[236T568]

So where is the 8K that discusses the inquiries from both the SEC and DOJ regarding the false bank statements provided to the SKBI auditor by senior SKBI management?


http://www.sec.gov/cgi-bin/browse-edgar?CIK=skbi&owner=exclude&action=getcompany&Find=Search


Why has SKBI failed to file the 8K for this important material event?

[tbirdman]

Lol...

[RealDutch]

Another up day for the longs

[236T568]

Well, apparently NO ONE can find any proof of the SKBI cash assets because SKBI has


FAILED to file the 2014 10K with the SEC

FAILED to file the 10Q for the 2015 Q1 with the SEC

FAILED to file the 10Q for the 2015 Q2 with the SEC


and will also fail to file the 10Q for the 2015 Q3 with the SEC, which is due in 12 days


what is wrong with this picture?

More wishful thinking. Have you found the "missing" $16M yet or are you still looking?

[RealDutch]

More wishful thinking. Have you found the "missing" $16M yet or are you still looking?

[236T568]

Yes, the silence by SKBI could mean only one thing for the company, and it is not a good thing

Crickets...

[tbirdman]

Crickets...

[integral]

Yep, I agree. They should be putting out an 8K, Item 4.02, Non-Reliance.

[236T568]

Good, point

the auditor was probably satisfied with just reviewing the bank statements provided by the company for the 10Q's but for the 2014 10K, it was a different story, as the auditor insisted on verifying the bank statements provided by the company with the bank itself.

hence the problem here

oops!


Look for RESTATEMENT of financials for the 2014 10Q's - all 3 of them

I did not see the issuer file 8K, Item 4.02. Secondly, that is not how an audit is conducted. While the issuer provides bank statements and schedules, the issuer is to request from the bank to send directly to the auditor verification of the same. This is the exact reason, to prohibit falsifying bank statements. This excuse is wrong and a cover up of something else.

I doubt the bank falsified anything on behalf of the issuer.

[236T568]

"This service has expired. Please contact Issuer Direct at 919-481-4000 ext. 111 to renew service."





from the SKBI corporate website for the pages titled:


NEWS

Stock Information

SEC filings


http://www.skystarbio-pharmaceutical.com/news.php

[RealDutch]

which means that the $16 million that they showed in cash as of the June 30, 2014 Balance Sheet, never existed

btw, you misinterpreted that.

It doesn't mean that the money wasn't in the account on June 2015. It simply means that RELATIVE to last year, cash will be $16M less. And that's because A/R is going up RELATIVE to last year.

And that's because they have to disclose material changes RELATIVE to last year if they are late reporting the numbers.

http://www.sec.gov/Archives/edgar/data/1076939/000114420415049937/v418219_nt10q.htm

Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof?

So there is nothing missing. Nothing at all.

[236T568]

HUH?

Seriously?

if someone didn't pay up the millions of A/R, then the cash amount listed on Balance Sheet in the financials filed with the SEC is completely false by $16 million

Which means that $16 million of the cash is missing and never existed

to not know this is just plain silly

Quote:
which means that the $16 million that they showed in cash as of the June 30, 2015 Balance Sheet, never existed

It probably means that someone didn't pay up. And that was the reason why the employee falsified the bank statements to begin with. It doesn't mean the money is missing.

[RealDutch]

which means that the $16 million that they showed in cash as of the June 30, 2015 Balance Sheet, never existed

It probably means that someone didn't pay up. And that was the reason why the employee falsified the bank statements to begin with. It doesn't mean the money is missing.

[integral]

I did not see the issuer file 8K, Item 4.02. Secondly, that is not how an audit is conducted. While the issuer provides bank statements and schedules, the issuer is to request from the bank to send directly to the auditor verification of the same. This is the exact reason, to prohibit falsifying bank statements. This excuse is wrong and a cover up of something else.

I doubt the bank falsified anything on behalf of the issuer.

[236T568]

actually, wrong yet again

cash that was booked in 2014 from collecting Accounts Receivable in 2014 and that was INCLUDED in the 2014 financial statements NOW HAS TO BE BE REDUCED BY $16 MILLION

which means that the $16 million that they showed in cash as of the June 30, 2014 Balance Sheet, never existed

to not understand this is just plain silly

Quote:
As a result, the Registrant expects that its accounts receivable will increase by approximately $24 million and unrestricted cash will decrease by approximately $16 million

Hahaha... you call that "missing"?

Cash is going down because they didn't collect it, YET.
Get it now?

Unreal.

[RealDutch]

As a result, the Registrant expects that its accounts receivable will increase by approximately $24 million and unrestricted cash will decrease by approximately $16 million

Hahaha... you call that "missing"?

Cash is going down because they didn't collect it, YET.
Get it now?

Unreal.

[236T568]

I'm sorry, but what part of these statements by SKBI in its SEC filing DID YOU NOT UNDERSTAND?


http://investorshub.advfn.com/boards/read_msg.aspx?message_id=118126768

Quote:
So tell us again how a corporate governance issue results in all the cash, $16 million worth, being missing


Repeating it ad infinitum without supporting evidence doesn't make it more true than the last time you mentioned it.

