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Re: redchipir post# 16

Friday, 07/30/2010 11:20:35 AM

Friday, July 30, 2010 11:20:35 AM

Post# of 91
Just a suggestion to Redchip since you have the ears of the companies you work with. You need to remind these companies that it is in their best interest to communicate often with stockholders.

There's a bad vibe on the message boards about small cap companies, particularly in china, who go long periods of time without issuing any type of updates. This leaves the average american investor very worried and keeps institutions from diving into these growth stories head first.

I'll use ALN as an example. We haven't heard a peep since they signed a letter of intent to purchase Shandong Greenpia. No surprise to me that the share price has dropped over 5% since then.

India is no different and IGC would be another example. I was on last quarters conference call and it seemed pretty obvious there were alot of concerns about the companies operations. Two weeks have gone by since then and the share price is down almost 20% due to investor fear. This company should be issuing press releases weekly with updates to give investors some confidence. Everyone would stop dumping shares if they weren't so scared.

I think we'll see a nice run up in china small caps during the next two weeks as companies issue earnings. I just hope they can follow the earnings with enough information to give us some confidence.





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