China Growth Stocks

[Rames]

CXDC - I am in a different camp there. While I wouldn't recommend buying ANY Chinese stocks at this point (there will probably be plenty of time for that when the general markets have stabilized), I am holding a small position of 2k shares. Originally I bought this in June or so as I considered CXDC an interesting target for the PE firms that are shopping around this summer.

"the revenue match and NI off is enough for me to consider them a fraud, especially given their atrocious (and ever changing) reasoning on why they pay almost no taxes."

Maybe, maybe not. I am willing to trust MSIA here, assuming they've done their homework before putting $100M at risk in the current "everything China is a fraud" sentiment. Maybe they are total imbeciles and missed the most obvious DD items (taxes, customers, margins) but that seems a bit too far-fetched for me. I will take the positive approach for the time being, taking MSIA buying a stake as a more shareholder-friendly approach by the company than selling out for $4.80 or so to a PE firm. Won't increase my position though as there are considerable risks, but the stock is consolidating the big move from last week nicely and I see a good chance that it will take out the $5 mark some time this week.