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Re: UTSI
Filed 20-F. The delay was apparently caused by an Audit Committee Investigation a whistleblower claim of fraud in India.
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As of December 31, 2014, we have identified material weaknesses in our internal control over financial reporting and have concluded that our internal control over financial reporting was not effective as of December 31, 2014. The requirements of Section 404 of the Sarbanes Oxley Act are ongoing and also apply to future years. These material weaknesses include: (i) we did not have sufficient resources with an appropriate level of knowledge and experience to perform effective period-end financial statement closing controls, (ii) we did not have sufficient resources with an appropriate level of knowledge and experience in U.S. GAAP to properly account for complex accounting issues under U.S. GAAP, (iii) we did not maintain sufficient effective controls over procurements and disbursements in our India operations and (iv) we did not have sufficient resources to maintain effective monitoring controls over our India operations. The last two material weaknesses resulted from a number of control deficiencies identified over the course of an investigation primarily performed on our India operations in response to anonymous allegation letters received through our whistleblower hotline. The allegations primarily related to a series of books and records and expense abuse policy violations at our operations in India. The investigation, which was authorized and supervised by our Audit Committee and performed by outside legal counsel and forensic accountants, found no evidence to support the allegations but identified several compliance issues related to material weaknesses (iii) and (iv) as set out above.
VLOV warning
Company registration in Nevada has been revoked due to non-payment of business registration fees.
http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=Bu2h8fMr%252fPS86ssWKdmlBw%253d%253d&nt7=0
It could be reinstated by payment of past due fees plus penalties, but the missed payment amounts are so small that it looks like the entity has simply been abandoned.
http://nvsos.gov/sosentitysearch/FeeDetails.aspx?ctok=Bu2h8fMr%252fPS86ssWKdmlBw%253d%253d
Re: SIXD/CTEK
Story seems to check out and the stock is pretty easy to borrow.
Re: VIPS
Haven't followed the stock at all. Here's the discussion:
http://finance.yahoo.com/video/vipshop-short-seller-numbers-dont-161500400.html
If you browse around the VIPS site you can see millions of of users engaged through picking particular companies as favorites and posting feedback comments on their completed orders. For a guy to appear on CNBC and suggest that company might be totally fake is preposterous.
I have seen more news in recent months about growth initiatives on other platforms (JD, Dangdang, Yintai etc...) so it could be that VIPS competition is becoming tougher. Also, apparel companies are reporting better sales so the need for them to post closeout sales on VIPS may be declining. Vendors were selling a lot of stuff on VIPS at or below their cost - it was a great deal for customers, but it was not something that the vendors wanted as part of their long-term business model.
GIGM: Gigglemedia acquisition
If this is about selling foreign brands into China then I think the stock will get pumped. If it's about anything else then it's probably a dumb idea.
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Letter of Intent in Relation to a Potential Acquisition
TAIPEI, Taiwan, May 12, 2015 – GigaMedia Limited (NASDAQ: GIGM) (the “Company”) today announced that, on May 8, 2015, the Company has entered into a non-binding letter of intent (the “Letter of Intent”) with an independent third party in relation to the Company’s potential acquisition of a controlling interest in a global cosmetics e-commerce company (the “Target”) (the “ Potential Acquisition”).
Information on the Target
The Target is an established online distribution and retail platform of beauty products, with its own website and mobile application. It has a comprehensive sales and distribution network covering the major countries worldwide, with increasing contributions from the fast growing economies in Asia. The Target has also established a global sourcing network of a comprehensive range of beauty products with more than 700 brands and 30,000 stock keeping units. The Target has an annual net turnover of over US$ 200 million.
Major Reasons for the Potential Acquisition
Diversification of the Company’s existing business and exposure to the fast growing cosmetics e-commerce market. As the Target is an established and proven e-commerce platform with existing customer base, the Company is of the view that the Potential Acquisition would help diversify the Company’s overall business risks and broaden the Company’s business portfolio in the Internet and technology sector, and allow the Company to tap into the fast growing beauty and cosmetics e-commerce market.
Potential synergies with the Target. The Company sees potential significant synergies with the Target from leveraging the Company’s expertise in information technology, online and offline marketing, as well as its local connections in various Asian countries.
