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Orient Paper, Inc. Message Board

  • robine29 robine29 Jul 22, 2010 3:45 PM Flag

    Lost in Translation by MW

    Watching this flight for a while and it has become clear to me that it is not about fundamentals any more. Many people here are not trying to find out about the truth – it is about generating false information to create volatility and make a profit from it.

    Reading through the article put together by two Chinese and the translation done by MW, it amazes me that how MW and some other people would twist the information under the sun like that. First off, by “accident” that the author described MW as “a US Research Institution”. Further more, the name in the report is “Moody Water”. Hmm, man! It is Moody!!! Chinese people know about the name, don’t they?

    Secondly, the translation has much more negative tone in it than the original report – let’s leave the creditability of the original report alone for a while because I don’t want to agree or disagree with the information just by what I “think” without doing a site visit and speaking to the people– For example, the article said that the head of a province level paper manufacturing industry association told the reporter that “in the existing domestically made equipments, producing 1200 meter corrugated paper and keep it at 5 to 6 meters wide, it should be below 90 grams per square meter. I am afraid that (existing equipment might not achieve 120 grams per square meter. In the translation, MW said that the official said that this is “no way accurate”. MW is using many more assertive and negative words in the translation.

    Thirdly, MW has emitted all the positive information which can provide evidences that ONP is a legitimate business. The last paragraph actually has some interesting information: "in the local Industrial & Administrative Bureau’s filings, even before 3 years financials auditing required by public listing in AMEX, Mr. Liu’s paper factory has made about 100MM RMB in revenue in several consecutive years. The Company (before going pubic) was named “key enterprise” by the government. Only those companies who pay more than 1 million taxes are qualified for the reward. In many years, the company has been famous as a local “high energy consuming” company." If you just look at the message alone, you would think this is a very profitable and legitimate business.

    Lastly, regarding the poll – I almost fell off my seat when I saw that “one BILLION Chinese believe…..”. The poll has a very “Nice” title – a US Research Institution MOODY Water accused that ONP is a fraud. Duhhhhh! In addition, how many people are voting by clicking the button? Billion Chinese? You’ve got to be kidding me. See, you (MW) wants to be viewed as legitimate and professional – do thing like a professional!!

    Again, my comments do not intent to judge what the article says – I believe that it is ONP’s responsibility. I just so shocked by how some people go out do whatever they can to either generate false information or twist some uncertain information to take advantage of the volatility.

    It is laughable to see some comments: ONP is using BDO – no good! It is not one of top four. BDO is a PCAOB firm and it is the second largest auditing firm in China – if I remember it right. It has done many deals.

    ONP is going to engage Loeb and Loeb – no good! They are not the best – come on. Check Loeb& Loeb’s track record, won’t you?

    ONP is going to engage one of the big four – NO good! Remember Enron?

    Ok – I got it. What would you expect the management to do? On one side there are Roth Capital, BDO and lots of creditable investors confirmed that Company is good; on the other side it is MW and short sellers who never ever even meet with the Company. Well, welcome to the capital market – and welcome to Chinese red chip. Good luck.

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    • Many of your points are fair, but you are also not being fair to some of the points made.

      Regarding Loeb, the point made was that this law firm has a financial interest in making sure that ONP is not guilty of fraud. A large part of this law firm's revenue come from the Chinese reverse merger marketplace, and from service fees to companies that have gone through that process. If Loeb helps to prove a fraud against ONP, it would have a direct and massive negative effect on all of Loeb's revenue in this segment.

      Why not use an independent law firm which does not lose large parts of its other legal revenues if ONP cannot be defended?

      • 2 Replies to peristentone
      • The law firm is not going to do the audit. The independent auditors are going to be one of the Big Four. The press release wasn't exactly 100% clear - how the hell is a lawyer going to audit the company? Just think for a second, the lawyers are there to explore legal options (to see if they can sue MW), not to investigate the company. Lawyers have no qualifications to do the investigation, even if they did it nobody would believe them.

        That Seeking Alpha blog is obviously distorting basic information. There are some things that have not been 100% answered by ONP. However, going after BDO and Loeb & Loeb is obviously just mudslinging and outright distortion of facts.

      • That may be the point in the article however misleading it may be. The most important aspect is not the law firm, but the fact a Big 4 auditor is coming in. So again, another misleading statement by an unknown and unreputable poster.

    • well done

    • Thank you

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