SinoCoking: Promoted Chinese Reverse Merger Near Bankruptcy, -81.9% Downside, Strong Sell
- SCOK temporarily benefiting from stock promotion by paid IR firm aimed at Chinese “social media website” investors.
- SCOK near insolvency with questionable auditor and CFO turnover while company financials continue to have "material weakness" as executives conclude disclosure controls and procedures are not effective.
- My research shows SCOK “technology” claims are clearly not viable and without value.
- SCOK already high leverage while actively pursuing more debt creates high bankruptcy risk and total wipeout potential for shareholders.
- Even assuming management is credible with viable technology and can avoid bankruptcy, stock valuation appears impossibly inflated leaving -81.9% downside from current trading prices.