T
UTSI possible opportunity
Stock is down from $2.65 to $1.95 since filing a NT-20-F
http://www.sec.gov/Archives/edgar/data/1030471/000114420415026557/v408942_nt20f.htm
It included this disclosure:
The Registrant is investigating and assessing several control deficiencies noted recently that could be material weaknesses and needs more time to finalize its assessment on controls over financial reporting. The Registrant expects to file within the extension period.
That's not great news. The filing also disclosed:
Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof ? ¨ Yes x No
The "No" box is checked so the financial results disclosed in March are probably still accurate:
http://www.sec.gov/Archives/edgar/data/1030471/000114420415015902/v404438_ex99-1.htm
The company has an independent Chairman (hedge fund manager Himanshu Shah) who owns 28% of the stock.
My guess is that the "internal control weakness" is not going to affect the financial value of the company or its operating outlook. My guess is that the company still has $80mm of Cash+ST investments ($2.10/share). The "extension period" is 15 days so it should soon be clear what the problem was. My guess is that after filing the 20-F the stock will return before long to its prior trading range of $2.60-$3.00.
KGJI: opens tmall store
http://kingold.tmall.com/
Notice at the bottom of the store page they have a little blurb about being a Nasdaq listed company.
Press release:
http://www.streetinsider.com/Corporate+News/Kingold+Jewelry+%28KGJI%29+Announces+Launch+of+Flagship+Store+on+Alibabas+%28BABA%29+Tmall.com/10527765.html?si_client=intbro
OSN: Ossen Innovation Announces Share Repurchase Program
Almost 10% of the float.
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SHANGHAI, May 6, 2015 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (Nasdaq: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that its Board of Directors has approved a stock repurchase program effective immediately for the repurchase of up to 500,000 shares of its outstanding American Depositary Receipts ("ADSs") through May 2016. Shares may be repurchased in the open market at prevailing market prices and/or in negotiated transactions off the market from time to time as market conditions warrant in accordance with applicable requirements of Rule 10b5-1 and/or Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended.
As of December 31, 2014, the Company had 19.9 million shares outstanding, of which approximately 6.1 million is publicly held and traded in the form of ADSs.
About Ossen Innovation Co., Ltd.
Ossen Innovation Co., Ltd. manufactures and sells a wide variety of plain surface pre-stressed steel materials and rare earth coated and zinc coated pre-stressed steel materials. The Company's products are mainly used in the construction of bridges, as well as in highways and other infrastructure projects. Ossen has two manufacturing facilities located in Maanshan, Anhui Province, and Jiujiang, Jiangxi Province.
Maybe you're think of Fushi Copperweld. It made copper wires. Or some short-sellers claimed it didn't. Anyway, it went private.
Silver or Copper?
There's Silvercorp (SVM). It was a Jon Carnes (Alfred Little) target. Buyer beware.
Also Minco Silver (MISVF). It has a development project in Guangdong that's been stalled for 5 years in environmental permitting. The company invested a bunch of its cash in an Australian explorer.
For copper I don't think there are any US listings. Jiangxi Copper (0358.hk) is a blue chip with an ADR (JIXAY).
OSN: Decent result. EPS $0.19 for the year. Just one bad quarter in 2014 (3Q) when steel prices were falling sharply. During the cc they indicated they would announce in 30-60 days a plan to raise shareholder value.
http://www.prnewswire.com/news-releases/ossen-innovation-announces-fourth-quarter-and-full-year-2014-financial-results-300074005.html
VIEW - News today, selling "assets" for $70mm. Not clear whether that includes cash on hand, it's an "asset", but there's no point selling cash to get cash. If $70mm is added to prior cash then company is "worth" $8/share. Not clear what they are going to do. Liquidation seems possible.
http://www.prnewswire.com/news-releases/viewtran-group-inc-announces-voluntary-delisting-from-nasdaq-stock-market-300070326.html
AMCF trying to party like it's 1999:
"the Company entered into 6-month consulting agreements with each Iron Grid LLC and Link2Earn LLC to, among other things, assist the Company to manage and offer guidance on the web hosting business. In consideration for entering into such consulting agreements, the Company issued 66,667 and 33,333 shares of the restricted shares of the Company’s common stock, to Iron Grid LLC and Link2Earn, respectively."
http://www.sec.gov/Archives/edgar/data/1469606/000114420415024333/v407694_8k.htm
ZA 1:4 reverse split effective 5/1
I take that as a hint that they expect to file financials on time and stay compliant with all other listing standards.
