I will not discuss it further until there is material news....is FUQI.
downside 50% upside several 100% depending on outcome. imo do your own DD this is not a recommendation but merely an acctg of my spec play I have bot over the last month. later
Like I mentioned - go look at financials on NUIN and you'll think it's the buy of the century, similar to FUQI.
The management of these China names march to their own beat, they have no regard for shareholders, the cash which appears on the balance sheets mean nothing because they never pay dividends and never distribute to shareholders.
Most all of them are fraudulent by one means or another - that is why investors do not bid the prices up. Nobody is willing to pay what a US company would be valued at. Steer clear.
Thanks - but I steer clear of all China-based companies like this. They do not operate like US companies and have absolutely no regard for shareholders. If I choose a spec play, it's going to be a US-based/regulated company where there is significantly higher probability they are playing by the rules.
I had reviewed NUIN maybe 6 or 9 months ago because I noticed a well-known director buying shares and the balance sheet and income statements looked too good to be true....which is exactly why I've stayed away. The shares have continued to underperform trading at $1.00 despite no debt, PE of about 1, and almost $5/share cash.
You're playing with fire in all of these China-based names.
this company has had a 4 year rectal exam by the SEC and others which appears to be concluding soon. its kinda like after Enron everyone said don't touch the other energy merchants they're all doomed to bankruptcy. if you had gone against their advice you would have owned your own island by now. this company had an American fund take a 10% position recently, has had a huge bidder taking every share in sight for weeks now and was ipo'd in 2007 by American investment bankers. this is not your run of the mill Chinese company.