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VIE structure under attack-The Chinese government is pissed and ambarassed about the USA chinese frauds hiding behind VIE
http://www.chinahearsay.com/a-new-front-opens-in-the-war-on-vies-part-i/
transfer agent is a disaster
this is the disaster because basicly nobody can buy it and more importantly nonody knows why?
The S.E.C. knows, based on its recent experience with investigating and sanctioning PwC in the Satyam scandal in India, that foreign member audit firms are generally subject to significant quality assurance oversight by the U.S. audit firm and provided non-voluntary expert support for their audits of U.S. listed firms. Deloitte, as a global firm, has quality and risk management policies and procedures that almost certainly require a second partner and subject matter expert review by U.S. GAAP and S.E.C. reporting experts before issuance of quarterly and annual reports by U.S. listed clients of their member firms.
The member audit firms and their clients don’t always appreciate the time and money spent on this extra step, but it’s a cost of doing business – and raising money in the United States.
These quality assurance reviews are performed by U.S. professionals on a remote basis, using files they can see from their computers at home. If the bits and bytes of the Longtop workpapers have already traveled over the Chinese Wall, that particular objection to the S.E.C.’s request may be moot.
from the forbes article-
Here is the forbes article: read page 2- The USA based accounting are very much involved in the process-
http://www.forbes.com/sites/francinemckenna/2011/09/09/deloitte-hides-from-s-e-c-behind-chinese-wall-over-longtop/2/
Read the Forbes article about sec suing DTT regarding lft -
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Very true thanks
Every trade eventually ends -
One thing I found out is the USA based audit firms are very much involved in the Chinese audit with a a senior partner basicly reviewing and going over with it Chinese auditor before signing off on it -
That was brought up in the article that basicly all chinese audits send electronic information thru faxes and emails with their USA audit firms for review it anyways and for DTT to hide behind that law is crazy -
I think the bullish news in the sector is you are about to see some takeovers happen which shorts guaranteed would not - ftlk closed and csr, cfsg , hrbn which will take off 1 bill in supply
The big winners have been insider buying and big buybacks - sprd has doubled from the hit piece with Massive buyback and insider buying - yong had huge insider buy from Morgan - I still like cast which has been flat but huge buyback and insider buying -
I would like to see more deals to reduce supply and wsj article last friday hinted their are a lot of deals coming
The big negative not one blowup in the pink sheets has recovered or demonstrated that in my view the future looks great - including fuqi, cagc , chbt , lft , apwr, Cbeh , uta , ccme ,
Court date with staar? Does anybody remember the date both parties agreed to extension ? Thx
Staar filing against ccme they stated I believe that they verified 90% of the buses under contract but believed if I remember that like 1200 buses might be duplicated - that was most direct qoute I have seen with concrete numbers .
The cash balances verification and other stuff was nothing concrete in my view .IMO
I think the positive if they overstated or double counted only 1200-1300 buses out of their size numbers at these prices is very bullish - The big question obvious comes down in my view is much cheng and the board want to accept responsibility and move forward ? Obvious a big question -also last report their was 157million on the books ?
The other positive is to my knowledge ccme has not recieved a wells notice or subpoena from the sec which you just starting to see - see lft - apwr ect . Ccme stated in the journal article that sec has contacted them and they have responded - .
The second positive Nussbaum responding to me that their is no news until investigation is complete
I think the business is real but their were some shady stuff and now they are trying to protect cheng and hopefully clean it up . I have no clue just my two cents
Has anybody contacted ccme lately
Is their a phone number or email for them ?
I have emailed him Probably 7x times to get info out of him. I'm a loser but I never go down without trying and a fight - this is his firsr reply ever for me which in this position is very good news . Again , at this stage he could have continued to ignore me - but today for whatever reason he gave me a bone - he's a lawyer so he knows about emails and what to give and my specific questions was on ccme - he gave me a bone
For what it's worth = hope
I emailed Mr Nussbaum this morning about ccme - asking him nicely why we have not heard anything on the piper investigation and I couldn't get anything from ccme - I was surprised he responded .
Those are usually not released until the investigation is complete .
Who's kid din who that's probably only good news we have had lately - it means nothing in general .
