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Nice Labor Day Weekend CSKI disclosure

|Includes:China Sky One Medical, Inc. (CSKI)

 I've been following several of the articles recently about many Chinese reverse mergers appear to be frauds. Today, CSKI decided to follow the grand tradition of dodgy companies and make a damaging disclosure (lower guidance and a CFO resignation) right before a long holiday weekend. From their 8-K:

"Management’s reduced guidance reflects the termination of relationships with certain private distributors, who after several rounds of discussions, chose to end their cooperation with the Company after learning that their business information was disclosed in the Company’s public SEC filings and would continue to be disclosed in such documents as required by SEC regulations. This disclosure, these distributors claim, has led to increased scrutiny of their financial performance by government authorities within China."

Other than that I'm sure their business is totally on the up-and-up.

Disclosure: Short CSKI

Stocks: CSKI