I wish all these low priced ADS would do a meaningful reverse split like this to reduce the impact of the annual 2 cent fee.
Re: CHOP
Rallied all the way from 2% of book value to 9%. I think they lost a court case related to the debt guarantee which has not been reported to shareholders.
Looks like the margin trading crackdown was directly connected to this. PBoC releasing a lot of new money, but not for people to buy stocks at 100 P/Es.
GSI? It's now an "internet of things" company.
Website is dead:
http://www.gshi-steel.com/
Re: Margin rules
I think it was after the close. So you can see an impact has been priced into the dual listed shares during NY trading. Using Petrochina as an example:
HK Close for 0857.hk = HKD 10.62 (equivalent to US$137.01/ADS)
Current NY quote for PTR = US$133.13
So in this case about a 3% drop is priced in. Other stocks will be impacted to varying degrees based on how much their price has been impacted by recent hot money flows.
LAS is now LASLY
Short balance was not too high:
http://shortsqueeze.com/?symbol=LAS
Haven't seen any news from China.
LAS = dead
The New York Stock Exchange (“NYSE”) announced today that the staff of NYSE Regulation, Inc. has determined to commence proceedings to delist the American Depository Shares (each representing two ordinary shares) of Lentuo International Inc. (the “Company”) – ticker symbol LAS (NYSE: LAS) – from the NYSE. Trading in the Company’s American Depository Shares will be suspended immediately.
Trading in the Company’s security was halted at the market opening on April 2, 2015 and NYSE Regulation has now determined that the Company is not suitable for listing pursuant to Section 802.01D of the NYSE Listed Company Manual. The Company has been unresponsive to repeated NYSE Regulation attempts at contact and requests for information in February and March 2015. Separately, it has also come to the attention of NYSE Regulation that the Company has failed to make timely, adequate, and accurate disclosures of information to its shareholders and the investing public, specifically regarding the January 2015 resignation of the Company’s independent public accounting firm
The Company has the right to a review of this determination by a Committee of the Board of Directors of NYSE Regulation. The NYSE will apply to the Securities and Exchange Commission to delist the American Depository Shares upon completion of all applicable procedures, including any appeal by the Company of the NYSE Regulation staff’s decision.
WSJ: Stock Connect Buyers Shun Hong Kong Blue Chips
A surge of cash from mainland China into Hong Kong stocks has mostly found its way into companies little known to global investors, a development already starting to alter the city’s market.
Mainland investors have plowed a net 26.4 billion yuan ($4.25 billion) into stocks traded in the former British colony since Wednesday, sending shares of Hong Kong-listed Chinese companies skyrocketing and the city’s share-trading volumes to record highs. But blue-chip perennials, names such as HSBC Holdings PLC, CK Hutchison Holdings Ltd. and Swire Pacific Ltd., weren’t among the 10 most traded by mainland investors.
Instead, these investors have focused on company names recognized in China, or firms that are dual listed and trade at a wide discount in Hong Kong. Firms such as Hanergy Thin Film Power Group Ltd. and Golden Eagle Retail Group Ltd. have attracted significant turnover through the Shanghai-Hong Kong Stock Connect, which links the two stock exchanges.
For these Chinese buyers, the hope is to avoid big blue-chip stocks widely held by international investors. Mainland investors fear that their smaller influence could be quickly overwhelmed, said Wang Zhihua, chief investment officer and portfolio manager of CSOP’s China New Balance Opportunity Fund, a mainland asset manager.
“Chinese investors are aware that the pricing power of large-cap in Hong Kong is controlled by institutional investors, especially overseas investors,” he said. “So generally, the investors coming from mainland China would trade small-cap instead of large-cap.”
