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Replies to #456 on China Stocks

Rames

05/26/11 4:55 AM

#457 RE: kc1000 #456

Legit China Stocks (Update)

Please keep in mind that this is just a safety model, it is not meant to reveal the ultimate truth, this is impossible. The LFT case has proven that even the best-looking stock (top underwriter, large number of tier 1 analysts backing the stock) can have serious issues.


HIGH SAFETY
CTRP Ctrip.com International PricewaterhouseCoopers Merrill Lynch
EJ E-House (China) Holdings Deloitte Touche Credit Suisse
SSRX 3SBio Inc. Ernst & Young UBS
JRJC China Finance Online Deloitte Touche J.P. Morgan
DL China Distance Education Ernst & Young Citigroup
VISN VisionChina Media Deloitte Touche Credit Suisse
AMCN AirMedia Group Deloitte Touche Morgan Stanley
AMBO Ambow Education Holding PricewaterhouseCoopers J.P. Morgan
CRIC China Real Estate Information Deloitte Touche Credit Suisse
COGO Cogo Group KPMG Reverse Merger
CEDU ChinaEdu Corporation Deloitte Touche Bear, Stearns & Co.
NED Noah Education Holdings Deloitte Touche Deutsche Bank
HTHT China Lodging Group Deloitte Touche Goldman Sachs
HSFT HiSoft Technology International Deloitte Touche Deutsche Bank
GU Gushan Environmental Energy KPMG Merrill Lynch
XIN Xinyuan Real Estate Ernst & Young Merrill Lynch
LONG eLong Ernst & Young Deutsche Bank
AMAP AutoNavi Holdings Deloitte Touche Goldman Sachs (Asia)
NOAH Noah Holdings Deloitte Touche J.P. Morgan
ISS iSoftStone Holdings Deloitte Touche UBS
KH China Kanghui Holdings Ernst & Young Morgan Stanley
CIS Camelot Information Systems Deloitte Touche Goldman Sachs (Asia)
CCIH ChinaCache International Ernst & Young BofA Merrill Lynch
ATAI ATA Inc. KPMG Merrill Lynch

MODERATE SAFETY
QIHU Qihoo 360 Technology Deloitte Touche UBS
CNTF China TechFaith Wireless Deloitte Touche Merrill Lynch
DANG China Dangdang Ernst & Young Credit Suisse
CTC Century 21 China Real Estate PricewaterhouseCoopers Goldman Sachs
SFUN SouFun Holdings Ernst & Young Deutsche Bank
AOB American Oriental Bioeng. Ernst & Young Reverse Merger
BONA Bona Film Group Deloitte Touche BofA Merrill Lynch
BITA BitAuto Holdings Ernst & Young Citigroup
CMM China Mass Media PricewaterhouseCoopers Merrill Lynch
DATE Jiayuan.com International PricewaterhouseCoopers BofA Merrill Lynch
MY China Ming Yang Wind Power KPMG Morgan Stanley
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)
RENN Renren Deloitte Touche Morgan Stanley
MOBI Sky-mobi Limited Deloitte Touche Citigroup
VNET 21Vianet Group Ernst & Young Barclays
SHP ShangPharma PricewaterhouseCoopers Citigroup
GEDU Global Education & Technology PricewaterhouseCoopers Credit Suisse

All of the following stocks failed the test by several metrics (lowest score, <30%). There are about 100 more that failed the test, but they don't look as bad (30-50%). Again, this is not meant to be the ultimate truth, far from it, but a starting point for further due diligence. I wouldn't invest my money in ANY of these names if the only reasoning you have is SEC reported financials and management comments.


