I have been exploring a few companies in the Asian markets, especially Chinese companies listed in the HKSE. I've discovered more than just a few companies score poorly when it comes to the BENEISH M-SCORE. Even Chinese based companies listed in U.S markets don't fair well in this department, such as BABA (Alibaba). Maybe it doesn't matter? Maybe it does? Maybe no one notices or care...seems fishy to me.
I was wondering if anyone has the slightest idea why some Beneish M-scores don't even compute? Judging by the calculations from the data given by Morningstar and GURUFOCUS, it seems the numbers just don'tmake sense.
As a result, I noticed that even a huge property developer for example China Vanke (02202), eventually just don't give a score as a result. All we get is 0.00, 0.00, 0.00, (Dec 2015 - Dec 2017) respectively.
I was wondering if someone can shed some light into this? If we can't get a Beneish M-Score does that mean the numbers are highly manipulated or its just doesn't apply to this type of company or industry?