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  • Darn Them Piggies! Pork Prices And The Inflation Outlook For China [View article]
    Articles from credible sources like this might save Seeking Alpha from becoming just a bad joke tool of the shorts.
    Sep 13, 2011. 08:35 AM | Likes Like |Link to Comment
  • Build My Portfolio: Helping This Baby Boomer Doctor Reach His Retirement Goals [View article]
    Only $150,000 to invest out of $600,000 after tax each year ? Sounds like somebody's lighting their cigars with hundred dollar bills to impress the ladies.
    Sep 11, 2011. 02:29 PM | Likes Like |Link to Comment
  • Lihua International And The Danger Of Chinese RTOs [View article]
    Article is all guilt by association and weak, repetitive reasoning. Total garbage which has nothing to do with LIWA. Just laughable.
    Sep 1, 2011. 04:17 PM | 1 Like Like |Link to Comment
  • Lihua International: One Of The Best Risk/Return Opportunities [View article]
    That Weinberg thinks the SEC and SAIC filings are significant tells me all I need to know about him.
    Aug 24, 2011. 06:43 PM | 1 Like Like |Link to Comment
  • Lihua International: We Think Undisclosed Related Party Transactions Occurred [View article]
    Kerrisdale in the above article says:

    " In the agreement, it states that they, Huaying, can sell only scrap copper to Lihua and we can only buy at 10 RMB per ton as the offering cost. "

    So the agreement states a related company will sell LIWA a whole ton of copper for a fraction of the price of just one pound ? Somebody's playing fast and loose with the facts and it appears it's Kerrisdale.
    Aug 6, 2011. 07:01 PM | 1 Like Like |Link to Comment
  • China Sky One Medical: How Can Anyone Doubt Its Integrity, Growth and Valuation? [View article]
    Dear both of you,

    Whether the SEC numbers match the SAIC numbers is a totally bogus " issue " invented by shorts to scare clueless longs.

    The SAIC is a business licensing bureau. It is not the SEC. Not even close.
    Jul 29, 2011. 04:44 PM | 2 Likes Like |Link to Comment
  • Investing in Chinese ADRs Is Not as Simple as Following IBD's Checklist [View article]
    Are smallcap RTO's " chinese ADR's " or US corporations structured as holding companies with chinese operating subsidiaries ? These stocks are listed only in the US and not on any foreign exchange so my understanding is they are not ADR's as the article repeatedly states.

    That faux pas seems a biggie and brings into question the credibility of the rest of the article although the author does make some reasonable points.
    Jul 28, 2011. 09:32 AM | Likes Like |Link to Comment
  • The Best Way to Limit Your Risk in China [View article]
    The only thing that's gotten out of hand is the panic in China small caps which is nourished by articles like this full of dire sounding innuendo. Shorting China small caps has turned into a full blown mania which will end as all manias do, badly for those who fail to recognize when the party's over.
    May 27, 2011. 08:34 AM | 1 Like Like |Link to Comment
  • U.S. Listed Chinese Stocks: Mistreated and Undervalued (Part 2) [View article]
    Hats off to you, Kurt, for another well thought out article.

    My fear is shorts will be successful in their campaign of lies and exaggerrations forcing chinese small caps to delist in the US and relist in other markets which allow them to raise capital on more favorable terms. These shenanigans may serve to deprive US investors of the opportunity to directly participate in the huge chinese growth of the 21st century.

    Whatever near term gains shorts make by their unethical tactics may be dwarfed by the huge loss of opportunity for long US investors to gain via chinese growth. That would truly be a shame.
    Feb 16, 2011. 09:15 PM | 3 Likes Like |Link to Comment
  • U.S.-Listed Chinese Stocks - Gravely Mistreated & Far Undervalued (Part 1) [View instapost]
    It's hard to see how the initial shorts will lose money. For the " me too " or late to the party shorts it's an entirely different situation as you suggest.

    In order for initial shorters to cover cheaply, they need late-comers to keep the price down. Late-comer shorts will discover the initial shorters are no more bothered by screwing them as they are by screwing longs. It's all about timing and making money. Whose pocket it comes from is totally irrelevant.
    Feb 12, 2011. 09:49 AM | 2 Likes Like |Link to Comment
  • U.S.-Listed Chinese Stocks - Gravely Mistreated & Far Undervalued (Part 1) [View instapost]
    " The use of the percentage-of-completion method requires significant judgment to estimating total contract revenues and costs "

    Rino did business with state owned steel companies that were ordered to clean up or shut down. Rino could assume it was inevitably going to get a contract and begin fabricating in anticipation of eventually signing. The importance of personal relationships in a controlled economy could lead the CEO to make what would be an unexceptably aggressive judgment in a free western country. I'm not saying it's right or defensible but that judgment is understandable under the particular circumstances.

    One other thought on your article. Are investment banks, who were denied possible income by chinese companies choosing the reverse merger process instead of a traditional IPO, tacitly or overtly complicit in a campaign to see the companies fail as investment vehicles ? It is in the investment banks' financial interests to see the reverse merger route sabotaged.
    Feb 11, 2011. 07:22 PM | 3 Likes Like |Link to Comment
  • U.S.-Listed Chinese Stocks - Gravely Mistreated & Far Undervalued (Part 1) [View instapost]
    Bottom of pg37 in Rino's 3/31/10 10K :

    Revenue Recognition
    Contracts. The Company enters into long-term fixed-price contracts with customers to manufacture and install industrial equipment.
    Revenue on long-term fixed-price contracts is recognized under the percentage-of-completion method. Under the
    percentage-of-completion method, management estimates the percentage-of-completion based upon costs incurred to date as a
    percentage of the total estimated costs to the customer. When total cost estimates exceed revenues, the Company accrues for the
    estimated losses immediately. The use of the percentage-of-completion method requires significant judgment to estimating total
    contract revenues and costs, including assumptions relative concerning the length of time to complete the project, the nature and
    complexity of the work to be performed, and anticipated changes in estimated costs. Estimates of total contract revenues and costs are
    continuously monitored during the term of the contract, and recorded revenues and costs are subject to revision as the contract
    progresses. When revisions in estimated contract revenues and costs are determined, such adjustments are recorded in the period in which they are first identified.

    A controversial policy but not undisclosed.
    Feb 11, 2011. 07:00 PM | 2 Likes Like |Link to Comment
  • U.S.-Listed Chinese Stocks - Gravely Mistreated & Far Undervalued (Part 1) [View instapost]
    " RINO International appears to have overstated their past revenue since two contracts for which they reported receiving revenue were never finalized. "

    This is what the CEO said. However, read RINO's last 10K and see that was not deceptive behavior but allowed by RINO's revenue recognition methodology. Whether this methodology was overly aggressive can be legitimately debated but there was nothing surreptitious about it as shorts would like everyone to believe.
    Feb 10, 2011. 05:22 PM | 1 Like Like |Link to Comment