IT Tech Packaging Inc (ITP)

[Leafs007]

Wow! Another Chinese company under investigation...first it was NEP, now, ONP... i'm going to stay away from the chinese stocks...too much doubt going on; i suppose the naysayers were right...
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According to Muddy Waters' own translation of the 21st Century Business Herald article, financials that Orient Paper provided to investors in response to Muddy Waters' allegations overstate profit and taxes paid by an operating subsidiary of Orient Paper by close to 400%. The article also alleges that the operating subsidiary's largest supplier, Dongfang Trading, is "a shell company that has virtually no recorded revenue the past two years."
"Our thoughts are that having a supplier that is a captive shell company makes it easier to produce documents that would fool the auditors," Muddy Waters wrote, adding that the article shows that paper industry experts told the 21st Century Business Herald reporter that Orient Paper's claimed inventory turnover is "well above what is usual."