There was an interesting trend occurring in the markets that we saw during early morning action and throughout the day yesterday. Several Chinese stocks are getting slammed. It is thought to be a result of the malfeasance suspected (so it was reported) that may be showing up from Fuqi (FUQI).
“China growth names appear to be weak on FUQI’s malfeasance”
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The real question is whether this is anything more than a real accounting matter or something more. Further, is this a buying opportunity for companies other than Fuqi? If history is any guide, it should be -- as most of these events turn out to be nothing more than great profit opportunities.
Disclosure: Horowitz & Company clients may hold positions of securities mentioned as of the date published.