Replies to post #2403 on China Organic Agriculture, Inc. fka CNOA

[ImOnABoat]

For supposedly a 100+ million dollar revenue company that is doing a major restructuring and/or financial data overhaul, two months is NOT a long time by any means. You are underestimating the volume of work and data involved here considering the scale, the number and diversity of their subsidiaries. And let's not forget the nuances of international reporting.

[Ecomike]

CGYV started their auditor change, clean up about 18 months ago, when they switched to Deloitte... as their new auditor. They may have been one of the first to make the change. The new auditor insisted on redoing the prior 2 years plus the current year (Investors bailed on that great news). When all three years were finally completed, it had took about 14 months or more for Deloitte to complete the 3 years audit. When it was all said and done, the numbers moved some from year to year, but the final net financial picture barely changed, just piddling little details got moved around by pencil pushers, like derivative gains and losses on outstanding warrants based on US GAAP standards. Only thing that really changed was the stock price dropped 90% during the 14 month carnage, and rallied 500% when the reports were finally finished, and nothing was wrong after all!

I think they were one of the first that got dragged into the carnage process of differences in US and China accounting processes. I think most of the China stocks are NOT scams, but are getting dragged into a hair cutting process, driven by fear, and shorts that can smell the fear, and changing and evolving dual US/China accounting policy. Add to that the recent news this week that one of the China stocks (Biotics something?) was it seems using a fake bank internet website to spoof the auditors, and they finally got caught. So you can rest assured all the auditors are talking to each other, and are now going back and checking under the rugs they missed, for things like possible fake web sites used to verify bank deposits and cash, since this was a first this week for the entire sector!!!!

I think you all can count on further delays partly because of that news of the fake bank website.

I do not have shares here, never quite got in, but I am holding tight on the ones (other China RTOs) I have, watching ones like this one, and even if it takes 12 months and 50% stock price drop for the air to clear I will hold the ones I have, as I know the ones I own are sound and way, way undervalued. I will just wait for the panic to peak, and buy more, like I did with CGYV 18 months ago, if the prices go any lower.

My best suggestion for those that can afford it, is to stay diversified, hang onto the stocks that look legit, and start gathering dry powder for the second stock market buying opportunity of a life time, this time it will be at least China RTOs, if not the entire market if Washington drops another market crash bomb in July/August like they did in 2008 by not saving Leehman and not passing the original bail out bill. Now they want to play with the US debt limit and scare the Treasury holders worldwide? OUCH!!! Get you seat belts ready folks!!!