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Year in review
First of all I am an investor of FCPG for over 2 ½ years now. I have been with FCPG when they went from a local distributer of Medicines to a National Distributer of Medicines via the National License to sell on the internet. They went from large profit margins for the local sales to significantly smaller profit margins in exchange to participate in the national sales. In order to qualify for the national license FCPG agreed to the lower profit margins, Management decided by expanding the top line growth the bottom line would over time expand and would not have any limits. This still seems like a good decision, the only drawback has been qualifying for expansion capital... This was derailed by the previous auditor, Rotenberg (EFP) by not turning over the work done on the financials. Without 10k filings expansion capital was not made available. Banks are kind of funny that way; they require proof of income before lending any money. We also have other issues to deal with in regards to this sector of stocks.
What has happened is this sector of, the reverse merger sector, these Chinese companies listed on the US exchanges they took a big hit. Some of the Reverse Merger stocks deserved it and others did not. FCPG in my opinion did not deserve just because it is a reverse merger stock. That being said Management of FCPG has not helped by not communicating in a significant manner to offset any of the overall moods towards this sector of stocks.
Now getting to where we are at this time the relationship with FCPG and EFP was an unusual one. When they severed their relationship with FPCG EFP did not dispute financials reports submitted by EFP they just stated FCPG owes $40,000.00 so the reports owed to FCPG, the financials, could not be released until the $40, 000 was paid in full. Never mind EFP has been paid hundreds of thousands of dollars for the work already performed up until that point. EFP should have at least released the auditing work completed up until that point. That would have meant releasing the full 2012 10k report and possibly the first quarter of 2013. EFP decided not to do either, so I ask the question did EFP perform any work that they were paid for. Just because EFP notified FCPG they were leaving China does in no way release them form the obligation of supplying FCPG for work completed and paid for. So the question is did EFP perform any work at all and if not why not? Again remember there was no dispute over previously filed 10k reports. Suing EFP for none performance is probably worth pursuing in a court of law in my opinion.
Now where are we with regards to the overall picture of these Chinese companies listed on foreign exchanges? China still has not come to an official agreement with international investment community on auditing guidelines for the books on China soil. This then leaves a big confidence issue with the overall international investment community about these Chinese companies. You would think that being listed on the US exchanges would have cleared some of the that issue up but it has not. This forces these companies to keep two sets of books one for the PRC and the other for the international investment community. This creates doubts and opens up the door for corruption and as no one really knows what is what because of the lack confirmation of earnings. This is at the heart of the reporting problems of FCPG and other Chinese small companies listed on foreign exchanges. The original hiring of EFP (Rotenberg) was supposed to have taken care of this issue by consolidating the reporting requirements of the PRC and the international investment rules by simultaneously filing with the PRC and the SEC, but it appears solving this issue never materialized for FCPG. Thus for now we can only hope the hiring of Marcum will cure this problem time will tell.
The fact the SEC has not suspended this stock from trading at this time is a bright spot. I have been very critical of management’s action of not communicating with their minority shareholders. Either management does not feel the urgency in communicating with the rest of us because they own the majority of the stock or they feel it would be counterproductive at this time to say anything at this time. Why the lack of communication is hard to say as we can only speculate because of the absence of any communication.
The other bright spots for this stock is that they are doing business in China and do have a national license to sell medicines over the internet nationwide and they have expanded to meet the real and potential growth by expanding their warehouse space and the number of employees working. This has all been muted by the fact no financials have been filed over the last year and no forward looking estimates have been released. This has hampered FCPG growth prospects, because of not being able to obtaining any working capital loans to assist in the expansion of sales desired and hoped for by this time.
The only evidence of growth was the last 10k filings back a year ago and the top line growth was over 20% and profit margins were improving. But we really do not know officially what has occurred since then because of the lack of any financials.
So the issues at this time are, will FCPG formally hire Marcum and what will the 10k filings look like. Will a listing in the Singapore and HK exchanges overcome being a reverse merger stock in the US? These are issues hanging over this PPS at this time. Also If Marcum is formally hired when will they provide an audited version of all up to date 10k financials. If all of these issues are satisfied this will open up several possibilities for the advancement of the stock price for FCPG.
Taken into account the issues regarding this stock one can only wait and see. If Marcum is officially hired that would be bullish for this stock but if Marcum is not officially hired then well this stock will go the way of the other Reverse Mergers and be delisted.
