Replies to post #49657 on China Growth Stocks

[Traderfan]

The initial question that came to my mind was the following. If for example a company has 50 million in revenues and 10 million in net profit in the SEC filing but only 2 million in revenues and a net loss in the SAIC filing in order to not pay taxes where is the money then going which is under the tab "income tax expense" in the 10q??

Is it just me or does this all make no sense? I guess the chinese government would be capable of reading a 10q and say "oh shit they did 10 million in net income and not a net loss so where is our 2 million in income tax expense"??

[white_tiger]

Question 1: Yes, is on my agenda.

Question 2: Yes, I have considered this. If we just have tax fraud and the Chinese government takes little action i don't think we have a "Business" risk issue. The bigger question for me, is will the SEC stand for situations where certain lines on U.S. filings are misrepresented? I do know this.. any positive clarity on this topic will send our stocks to the moon.

Question 3: I will consider this. I just do not want investors making assumptions from what i own. For example, I own EESC and NEWN.. But don't assume that I have SAIC or SAT filings yet. My overall strategy is to identify new "kids" on the block. Those that the shorts will have very little in.