Telestone Technologies Corp. (fka TSTC)

[Yale_MBA]

I don't see how any of these events will impact TSTC. The world is moving on to newer technologies and TSTC is stuck in the past/present. IMO we will be able to buy shares of TSTC for around a quarter (.25) by the end of the year. That is if it ever becomes trade able again.

[kel4]

U.S. deal with China on document access

U.S. audit regulator reaches deal with China on document access
By Dena Aubin and Sarah N. Lynch
NEW YORK | Fri May 24, 2013 4:29pm EDT
(Reuters)

- U.S. regulators will get access to Chinese companies' audit documents under a deal announced on Friday, opening the way to probes of bungled audits after a two-year stand-off between China and the United States.

The nonbinding deal is only a partial victory for the United States, which has been blocked from investigating accounting scandals at dozens of Chinese companies listed on U.S. stock exchanges.

It applies only to enforcement cases against auditors, not against China-based companies suspected of accounting fraud. And it does not allow U.S. regulators to do on-the-ground inspections of auditors in China - a key part of efforts to combat fraud.

"This deal would allow investors to find out after the fact how they were defrauded but would do nothing to prevent the fraud in the first place," said U.S. Senator Charles E. Schumer.

If a more complete agreement cannot be quickly reached, the U.S. Securities and Exchange Commission should consider de-registering Chinese firms, he said.

The pact was the result of more than two years of negotiations between the Public Company Accounting Oversight Board, the U.S. regulator for audit firms, and its counterparts in China - the China Securities Regulatory Commission and the Ministry of Finance.

Effective on May 10, it calls for the PCAOB to cooperate with the CSRC and the Ministry of Finance on the exchange of documents.

Any nonpublic documents exchanged will be kept confidential, according to a memorandum of understanding between the agencies.

BILLIONS LOST

"We will be proceeding on a good faith basis that this is going to open up some access to work papers for us," said PCAOB Chairman James Doty. "It does not replace the duty of inspecting audit engagements regularly."

The signing of the memorandum "is a significant step in China-U.S. audit oversight" and paves the way for cross-border enforcement assistance between the two countries, the CSRC said in a statement.

Investors have lost billions of dollars on Chinese companies selling shares on U.S. exchanges in accounting scandals since 2010. Many of those companies have been booted from U.S. exchanges, but hundreds still have shares trading in the United States.

The deal will have no impact on a lawsuit filed by the U.S. SEC against five top audit firms in China over their refusal to turn over documents, said SEC Commissioner Luis Aguilar.

Under Friday's agreement, the PCAOB can share documents with the SEC, but only if they were obtained for a PCAOB enforcement action.

In December, the SEC charged the Chinese affiliates of accounting firms Deloitte DLTE.UL, KPMG KPMG.UL, PricewaterhouseCoopers PWC.UL, BDO and Ernst & Young ERNY.UL with securities violations for refusing to produce documents.

The firms said that turning over the papers would put them in violation of China's state secrets law.

Even if the SEC is able to get documents through the PCAOB, it still faces hurdles in fraud investigations, attorneys said.

"For an enforcement case, the SEC would need to serve a complaint on the accused, which may be extremely difficult if a potential defendant is in China," said Jacob Frenkel, a former SEC lawyer and now a partner at Shulman Rogers.

CHINA RESISTS

The PCAOB has been negotiating with China for more than two years to get access to documents and permission to do joint inspections with the Chinese.

China resisted out of concern about exposing state secrets, triggering a high-stakes standoff and raising the risk that China-based auditors would be deregistered by the PCAOB.

That in turn could have triggered massive stock exchange delistings of China-based companies, which have to file audited financial statements to meet exchange requirements.

The deregistration of China-based auditors is not yet off the table, because they have to be inspected to have the right to audit U.S. companies, the PCAOB's Doty said.

Negotiations are continuing with China over joint inspections, Doty said.

