China Growth Stocks

[abh3vt]

This NEP situation reminds me more of YUII. They had the same internal control deficiencies that allowed "related parties" to receive cash transfers and make payments on behalf of the company:

http://finance.yahoo.com/news/Yuhe-International-Inc-prnews-2782849498.html?x=0&.v=1

Of course, the 10K late filing was also compounded by the computational errors made regarding the oil reserve values....which may also have been why the CFO was let go.

The key here is the timely and hopefully speedy conclusion of the forensic audit and what its findings show. If the following things happen:

a) there is no evidence of malfeasance on the part of the CEO as per the findings of the independent forensic auditor
b) the company files its 10K and Q1 10Q immediately thereafter,
c) earnings are good in Q1
d) they agree to hold a CC to answer all questions

then I think the stock can rebound. YUII was able to survive this, and I think NEP will as well, assuming no other bombshells come out of the report!