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Jeffrey Friedland

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  • Is The SEC Action Against Auditors Of Chinese Companies One Of Gunboat Diplomacy? [View article]
    I'm not totally sure of the time line, but, I believe that the tougher review policy which was put into place by the PCAOB was after many of these companies were already public. Also, I believe that under Dodd Frank, as it eventually got implemented required more auditor scrutiny. So, to some extent, part of the reason we're where we're at is that the rules were changed.

    At the same time, as I see it, China got huffy with the SEC's and PCAOB's attitude from a "sovereignty' perspective and then put in their own rules.
    Dec 7 07:14 AM | Likes Like |Link to Comment
  • Is The SEC Action Against Auditors Of Chinese Companies One Of Gunboat Diplomacy? [View article]
    With the share prices of Chinese companies listed in the U.S. down so significantly over the past year or so, I don't see any bubble ready to burst.

    Keep in mind that at the end of the day the Chinese economy is "working" and the economies of Europe and the U.S. are muddling along.

    Let's see how this all plays out. It's definitely more about the U.S. versus China than really SEC. What I think Americans need to realize is that China's economic success doesn't have to be at the expense of America's. There is no reason that China's economy can't continue to grow and the U.S. economy doing well too.

    Jeff
    Dec 6 01:45 PM | Likes Like |Link to Comment
  • Is The SEC Action Against Auditors Of Chinese Companies One Of Gunboat Diplomacy? [View article]
    Please note that a "majority" of Chinese companies listed in the U.S. have not in fact been frauds. So far it's only been a few that have actually been proven to have engaged in fraudulent activity.

    The benefit to the Chinese companies is access to capital and theoretically a liquid market. The benefit to the U.S. is retaining its stature as "the" global financial center, which benefits American citizens, entrepreneurs and business owners.

    Also, a reminder that the U.S. has had its share of frauds as well, Keep in mind MF Global, Enron and Bernie Madoff.
    Dec 6 12:12 PM | 2 Likes Like |Link to Comment
  • Is The SEC Action Against Auditors Of Chinese Companies One Of Gunboat Diplomacy? [View article]
    Thanks for your positive response.

    Jeff
    Dec 6 12:08 PM | Likes Like |Link to Comment
  • Is The SEC Action Against Auditors Of Chinese Companies One Of Gunboat Diplomacy? [View article]
    You're right. No regulator can protect 100% against frauds. Remember Bernie Madoff, MF Global and Enron.

    But you are absolutely correct about the effect of protectionism. Take a look at what is going on in Argentina right now with its economy.
    Dec 6 12:08 PM | 1 Like Like |Link to Comment
  • Is The SEC Action Against Auditors Of Chinese Companies One Of Gunboat Diplomacy? [View article]
    P: You're correct. It's definitely a symbiotic relationship for the US and China.

    And, as I've said, it's not a question of China succeeding and growing at America's expense.Both economies should be able to succeed and grow.

    Jeff
    Dec 6 09:30 AM | 1 Like Like |Link to Comment
  • Is The SEC Action Against Auditors Of Chinese Companies One Of Gunboat Diplomacy? [View article]
    You're absolutely correct.
    Dec 6 09:28 AM | 1 Like Like |Link to Comment
  • Is The SEC Action Against Auditors Of Chinese Companies One Of Gunboat Diplomacy? [View article]
    There are two sides to the discussion. You could ask if China needs us as much as we need them. Should China change the regulations or should the US?

    This becomes I think a conversation of sovereignty and I don't see China giving in so quickly and losing face with its populace.

    Let's see what develops over the coming days. Likely there will be more posturing by both the US and China.
    Dec 6 09:28 AM | Likes Like |Link to Comment
  • Is The SEC Action Against Auditors Of Chinese Companies One Of Gunboat Diplomacy? [View article]
    Regarding Apple, I don't disagree with your conclusions. Their products are good, but competition has caught up with them. And, Steve Jobs is not at the helm.

