China Companys and their Shenanigans

[cmattporter]

I feel that every stock I look at that has the most outstanding numbers comes from China. Let me say that I have no bias in regards to  Chinese companies, but I might start to skip over any company with the abbreviation "PRC" in the company report.

 

I can back this up by saying 11 of the 12 PRC companies that I think have phenomenal numbers and would like to buy have with them some sort of accounting lawsuit against them.

 

If anyone cares to share their feelings towards my frustration feel free to comment. I give you all full permission to be as ruthless as one needs.

 

matt porter

[ericd1]

Matt,

 

Various Chinese companies have been proven to be frauds over the past year. What you are seeing is the investor reaction to the mess. It is obviously very difficult to perform any due diligence, so investors have abandoned Chinese stocks. Outside of a few of the majors it would be wise to stay away.

 

That said, for someone capable of competently researching and identifying the "real businesses" there could be enormous profits. But, for most of us Chinese small cap are in the "too hard" pile...What a bummer, with many trading at P/E's of 2.0x

 

 

 

 

 

 

[JSArbitrage]

Are you expecting people to be hard on you? It's CHINA.  Anyone who has ever been to China knows there is fraud everywhere.