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  • Water: More Important to China Than Oil [View article]
    agreed. blog.geoinvesting.com/...
    Jan 5 01:38 PM | Likes Like |Link to Comment
  • 27 Red Flags for Chinese RTO Stock Investors to Look For [View article]
    Archrun,

    Thanks for the input.. I will expand the red flag list. I think its more of the hate right now lol. But hopefully this will change once we can go back to trusting SEC filings and making decisions based on fact, rather than conjecture and hype.

    Maj
    Dec 26 08:01 PM | Likes Like |Link to Comment
  • 27 Red Flags for Chinese RTO Stock Investors to Look For [View article]
    John,

    Trust me.. I am also conflicted. I had voiced my new portfolio allocation strategy not too long ago where i suggested no more than a 25% allocation strategy to this space. I am currently much less than that. I have also said that I do think it is risky business to be involved with RTO and even some IPOs until at least 2010 audits are completed. i have no problem avoiding RTO unless extreme DD is done on a prospect.. (i am launching a DD board) even then you will probably get better prices waiting for this mess to clear up. Overall, I still think most players are too lax. But if we do come across a name via DD that is painted with a broad brush of pessimism we can consider it for a trade. Overall, I currently look at the space as a trading market to the long and short side. I am not comfortable holding positions overnight. What has been lost is the enormous amount of money being made in U.S. stocks
    Maj
    Dec 23 01:11 PM | Likes Like |Link to Comment
  • 27 Red Flags for Chinese RTO Stock Investors to Look For [View article]
    My question.. why do an offering after they basically said they had enough funds and closed on bank deals?

    Maj
    Dec 22 02:23 AM | 1 Like Like |Link to Comment
  • 27 Red Flags for Chinese RTO Stock Investors to Look For [View article]
    Kieth,

    I will have a full report soon. I am in the process of verifying ~$30 million land right use claim. It seems a little high at first glance.

    Maj
    Dec 22 02:21 AM | 1 Like Like |Link to Comment
  • 27 Red Flags for Chinese RTO Stock Investors to Look For [View article]
    As of December 31, 2009, the end of the fiscal year covered by this report, our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, has performed an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934).


    Based on the evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were ineffective at the reasonable assurance level.

    As indicated in Item 9A(T) of the 2008 Form 10-K, we concluded that the Company lacked of effective internal audit function as of December 31, 2008 because we lacked an internal audit department, which rendered the Company ineffective in preventing and detecting control lapses and errors in the accounting of certain key areas. We attempted to remediate this material weakness in year 2009 through setting up an internal audit department and appointing one person to carry out internal audit function. However, the material weakness had not been removed due to our insufficient number of qualified resources and lacking of substantial internal audit work.

    However, they are in the process of addressing this issue.
    Maj
    Dec 22 02:19 AM | Likes Like |Link to Comment
  • 27 Red Flags for Chinese RTO Stock Investors to Look For [View article]
    Correct, Born is not an RTO. I should have included an * with a note.

    Maj
    Dec 22 02:15 AM | Likes Like |Link to Comment
  • 27 Red Flags for Chinese RTO Stock Investors to Look For [View article]
    Frog_Belly1,

    Sure.. When corrective measure are taken and completed I will take notice. That is when real P/E expansion will occur. 2011 could see a nice rise for Chinese stocks that pass auditor litmus tests. SKBI is trying to rectify its issues, which is a good thing. But why file that S-1 in the first place? Just a bad decision in the first place. Operationally it's time for the company to deliver consistent EPS growth. What does your DD show for EPS growth in 2011? I see only 10% to 15% growth via estimates.

    Maj
    Dec 19 09:50 PM | Likes Like |Link to Comment
  • 27 Red Flags for Chinese RTO Stock Investors to Look For [View article]
    Archetypal,

    My best guess is that BORN will need to tap financial markets before June of 2011, maybe in the first quarter. According to management, it has already pre sold 80% of capacity. Also, the company clearly wanted to raise more money in their IPO (I believe around $14 per share, but settled for $7).

    Maj
    Dec 19 09:38 PM | Likes Like |Link to Comment
  • 27 Red Flags for Chinese RTO Stock Investors to Look For [View article]
    Sorry Dutch...

    That reply was meant for Seekingjustice post.

    Maj
    Dec 19 02:34 PM | Likes Like |Link to Comment
  • 27 Red Flags for Chinese RTO Stock Investors to Look For [View article]
    BTW.. More to my response to you from earlier.. Please reference this article where I mentioned the credit rating issue.

    geoinvesting.com/compa...

    Maj
    Dec 19 02:32 PM | Likes Like |Link to Comment
  • 27 Red Flags for Chinese RTO Stock Investors to Look For [View article]
    Jo,

    Yes.. Seasoned companies are slowly cleaning up their act. But we still need to inspire change for the new RTOs, pre public.

    Maj
    Dec 19 02:07 PM | 3 Likes Like |Link to Comment
  • 27 Red Flags for Chinese RTO Stock Investors to Look For [View article]
    Is that question intended for me?

    Maj
    Dec 19 02:06 PM | 1 Like Like |Link to Comment
  • 27 Red Flags for Chinese RTO Stock Investors to Look For [View article]
    2011 will be interesting. We need to get past 2010 audits, at which time P/E expansion may occur rapidly for the firms that pass, provided that inflation and PRC monetary policy do not get in the way of market sentiment.

    Maj
    Dec 19 02:04 PM | 1 Like Like |Link to Comment
  • 27 Red Flags for Chinese RTO Stock Investors to Look For [View article]
    My trading position in CCME was Long, but I closed out my position at the end of the day (Friday). I will look to trade this and many other names depending on market sentiment and my own DD. My motives are to be aware of where shorts may strike next to protect my long portfolio, avoid or short stocks that have serious issues and go long strong name. It is also intended to force companies to take corrective measures ASAP. The Header of the fraud list is Red Flags Commonly Used to INSINUATE fraud.

    I am not saying these items prove fraud.

    Regarding CCME credit rating.. I don't think its a big deal, yet. And I certainly did not think this was new news. I need to dig up my docs again, but I think it was a rating based on SAIC filings which many feel are useless. Regardless, the rating is out there and investors should know that it can be used as a potential weapon by shorts. I am searching for other credit rating reports which will hopefully contradict what I initially found. Overall, CCME has done a great job in its attempts to establish credibility.

    It is funny that you are upset that I have not offered resolution when you should be asking companies to take on this task instead of raising money at obscene multiples. And for your information.. I have not just left the info hanging out there as you assume.... the points in this article are what others have documented, well before I have. And I have discussed many of these stocks on my site and in articles. But I am curious as to the extent of what your DD has been in the ChinaHybrid space? It is also funny how many investors have no problem admiring view points that support a bullish opinion, while becoming infuriated when challenged by even minor contradictory points.

    This article was not even negative.

    Maj
    Dec 19 02:00 PM | 3 Likes Like |Link to Comment
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