I for one am hopping and wishing Marcum is hired, it appears they might and the fact the SEC has not delisted this stock at this point even without any formal 10k or any updated 8k filings is positive.
So in closing if all goes according to plan and Marcum comes on board and financials are filed correctly then the derailed expansion plans of FCPG will be back on track. This will open up the possibilities of getting working capital without diluting shareholder value that is all positive. Again time will tell and time is running out for FCPG.
This stock has all kinds of upward potential but it is still a speculative investment and one should treat it as such.
Chinese Mainland business:
I am having a hard time understanding the Chinese main land business mentality. They are acting like amateurs on the world stage of world finance. No understanding of world finance. Wang has and his friends own 50% or more of this stock. Why they are not interested in maximizing their investment is beyond me. What are their true motives? Time will tell. Maybe they are just Naive in international business financing who knows at this stage it is hard to figure out.
After saying all of this I hold out hope for the business model of selling medical drugs on the internet in China and that is all that is keeping me around at this time.
DMG
Nice post.
I totally agree with dmg.
We need to hear from management as to what is going on. I find the silence deafening.
The potential is great!
The potential is great if what we have been told is true but since I have been following this stock over the last couple of years management has not been able to realize the potential price on this stock.
For what ever reason management has found it ok not to communicate with the US Shareholders on a timely bases.
This company is supposed to be doing business as usual but how would we know, no real financial news for over a year now.
So is this for real or not. According to the US spokesman business in China is advancing but again how the heck are we suppose to know as no real communication from management has occurred.
Well it is still trading even though it is in the pink sheets so maybe we have hope. SEC has not closed this stock down.
If I sound frustrated it is because I am. We need to see something from management, anything!
My experience with these Chinese stocks is Chines management just do not care about shareholders.
I really do not see how China will ever over take the US with this type of attitude. The Chinese have a lot to learn and I for one am not willing to wait around much longer.
So My time frame for this stock is we will not see anything positive until next year. I thought my friends south of the border had a Manana attitude but these Chinese managers take the cake.
All we can do at this point is wait , wait , wait and wait some more.
Are we gong to get a new Auditor or not, and if not why not. If we are then when are we going to know.
Is this management team going to sue the previous auditors for dereliction of duty or not.
And is the business in China actually growing and at what pace?
All we have are questions and no real answers at this time.
Come on management give us some news any news.
I find Chinese management style frustrating and un professional.
I am sorry Potential just does not cut it any more we need to see action.
Article by Paul Gillis PhD CPA
Writer for China Accounting Blog
I found this article very interesting and maybe some action against the likes of the former Auditor can take place. Anyway read for your own knowledge. This article may explain the Complacency of the Former Auditor. I feel any action is better than no action. I am in now way saying FCPG lacks creditability with this article I just pointing out the issues with these reverse mergers. I am still hoping for positive news from FCPG.
Here is the article:
The SEC yesterday banned Sherb & Co. from auditing public companies. The firm was also fined an insignificant $75,000 to settle the charges. Sherb stood accused of audit failures on China Sky One Medical, China Education Alliance Inc., and Wowjoint Holdings Ltd., all Chinese reverse mergers.
Sherb failed to properly plan and execute audits, failed to obtain sufficient audit evidence on sales, revenue, and bank balances, and ignored clear red flags.
This is the second action by the SEC against Chinese reverse merger auditors in recent months. On September 30, the SEC banned Patricio and Zhao LLC (P&Z) from auditing public companies. P&Z was found to have done a failed audit on Keyuan Petrochemicals, Inc. Paul Gillis PhD CPA expects to see more actions like this against CPA firms that audited reverse mergers in the coming months as the SEC completes its efforts to bring to account the gatekeepers on failed Chinese reverse mergers.
Both of these firms were based in the United States and had been inspected by the PCAOB. The PCAOB cannot inspect accounting firms in China but since these firms were based in the U.S. they were inspected, even though the act of removing the audit work papers from China likely violated Chinese law.
In 2010, the PCAOB inspection of P&Z looked at four engagements, and found in three of them that the firm had done insufficient work to justify issuing an audit opinion. In 2012, the PCAOB inspected P&Z again, looking at three audits and finding one with such serious defects that the audit opinion was unsupported. In the 2009 inspection of Sherb, the PCAOB looked at seven engagements and found in two that Sherb had done insufficient work to justify their audit opinion. The PCAOB reports were made public a year or two after the inspections were done and even then the names of the clients were not identified, so investors had no way to know that they were relying on faulty audits.
