China Growth Stocks

[ratobranco]

@MaxLuke - HQS

I would stay away. They sell cheap because they continually destroy shareholder value.

Case in point: they sell at roughly $7/share ($100M cap), and have roughly $3.50/share ($50M) in cash alone. Yet they just registered another $50M offering!!! It's nutz. They have absolutely no need for cash right now, but they keep raising cash "just in case" a need arises in the future. It's as if they are a company with an anxiety disorder. Cash OCD--never enough to quell the fears.

If you dilute like they have in the past three years, the earnings will get bigger, but the EPS won't. Not a good company, I wouldn't touch it with a ten foot pole.