Hong Kong Stock Exchange Chief Executive Charles Li, in a blog post published Thursday, said that mainland investors bring “differences in investment values, risk awareness and regulatory cultures.” In a message that appeared designed to cool some of last week’s trading passions, he said their arrival “will bring new challenges and risks to Hong Kong investors, particularly retail ones. Staying calm and exercising caution in a more active market will be a challenge to each investor in Hong Kong.”
That said, most of the mainland trading hitting Hong Kong’s market smacks of common sense. Many Chinese traders are simply buying familiar firms that aren’t listed on the mainland and had been out of reach for these investors.
This has left foreign fund managers and brokers saying they are trying to figure out what will be the next hot stock among buyers tapping the market through Stock Connect.
“Chinese investors may go for brands they are familiar with,” said Winner Lee, Asia equity derivatives strategist at BNP Paribas SA. These include electronics retailer GOME Electrical Appliances Holding Ltd. and Internet giant Tencent Holdings Ltd., which operates the popular WeChat instant messaging app.
Shares of GOME Electrical Appliances, one of two leading Chinese electronics retailers, rose 46% in the last three days of last week. It was the most-traded stock by mainland investors via Stock Connect on Friday.
Compared with its Shenzhen-listed rival Suning Appliance Co., it still looks cheap, according to Jingwen Wang, an analyst at Haitong International Research Ltd. “Suning trades at a forward [price-to-earnings ratio] of about 100 times, versus GOME which, before the rally, was at roughly 12 times forward P/E,” said Ms. Wang.
The trading is also about capturing the valuation gap between stocks listed both in Hong Kong and China. Hong Kong equities trade at an average discount of 23.4% to the their mainland counterparts, even after last week’s rally, which boosted the Hang Seng Index by 7.9%.
Hong Kong-listed shares of power company Shanghai Electric Group Co. Ltd. and chemical producer China Molybdenum Co. Ltd., two of the top-traded companies by mainlanders via Stock Connect, were trading at a discount of 49% before the rally.
There is also a self-reinforcing dynamic. Mainland investors are buying Chinese brokerage stocks?such as Haitong International Securities Group Ltd. and Citic Securities Co. Ltd., reasoning that their business will boom as a result of the Connect program.
Two mainland blue chips that surged were railway giants CSR Corp. Ltd. and China CNR Corp. Ltd., which each rose more than 18% after they announced they received regulatory approval from Beijing to merge. Mainland investors scooped up the stocks, making CSR the top traded company through Stock Connect on Wednesday and Thursday. It was among the top five Friday.
“Hong Kong’s market may become more sensitive to Chinese policies in the future,” said Ms. Lee of BNP.
William Fong, a fund manager at Baring Asset Management, said mainland investors are astute about their local economy, and invest accordingly. Sectors that aren’t growing, such as the tightly regulated global banking industry, are unlikely to attract Chinese investment.
“The mainland investor is not stupid,” he said. “We can’t just rely on what the mainlander is thinking.”
Re: Has this board died with the China stocks?
The board may be dead, but China stocks are not. A shares totally crazy
H shares turning crazy:
It's an tsunami of new retail money coming into the market through Chinese brokerages. Heavily focused on trends and themes. Not much focus on long-term value and governance. Mainland chat boards playing a big role.
At some point some of this money is going to hit the US listings. Starting to feel like they are being accumulated, but I think there's much more to come.
CCCL +20%
Maybe catching attention after the rally in CHOP (the other ceramics play ...)
Re: AMCF
They fired their auditor on 3/31, one month before 20-F is due.
http://www.sec.gov/Archives/edgar/data/1469606/000114420415020151/v406008_8k.htm
Replaced with a weaker firm. Might not be able to file on time. Then again, the weaker the firm, the less work they're actually going to be doing anyway.
Change had no impact on the stock, but I think it has elevated risk until they get the filing done.
It's time for these stocks to move.
A shares went crazy.
H shares going crazy.
US listings should come soon.
There was a DJ/Reuters newswire headline so not too difficult to discover, but the story seemed quite vague so I surfed around until i found an official confirmation (the regulatory filing). Weird how a very large seller capped the price yesterday at $2.05.
