China Sun Group Hi-Tech Co. (CSGH)

[Toxic Avenger]

You're certainly entitled and encouraged to invest as you see fit. As I pointed out, virtually all Chinese companies have been painted as frauds. CGYV's value is holding up far better than CSGH, despite CSGH's better financials. The major difference that I see is the audit firms each employs.

I rather doubt CSGH has 80% more to drop, at least quickly. CGYV probably switched auditors right as people were beginning to question the Chinese stocks.

My opinion is that based on its financial statements, CSGH is severely undervalued. I don't think anyone would disagree with that. That suggests to me that investors do not believe those financials. From there, I deduce that the only way the price will rise to a reasonable level is if a reputable firm audits and agrees with the financial results. I have to believe the company recognizes this. Therefore, I interpret their refusal to take such a step as an acknowledgment by them that their is something not right in their reporting. Perhaps it's minor. Perhaps its a distrust of foreign audit firms. Perhaps it's major.

I, and I believe many other investors, would be heavy accumulators of CSGH IF there were reputable back up to their reported results.