Progressive Stocks

[Huggy Bear]

China R/M stocks have taken an unfair beating with the exception of some standouts like NEWN that can shrug off the negative exposure by such solid growth and bottom line numbers.

I suspect that the number and range of attacks we have seen regarding chinese R/M's, mostly implying risks of fraud and inflated numbers, uncollected accounts recievables and such that we saw over the course of this last year was a cleverly concieved ploy to cast a wide net of doubt over the whole sector - and then short the hell out of it.

A nice easy way to turn a quick profit by wall street and affiliates IMO. Yes, thats my personal conspiracy theory but I bet I'm not the only average retail investor with feet in the US and one ear down to China who has thought that.

I'm of the opinion that the market will become aware of this fallacy and in time, correct to some more appropriate valuations. That and I'm thinking I better get some powder ready because we may see a bunch of crazy value buys come available as we progress in retail tax selling season...

malc