Jason Flemmons, a senior managing director at FTI Consulting who once played a leading role at the SEC in cases against the China-based auditors, expressed skepticism about the deal.

"It could be that the Chinese are trying to change their ways and enter into this agreement in good faith," he said. But the SEC previously entered into similar agreements with China, and China has yet to turn over documents covered by those deals, he said.

Accounting firms welcomed the agreement.

"As PwC has always maintained, this has been an issue that could only be resolved between governments," PricewaterhouseCoopers said in a statement on Friday.

KPMG global Chairman Michael Andrew praised the progress made "through commonsense dialogue" among the regulators.

Edward Nusbaum, chief executive of global audit firm Grant Thornton International, said many of his firm's Chinese clients would like to do initial public offerings in the United States, and this deal might make that easier.

"It's the first time we're seeing some major movement and agreement between two regulators for such important economies," Nusbaum said.

http://www.reuters.com/article/2013/05/24/us-usa-auditing-china-idUSBRE94N0VO20130524

[kel4]

THE DIPLOMAT

Progress on China-U.S. Accounting Dispute?
By James Parker

May 22, 2013

The potentially damaging dispute between China and the United States over accounting practices and access to audit records has now been dragging on for quite some time. Unlike many other issues between the two countries, accounting was never likely to rouse the kind of passions that normally accompany trade disagreements, international alliance structures, hacking or military affairs, even if the potential for disruption is very real and considerable, as Pacific Money reported last year.

This last week however, finally brought what seemed to be a glimpse of progress in the dispute.

Professor Gillis, who is currently at China’s prestigious Peking University’s Guanghua School of Management, and who is also a member of the US Public Company Accounting Oversight Board (PCAOB), announced on his excellent China Accounting Blog that for the first time that he was optimistic that progress was being made.

He quotes PCAOB Chairman Doty as saying “I am optimistic that we will soon be able to announce a protocol to exchange documents and other information necessary to enforcement investigations and disciplinary proceedings.” As Professor Gillis goes on to state, this would be a significant if not total step back from the precipice that may have resulted in a mass de-listing and significant problems for even US-listed companies dependent on China for a significant proportion of their revenues.

Although the deal is not finalized, and it is far from clear that all sides in the dispute will be fully satisfied by the document exchange “protocol,” at least this progress offers both sides a chance to step back from their positions and engage in more cooperative dialogue. In addition, a partial or total resolution in the US-China issue will probably lead to a similar progress in the parallel dispute between Hong Kong regulators and their Chinese counterparts.

Despite the optimism this proposed “protocol” suggests, some questions remain. The PCAOB in particular, will be making quite a compromise, since the documents that will presumably be shipped from China for inspection will first be filtered and possibly redacted. It will be hard for the PCAOB or foreign regulators to feel assured that these redactions are solely being done on the grounds of sensitive information relating to genuine secrets.

For China too, the agreement to allow such papers to be shipped overseas in any form also represents a significant compromise, as state secrecy laws, however extreme, were fairly clear that this was not permissible. So far, the new head of the China Securities Regulatory Commission (CSRC), Xiao Gang has a strong start in office. Not only has this US-China progress been achieved, but the CSRC is in the midst of a much needed crackdown on illegal and problematic practices in China’s markets.

The upcoming Strategic and Economic Dialogue (SED) between US and China will provide an ideal platform at which to announce the partial resolution, although it is probable that much negotiation is still to come. Nonetheless, this breakthrough will allow more time for the problem to be fully resolved.

http://thediplomat.com/pacific-money/2013/05/22/progress-on-china-u-s-accounting-dispute/

[DirtyDawg]

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=86972788

Best thing that could have happened?

The entity that sold the subsidiary, that still manages the subsidiary, will not turn over any financial records.

I wonder why?

This $10.00 stock, as you have predicted over and over, will not be $.10 when the smoke clears.

What exchange will accept TSTC? Even the pinks require financials..or else it will be a "STOP", at least.

