I Believe everyone is holding their breathe at this time.
We are waiting to see if the auditors come on board or not, Just a couple of more days for this to be known.
If the Auditors come on board and supply up to date audited 10Q reports then we could see this stock move significantly higher on the other hand if the Auditors choose not to come on board we could see this company go private at a significant discount and the stock will then go to the trash heap, it is just that simple.
I for one think the Auditors will come on board and the stock will move up. I have been known be wrong in the past but I have also been right as well. I have been following this company for over two years now and I do believe management has done what it had to do for this become a National company with in China. From acquiring the national license to distribute on the internet nationwide to taking a lower profit margin on the domestic drug prices for the exchange of higher gross sales. They have expanded their operations to a larger newer headquarters and acquired two ware houses to accommodate the anticipated growth in sales.
Management has also expanded its work force for the same reason.
According to the previous and latest audited 10Q report growth sales have been at 20%+ clip and at a 10% profit margin.
The issue with the last Auditor was disappointing and extra ordinary. The last Auditors after being paid $200,000 plus just walked out without supplying the final product and requested an additional $40,000 to complete what should have already been completed. I have never seen this by any reputable company before. Even in the 8Q the auditors did not dispute the prior fillings just basically said if we do not get paid $40,000 we will not provide any fillings previously paid for. This to me is just wrong.
By the previous Auditors action FCPG was restrained to growing organically only, and was not able to obtain outside financing to help expedite its overall potential growth and created the uncertainty we are seeing with this stock. Not to mention the overall market attitude to anything Chinese because of the reporting differences of the PRC and the international reporting requirements. With respect to the reporting differences there has been progress made on this front and on its way to being resolved.
So we will see how all of this plays out in the next couple of days and holding ones breathe is all we can do for now.
Good luck to one and all.
AI