However , I don't think he would respond if piper was not still working on the case. I get the hint that piper is still working on the case and will finish it . It's all speculation obviously but you throw in the fact that staar agreed to push their case to September . Why would staar push their case to September unless ccme gave them something like the piper investigation will be complete
I know reaching at straws but " you gotta reach and believe " . I was surprised he responded and wanted to share it with people still around . You can draw your own conclusions or not . Please don't bash me - anytime I write something positive I get ripped to shred .
Keep patting yourself on the back -
private investigator and background checks i believe was what Ping said when she went to Staar office- thats what Staar told her. Whats interesting is for compliance reason Ping and global documented and verified everything on the trip regarding CCME- she stated if its fraud everybody she interviewed-100mill in sales-is in the fraud but its documented- names, statements, ect- Not making a point but a reference that compliance list at Global I would like to see-
Hey, maybe Ping is on it too-ha-
Their are plenty of companies that restated, overinflated,minor fraud, that have survived. I agree the big problem is Ceo controls everything including the board of directors- I own it at 1.55$ for the turnaround OR NOT-ha
Why do you think Staar agreed to be quiet until a specific date in september? Dont you think CCME lawyer had to give them a bone? thx for documents
Staar hired dttt advisory service to advise on legitimacy of ccme . They also hired private investigator , did background checks on ccme before they invested . You could still argue no other reverse merger Company was more researched just based on staar .
Muddy said dgw was the biggest scam - they just confirmed their cash position which was inline .
Of all the muddy research his view is ccme was real but overstating
DGW confirms cash position
DGW was 100% scam from muddy waters. CCME was only in his view about 50% fraud- Maybe the delay with STAAR until september will verify everything in ccme- Who knows but DGW news is good
http://finance.yahoo.com/news/Duoyuan-Global-Water-Incs-prnews-2541092083.html?x=0&.v=1
the great news basicly right now cant get any worst-ha
we are basicly at zero-
their is a real business-way to much research from staar and the shortsellers who said their was a business
the two frauds are:
pledging cash balance like fuqi- this woulds be huge positive news because it just takes time to move the money back. fuqi took 18months
2, overstated revenue to make the earn out shares which is very likely. The problem is the board is trying to protect Cheng from securities fraud- This is WHERE we are no mans land and have no clue how it turns out because their HAS NEVER been a case like this where ceo is to dominating to fire.
great news
The simple fact we need the truth-It might be ugly but their is a real business behind ccme- how much is the value, how much was stolen or pledged, how much cash HOPEFULLY we find it
Im wondering if ccme got rid of their transfer agent to make CCME look so bad to force a settlement out of ccme-?
the simple fact Piper but hurry up in finish their report?
I wonder if NUSSBAUM going to write any more stupid articles-
Call Cheng for us and see what he says. ha
Great week for Cbeh. Filing , snoff has big boys buying big time as it bounced from from 2-7$ in the last weeks- chbt which had the worst auditor filings in my view had huge bounce to 2.65$ this week .
Even ccme the dog had good news with staar accepting a delay in the hearing until september for whatever reason but they agreed on - just my two cents - let's see how it plays out that is my view a fortune to made in this group if your on the right side - remember - when it becomes apparent to the MORONS the move already been made - you make money in the future not the past - - just seeing good stuff on the group and if ccme didn't have global halt I would be more upbeat - but just giving a little hope for investors still long ccme that's it's not over
Oh yea - I get the feeling for people already booked the big loss that's they lover misery to join them - just human nature I guess - let's see how it plays out
It's great news on the surface the news staar agreed on that deadline - I'm not a lawyer but staar been on the attack big time - I'm taking vicious and over the top - wouldn't you think the only reason staar agreed on that date is ccme gave them a great reason to hold out ? Cmon - that's pretty common sense
I'm not pumping but the stock 1$ not 15$ and that on surface is good news but again it might mean nothing but on surface it looks good -
The massive big negative is global halt that basicly is a disaster - even if you think it hinted of the settlement you can't buy it or do anything -very , very sad
Chbt looks 5x worst and they have transfer agent and it bounced to 2.60$-
No answer on global halt
I dont see the SEC as the reason for the halt
all i heard its a company reason?