So, in both cases, the PCAOB knew that the firms were doing shoddy audits, but the firms were allowed to continue to practice until the SEC finally shut them down. Short sellers figured this out, and targeted clients of Sherb and some other small CPA firms that audited Chinese reverse mergers.
Something is seriously wrong here. Why were these firms allowed to continue to do audits when there was strong evidence that those audits were defective? Why didn’t the PCAOB shut these firms down before the SEC acted?
The PCAOB may have long ago instituted disciplinary proceedings against Sherb and P&Z, but under the Sarbanes-Oxley Act disciplinary proceedings are confidential and nonpublic until there is a final decision imposing sanctions. Recalcitrant firms can continue to do shoddy audits while these proceedings continue, possibly for years if the firm appeals PCAOB findings, and investors are left at risk. That is probably why the SEC had to ultimately step in. These confidentiality rules unfairly protect the reputations of CPA firms over the interests of investors. Congress must act to revise the Sarbanes-Oxley Act to allow the PCAOB to announce the commencement of disciplinary proceedings against CPA firms and the disciplinary process must be made transparent.
Patience is one thing and SEC intervention is another.
First of all the Chinese way of dealing with shareholders is just not good. If these Chinese companies wish to do business on the international stage they are going to have do much better job of communicating..
Also the previous auditor's action with regards to the reports already paid for and not released is criminal. Rotenberg has not given its complete story either. The SEC should force the issue one way or the other in my opinion.
Look according to the company spokesman the company is still doing business and is growing. But no formal PR has been released stating any of this information.
Patience is one thing but neglect towards this company shareholders is another and right now neglect of this company shareholders is where we are at this moment. SEC intervention in my opinion is what is needed. Either sanctions on Rotenberg or delisting of FCOG either way something needs to give here.
I Believe everyone is holding their breathe at this time.
We are waiting to see if the auditors come on board or not, Just a couple of more days for this to be known.
If the Auditors come on board and supply up to date audited 10Q reports then we could see this stock move significantly higher on the other hand if the Auditors choose not to come on board we could see this company go private at a significant discount and the stock will then go to the trash heap, it is just that simple.
I for one think the Auditors will come on board and the stock will move up. I have been known be wrong in the past but I have also been right as well. I have been following this company for over two years now and I do believe management has done what it had to do for this become a National company with in China. From acquiring the national license to distribute on the internet nationwide to taking a lower profit margin on the domestic drug prices for the exchange of higher gross sales. They have expanded their operations to a larger newer headquarters and acquired two ware houses to accommodate the anticipated growth in sales.
Management has also expanded its work force for the same reason.
According to the previous and latest audited 10Q report growth sales have been at 20%+ clip and at a 10% profit margin.
The issue with the last Auditor was disappointing and extra ordinary. The last Auditors after being paid $200,000 plus just walked out without supplying the final product and requested an additional $40,000 to complete what should have already been completed. I have never seen this by any reputable company before. Even in the 8Q the auditors did not dispute the prior fillings just basically said if we do not get paid $40,000 we will not provide any fillings previously paid for. This to me is just wrong.
By the previous Auditors action FCPG was restrained to growing organically only, and was not able to obtain outside financing to help expedite its overall potential growth and created the uncertainty we are seeing with this stock. Not to mention the overall market attitude to anything Chinese because of the reporting differences of the PRC and the international reporting requirements. With respect to the reporting differences there has been progress made on this front and on its way to being resolved.
So we will see how all of this plays out in the next couple of days and holding ones breathe is all we can do for now.
Good luck to one and all.
Marcum Bernstein & Pinchuk LLP will now complete its onsite due diligence before formally accepting the engagement. The due diligence is expected to be completed on or before the end of October 2013.
So it appears we will know one way or another by the end of this week.
Good luck to all.
Fcpgalltheway,
what is your projected time frame on this stock breaking out. I understand the new auditors are already at the company head quarters doing their DD.
And do you think Rotenberg will turn over what they have already been paid for?
I like the fact you are positive on this stock but I also would like to get your perspective at this time.
It seams the stock is still open for trade but no trading taking place. This has happened several times in the past. I just got worried that something different was happening.