EXTREME RISK (sorted A-Z)
ABAT Advanced Battery Technology EFP Rotenberg Reverse Merger
AGSO AgriSolar Solutions HKCMCPA Reverse Merger
AJGH American Jianye Greentech Albert Wong & Co. Reverse Merger
APWR A-Power Energy MSCM Other delinquent
BFAR BioPharm Asia ACSB & Co. Reverse Merger delinquent
CAGC China Agritech Simon & Edward Reverse Merger delinquent, delisted
CAGM China Green Material Goldman Kurland Mohidin Reverse Merger
CBEH China Integrated Energy NO AUDITOR Reverse Merger delinquent, halted
CBLY China Bilingual Technology Child, Van Wagoner Reverse Merger
CCME China MediaExpress NO AUDITOR SPAC delinquent, delisted
CDM China Century Dragon Media NO AUDITOR WestPark Capital delinquent, halted
CELM China Electric Motors MaloneBailey Roth Capital delinquent, halted
CEU China Education Alliance Sherb & Co. Reverse Merger
CGDI China Growth Development KCCW Accountancy Corp. Reverse Merger dark (non-reporting)
CGPI China Redstone Group PMB Helin Donovan Reverse Merger
CHBT China-Biotics BDO Limited Reverse Merger
CHGY China Energy Corporation Wei, Wei & Co. Reverse Merger
CHHE China Health Industries Windes & McClaughry Reverse Merger
CHME China Medicine NO AUDITOR Reverse Merger delinquent
CHNC China Infrastructure Constr. Child, Van Wagoner Reverse Merger
CHNG China Natural Gas Friedman Reverse Merger delinquent
CIL China Intelligent Lighting Friedman Rodman & Renshaw delinquent, halted
CJJD China Jo-Jo Drugstores Friedman Reverse Merger
CNAM China Armco Metals Li & Company Reverse Merger
CNER China New Energy Group Child, Van Wagoner Reverse Merger delinquent
CNOA China Organic Agriculture Patrizio & Zhao Reverse Merger delinquent
CNVP China Environmental Protection NO AUDITOR Reverse Merger delinquent
CREG China Recycling Energy Goldman Kurland Mohidin Reverse Merger
CRTP China Ritar Power Crowe Horwath Reverse Merger delinquent, halted
CSGJ China Shuangji Cement Bernstein & Pinchuk Reverse Merger delinquent
CSNHD China Shandong Industries Bongiovanni Reverse Merger
CSOL China Solar & Clean Energy Paritz & Company Reverse Merger
CSWG Sen Yu International MS Group CPA Reverse Merger
CTXIF China Linen Textile Parker Randall CF Reverse Merger
CVVT China Valves Technology Frazer Frost Reverse Merger
CYXN China Yongxin Pharma Kabani & Company Reverse Merger delinquent
DEER Deer Consumer Products Goldman Kurland Mohidin Reverse Merger
DFEL China TMK Battery Systems MaloneBailey Reverse Merger
DGW Duoyuan Global Water Grant Thornton Piper Jaffray halted
DYNP Duoyuan Printing NO AUDITOR Piper Jaffray delinquent, delisted
ENHD Energroup Holdings Samuel H. Wong & Co. Reverse Merger dark (non-reporting)
FUQI Fuqi International Marcum Merriman Curhan & Ford delinquent, delisted
GHNA GHN Agrispan Holding HKCMCPA Direct Offering dark (non-reporting)
HQS HQ Sustainable Maritime Schwartz Levitsky Reverse Merger delinquent, halted
HRBN Harbin Electric Frazer Frost Reverse Merger
HSYT Home System Group ACSB & Co. Reverse Merger delinquent
JADA Jade Art Group Davis Accounting Group Reverse Merger dark (non-reporting)
JGBO Jiangbo Pharmaceuticals Marcum Bernstein Reverse Merger
KGJI Kingold Jewelry Friedman Reverse Merger
LLEN L&L Energy Kabani & Company Direct Offering
LTUS Lotus Pharmaceuticals Friedman Reverse Merger
NEWN New Energy Systems Goldman Kurland Mohidin Reverse Merger
NIV NIVS IntelliMedia Technology NO AUDITOR WestPark Capital delinquent, halted
PUDA Puda Coal Moore Stephens Reverse Merger delinquent, halted
RINO RINO International Frazer Frost Reverse Merger dark (non-reporting), delisted
SBAY Subaye NO AUDITOR Reverse Merger delinquent, halted
SCEI Sino Clean Energy Weinberg & Company Reverse Merger
SCOK SinoCoking Coal Friedman Reverse Merger
SDTH ShengdaTech NO AUDITOR Reverse Merger delinquent, halted
SHZ China Shen Zhou Mining Sherb & Co. Reverse Merger
TSTC Telestone Technologies Mazars CPA Reverse Merger
UTA Universal Travel Group EFP Rotenberg Reverse Merger delinquent, halted
VALV Shengkai Innovations BDO China Li Xin Da Hua Reverse Merger
YUII Yuhe International Child, Van Wagoner Reverse Merger