PipShark Monday, 07/26/10 01:54:33 AM Re: None Post # of 22 Should you buy this stock? This post is only my opinions and should not be taken as investment advice. My analysis of this stock could be way off the mark. First things first. Should you even buy this stock? I have been swimming around I-hub now for about 4 years or so and see many new investors putting way too much of their hard earned capital into very risky propositions. I will not get into all the reasons why I think it is unwise to buy about 95% of all micro-cap or "penny stocks". I have see too many investors lose it all on such wagers. I think you would have better luck in Vegas, and they give you free drinks! Does that mean that I think this particular stock is a sure thing? No, but I do think Ever-Glory is a very high caliber micro-cap company. That said, this is still a high risk investment. I personally would not put any retirement capital into this stock. But if you have some 'Mad Money' laying around and you think skydiving or perhaps surfing in shark invested waters is a fun way to spend a Sunday afternoon, then I absolutely think EVK is a worthy pick. I believe this company has a high probability of long term success. From what I have read in the annual report and from what I have seen in the numbers the last 5 or 6 years, I believe this to be a very well run company with good management. They are building a successful brand and have plans of expanding their retail stores into many more locations around China in the next several years. They also have a successful wholesale business with many customers around the world. If this is such a great stock, then why is it so cheap? Lately, there has been much chatter about accounting problems with many Chinese companies. That indeed is part of the risk. Also the speculation that China's economy is slowing down could be another reason so many of these stocks are down in the dumps. It is my opinion that China will lead most of the rest of the world into economic recovery. The Chinese consumer base will continue to grow and in the future will be a major force in the economy. Much like the American consumer has been for the last several decades. As far as accounting fraud in Chinese companies... I think it is a problem. Remember Enron? Oh wait...Enron was an American company! Get my point? No matter where the company does business, accounting fraud will always be a risk. I really believe that many Chinese companies are trying their best to present their numbers honestly. Maybe I am naive, but that is what I believe. If you like the story and you have a place in your portfolio for a high risk possible high reward stock, then you should consider value and price in the next post.