China Growth Stocks

[cliffvb]

NEWN- Used to be one of my favs but I lost interest when I looked closer at their acquisitions. Much of the acquisition cost went to goodwill or intangibles, which often means they overpaid for them. For example: NEWN paid $24 mil for Kim Fai yet the SE was only $546 K. With Anytone, $19 mil of goodwill was put on the books vs $33 mil cost. With Newpower, the intangibles actually exceeded the purchase price.

Also on Kim Fai which cost $24 mil, that company had spent a grand total of $43 K the previous year for R&D. Hardly seems like a high tech state of the art operation to me.

These #s come from my notes but it appears to me that there are plenty of red flags waving with this one.