I do believe the old auditors owe this company some financials. This company has paid over $200,000 to them and nothing has been given in exchange.
Is this stock trading at all today.
What is going on?
1dmg1 your time line could be correct, however releasing of the 10k report for year ending 2012 and the next two quarters of 2013 can happen anytime. As for the new auditor officially coming on or not coming on board we will know anytime from now to the end of the October as per the last 8k.
So speculating on these timelines is ok but I still would like to hear from the company, FCPG, via a PR to explain what is going on.
The company has not stopped making money and has not stopped growing organically, as per their spokesman but as investors we need to see it in black and white in order for us to complete our DD.
Just my thoughts at this time.
New Accounted to be hired
8k filed
On October 4, 2013, the Audit Committee of the Board of Directors of First China Pharmaceutical Group, Inc. (the “Company”) engaged Marcum Bernstein & Pinchuk LLP (the “New Accountant”) as its independent registered public accounting firm to audit the Company’s financial statements for the Company’s current fiscal year ending December 31, 2013 and the fiscal year ended December 31, 2012. The New Accountant will now complete its onsite due diligence before formally accepting the engagement. The due diligence is expected to be completed before the end of October 2013.
This is good news, According to Marcum Bernstein & Pinchuk LLP web site they have a not only been involved with Chinese companies abut also have a presence.
I am assuming FCPG the company may have access to the previous audit from Rotenberg.
Again at least this is progress.
Pack10
That is the $64k question. What is really going on? We just need information and none have been forthcoming from either Rotenberg or Wang.
Information Please!!!!
The way I read the 8k reporting is FCPG is complying with the SEC reporting schedule and EFP Rotenberg, LLP is replying we do not agree to any memorandum agreement because we have not been paid.
But FCPG states we offered to pay but EFP Rotenberg, LLP never responded to us and we really do not know why.
My questions is which is it R EFP Rotenberg, LLP does not want to receive the final payment of $40,000.00 for final payment because they do not want to sign the memorandum of understanding agreeing to all of the financials or is ROTENBURG saying we never received the offer for final payment from the company, FCPG?
It is hard to say at this point because EFP Rotenberg response states “Due to lack of payment, the Firm’s ability to respond to the Company was limited due to independence concerns. Additionally, our Firm did not sign, nor come to an understanding, with the Company with respect to a memorandum of understanding.”
So did Rotenberg not agree to the memorandum of understanding because it was not paid or because they do not agree with their own audited financial report, which is it?
I find EFP Rotenberg’s response lacking and incomplete.
Another question is what was in the letter of comment from the staff of the SEC dated as of September 24, 2013? I could not locate it any where.
Here is where we are at this stage.
This can go one of three ways.
The first and best is the financials are released and all agree to them. This will open up for filling on the HK exchange and obtaining the additional financing to expand sales.
The second is the auditors do not have the financials and are not able or not illing to release them. If this occurs then FCPG will have to fork out another couple of hundred thousand dollars to have another auditor come up with the financials and that will take another couple of quarters.
The third will be to just delist and move on. Because the auditors and management do not agree on the numbers. Please do not let it be this one.
I am hoping and rooting for the first scenario. It is my contention Wang feels he has paid for the financials and the auditors feel they can extract extra cash out of Wang in order to fork over the financials. Because, the auditors are no longer looking for nor are they interested in any more Chinese business and are just trying to get as much money as possible and get out. If the first scenario wins out then the share price of this stock will advance quickly. One can only hope at this time. Negotiations are still going on. Just what the auditors and the company are negotiating on at this time is a mystery.
Good luck and good investing to all.
I guess the question is what is in the memorandum of understanding and why is it EFP Rotenberg LLP does not agree to it. The money is there to be paid, but Rotenberg will not agree to the memorandum. Does the Memorandum ask EFP Rotenberg LLP to fork over the report and guarantee their findings and if not what are the other contingencies attached to this memorandum and what are they and what is it Rotenberg does not agree to.
Has EFP Rotenberg LLP even completed the financial reports that from a source close to FCPG states have already been paid in the amount of $200,000 for thus far. Where are the reports?
EFP Rotenberg LLP has to start to state what is it EFP Rotenberg LLP does not agree to. With more than 83% already being paid for the financial reports thus far I do believe First China deserves more of answer than we just want our money and maybe you will get your reports.
