China Growth Stocks

[Michael Anderson]

I dont know if they are all frauds, but it is definitely a good amount and many that arent outright frauds and have an actual business are overstating earnings and cash and even stealing cash. I wouldnt be surprised to see the above total at 75% or higher. For now, regardless if all or even less than half are frauds, they all need to be treated like frauds and I agree not to invest long term in this space right now. The only way to go to play them is to trade them and even that is risky, its difficult to hold one for more than a day without something happening, a hitpiece, a statement about mismatching SAIC filings(and nothing more), delayed report, resignings, halts, etc. Find the quick trade and get out. Eventually the legit companies, few and far between will seperate themselves, but that will be a very long time and even at that point, these companies will be so disgusted that they will go private at a much lower valuation than what is worth the risk in the investment or they can say F off and the price can decline. I hope it turns out better than it seems right now, but there is too much risk and too many other quality investments out there to bother with this space longterm, at least for now. Good luck to all