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Re: drudow post# 2484

Monday, 02/14/2011 6:16:30 AM

Monday, February 14, 2011 6:16:30 AM

Post# of 2542
No, I tried contacting them but didn't get a response. I never tried contacting the accounting firm.

I've sold my shares a long time ago. I'm personally pretty embarrassed about owning it. I should have done basic due diligence such as "is there a basic way to contact the company?" Pabrai was right, checklist are important. =P

I'm no longer a skeptic about RTO chinese companies, I'm a cynic. I'm sure there are a few companies that are honest, but the system is very corrupt. It's too easy for these small chinese firms to abuse US shareholder's capital. They often have very funny ownership structures, lack any kind of dividend/stock buyback, and their accounting is absolutely horrible. Often times their net income is much higher than their cash flow from operations - which usually means they are fidgeting numbers.

Don't worry if you can't speak chinese. Just call them up anyways. English is the world language, even if they don't know how to speak it, they will probably get someone on the phone who can stumble through the language for you. If you find a company that you really can't contact because of the language, and it's a phone number that actually connects with someone...you can send me a message. i might be interested in calling them for you.

Good luck drudow.


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