Replies to post #91145 on China Growth Stocks

[Scandle34]

and who was paid to stamp an ownership document on a Sunday...?

[BiotechValues]

Maj, I sold most of my LLEN today.

My concern was that the stock souldn't stay above the $2, or even the 100 dma, despite all the positive news they had. What bothered me is they had a pr about "YP Chan" being hired as a director, and then, a second pr about him just a week later being the director over M&A. Why the two pr's? It looked like they were trying to pump the stock to me. That, combined with the stock's action and your repeated concerns about it convinced me to sell most of my LLEN position today.

Also sold half of my AONE for a very nice gain in two days.

I remain long AERL, short EDU, half my original AONE, a few LLEN left, and 80% cash.

Was on the bid for another position today but didn't get filled....

[ccsykes]

One thing you need to realize is that SAIC filings do not lie.

But most Chinese companies are not truthfull in SAIC filings for a variety of reasons. This is a very cultural business issue in China. Some companies also use a third party filer who isn't concerned with accuracy. Other companies omit information on purpose to keep competitors from seeing what's going on.

It's not as black and white as you guys want to make it out to be. SAIC filings have been an easy boogey man because most people don't understand what the purpose of the SAIC is.

It's not a reliable source of information. If people can't trust the independent audits being conducted then what really is the point?

Another thing you fail to consider is it's very common in China for contracts to move forward on nothing but a simple handshake. In many situations companies begin work, or even begin to generate revenue from partnerships and JV's before the official paperwork has been processed on the business operation. This also causes errors in SAIC reporting.

You asked how I know these things, I know them because I know several Chinese business attorney's and I spoke frankly with them on the subject.

Chinese business practices are quite a bit different than what we consider normal in the western world. It's these differnces some people try and exploit.