So why would the company not have a clearing agent and give zero reason?
It cant be good news or ccme trying to go dark OR make it so ugly maybe they can settle with staar at a cheap price.
Global halt is the disaster
Chbt and others have been accused by auditor of illegal acts and they still trade with clearing agent- the simple fact that ccme has no clearing firm its tough to be upbeat at all unfortunately-
Snoof has bounced from 2-8$ off muddy waters- sprd bounced 60%
Of all the frauds by muddy waters was the most bullish on CCME with a 5$ price target saying that it was no complete fraud but they overstated their buses by as much as 50%- the staar report said DTT thought they overstated by EXACT number of like 1350 but counted 20k buses- The simple fact ccme of all the pinks their has been dramatic more research on the business
I still believe their is a business worth 5-8$- The problem is cheng and linn brothers probably overstated the business to get earn out shares and UNFORTATELY the real fraud is going down now as company looks like it wants to hide and go dark-
Like i said with satymam computer if you admit the truth your stock will bounce and you can move forward
the problem is satyam compute ceo went to jail and the same fate would happen to Cheng and linn brothers. Very sad- I agree where are the people who talk to Cheng
yes- the big problem which you would think is good news is ceo generally own 30-40% of the company's stock so its basicly there company. the fraud is tough because in general their has been little or no insider selling in most of these companies. so is it complete fraud or are they just stupid regarding accounting practices because its not like DGW ceo dumped 100mill of stock at 25$ or cheng cashed out of ccme.
This is why i hoped CCME was different because linn brothers sold staar stock and they are insiders- if ccme is proven a true fraud i still believe linn brothers will go down big and again they have a huge asset trading in hong kong.
Wheres Amy been-she says she talks to Cheng and believes in the buddheist way? Whats the deal with the global halt?
lawyers
The big problem is ccme basicly can't do anything until the investigation is complete and numbers are audited- Its the same for all the scam companies-
Staar is on court going after them hard: the only thing they can do for any leveraging play is basicly have piper come out with a report which basicly gives staar nothing-
the only good news is chinese companies have bottomed and EVERYDAY the top 5 winners are chinese small caps-
The last ones that will move are the chinese pink sheet babies which frankly their has been very little news- cagc,cbeh,dgw,puda,dgw,chbt,rino,ccme,celm,keyp,watg--this group depending on news will move last. Frankly, you cant be remotely upbeat on ccme at this time with the global halt-its a disaster beyond anything i have ever seen simply the company not explaining anything which they deserve to be put in prison. The ONLY bright spot is their are 99% reason to sell ccme at 1.50$ but their has been a big buyer-BTIG- that wants the stock and maybe he knows something-
ceu breaking out on volume-99cents
efut= cloud computing
i think one of best micro cap chinese stocks- 4mill outstanding
mkt cap 20mill-10mill in cash-book 5.30- insiders bought about 2mill bucks at 5.37- leading position in china in retail software-
they are rolling out a big cloud service technology in next 90 days- grant thorton accountant-ipo- history of huge moves because of small float- head of audit board is brian lin who is ceo of cfsg thats going private at 9$ by bain capital gives them credibility- long term player but looking for double digit in 6-12 months-
First time it traded at the offer in what 2 months - it's been 1.50-2.00 spread with 95% trades at the bid.
