Replies to post #33 on China Stocks

[Michael Anderson]

Wow, thats a lot. I havent heard of most of them.

[Shinisaurus]

DGW-are u kidding me? This has to be an error.

[palindromy]

Rato, whats your take on GFRE? They did provide a response of much better quality than the typical denial.

[Rames]

Legit China Stocks

Here's my take on the situation. Screened about 180/300 stocks until now. About half of them failed the test and I would consider them "high risk" or "extreme risk". That doesn't mean they were blatant frauds, but as several criteria were missed (earnings quality, dilution, management continuity, ownership, auditors, backing, history, underwriters, etc) you should be prepared for (very) unpleasant surprises (see WATG tonight) unless you have done your homework.

Here are the names that came out green with my system. It is meant to be a starting point for further due diligence, not the ultimate truth. Only five RTO stocks made this list so far. Discussion welcome. (The list is sorted from highest safety to lowest)

 
 HIGH SAFETY 
 CTRP	Ctrip.com International		PricewaterhouseCoopers	Merrill Lynch 
 EJ	E-House (China) Holdings	Deloitte Touche		Credit Suisse 
 VISN	VisionChina Media		Deloitte Touche		Credit Suisse 
 AMCN	AirMedia Group			Deloitte Touche		Morgan Stanley 
 LONG	eLong				Ernst & Young		Deutsche Bank 
 GU	Gushan Environmental Energy	KPMG			Merrill Lynch 
 XIN	Xinyuan Real Estate		Ernst & Young		Merrill Lynch 
 HSFT	HiSoft Technology		Deloitte Touche		Deutsche Bank 
 ATAI	ATA Inc.			KPMG			Merrill Lynch 
 AMBO	Ambow Education Holding		PricewaterhouseCoopers	J.P. Morgan 
 CNTF	China TechFaith Wireless	Deloitte Touche		Merrill Lynch 
 AMAP	AutoNavi Holdings		Deloitte Touche		Goldman Sachs (Asia) 
  
 MODERATE SAFETY 
 DANG	China Dangdang			Ernst & Young		Credit Suisse 
 CCIH	ChinaCache International	Ernst & Young		BofA Merrill Lynch 
 BITA	BitAuto Holdings		Ernst & Young		Citigroup 
 AOB	American Oriental Bioeng.	Ernst & Young		Reverse Merger 
 BONA	Bona Film Group			Deloitte Touche		BofA Merrill Lynch 
 CCSC	Country Style Cooking		Deloitte Touche		BofA Merrill Lynch 
 GAGA	Le Gaga Holdings		KPMG			BofA Merrill Lynch 
 YOKU	Youku.com			Ernst & Young		Goldman Sachs (Asia) 
 SYUT	Synutra International		Deloitte Touche		Reverse Merger 
 HOGS	Zhongpin			BDO China Li Xin Da Hua	Reverse Merger 
 GRRF	China GrenTech			KPMG			Bear, Stearns & Co. 
 VNET	21Vianet Group			Ernst & Young		Barclays 
 SHP	ShangPharma			PricewaterhouseCoopers	Citigroup 
 MOBI	Sky-mobi Limited		Deloitte Touche		Citigroup 
 GEDU	Global Education & Technology	PricewaterhouseCoopers	Credit Suisse 
 FTLK	Funtalk China Holdings		Deloitte Touche	        Reverse Merger 
 CIIC	China Infrastructure Investment	Weinberg & Company	Reverse Merger

[Post-it]

Rato - any specific reason why CYD is not on the list? IPO 1994, Ernst&Young, dividend. I thought it was a relatively safe bet at a PE of 7. TIA

[forzagrifo]

Why do you think SINA is not legit?

[ratobranco]

SINA - just forgot to include them.

[Timhu1972]

This post by bezek is a joke. He just naming random companies that he knows nothing about similar to the ones he labels as bad.

He needs to stick to writing for his school newspaper, which I bet is as bad as his bashing.