Replies to post #193324 on Biotech Values

[DocBones]

“In China, the regulators aren’t neutral,” said Chen Zhiwu, a professor of finance at Yale University and an expert on China’s financial system. “The government’s stated intention this time was that they wanted to use the stock market boom to fuel innovation and start-ups. This isn’t how a market is supposed to work.”

http://www.nytimes.com/2015/07/13/business/dealbook/chinas-incendiary-market-is-fanned-by-borrowers-and-manipulation.html

[DewDiligence]

SVA—This buyout is the kind of risk I was referring to in #msg-115335282:

http://www.prnewswire.com/news-releases/sinovac-biotech-ltd-enters-into-definitive-agreement-for-going-private-transaction-300479485.html

If you have no BoD representation, there’s little or no impediment to a self-dealing transaction by the parent company, as was the case with Genzyme’s (and various other companies’) “tracking stocks” in the previous decade.