Replies to post #231 on China Stocks

[bpkaus]

The company offered no reason for dismissing its previous auditor so we can only speculate as to the reason. Could be something as simple as a cost saving measure. I have to think that the bigger name auditors are scared shitless of lawsuits given the amount of fraud in the sector and for that reason don't object to being fired by their clients. Until I see firm evidence of actual fraudulent activity, however, I'm willing to give the company the benefit of the doubt. As I see it the risk:reward of holding the stk at these levels is in my favor. If the company is given a clean bill of health, the stk could easily trade at a multiple of today's price. Unless the company is a complete scam, the stk isn't going to zero even if it has some accounting issues.

[Michael Anderson]

WKBT - Absolutely. It makes it look like they didnt want to get a higher tiered and larger auditor so they dont have to worry as much about them prying. I thought I saw somewhere that the SAT filings do not match as well. Add that along with the dilution, resignments, auditor gone and downgrading, etc. Look at the red flags individually and take away the company, when thinking about it, and you would not invest. Yes, there could definitely be some short term upside, but you can never be too careful