AMCN was holding about $2/ADS in net working capital. I don't know how much of that is included in the RMB 3Bn valuation of the unit where the investor is buying 5%. Fair value of AMCN is going to be:
Advertising business: 95% of 3Bn RMB plus
Parent Company working capital ? plus
Wifi Business (trains and planes) ?
Probably something like $9-10 overall. They might even be able to raise that number by getting a new domestic investor in the wifi business at a high valuation.
RE:
A lot of companies could use this kind of deal structure to arb the difference between onshore vs offshore valuations.
Rather than selling 5% of the parent company (AMCN), it selling 5% of an onshore operating sub at a valuation supposedly in-line with onshore comps.
Other technology/media companies are good candidates.
Funny thing about AMCN is that I thought this was the worst part of their business and I was following it for the rollout of wifi service and the cash on hand.
Re: AMCN - English news released after the close
http://ir.airmedia.net.cn/phoenix.zhtml?c=214947&p=irol-newsArticle&ID=2032886
AirMedia Sells 5% Equity Interest of its Advertising Business for RMB150 million
BEIJING, April 7, 2015 /PRNewswire/ -- AirMedia Group Inc. ("AirMedia" or the "Company") (Nasdaq: AMCN), a leading operator of out-of-home advertising platforms in China targeting mid-to-high-end consumers, today announced that Beijing Shengshi Lianhe Advertising Co., Ltd., a variable interest entity in China, which it currently controls through contractual arrangements (the "VIE structure"), has entered into a share transfer agreement to sell 5% equity interest of AirMedia Group Co., Ltd. ("AM Advertising") to Shenzhen Liantronics Co., Ltd, a company listed on the Shenzhen Stock Exchange (Shenzhen Stock Exchange Code: 300269) for a consideration of RMB 150 million in cash (the "Transaction"), which reflected the total valuation of AM Advertising of RMB3 billion.
The payment of the Transaction is expected to be completed within 10 working days of the completion of the share transfer.
AM Advertising is a consolidated affiliated entity of AirMedia. AirMedia will restructure AM Advertising for the Transaction. After the restructuring, AM Advertising will own and operate all AirMedia's media business in airports and all the billboard and LED media out of the airports, excluding gas station media network. After the restructuring, all AirMedia's other businesses, including but not limited to in-flight Wi-Fi business, on-train Wi-Fi business, digital TV-screens on airplanes, and gas station media network will be transferred out of AM Advertising and not form part of the Transaction.
"Media companies have been enjoying higher PE multiples and valuation in China's local stock exchanges. We believe the Transaction is a good way to increase our shareholder value. We have made exciting developments on our transformation into a leading in-flight and on-train Wi-Fi operator in China. We will continue to focus on our transformation, which, we believe, has a brilliant future for the Company," remarked Herman Guo, chairman and chief executive officer of AirMedia.
AMCN maybe selling 5% at a huge premium
Shenzhen listed company paying 150mm RMB for 5% of AMCN. Details in this regulatory filing:
http://www.cninfo.com.cn/finalpage/2015-04-08/1200796529.PDF
RE: LAS
This is the only new article I could find mentioning LAS. Refers to tough conditions for all dealers.
http://www.cs.com.cn/ssgs/qcgs/201504/t20150401_4676991.html
LAS: Looks like they are getting back to business
http://info.qipei.hc360.com/2015/03/240957700713.shtml
http://news.163.com/15/0324/00/ALECROEJ00014AED.html
China Studies Relaxing Limits on Individuals Investing Overseas
http://www.bloomberg.com/news/articles/2015-03-21/pboc-s-yi-says-china-may-ease-fx-exchange-limits-for-individuals
This could make a big difference for deeply undervalued micro-caps. Domestic Chinese will have the best knowledge of these companies actual operations. it would not take a lot of new money to move the low floaters.
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(Bloomberg) -- China is studying regulatory changes that would make it easier for individuals to invest overseas, central bank Deputy Governor Yi Gang said at a forum Saturday.
While participating on a panel at the China Development Forum in Beijing, Yi was asked if authorities might relax limits on outbound investment by individuals and potentially allow amounts of $1 million to $2 million to freely exit the country. Yi, who also oversees China’s foreign-exchange regulator, responded by saying, “I think that in the near future, we can consider an arrangement like that.”
