China Growth Stocks

[GorillaGorilla]

NEP: Yup, you need outside views..

Another common Chinese small-cap risk that NEP exhibits is the tendency to dilute current shareholders. Last December the company raised $13.5 million off about a 2 million share offering, diluting shareholders by over 30%. The 10-K makes no bones about management's willingness to raise capital in this manner in the future. I wish these firms would consider going to the bank for capital instead of diluting shareholders.

A 30% dilution that doubled revenue and earnings and diversification. I think it was one of the best dilutions in the space but the article only considered the negatives.

Banks work with state enterprises first and foremost - if you can get money from a bank your best to tap political contacts. They were talking about making it easier for small businesses to get money but I don't know if it is easier.

rich