Replies to post #588 on China Kangtai Cactus Bio-Tech Inc (fka CKGT)

[GorillaGorilla]

CDBT.PK was an OTC stock until very recently. And yes CKGT is getting a, possibly unfair, kicking as a result of CDBT's failings. This *may* affect the pps in the short term; I emphasise may since I have no clue but so far it's behaving normally.

The lesson of CDBT is that a fraud initially perpetuated on the Chinese can then be turned onto the US investors. The importance of this is that a) Chinese fraudsters will see this as an opportunity. b) People wanting to create panic on a stock will also emphasise this problem. Either way, investors need to get up to adapt to this.

If it gets through unscathed, which it has so far, then for me at least - it becomes a better investment.

For me, I am interested in new points and respond to them, I may summarise the situation but I certainly won't be on auto repeat.

Yes, the fact that it worked with an investment firm is an excellent point.

rich

[throwerw]

Steven,

I gave phone numbers of the bureau in charge of the investigation of alleged investment fraud by a company with the exact same name as CKGT. I'm not talking to random people on the street. You can ignore me, or you can have a Chinese person call and verify.

I think that studying cases of chinese otc fraud in the past is necessary to avoid it in the future. CDBT is on the pinks now because they stopped reporting. The missed filing coincided with the management of one subsidiary being arrested for investment fraud, the nature of which was similar to the alleged fraud here. The bad news about CDBT was readily available on the internet to anybody who could read chinese for months, but nothing ever appeared in the filings. Investors just woke up one morning and 80% of their money was gone.

I'm just trying to put the pieces together. If the info I found turns out to be meaningless, you have nothing to worry about.