A CFO usually resigns to take a better job. Happens all the time. In China too. A GM CFO resigned for that reason -- so does that prove GM is a fraud? . If a CFO resigns in the months before an annual report is released I'd be VERY concerned. , The CNIT annual report was released in early March 2011. . A CFO resigning just before a quarterly report is released would be a concern too, especially if the quarterly report ends up being filed late. . The CNIT first quarter report was released in early May 2011. . The "usual cycle of events", assuming there is anything usual about China small cap stocks, is a large short position builds (CNIT shorts up only 5% in the last two shorty interest data points I have) on a reverse merger stock (CNIT is one), then one or more short sellers claims a huge fraud in a long winded report (is there one?), the stock under attack falls 15% to 25% on that day (we do have that!), and if there really is fraud, the CFO may resign in the NEXT week or two (which is as close to an admission of guilt as you'll get from a Chinese comnpany). . Has there been a build up of short sales in CNIT followed by a report by one of the short sellers claiming fraud? . If not, this is not the "usual cycle of events". . I'm using this opportunity to double my position today at under $2.00 per share. . List of China stock short seller targets: http://fixyou.co.uk/tracker_performance_attacks.php . China stock safety rating model: http://www.fixyou.co.uk/tracker_risk.php . Richard Greene EDITOR of Economic Logic newsletter MBA Finance
As I have been saying, apparently not much in this one!! A real good chance for ole dumpster-diver to buy in big time and continue to lose his arss!! Oh, yeah this will be"$3.15" by June 15th!! Would you beleive $1.15 or less!! Buy, buy, buy, fools and lemings!!!