Value Microcaps Motherboard

[cl001]

SSK, Sorry to see you came down to this. I have been warning people for many years not to buy China micro stocks. I remember some folks were very upset about my warning. I was very surprised to see the conservative investors like you and Len were deeply into these very risky China stocks.
The bottom line for China stocks is not the company behind is real or not real, most companies are. The question is if you own 100% of a Chinese company can you take over the company and install new management team? The answer is no.
The China things are very complicated and very hard to imagine by western investors. For example, there are common practice to reduce tax. So the filing to the Chinese authority usually show much lower profits than the US filing. If you ask a western standard accounting firm to do it, it would be very difficult to sign off. There are lot of local accounting firms that are willing to do it, but do you trust the reports?
Almost every Chinese stock has some untold stories behind it. You need to really know the company before investing in it. Recently there are development that good Chinese companies are starting to go private and re-list in Shanghai or Hongkong. I think it is a good trend. However, then the problem is the not so good companies are left behind. I was looking at a few China companies that I knew well recently but decided to pass, maybe everyone on this board gives up on China companies it is a better time to buy
My investment philosophy is very simple, buy the resources that China needs instead of buying China companies. There are a lot of resource companies very undervalued these days, come to JM, JE and FA boards you will find many good opportunities.