Perhaps not but REALISTIC Yes!
Look at their comments on the US Listed China Company sector!
It's not pretty BUT it is factual!
In the meantime the company just goes on growing, investing, and making money!
from the filing:
"If we become directly subject to the recent scrutiny involving U.S.-listed Chinese companies, we may have to expend significant resources to investigate and/or defend the matter, which could harm our business operations, stock price and reputation and could result in a complete loss of your investment in us.
Recently, U.S. public companies that have substantially all of their operations in China have been the subject of intense scrutiny by investors, financial commentators and regulatory agencies. Much of the scrutiny has centered around financial and accounting irregularities and mistakes, a lack of effective internal controls over financial reporting and, in many cases, allegations of fraud. As a result of the scrutiny, the publicly traded stock of many U.S. listed China-based companies that have been the subject of such scrutiny has sharply decreased in value. Many of these companies are now subject to shareholder lawsuits and/or SEC enforcement actions that are conducting internal and/or external investigations into the allegations. If we become the subject of any such scrutiny, whether any allegations are true or not, we may have to expend significant resources to investigate such allegations and/or defend our company. Such investigations or allegations will be costly and time-consuming and distract our management from our business plan and could result in our reputation being harmed and our stock price could decline as a result of such allegations, regardless of the truthfulness of the allegations."
I find the phrase "whether any allegations are true or not" a little concerning. ("
Wouldn't read too much into it.
Sounds like a boilerplate lingo to me.
I mean, I don't like what it says either but they are just covering their @ss from any lawsuits that will come if some short wanted to attack CCCL.
I highly doubt a short would attack CCCL because of these reasons:
- very low volume (hard to cover).
- no options (impossible to hedge).
- GeoInvesting already performed a very thorough on-the-ground-DD. Sure, they had few questions but they did conform all aspects of the business/revenues and they did NOT go/suggest short.
To those people who are trying to hide messages for others by giving positive messages a 1 star:
I requested yahoo to trace the IP addresses involved and we will watch you, Beware that if you manipulate stockprices, you should be following Alfred Little and Muddy Waters to jail.