Chopping Block
Renowned for targeting fraudulent companies in corporate China, Carson Block is about to swap being chased by triads for the patter of a different type of feet, at least for a while, writes Alex Frew McMillan
Short seller Carson Block, thorn in the side of numerous Chinese companies listed in North America, is in a reflective mood. He and his wife are expecting their first child, and the prospect of fatherhood seems to have tamed him.
"There are no great stories of kite surfing off the Maldives," Block, 37, says with a laugh about his recent activity. "I'm keeping up with friends and family. And of course I'm also running a business - that takes time."
Impending fatherhood or not, when it comes to business, the entrepreneur, self-storage company founder and sole full-time employee of Muddy Waters Research still has his prickly side. He continues to have barbed words for what he feels are questionable companies in this part of the world. And he's expanding his focus into emerging markets in general, taking on companies like Singapore-based commodity trader Olam International over its operations in Africa, in particular.
His most recent target is American Tower (AMT), which he slammed with a "strong sell" vote on July 17, alleging there's a US$250 million discrepancy between what AMT said it paid for cell-phone towers in Brazil and the actual sale price, complete with photos of the less-than-salubrious São Paulo residence that houses the accounting firm that made the valuation.
Block also takes issue with AMT's stated revenue numbers, and says the firm faces asset impairment of US$272 million on cell-phone towers in Ghana.
Africa is a new focus thanks to what Block sees as a cluster of unwise developed-world companies flashing wads of cash in a continent they don't understand.
