Replies to post #236 on China Stocks

[joenatural]

WKBT - actually the company was set to upgrade auditors from GKM to a large firm with many on-the-ground auditors in China and GKM was given prior notice as to their dismissal. From what I understand, the new firm wasn't going to be able to get the 10Q work done on time and thus WKBT got a smaller firm that could put their entire efforts into the 10Q and get it filed on time (by May 16th). It's also my understanding that the replacement auditor won't be around for long and the switch to the original large firm will take place. I at least give kudos to WKBT having a replacement in place at the time of GKM's dismissal. I think we've seen enough companies in the sector dismiss their auditors for whatever reason and not having someone else lined up and ready to go unlike the situation here ........

"The reason for the resignation is obviously the fact that GKM found some problems with their books. Things are f'd up."

[SAMNOTSAMUEL]

WKBT: Until proven otherwise, fearing the worst is the correct course of action.

However if one fears the worst, then WKBT may have some skill as a fraud. The game is to keep going with proof of fraud skillfilly avoided.

sam

[white_tiger]

I guess this is what not effective internal controls leads to:

Please note the following statement in Weikang Bio-Tech (OOTC:WKBT) 2010 10KNet cash provided by financing activities was $4.35 million for 2010 compared to $2.55 million cash outflow for 2009. The cash inflow in financing activities for 2010 mainly consisted of proceeds of $4.32 million from stock issued in a private placement. The net cash outflow in financing activities for 2009 mainly consisted of payment of $3.81 million for the remaining portion of the acquisition price of Tianfang; net of a repayment of sales receipts of $1.26 million from management previously deposited into a personal bank debit card owned by the Company’s officer mainly for the purpose of convenience on payment collection.