Key to the Puzzle - What does GAO think.../ Want...?
This thread is to collect thoughts from all of us of what our motivation would be if we sat in Gao's shoes & why.... 1) Big owner 2) Late 40's 3) Screwing the markets or screwed by the shorts (Alfred & co last year) 4) CEO of growth company - with lots of day to day responsiblities 5) Evidence showing continuous growth / acquistions and operations for the company....
That dog-and-pony show they put on for the Rodman & Renshaw investors (re: IFRA videos) was a sad affair ... it did not look good to me from an honesty standpoint. But, I don't have all the facts.
What does GAO want?
Certainly he wants access to the stream of money flowing from U.S. investors, although that stream is a trickle lately (but improving this year from what I've been reading).
I expect Gao also wants to keep running his company that he built from the ground-up, he probably has a lot of pride in that. If there is fraud, and he was involved (i.e. self-dealing in undisclosed 3rd-party transaction w/ his son), then since he is the majority owner of the shares, IMO you will never see him admit to this fraud for that reason (as well as to save face). In that case, the independent investigation will likely never complete. He it he majority share owner, so he controls the board, so he can keep it from completing if he wants. As to why it was re-started in the first place (w/ all of the new CFO + director appointments): well, as I said in a different post, timing-wise that was likely an attempt to regain listing on NASD before delisting became final.
peak of work effectiveness in industry he's been in for a long time, worked his way up... I think this is not just $ and sense -- but accomplishment for the individual...success matters to his identity / self view.
--- drives path to clean up story and make it impeccable, even if it takes a long time. Last year, I'd have pushed back if people were asking too much to say the company is OK, especially if I had no issues with cashflow due to financing and operations. I would want / need access public markets for capital for continued acquistions / building... But I would not be up against the wall from a time / calendar perspective to force me to make it happen sooner than when all the questions are answered and in order...
We will see soon enough if your optimism is warranted. If by June 2012 they *still* haven't announced a completion of the independent investigation, and they *still* haven't made any new announcement/guidance ... then probably you were too optimistic and Gao isn't as trustworthy as you though?