Given the increased negative attention on U.S.-listed Chinese companies, directors and officers of those companies should ensure that they are using the best possible corporate practices to prevent any type of action from succeeding. Common strategies include:
•maintaining proper oversight of business operations;
•maintaining effective board and internal audit procedures;
•increasing disclosure and transparency;
•disclosing differences in accounting conventions between different jurisdictions;
•enhancing the independence of the board of directors;
•hiring top-tier auditors with forensic accounting expertise; and
•communicating with investors frequently.
What rating should we give to the board of LIWA on how effective are their corporate governance?
I believe communication and independence of the board of directors are the two areas that LIWA still needs a lot of improvement.
Frequent communication -- you might send that one to LIWA. Little tidbits ocassionally, like a line completed or a new line in production, something.
Board of Directors: this is a problem with most listed firms. They don't want an independent Board.
I agree on your share price comment. I'd like to add at lower prices, but in fact (and have said) I'd add at higher prices. But, I'm not interested nor willing to sit on a non-moving stock for a couple years at a significant investment level --- that said, I'm not expecting LIWA to sit even another year at these prices.
The fate of LIWA stock price is now in the hand of institutions and hedge funds due to the lack of complete story that CEO is willing to tell to the public. Without real catalyst these days generates by the company, it is hard to attract attention from the general public. But if you believe LIWA will not sit at the current low price, I am all for it.
With regard to the last bullet point: "communicating with investors frequently" I'd give LIWA a grade of F-. We hear from them only, it seems, during their quarterly reports. The website still show September 2012 photos as being the most recent. We rarely (if ever?) get updates on orders, patent developments, and other important data. Their PR department and investor relations are both extremely inadequate, and do not enhance the brand name of their company.
I hear you and in absolutely agreement with your comment. Look we just have a lift off, there was one huge block of 17,500 shares on the ASK at $5.20 all morning long and was eaten up in one trade at 13:18EST and 16 minutes later, a huge block trade at $5.33 for 17,500 shares. I guess some one might like to take LIWA higher.