ZSTN - the shelf is not so much the problem. I've told a few people on the board why I don't think this is a "safe" stock (GPS, R/D, family clique) and if we had such a checklist system the stock would definitely not have passed.
- Chairman is almighty, he and his wife own some 45% of the company. Chairman's boy is COO, that's basically it.
- CFO continuity fail
- CFO qualifications fail
- Restatements fail
- IPO Underwriter fail
- Auditor fail (until mid-2010 when they hired BDO China)
Haven't looked into committees, directors, compensation (Chairman just approved himself 60k shares for playing CEO for another year, additionally to a $282k annual salary), stock for services, disclosure etc.
Also... ZSTN just bought additional 2 floors of office space for $7.8 million (8-K), no press release afaik, the price seems very high to me with RMB18,000 per square meter. Only reference for Zhengzhou office space prices I could find quickly was from Singapore listed CentraLand. In their Q3/2010 report they quote RMB6,113 per square meter for their Zhengzhou project "J-Expo". What do I know, maybe ZSTN's office space is just marvellous and they really need it (might not hurt to disclose what for, though)
