China Growth Stocks

[Traderfan]

I don't agree at all with this statement. They did ONE single big financing back then in order to buy the Gaojuan facility. Yes the terms were awful and all the warrants were an overhang but look what they did with the EPS yoy. The deal was highly accreditive. And then look what CKGT did in EPS growth yoy 2009 to 2010. It's almost non existent. If a company does a financing and achieves nice EPS growth because of it it's something entirely different then to do a raise just for "working capital" or such stuff.

I don't want to knock CKGT here but rather defend LPH in this case. Not that the financing terms weren't bad back then no doubt about that but still look at the growth numbers in LPH. They are excellent.

I have no current position in either one of these companies.