Regrets to shareholders. Some hyped this Chinese scam for many months.

[DirtyDawg]

TSTC did NOT file a plan with Nasdaq, because they cannot resolve the problem of missing paperwork/financials.

Expect a delisting.

[DirtyDawg]

Form 12b-25 filed with the SEC: May 16, 2013

State below in reasonable detail the reasons why Forms 10-K, 20-F, 11-K, 10-Q, 10-D, N-SAR, N-CSR, or the transition report or portion thereof, could not be filed within the prescribed time period.



On April 2, 2013, Telestone Technologies Corporation (the “Company”) filed a Form 12b-25 (the “Original 12b-25”), disclosing that it was still in the process of compiling the information required to be presented in its Annual Report on Form 10-K for the year ended December 31, 2012 (the “2012 10-K”) and would be unable to file the 2012 10-K within the prescribed period. In Part II of the Original 12b-25, the Company marked the box indicating that the 2012 10-K would be filed within the fifteen calendar-day grace period. On April 17, 2013, the Company amended the Original 12b-25 to disclose that it was unable file the 2012 10-K within the grace period due to delays in obtaining certain necessary financial records from its Sichuan Ruideng subsidiary (the “Subsidiary Records Issue”). The Company further disclosed that after the Subsidiary Records Issue was rectified, the Company should be able to complete the preparation of the 2012 10-K. To date, the Company has not been able to obtain the records from the Sichuan Ruideng subsidiary. The reason for this is that the prior owners of the subsidiary, who are also tasked with its management, have refused to deliver the records to the Company headquarters. The Company is currently evaluating its options for resolving this matter.



Until it resolves this matter, the Company will not be able to file the 2012 Form 10-K or the Form 10-Q for the quarter ended March 31, 2013 (the “Form 10-Q”). The Company plans to file the 2012 Form 10-K and the Form 10-Q after this issue is rectified, which is likely to occur after the five-day grace period.

[dwh]

Big Speed Bump

Looking forward to getting to the other side

[dnet]

As if things weren't bad enough, Scotttrade has taken down the chart for TSTC. Wonder what that means? Do we have anything else on the website that could bring promise to this POS?

[dnet]

Evidently so...this 10 dollar stock with the fantastic technology and being invited to the Verizon cattle call looks like it was only a scam. Go figure...where are all the supporters and hypesters now? My condolences to all those that were taken by the hype.

[tinfoil8]

Stick a fork in it. Another week gone past.

[tinfoil8]

TSTC = Pinksheets very shortly if it ever gets to trade again IMO.

Pity tax writeoff time is so far away too.

Stuckholders should thank the $10 call.

ummm Oh Yes.

HAHAHAHAHAHAHA

[space1230]

I have my reservations about this "10 dollar gem" ever trading again. If it does, I think it's a sure bet that the sell off will take it below .50 rather quickly. .15? ouch. I hope not for existing shareholders. If it ever falls below .001 we can both say "Trips, LMAO."

Predictions on where it will drop? I say it will be 15 cents a week after it resumes on OTC. That is if it even trades again

[DirtyDawg]

Best it remain .84 and cannot trade, imo.

[sbb4th]

Predictions on where it will drop? I say it will be 15 cents a week after it resumes on OTC. That is if it even trades again.

[space1230]

TSTC game over yet? May 8th and not a peep from management.

TSTC may well voluntarily de-list from the NASDAQ and join the OTC markets. Now that would be pitiful if that were to occur

[space1230]

Oh the TSTC pps will shoot down through the dirt if this resumes trading. How can one trust management when they are so incompetent to let a halt happen?

What will happen if this ever trades again? Confidence is lost, imo

[DirtyDawg]

Halted 13 trading days so far. No word from exchange whether they will approve "the plan". Shares currently not worth the paper they are written on. What will happen if this ever trades again? Confidence is lost, imo.

