Silvercorp Metals Inc (SVM)

[Picassa]

Some, like China-based Silvercorp, have some nasty problems to overcome. SVM has been the target of rumors alleging that it has reported earnings fraudulently, which the company has adamantly denied.

Those who have been spreading the rumors are now being investigated by the Chinese government for false reporting and fraud.

SVM has recently repurchased over $35 million of its own shares and also increased its dividend by 25%. As you look at the one-year chart, you can see that as recently as the beginning of May 2011 SVM shares were priced around $16.

When a company like SVM has no debt, $177 million in total cash, is reporting 65% operating margins and quarterly earnings growth (year-over-year) of nearly 49%, (assuming these statistics are mostly accurate), even Jimmy Rogers would take notice.

http://seekingalpha.com/article/315816-takeover-target-stocks-near-their-52-week-lows?source=yahoo