Replies to post #76881 on China Growth Stocks

[ratobranco]

UTA - I'm not sure if the space will ever be great to invest in. There are a few stocks that fit the bill, but the overwhelming majority are worthless IMO.

After all that has happened, for people to still be buying a stock like UTA is just crazy IMO. Playing with fire. Assume fraud until proven otherwise. The evidence at this point warrants nothing less.

[Michael Anderson]

CGS - Even if a company somehow proves their innocence and gives millions and millions to shareholders, they still wouldnt get a correct multiple. So as Ive stated before, even the companies that are legit, the upside is limited due to the fact that they will probably try their hardest to go private and relist somewhere else. For the risk, it just does not seem to be worth it for the the longterm. Until a big firm like GS or MS initiates coverage on one of these, which may be never, the whole space will continue to trade at a pe of 5. If somehow or at somepoint one of these companies gets coverage like that, that will be the one to jump on, but I dont mind taking the chance to miss any longterm upside.