[dwh]

Has anyone here been through one of these Nasdaq stop trading scenario's before? Just wondering how long it takes and if financials have to be up to date and filed prior to trading resuming. Thanks

[dwh]

Guess I just took Han at his word about waiting to get numbers from the company they acquired in late 2011 for fiscal 2012. Seems reasonable.

Wondering when trading will resume - before 2012 results come out or afterwards.

[dnet]

Stuckholders...looks like you still have a bit of hope. The big questions is: Will it trade again on the NASDAQ? GL.

http://finance.yahoo.com/news/telestone-technologies-corporation-announces-filing-142400488.html

[dnet]

Looks like you could be right, PRing fluff when your company is on the line for d'listing, very sad. Tomorrow is the deadline and as of this moment it doesn't look to good for the stuck holders. This $10.00, excuse me $20.00 stock looks to be heading to .10 cents unless they can get Verizon to invite them back to another show so they can show the world again about their fantastic technology. Maybe they could get that hospital in Texas where they are supposed to be doing great things to confirm their financials. All those wonderful announcements seem to be nothing more than lies and or smoke and mirrors to scam the naive public out of their hard earned money. Shame on this NSADAQ stock! I guess having a product, having employees, having a Chinese telephone number, having an office and most importantly being listed on the NADAQ doesn't mean squat, and I forgot the most important thing, their huge manufacturing plant that is now being used as a hot house. Didn't Bernie Made-off with all the money have all those things? Sorry stock holders I hope tomorrow brings a little sunshine to your very dark skies!

[sbb4th]

It looks like they would have focused on their financials instead of a bunch of fluff that can't be verified. Bad sign.

[DirtyDawg]

Two from column A, and three from Column B. No MSG. Extra hot mustard, and pink sheet fortune cookies.

[space1230]

So they talked about all of the good that they have done in 2013 so far? or is that a Chinese menu?? Sounds like they better focus a little bit more on their financials which caused the current halt, instead of an 'operating state analysis workshop.'

THIS IS NOW ON THE TSTC CHINA WEBSITE:

Company headquarters branch 2013 operating state analysis seminar

Released date: 2013-04-27
Han Daqing, Chairman of the meeting through a data analysis of the financial statements, combs, hoping to establish and strengthen management consciousness, cost consciousness of branch heads, management responsibilities ... et cetera, et cetera and et cetera

[choateandharvard]

THIS IS NOW ON THE TSTC CHINA WEBSITE:

Company headquarters branch 2013 operating state analysis seminar

Released date: 2013-04-27

Recently, the East Branch 2013 operating state analysis workshop was held at Headquarters. On April 22, Han Daqing, Chairman of the company, senior leaders and their counterparts from Beijing headquarters and seven regions of Inner Mongolia, Hebei and Tianjin branches attended the meeting on April 25, from seven regions including Shanghai, Sichuan, Heilongjiang, the branch attended the second Conference third meeting will be held on April 28.
This meeting main branch four years business reports to participants with in-depth analysis and discussion, including branch discussion on overall operation status analysis, integrated business management, administrative management, personnel costs out of control situation analysis, presentation and description of business investment policy; and itemized the 2013 business plan and cost to implement. At the same time, headquarters, standardize the management standards, asking members to shift times, an in-depth and comprehensive implementation of the operations of the company's policy. Han Daqing, Chairman of the meeting through a data analysis of the financial statements, combs, hoping to establish and strengthen management consciousness, cost consciousness of branch heads, management responsibilities, and enhance the ability to grasp the branch overall operations and overall costs and manpower capacity.
This operating state analysis seminar for the business development branch 2013 played a good role in promoting, participating branch in charge of the headquarters of the business policy fully agree, while business confidence to branch 2013, 2013 will closely follow the operational policies of the East, unifying idea, unity of purpose and a new look the best, further success! (Li Xiaoxi/text)

[nole92]

You agree with what? OTC = scamland

I guess I'll agree for the most part. I would say about 95% of OTC stocks are scams or shouldn't be public.

