Autonomy and the Santangel’s Investor Forum
As many of you know by now, John Hempton’s presentation at the Santangel’s Investor Forum last month included some discussion on Autonomy and he made a convincing case that the financial statements were not kosher. Several news outlets have written about it including The New York Times and Reuters.
“A few weeks ago I presented at the Santangels conference in New York. The conference was held under Chatham House rules. My topic: how to fake your accounts from the perspective of the fraudster (and hence how as an investor to tell if a company is faking its accounts). At the end I suggested that even if you were right and the company was a fraud you could still short the stock and lose money – someone with deep pockets might buy the fraud. The example I gave was Autonomy which was purchased by Hewlett Packard. Yesterday Hewlett Packard admitted that Autonomy was a grotesque fraud. They wrote off most of the purchase price.” (Read more)