Come on EFP Rotenberg LLP, really what is the problem. Has EFP Rotenberg LLP been kicked out China and if so why or are they leaving on their own accord. Are they holding First China hostage. And how many other companies are they doing this to. Questions nothing but questions at this point. Need better clarification and communication from First China as to what is in the memorandum and if EFP Rotenberg LLP is playing dirty and if they are then Rotenberg needs to be held accountable.
WOW I have to apologize to FCPG management. I thought the holdup was on the Chinese side, I am still unsure if PRC had anything to do with the hold up. But For Rotenberg to pull up stakes and use the excuse of $40,000 payment just does not make sense. The auditors have held the reporting up on this stock for longer than necessary. Is Rotenberg pulling out of China or are they being chased out of China, Just asking. I agree Rotenberg may be opening itself for a creditable law suit at this time.
Rotenberg have been working on these financials for over 9 months. And based on previous fillings there were no issues with them and Rotenberg stated there were no issues. Wang must have already paid over $100,000 thus far and still Rotenberg has not delivered the goods. So to say they resigned because of $40,000 Which FCPG offered to pay earlier with guarantees is a lot of bull crap.
Everyone should call Rotenberg at 1-800-546-7556 and leave a message and ask what is really going on. Leave a message for Thomas make their phones ring of the hook.
First China has obtained a second ware house and is moving product. We just need to see how much and what are the earnings. This is what Rotenberg was supposed to supply. For FCPG to initially not accept the resignation proves this company is operating in good faith but unsure where Rotenberg is operating from. I believe they owe FCPG some financials and should supply them. Now if the FCPG has the financials and are not releasing them then we have a whole new set of problems. I do not think FCPG is holding up the filings, this is just my take.
FCPG will be grossing a hundred million dollars in about a year. I bet it will not be hard for them to get another more reputable auditor at this stage. This is just a shame and for Rotenberg to pull this and just begs for questions of why? Did Rotenberg get paid for what they do not have and cannot supply to First China? Like I say just a lot of questions.
Maybe we can break the dam here, First China management needs to inform at this point to what is really going on at this time without jeopardizing any recourse.
Next week will prove to be very interesting. Good luck to all
This is Just my observation on these Chinese Companies.
It appears either the Chinese Government and regulators or Chinese management or both just do not get the international financial system.
It could be a language barrier or just the thought the international financial laws just do not apply to them. It is hard to say.
But if China wants to be number 1 they are going to have to come up with a more accommodative approach. Because there is a lack of respect for the average investor, not to say our system gives the average investor any more respect but at least we have some legal recourse. The Chinese do not even offer as much. This attitude is Quite disheartening because in the end it will only hurt the companies like FCPG who are growing getting any access to real working capital to finance this growth.
I believe it will be awhile for any average investor to even dip their toes into this type of stock in the near future thus limiting the true potential of these companies.
I am hopping for the best but it seems time is not of essence with either the Chinese government or the managers managing these companies.
Hard to see how the Chinese will ever be number one with this attitude.
This is just my opinion.
To be the first is not easy. First China Pharmaceutical Group will be the first with this new financial reporting format. This format will attempt to be in compliance with SEC, HK and PRC laws and regulations. If FCPG is successful they will be the first company to do this.
Being first is a double edge sword if in being first you get it wrong then it is hard to recover but if you get it right then in this case there will be working capital available. And the stock price will be reflected either way. I wish this could have been done faster but being right the first time is more important than just being the first.
The release of financials could happen today, next week or a couple of weeks or even next month. I suspect that when ever they are released they will be right which will be a huge plus for this stock.
As far as I can make out dilution of shares are not presently in the works. But hey we really will not know until filings are completed.
This is just my take on what may be happening at this time.
Back earlier this year the U.S. and China came to an agreement on how the financial reporting will be done on U.S. listed Chinese stocks and agreeing to PAC guidelines, and the fact China will allow for foreign audits was a huge breakthrough for this sector of stocks. As this was the biggest obstacle for confirming any earning reports previously submitted by companies in this sector. Which lead to perceived or actual fraudulent activities in this sector?
Now companies like FEPG will be able to submit financial reports that will be accepted both in China and the U.S. with little or no modifications. This will be a positive for this stock and this sector. This will be particularly positive for FCPG because of the future projected growth rates of earnings of this company.
