Replies to post #77615 on China Growth Stocks

[lostmyballs]

CCCL EDS are both names i own..LNDT and CNET are two im starting to really dig into the sec filings (already own a partial position).. Might be worth a look on your part as well..

[Rames]

Good post! I agree with your criteria and also your projections.

I have a few more:

1. Ownership. I for one am not buying any more of those stocks with an omnipotent CEO/Chairman (CBEH, RINO, CCME) who can do whatever he wants as he controls 50%+ of the company.

2. Senior Management and Auditor trail. It can be very revealing if you look into the history of the past 2-3 years. Head honcho hiring and firing as he pleases is no longer "investment grade" for me.

3. Those "Make Good" arrangements seem to be poison for credibility and the incentive to meet those targets is always a concern that those will be met with manufactured numbers.

4. Companies reinventing themselves via new business model (SBAY) or acquisition (NEWN) and giving out very detailed EPS guidance a year in advance, which they will then meet no matter what, are highly suspicious.

[cfgjr]

Skier - "For me, none of the companies in the CGS index on this board, except CCCL meet my criteria."

Are there others, not currently in the Board index, that do meet your criteria? We will be getting ready to do the quarterly revison to the index in a week or two so the timing of this discussion is good.....thanks.

[Michael Anderson]

I agree there could be some opportunities of a lifetime, but it isnt worth more than taking a very small portion of ones portfolio to invest longterm due to the risk involved. Plus, as I stated previously, regardless of how great and legit one may be, they will either say screw these investors and not do anything and/or will try to go private, which yes it provides upside with that, but severely minimizes the upside and thus makes it even that much more difficult to take the risk. I dont know if I ever see any large firm such as GS and MS covering any of these stocks and that will be the only way for any of them to get a true valuation.

[teomax]

whats the name of that sucessfull China multi-billioner investor, who said that 50 percent of listed companies in the US are scams?

his newsletter could be good source of companies who were completaly checked by local guys on ground in China.While CCME managed to defraud several rich guys too, i could believe in local sucesfull investor who gave his warnings before whole fiasco.