Replies to post #46616 on China Growth Stocks

[viking86]

SAIC, however, is not responsible for financial reporting

That's all we need to know that any accusation of fraud based on SAIC/SEC data check is bogus. They are 2 different worlds.

[white_tiger]

I agree with everything you write. I think that the ownership structures are causing some confusion too. The investors who are claiming fraud need to make sure that they have the right number of subs and that they are required to file with the AIC. For example, I believe if the sub is in Hong Kong it would be exempt from this filing.

Here is my dilemma.. For the past few days, I have been staring at two SAIC filings that have not been released yet.

Company one: Boat load of SEC revenues in 2009 compared to less than a million on the SAIC.

Company two: revenues increase on SEC filings from 2007 to 2008 yet show decrease on SAIC. Also, numbers do not match.

I am pretty sure this is all the result of SAIC inefficiencies and am prepared to take a short-term hit. The Tax forms are what are important and the auditors have obviously verified these.

But here is an interesting observation I discussed with Fernando today. He basically said follow the cash.. The cash on the balance sheet of the SEC filing should have been easily verifiable by auditors. The fact that it does not match the unaudited SAIC lower cash balances helps to support that the SEC filings are more accurate.

Maj