Getting all this right the first time is difficult, because this will be one of the first, is very important. Setting a president because that is what is actually occurring here is always a difficult act. This would explain the E not being placed at the end of FCPG. It appears FCPG has been in communication with the SEC and also appears to be in close negotiations with regards to this new reporting method. Other Wise an E designation would have been placed at the end of FCPG a long time ago as it is out of compliance for the SEC reporting time frame at this moment. Again this is speculation on my part and it is my explanation as to what is happening here.
You ask how does this affect a future stock price of FCPG in the near future. Again in my opinion it will be a positive as this company is growing the top line at around 20% and has finally stabilized its margins to reflect the new business model, of a national provider of medicines on the internet. Remember this company is one of the few with a national license to sell medicines nationwide in China and will have access to a more profitable international inventory as time goes on.
They have completed their expansion plans of moving into their new facility and the expansion of the labor force to accommodate this new business model. FCPG is in the process of obtaining financing for inventory expansion, which if you are a Chinese based company is important, because of how their financial requirements are regarding inventory and sales. With the new financial reporting format it will make it a lot easier for FCPG to secure this inventory expansive financing. This will be another positive for this share price as this will be a none dilutive method of financing. Along with the fact the plan is to have simultaneous listings in HK and the U.S. is another positive. The simultaneous listing will allow the local Chinese investor to participate in what will be a fast growing sector of their economy.
As it is now this stock is already undervalued but the market has punished this sector for various reasons ranging from actual fraud to uncertainty of actual reported earnings. Whatever the reason for not liking this sector in the past it will start to dissipate. With this new reporting structure in place it will start to create a more accommodative investment environment.
So with the clearing up of the uncertainties in this sector with the new agreed to financial reporting methods and the ability to confirm earnings reporting with audits, and the simultaneous listing, will all contribute to this company realizing its real potential value. Thus the potential for large upside movement is becoming more and more likely. The risk for this stock is defiantly to the upside at his time.
The next couple of weeks will be the telling story for this stock. Hopefully by the end of this month we will have the newly reported financials, along with an announcement of their new financing for inventory expansion and the time frame for simultaneous listing on the HK
Again invest wisely and do your own DD, good luck to all.
I have been invested in this company for approx. 2years now. I thought at first the company would grow at its present rate with higher margin rates but there was a change. During this time the company or should I Say Wang decided to go from a regional drug distributer to a national drug distributer, going from a local retail to a national wholesale distributer came with some cost. In this case the costs were the margin rates and at the same time expanding the distribution network required additional expenses. All of these costs have now been realized and the expansion of sales and with possibility of some margin rate increasing from more profitable international drugs may now begin to be realized. Along with the fact of, very soon, having two consecutive years of audited financials does place FCPG in a positive position.
The financial road this company has been on for the last couple of years have remained the same it is just the speed in which the distances have been covered. It has been slower than I originally anticipated. With organic growth now at twenty three plus percent on the top line and the increasing of the gross margin rates makes this a very interesting investment opportunity
.
With the appointment of Mr. McTevia last year Wang has set the foundation for the possibility of external financing or even a possible merger. There is also a chance of going private , I do not wish for a private buy out because in this sector they have not been very beneficial to the average stock holder This may come with the listing on the HK exchange , a loan from a financial group or just a bank loan. . In which case, not going private being one of them, will help speed up the top line growth rate and increase the profits of this company. So waiting a few extra days or weeks for the audited financials will be worth the wait.
At these low stock prices it makes for an very interesting entry point . Depending on which board you read the PE ratio is anywhere from 2.3 on the TD to11.35 on the Yahoo finance board. Either way these are based on last year’s three quarter earnings and do not take into account the final quarter or the present earnings growth. With an present organic growth of over twenty percent this is undervalued.
Just to sum it up this company has changed its earnings model over the last two years and all of the cost associated with these changes have now been realized. The audited financials will also make this for a very interesting investment at these stock prices.
Granted investing in this China sector has soured over the last 3 years but with the Chinese government agreeing to the external auditing for these Chinese companies. listed on U.S exchanges makes for a different investment environment. Again at $0.14 to $0.18 per share the rewards will far out way the risk with regards to this particular company.
This is one of those stocks that will see a large upturn in very short period of time. There will be some hyping and the traders will pump and dump it but when all the smoke clears. This will be a steel at these prices we could see in a very short time a price for this stock between $0.45 and $0.80.
Good luck to all and good investing.