Replies to post #23281 on Value Microcaps Free-For-All

[Penny Lane]

Great post. From one of your links -

The firm that appears to have close relationships with dubious auditors is CCG, headed by Crocker Coulson.

http://seekingalpha.com/article/66772-7-chinese-companies-with-dubious-auditors

As the Madoff saga unfolds, I think the most obvious red flag the authorities missed in Madoff was the suspicious auditor and auditing. I googled UTVG's new auditor, MORGENSTERN, SVOBODA & BAER, CPA’s, and found them also a bit suspicious.

I couldn't find a website for MORGENSTERN and they list a g-mail box in the 10-K.

E-MAIL: [e-mail]

The list of other stocks they are retained in also extremely suspicious -

BBCZ - Bodisen Biotech
JNIP - Juniper Group
HSYT - Home System Group
AVRI - Averox, Inc.
NMEN - New Medium Enterprises
CHBS - Charleston Basics, Inc.

[bradford86]

john302,

thanks for the heads up. i'm immediately aware of some of my portfolio shortcomings. i definately bought too much ghii and nwd, especially since i've found 10 or so similar deals out there. the goal right now is to try and push my money into those other ideas at similarly attractive valuations; anticipating that 3 will go under for reasons that i don't know yet and couldn't forecast yet, but that overall, these companies that are selling less than book value and are growing year over year at rates of 100%+ with P/E's less than 2 and a story that i like... have to do something..

otherwise, i sincerely appreciate any and all help. my mentor has annualized 15% for the past 18 years, including the whole market crash, he was pulling 30% before that.

wish you would have gotten to me 8 months sooner and i'd have listened.. but that's rear view mirror.

[cl001]

John, Nice post!
I was stubbornly against investing in any Chinese micro for years. I remember a lot of board members were pissed about my posts. Here is one of my posts against Chinese micro back in 2006:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=14367820&
...Wake up my friends! I am getting sick watching you gambling on the China micro stocks, wasting time reading these fake filings, and being taken advantage of again and again!

Now actually I started to nibbling some Chinese stocks. You want buy profitable companies with a lot of cash. Most importantly the companies have to be unique and have high barrier of entry. I like to buy top tier Chinese stocks, not micro, like SINA(40 baggered) etc. I made a killing in these Chinese stocks back in 2003, hope to repeat it now.