Such measures would add to steps China has taken to reduce limits on the movement of capital since Communist Party leaders declared at the end of 2013 that they wanted to reduce the state’s economic role and make markets “decisive.” That’s included making it easier for companies to move money offshore and allowing foreign investors to trade Shanghai-listed stocks through a link with Hong Kong’s exchange.
Chinese citizens are currently allowed to invest abroad through funds that are licensed under the Qualified Domestic Institutional Investor program. These funds receive quotas allowing them to exchange yuan into foreign currencies for investment overseas. Individuals are also able to exchange the equivalent of $50,000 a year into foreign currency.
Yi didn’t elaborate or clarify if authorities were looking at allowing individuals to exchange greater amounts of yuan into foreign currencies.
The Pudong Times newspaper reported last week that Shanghai’s Free Trade Zone may allow individuals to exchange more than the $50,000 annual limit as part of a trial program for overseas investments by individuals. The article, which was posted to the website of the city’s Pudong district government, said the trials may start this year. The Shanghai Free Trade Zone was set up in 2013 as a test ground for economic polices, including those that reduce controls on the movement of capital.
TRITF - CEO resignation letter
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March 17, 2015
Re: Statement of Disagreements between Tri-Tech Holding, Inc. and Yunxiang (Phil) Fan
Based on my personal judgment as the CEO, I strongly believed that it was very hard for the Company to meet its immediate obligations due to shortage of cash in the foreseeable future. Therefore, I brought up my concerns to the Board of Directors and requested a special board meeting for guidance on Feb 27, 2015. The board meeting was conducted on March 6, 2015. As the CEO, I believe the Company was "going concern", and needed to consider a proper disclosure, and to discuss with our auditor. However, the Board disagreed to my judgment.
Furthermore, I requested the CFO and Board Auditing Committee by email and/or at the board meeting determine whether or not the Company should discuss with our Auditor since the Company is in the process of annual financial report auditing. I had not received any feedback or reports from the CFO or any other managers, directors until after my resignation.
My judgment of the Company's going concern was based on the following facts I had received recently:
1. On Feb 27, 2015, I received an email from General Manager of Tri-Tech's Tennessee Office, with two attachments - Letter - Financial Summary.doc, and Cash Flow - Master.xlsx. He also mentioned in this email that two employees had decided to take a voluntary layoff, effective immediately. In the Letter, he reported that "total due by March 15 is $322,485".
2. On March 2, 2015, I requested a list of all past-due payables of the Company, excluding Indian Operation from the Company’s Financial Department on March 4, 2015. The total amount past due was RMB 43,445,400 (or approximately US$ 7.12 million);
3. The Company lost money in the past a couple of years due to bad macro-economic situation, internal and external issues, and shortage of cash to execute or secure new contracts;
As the CEO, I didn't believe that the Company would able to raise such amount of cash to pay off the immediate obligations in a timely manner even though the Company tried many possible lending sources.
There were clearly some disagreements between the Board of Directors and me; therefore, I had no other choices but to resign from all my positions within Tri-Tech Holding, Inc. and subsidiaries, including CEO and director of the Board. I informed the Chairman and the Board via email on March 13, 2015.
Yunxiang (Phil) Fan
Former CEO and Director of the Board of Tri-Tech Holding, Inc.
Re: CXDC
Is there any reason for it to trade at a P/E over 2? Maybe not.
But there's a large short balance and what's the point of staying short? Once they clear another KPMG audit, what's the catalyst to push the stock lower? Passenger vehicle market in China is OK - analysts saying new car sales +10% in 2015.
Re: LAS
Story has been repeated in a bunch of Chinese media outlets. Some suggest that the company is working on some sort of solution to be announced in March. One story said that the company has borrowed money from employees at 30% interest. Maybe they have a plan to pull through.
Frustrating thing is that there are some people (insiders and anybody they tell) who know exactly what is happening and have a huge information advantage in buying or selling the stock. The exchange should really halt trading and request that the company clarify the situation.
Re: TCPI
Thanks. Airing of some dirty laundry. Doesn't look like something that's going to kill the company. OTOH, the claims that the company falsely labelled products as UL-certified and EnergyStar compliant might have a significant impact on future sales.