I had previously written that I was long a Chinese bromine producer Gulf Resources (NASDAQ:GURE) as a speculative trade. I am dumping it today as another Chinese company that trades in the US, Longwei Petroleum, was accused of being a fraud. The financials of these companies simply cannot be trusted. Stay away! I am getting out with a slight loss but it is better than what Longwei shareholders are seeing as the stock is down around 75% just today.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.