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China Information Technology, Inc. Message Board

  • Trademan1 Trademan1 May 27, 2011 7:07 AM Flag

    CFO RESIGNS---is CNIT a fraud?

    Seems to be the usual cycle of events..

    CFO resigns, then auditor resigns, then a director or two resign, then issues "surface", then trading is halted for months.

    Even if CNIT is clean, shorts will pund this under $1 so get out while you can and buy back cheaper if you think it's legit.

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    • 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:
      China stock safety rating model:
      Richard Greene
      EDITOR of Economic Logic newsletter
      MBA Finance

    • Crap. This is going to drop like a rock now.

1.01+0.03(+3.06%)Aug 26 3:15 PMEDT