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What: Camelot Information Systems (NYSE: CIS ) popped 10% in intraday trading today after the company provided additional information on cash flow and balances.
So what: Several Chinese companies, including Longtop Financial Technologies (NYSE: LFT ) and VanceInfo Technologies (NYSE: VIT ) , have been accused of accounting fraud, raising concerns about the reliability of financial reports from other Chinese companies. These fears pressured Camelot's stock on Monday and Tuesday.
Now what: On Wednesday Camelot announced a $20 million stock buyback program. Today it issued a press release explaining a large number of accounts with small balances and provided a copy of a Citibank statement that accounts for 73% of its cash, unaudited cash flow statements for the first quarters of 2011 and 2010, and an unaudited list identifying the cash balance and location of each of its bank accounts. Despite the information being unaudited -- and questions about the quality of audited financial statements of Chinese companies -- investors are comforted by the additional information.
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