[RealDutch]

So tell us again how a corporate governance issue results in all the cash, $16 million worth, being missing

Repeating it ad infinitum without supporting evidence doesn't make it more true than the last time you mentioned it.

[236T568]

The Case of the Missing $16 million in Cash from SKBI's bank account:



http://www.sec.gov/Archives/edgar/data/1076939/000114420415049937/v418219_nt10q.htm


Since 2014, the Registrant extended payment terms to its distributors that are responsible for collecting payments from the Registrant’s customers. As a result, the Registrant expects that its accounts receivable will increase by approximately $24 million and unrestricted cash will decrease by approximately $16 million as of June 30, 2015 as compared to the same period of the last fiscal year.

[RealDutch]

of course you used the "it was a short seller that bribed an employee" as an excuse for the fraudulent bank statements provided to the auditors by the company

I have already explained to you what my point was.

regarding just the low level employee, read the SEC filings again - IT WAS THE MANAGEMENT OF THE COMPANY THAT KNOWINGLY PROVIDED THE FALSE BANK STATEMENTS TO THE AUDITOR

Knowingly? Hardly. I sincerely doubt it. Another accusation that lacks evidence.

[236T568]

So tell us again how a corporate governance issue results in all the cash, $16 million worth, being missing from the SKBI bank accounts and the failure to collect 2 months worth of revenues, $24 million, when previous financials showed that the $24 million was collected.

In addition to the fraudulent bank statements provided by the company to the auditors, you have one big scam company here!

Look, Nasdaq are as clueless as they come. Obviously the company investigated the matter, how else could they fire the employee?
What this is, or could be, is a corporate governance issue. At an earlier stage.

[RealDutch]

The information to which Nasdaq referred was the conduct by the Company’s audit committee of an internal investigation into certain allegations, raised by the Company’s auditors, that the auditors had been presented by Company personnel with false bank documents relating to one bank account.

That has nothing to do with what I said. This after the fact. How the audit committee behaved AFTER the problem was detected.

Look, Nasdaq are as clueless as they come. Obviously the company investigated the matter, how else could they fire the employee?
What this is, or could be, is a corporate governance issue. At an earlier stage.

[236T568]

seriously?

of course you used the "it was a short seller that bribed an employee" as an excuse for the fraudulent bank statements provided to the auditors by the company

regarding just the low level employee, read the SEC filings again - IT WAS THE MANAGEMENT OF THE COMPANY THAT KNOWINGLY PROVIDED THE FALSE BANK STATEMENTS TO THE AUDITOR

I didn't use it as an excuse. I said anything is possible. My point is simply, should thousands of shareholders pay the price when one low level employee screws up or commits fraud? The answer has to be, no. You can't be that clueless and not see it.

[RealDutch]

the excuse that some evil short seller bribed an employee to provide false bank statements to the auditors

I didn't use it as an excuse. I said anything is possible. My point is simply, should thousands of shareholders pay the price when one low level employee screws up or commits fraud? The answer has to be, no. You can't be that clueless and not see it.

and that this also caused all of the cash, $16 million, to be missing

You still haven't provided any evidence to support that claim. Mentioning it 6 times doesn't make it more truthful.

[236T568]

I'm sorry, but what part of the audit committee's conduct regarding the false bank statements, as per SKBI's very own SEC filings, did YOU NOT UNDERSTAND?



http://www.sec.gov/Archives/edgar/data/1076939/000114420415060610/v422717_8k.htm

Nasdaq also notified the Company of two additional, and separate, bases for delisting under Listing Rule 5250(b)(1) (failure to disclose material non-public information) and Listing Rule 5101 (public interest concerns). The information to which Nasdaq referred was the conduct by the Company’s audit committee of an internal investigation into certain allegations, raised by the Company’s auditors, that the auditors had been presented by Company personnel with false bank documents relating to one bank account.

No I am not. But if this were a US company, then the employee would be proscecuted and that would be the end of it. You can't sue the company because they haven't reported anything yet.

But one has to wonder why the bank statements were passed on by higher level employees to the auditor. Where was the audit committee? Was it their responsibility to check it first? Now it will become a corporate governance issue. And the auditor may very well be pressing the company to disclose that internal controls are not effective, etc.

But, it's none of Nasdaq's business. Because they haven't bloody reported it yet! And all you fraud mongering shorts can do is yell "fraud". Which is wrong.

[RealDutch]

he will defend it for defending it's sake.

No I am not. But if this were a US company, then the employee would be proscecuted and that would be the end of it. You can't sue the company because they haven't reported anything yet.

But one has to wonder why the bank statements were passed on by higher level employees to the auditor. Where was the audit committee? Was it their responsibility to check it first? Now it will become a corporate governance issue. And the auditor may very well be pressing the company to disclose that internal controls are not effective, etc.

But, it's none of Nasdaq's business. Because they haven't bloody reported it yet! And all you fraud mongering shorts can do is yell "fraud". Which is wrong.