Response from RINO re: Muddy Waters is cause for concern IMHO. If they were a well run company with good financial controls and honest practices they would have come out with a very strong response denying everything Muddy Waters claims - they didn't do that which is very concerning.
Just like CAGC was pumped up to 2.00 then did a 8/1 reverse split to trade on the Naz. CAGC's CEO has been convicted in China of several penny stock pump and dump schemes. These are 2.00 stocks and should not be trading on the major exchanges. That is why they are having so many management errors and audit issues. * RINO’s FGD sales (60% to 75% of revenue) are much lower than it claims. We found that many of its customer relationships do not exist. * Chinese regulatory filings show that RINO’s consolidated 2009 revenue was only $11 million, or 94.2% lower than it reported in the US. We show that the Chinese numbers are credible. * RINO’s accounting has serious flaws that are clear signs of cooked books. * RINO’s management is draining cash from the company for its own business and personal uses. The management is in flagrant breach of its VIE agreements, which require it to pay income to RINO (as opposed to taking it). * RINO’s balance sheet has an astonishingly small amount of tangible assets for a manufacturer. Rather, it is filled with low quality “paper” assets that balance out the inflated earnings, and likely hide leakage. * RINO is not the industry leader it claims to be in the steel sinter FGD system market. Rather, it is an obscure company in a crowded field, and is best known for its failed projects. Its reported margins are two to three times what they really are. Its technology is sub-par. * We are not sanguine about management “borrowing” $3.2 million to purchase a luxury home in Orange County, CA the day that RINO closed its $100.0 million financing. Rating : (No ratings)