This article is about the chinese small caps and RTO.I found this excerpt very good:
"Every time I hear the talks about all Chinese small caps or RTO stocks likely have accounting problems because a couple recent cases is like hearing somebody saying that Obama likely commit burglary sometime this month because several black guys in his/her neighborhood broke into others’ homes last month. If I am a clerk in a county court seeing somebody throwing this kind of accusation on the president, I am probably going to puke when I see it and say to the plaintiff:
“Sir, who do you think you are kidding here? Do you really think you can fool anyone with this kind of junk reasoning and evidences? The court and the society don’t have time to waste on this kind of garbage case. You don’t have a case. Go home and get yourself a good lawyer because you probably will be sued for fraudulent accusation and racial discrimination”.
In addition,let me tell you two more RECENT scandals with american companies.CASH (meta financial group) and HERO (Hercules Offshore).Actually the list is huge with scandals of the last 12 months!
Why don't you sell Wells Fargo and RIG shares then after such scandals with CASH and HERO ?
in terms of CASH
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that it had engaged in unfair or deceptive acts or practices in violation of Section 5 of the Federal Trade Commission Act and the OTS Advertising Regulation in connection with the Bank's operation of its iAdvance program.
in terms of HERO
NEW YORK--(BUSINESS WIRE)-- MURRAY, FRANK & SAILER LLP is investigating potential securities fraud claims against Hercules Offshore, Inc. (“Hercules” or the “Company”) (NASDAQ:HERO - News) and certain of its officers and directors, on behalf of shareholders of Hercules.
The investigation concerns violations of the Foreign Corrupt Practices Act (“FCPA”) and the Securities Exchange Act of 1934 (the “Exchange Act”), which allegedly occurred when Hercules failed to disclose certain material information about its business practices to shareholders.
i can write many similar examples with american companies if you want.Just let me know.
Maybe the company should do more for shareholders. With stock trading below it's earnings, why aren't they thinking about buying back stock? At recent prices you could buy back almost 5 percent of the shares with half a million dollars. They need capital to expand. Isn't a strong share price helpful in their expansion efforts?