Replies to post #48 on Pop Culture Group Co Ltd (CPOP)

[boston127]

Thanks. I need to do some reading.

I''m always afraid of the China Hustle. Watch the documentary.
https://tubitv.com/movies/590869/the-china-hustle

Investors seeking new alternatives for high returns find a gold mine in China -- until the discovery of a massive web of fraud calls everything else into question.

After the financial crisis of 2007–2008, investment firms in the United States sell opportunities to unsuspecting Americans who want to get rich by participating in the "China growth story." They do so by getting small nondescript Chinese companies (like Orient Paper and Advanced Battery Technologies (ABAT)) to do reverse mergers with defunct American companies (like Buffalo Mining) and thus get listed overnight, thus adding a garb of respectability and reliability.

Most of the companies were listed through reverse mergers.The film reveals that the actual revenues of Chinese firms were typically one-tenth of what was filed with the SEC.Subsequent to investigations, most of the firms were de-listed resulting in losses of billions of dollars to US investors.

Information on the frauds was published in Chinese newspapers in 2010 including the online edition of Sina, but American investors were unaware of these as the articles were mostly in Chinese. Subsequently, the small research and investment firm Muddy Waters published translations of the Sina reports but they did not receive much attention.

[boston127]

Hit $7.49 on Friday. CFRA has strong sell.

Here are the three reasons why the Strong Sell:

- Earnings have declined by 71% per year over past 5 years
- Does not have a meaningful market cap ($6M)
- Highly volatile share price over the past 3 months

Sometimes, an RS helps. Usually, they tank afterwards. I will follow.