I wouldn't suggest anyone invest in TSTC after the past year, but it is still in business and a turn around is possible.

While $10 looks very doubtful, it's certainly possible. It was $20 not too long ago. The company has grown in size and history has shown us they don't over dilute share count.

Yes, there are definite red flags at this stage so only time will tell this story. If it ends up in pinkyland, you can put a fork in.

[rockshox2]

I agree, truly pitiful folks believed in the $10 BS.

Later in the coming week TSTC may well voluntarily de-list from the NASDAQ and join the OTC markets. Now that would be pitiful if that were to occur.

[space1230]

I don't see trips on tstc, NOT YET ANYWAY! First we have to see if this dead dawg ever trades again !!

AHHHHHHHHHHHHHHHHHHHHH TRIPS!

[rockshox2]

2 Business Days left to De-Listing.

Not looking very good.

Will be a very long time to recover from this damage done by very poor leadership skills of the Management.

As for the $10 call, forget it.

This is now looking very much like over cooked toast regardless of even if they can deliver satisfactory fins to the NASDAQ.

HaHaHaHaHaHaHaHAHAHAHAAHAAHahaha



Bottom of the harbor coming up.
HaHaHaHaHaHaHaHAHAHAHAAHAAHahaha

[dnet]

Still trading but no so much for this POS. LMAO...still looking for $10.00?

BTW did you read this?

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=87295145

[dnet]

Yes there was and it was again pointed out in these posts quite some time ago.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=73488100

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=73865145

Good luck to all the stuck holders, no one likes to see this happen to the unfortunates that were mislead.

[DirtyDawg]

There was a warning:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=86974224

[rockshox2]

3 Business Days left - HALTED to DE-LISTED if not sorted by then. Time is running out.

[DirtyDawg]

""""•Over the Counter Bulletin Board (OTCBB) - This is an electronic trading service offered by the Financial Industry Regulatory Authority (FINRA, formerly the NASD); it has very little regulation. Companies will trade here if they are current in their financial statements.""""

NOT

[dwh]

"The Company disclosed on April 16, 2013, that although the Company completed the audit of the parent company’s financial records in March 2013, the filing of the 2012 annual report on Form 10-K has been delayed because the Company will require additional time to obtain certain necessary financial records for the year ended December 31, 2012 from its Sichuan Ruideng subsidiary, which are needed to complete the audit of the Company’s consolidated financial results."

What if the numbers are good?
What if AR's are being collected?
What if there's pending news?
What if certain news items posted here on 4/11 are true?

Han owns 3,403,902 shares - think he wants the pps at current levels?

[DirtyDawg]

What Delisting Means for the Company
When a stock is officially delisted in the United States, there are two main places it can trade:
•Over the Counter Bulletin Board (OTCBB) - This is an electronic trading service offered by the Financial Industry Regulatory Authority (FINRA, formerly the NASD); it has very little regulation. Companies will trade here if they are current in their financial statements.
•Pink Sheets - Considered even riskier than the OTCBB, the pink sheets are a quotation service. They do not require that companies register with the Securities and Exchange Commission (SEC) or remain current in their periodic filings. The stocks on the pink sheets are very speculative.
Delisting doesn't necessarily mean that a company is going to go bankrupt. Just as there are plenty of private companies that survive without the stock market, it is possible for a company to be delisted and still be profitable. However, delisting can make it more difficult for a company to raise money, and in this respect, it sometimes is a first step towards bankruptcy. For example, delisting may trigger a company's creditors to call in loans, or its credit rating might be further downgraded, increasing its interest expenses and potentially even pushing it into the red.

How Does It Affect You?
As a shareholder, you should seriously revisit your investment decision in a company that has become delisted; in many cases, it may be better to cut your losses. A firm unable to meet the listing requirements of the exchange upon which it is traded is quite obviously not in a great position. Each case of delisting needs to be looked at on an individual basis. However, being kicked out of an exclusive club such as the NYSE or the Nasdaq is about as disgraceful for a company as it is prestigious for it to be listed in the first place.

