Replies to post #52081 on China Growth Stocks

[stockm0n]

CSGH - I was thinking the same thing about "do they really have $18M in cash?" . If you have that much cash why the heck would you pay consultants in 1M free shares. Just doesn't add up.

For full disclosure...I don't own any shares of CSGH, though once upon a time I did.

stockm0n

[joenatural]

SIAF - they've been giving away shares as well throughout the year, so here again ...... do these companies really have the cash they're saying they do ? ......

"CSGH- this begs the question, do they really have $18M in cash?"

[zenvesting]

CSGH: The CEO's family owns 46% of the U.S. listed stock, so I think they have adequate regard for shareholders, since they are the largest shareholders. The company hasn't issued shares or diluted the share count for years.....they just canceled a financing agreement at $0.80 because they didn't like the price of equity for the financing.

It does seam a bit strange, but maybe they wanted to provide an incentive to this consultant to perform?

Usually I don't invest in Chinese microcaps because of the ambiguous ownership structures, but I like the fact the CEO has his money in the U.S. stock here.