Btig- an institutional trading firm has been the size bid with nite trading which is retail at the offer are basicly the only 2 market maker involves - it looks ugly but the whole sector is coming back big I think as everyday you have small cap Chinese stock up big -valv yesterday - newn today . Muddy came out said he is now looking for longs and I bet you will see some monster moves when he puts a buy out soon - it was on that cnbc article I posted earlier
Too bad about global halt on ccme - muddy had original price target of 5-6$ - might have got a dead cat bounce but now nobody has a clue
CEU traded 1 mill plus on friday with some big blocks
Jrjc , efut, fsin tstc , cast
Jrjc - 3.48$ most transparent small cap china stock because the chairman of the Company is idg ventures , which USA based vc and founder - idg is also one of the best Chinese investors last 20years . My point the big problems are the CEO controls the Company, board is puppet . Idg owns 20% and vertex own 7% which sit on the board - the Company has 4.85$ net in cash, they are having slight problems business wise but it's legit play on the Chinese stock market - I think it's candidate for going private
Efut - micro cap play on cloud computing
Fsin - aleadfy bounced big from my 5.40$ average but I think this deal is done at 11.50
Tstc - next year looks great
Good points -
However, what 6months ago you probably has hundreds of post a day that had what 2 million shares owners here and they spent all day patting each other on the backs that shorts were dead - herd mentality
Now , you got 3-4 post a day and I'm MORE bullish on the sector but have said I like fuqi and ccme as my pink sheet rebounds . I'm like the sector a Lot and they will be big winners -
Looks like a pretty good contrarian indicator to me. Lets see how it plays out before anybody pats himself on the back who is right - we know how that ended last time .
Every trade will end - people forget the long trade on Chinese stocks made fortunes and shorts got buried . The shorts just made a fortune but every day in July the top five winners have been small cap Chinese winners -
It depends where you get on and off the train - Their is no pumping at this point - their are 3post a day and I'm only one who says something bullish more on the sector than ccme but let's see how it plays out - let's see of staar gets tge truth which might be good or ugly . My bet is the truth comes out . Satyam computer , India Internet Company CEO basicly stole 1 billion but truth came out and stock bounced back over 2billion dollars - redf another India firm got murdered down to 1$ because fraud charges on the India companies it bounced back to 12-13$ -
It took a long time -12-18months to get clarity
Keyp- kpmg resigned as auditor for for a host of reasons including cash confirmations - stock is halted but they hired independent law firm and DTT basicly like lot Chinese companies - they came back today saying they are not complete but basicly found nothing kpmg cried about - they hired a new auditor but will probably still get delisted because no shot of completing audit and NASDAQ I don't think could care less -
I'm not comparing keyp because they payed a dividend during the halt just more kpmg said nasty things about them that proved to be false - it took about 3.5months to get any news from the investigation -
I use it as reference as resigned auditor , hired investigation , new auditor and move forward .
It's the only auditor resigned that has came with review and they found nothing .
Also, how does staar hire DTT advisory to investigate ccme and pay them a boatload and they come beck 100% clean then 9months DDT audit resigns and finds potential problems and staar loses 30million .
That would be fiun to hear the clowns at dttt explain that to a jury . - try to keep you informed with anything I see in the sector - I will buy this one if gets delisted and trades under 2$
good news for hrbn and the sector
watch fsin
need good news from the disaster which frankly only fuqi has anything concrete- the pink sheet pigs nothing but its early.
Stock go up big , get killed then can go up big again depends how you play the game -
These Chinese stocks went up 200-300% a couple years ago and shorts got murdered - John bird sued cski because of the money he lost - he lost the lawsuit - I traded efut from 12-40$ in 2007 and now the. the whole group got murdered and the shorts won this round -
" every trade always ends " best trader in the world . The long trade was 2 years ago and people made fortunes .
The short trade will end soon and they made fortunes . Try figuring out the next trade and get in early is how you play it unemotional .
" every directional trade ends and a new one begins "
You only make big money by being the first end not the last " teppin who was only big buyer in bac at 2$
The most money you will ever make if your the only buyer of an asset - if your right it only attracts more that's how securities go
Chinese fraud article
My buddy owns this probably around 2$- i thought it was to risky and scary what the Chinese government would do regarding confiscated shares of the founders- the art of the comback-
http://seekingalpha.com/article/278544-china-and-fuwei-films-seeking-sanity?source=yahoo
Thats RINO
thats why I'm long here
CCME has more documented research by high end pro's then any of the 2$ Chinese firms- Did all these people get completely taken and DTT was resigning no matter what in my view because of the shorts.
Was DTT bribed I after wonder-imo
They signed off on 2009- If you read STAAR lawsuit dtt listed the shortsellers as the reason for forensic audit-Thats crazy-
In staar lawsuit DDT actually had and doc all unsol emails from hedge funds that were short-thats crazy
There were hundreds of million involved on short side paying huge interest -just saying.