The GeoTeam Publishes Fraud Call on Zhongpin

On Wednesday,

published a report on Zhongpin

, a reverse-merger Chinese pork company. In the report, GeoTeam alleges that the company has overstated its income and has deceptive financial filings. GeoTeam writes, "Over 6 years HOGS' revenue has increased 20 fold (2,000%) to nearly $1 billion in 2010 from $42 million in 2004. During that time, store count has only roughly doubled." GeoTeam also cites a negative report by

. In its own negative report, CER writes, "Zhongpin claims it purchases 1.1 million hogs from large breeding farms in Henan annually, but the farms say only 81k, 93% less than Zhongpin's reported figure." GeoTeam also raised the question on the Zhongpin's financing. "[On November 9, 2010] HOGS discloses in its 10-Q for the period ended September 30, 2010 that existing funds 'will be sufficient to finance…investments…of $105.8 million over the next 12 months…within one month, HOGS filed a $250 million shelf filing (over 1/3 of market cap at the time), and disclosed that Selling Stockholders may sell as many as 9.5 million shares," GeoTeam notes. Zhongpin is currently trading at $8.54, down almost 2% on the session. Read more

.