Even if a company continues to operate successfully after being delisted, the main problem with getting booted from the exclusive club is the trust factor. People lose their faith in the stock. When a stock trades on the NYSE or Nasdaq, it has an aura of reliability and accuracy in reporting financial statements. When a company's stock is demoted to the OTCBB or pink sheets, it loses its reputation. Pink sheet and OTCBB stocks lack the stringent regulation requirements that investors come to expect from NYSE and Nasdaq-traded stocks. Investors are willing to pay a premium for shares of trustworthy companies and are (understandably) leery of firms with shady reputations.

Another problem for delisted stocks is that many institutional investors are restricted from researching and buying them. Investors who already own a stock prior to the delisting may be forced by their investment mandates to liquidate their positions, further depressing the company's share price by increasing the selling supply. This lack of coverage and buying pressure means the stock has an even steeper climb ahead to make it back on to a major exchange. (See, What happens to my shares of a company that just received a delisting notice?)

The Bottom Line
Some argue that delisting is too harsh because it punishes stocks that could still recover. However, allowing such companies to stay listed would result in the major exchanges simply diluting the caliber of the companies that trade on them and degrading the respectability of the companies that maintain the listing requirements. Therefore, if a company that you own is delisted, it may not spell inevitable doom, but it is certainly a black mark on that company's reputation and, if the company can't recover, a sign of diminishing returns down the road.

[DirtyDawg]

http://www.thestreet.com/story/10358340/1/what-happens-when-my-stock-is-delisted.html

[DirtyDawg]

Chinese scams. Gotta stay away from them. Will we see audited fins in the next five days? This is toast!

[dnet]

Pretty boring here...$10.00 soon and what happened to Verizon?

[space1230]

It would not shock me if TSTC does not file and ends up delisted.

Halted with 4 B/days to file audited fins

[rockshox2]

Halted with 4 B/days to file audited fins.

Can it be done? Maybe - Maybe not with a known reduced team of accountants.

[DirtyDawg]

Halted. Six days to file audited fins.

I'm melting, I'm melting. Oh, what a world! Oh, what a world!

China scams are being revealed every day.

[sbb4th]

Tick tick tick.....

[M8Seven]

EEHHHHH...Halted non the less; trading under a dollar; and finished with being able to rip investors off. Welcome to "Pennyland...OTC...Stinky-Pinky...HHHAAAAAAAAAHAHAHAHA!

[rockshox2]

That is like a double HAULT within 1 x week.

Shame of it all.

[DirtyDawg]

This is 'halted'. The game is OVER

[space1230]

What he said was that "in his opinion" there were "loads of sell orders in." No, we cannot view them since TSTC is a HALTED PENNY STOCK, but when (IF) this resumes trading, you bet there will be a boat load of shareholders ready to dump and move on.

The inadequate TSTC management has obviously lost shareholder value after they allowed the Nasdaq to HALT tstc last week. Who is to say that it wont happen again? It never should have happened in the 1st place.

I estimate that the pps will fall below .50 rather quickly. It's just typical after a halt ESPECIALLY when the halt is routed to poor management.

His Quote: "still halted, but loads of sell orders in, imo..if this ever trades again"

maybe you could enlighten us and tell us how you can say that since there is no market so how could one possibly discern whether or not there are buy or sell orders? your expertise please

[space1230]

No, just careless TSTC management apparently. This halt could have been prevented but it was not! These Chinese sham outfits like Telestone are risky investments.

you mean like a gold stock and a tech. stock

[choateandharvard]

maybe you could enlighten us and tell us how you can say that since there is no market so how could one possibly discern whether or not there are buy or sell orders? your expertise please.

[choateandharvard]

you mean like a gold stock and a tech. stock hypothetically? HAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA!!!!!!!!!!!!!!!