Michael Sacerdote
Biotech

Fishy Business At Pingtan Marine Enterprise

To the unwary, Pingtan Marine Enterprise (NASDAQ:PME) appears to embody the best of the Chinese economic miracle: rapid growth, low valuations, and seemingly limitless future possibilities. Unfortunately, the shining growth story is clouded by worrisome bookkeeping, a corporate structure that seems designed to circumvent investors' legal claims, and huge related-party transactions that seem to transfer assets from shareholders to the CEO's family. While management has gotten rich from Pingtan Marine Enterprise, American investors will probably end up losing most or all of their money.

(click to enlarge)

Fish images in this article taken from the corporate website. Above, conger eels.

The long thesis

Pingtan's long thesis is as follows: initially, the fishing industry in China was highly...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details