megiddo666

Critical Moment for China Expert Technology

Seems like there is a very big problem with CXTIE.OB. JLF Funds, and Jeff Feinberg Here is a post from the Google CXTIE site:

Simon Fu, the CFO who resigned from China Expert and presumably caused the beginning of the stock slide, was recently hired by HollySys which is being acquired -- perhaps not coincidentally -- by Chardan North China Acquisition Corp, another firm that has 10% or more beneficial ownership by Jeff Feinberg's JLF OFFSHORE FUND LTD. In fact, Jeff's company reported owning more than one fifth of Chardan as of July 2007.

Being that Jeff Feinberg's fund is also the one that has been dumping millions of shares of CXTI, this begs some questions:

(1) Feinberg began massively selling CXTI stock almost immediately
following Simon Fu's announced resignation in late July. Assuming
there had to be some type of interview, offer, etc. in the hiring of Simon Fu, this would indicate a near immediate hiring of Simon away from China Expert.

The "shock" that other investors might have over Simon Fu's
resignation should not have "shocked" Jeff Feinberg were Simon being whisked away to work for Chardan. So it's unusual
both that the selling began right after that announcement, and that
the heavy selling as continued since.

(2) IF something is about to happen with CXTI earnings or if they
simply do not report and get delisted, and Simon Fu is aware of it but chose not to disclose it, an important question one would have to ask is if Jeff Feinberg's fund as one of the largest owners of the company acquiring Simon Fu's new employer is aware of it and trading on. Of course, we would hope and have to presume not, as I believe that is what is called insider trading, but on the other hand, if the "other shoe" does drop with CXTI, rest assured that every investor in CXTI will start taking an exceptionally hard look at these relationships.

Think the SEC would be interested?