China Growth Stocks

[Rames]

Good post! I agree with your criteria and also your projections.

I have a few more:

1. Ownership. I for one am not buying any more of those stocks with an omnipotent CEO/Chairman (CBEH, RINO, CCME) who can do whatever he wants as he controls 50%+ of the company.

2. Senior Management and Auditor trail. It can be very revealing if you look into the history of the past 2-3 years. Head honcho hiring and firing as he pleases is no longer "investment grade" for me.

3. Those "Make Good" arrangements seem to be poison for credibility and the incentive to meet those targets is always a concern that those will be met with manufactured numbers.

4. Companies reinventing themselves via new business model (SBAY) or acquisition (NEWN) and giving out very detailed EPS guidance a year in advance, which they will then meet no matter what, are highly suspicious.