China Trading Stocks

[kindama]

Re: TRITF

Thanks. I can cover my high cost short. I lost a bundle owning this stock on the way down because it seemed like it was perfectly placed to address important water needs in China. And it was reporting excellent (but seemingly not unrealistic) earnings.

At this point it's not clear to me whether the company perpetrated a fraud or was a victim of fraud. Unfortunately the shareholders lose either way.

One lesson from this is to avoid any long-term investment in VIE structures. It's hard to get cash out to reward shareholders when times are good. And there are too many examples of the structure unraveling when times are bad.