    But, I believe an Apple TV is supposed to be out sometime in the first quarter. If this product is really good, and if it is a way for consumers to avoid having two or three remote controls, it could give Apple an entirely new market that could be huge.
    Dec 6 08:25 AM | 1 Like Like |Link to Comment
  • Is The SEC Action Against Auditors Of Chinese Companies One Of Gunboat Diplomacy? [View article]
    The Chinese law was changed after most of these companies were trading. Also, the PCAOB and SEC rules, I believe were beefed up to require it after most of the companies became public as well, including some requirements in Dodd-Frank bill.
    Dec 6 08:23 AM | Likes Like |Link to Comment
  • Is The SEC Action Against Auditors Of Chinese Companies One Of Gunboat Diplomacy? [View article]
    I did see that CTRP got hit the day before, but wanted to comment on how shares traded, not the day the news was out, but after the "dust settled."

    Jeffrey Friedland
    Dec 6 07:01 AM | 2 Likes Like |Link to Comment
  • Is The SEC Action Against Auditors Of Chinese Companies One Of Gunboat Diplomacy? [View article]
    My conclusion is that investors came to the conclusion that the bigger companies such as PTR and CHL, who had truly global, not just US shareholder bases, because of their size and political connections in China would be likely to have a path to a resolution than smaller companies, including those in the tech space, who had substantially smaller operations and weren't as "important" to the authorities in Beijing.
    Dec 6 07:00 AM | 1 Like Like |Link to Comment
  • Is The SEC Action Against Auditors Of Chinese Companies One Of Gunboat Diplomacy? [View article]
    The problem is that if they became "deregistered" with the SEC, they couldn't even trade on OTC Markets (OB) or on the OTC Bulletin Board. They would be true pink sheet companies with no disclosure. In reality, most of them would not be able to go this way in that they would not meet SEC requirements for being non-reporting companies.

    If they were "deregistered" then they wouldn't meet exchange (NYSE or Nasdaq) requirements to retain their listings.

    So, a resolution needs to be found, sooner rather than later for these companies to be able to remain registered with the SEC.
    Dec 6 06:58 AM | 1 Like Like |Link to Comment
  • A Tale Of 2 Companies - Consolidation In The Global Steel Industry [View article]
    Gausmus: Thanks for your comments and I generally agree with them.

    I believe that countries have believed and taken action based on their belief that they needed to be a steel producer as a step toward industrialization. Then, you're correct, inefficient and state on enterprises, or state protected enterprises continue, whether run efficiently or profitable or not.

    But, I can also look at a private company, such as China Industrial Steel in China and see a 100% privately-owned venture that has historically outperformed state owned or state controlled producers.

    But, I don't agree that in certain countries, including China that companies will necessarily be profitless "zombies" as you state. In China there is such a huge demand for steel domestically that I believe that not only will there be consolidation, but also that privately-owned companies as opposed to state-owned enterprises will in fact be able to not only thrive, but be the acquirers and be profitable. Time will tell.

    And, some producers, such as China Industrial Steel are not "exporting unemployment" as you suggested, but produce for the local market.

    But, as an investor I'd rather invest in a steel producer that has or is profitable in an "economy that is working," that is growing, and has a future as a manufacture such as China, than I would a steel producer in the US, or as you referenced France.

    I don't think a revision of my article is needed, but instead I think a follow-up article about governmental involvement in the steel industry, the long-term capacity issues you referenced as well as the implications regarding the industry and profitability would definitely be in order.

    Jeffrey Friedland
    Dec 3 07:13 PM | Likes Like |Link to Comment
  • Q3 Earnings Confirm Xinyuan Real Estate Well Positioned For Growth [View article]
    My personal opinion is that the company will not be an acquisition target for a US homebuilder. With the complexities of doing business in the PRC, the need to have local political, business and family connections, I don't see a US homebuilder wanting to even attempt the Chinese market.
    Dec 3 06:58 PM | Likes Like |Link to Comment
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