Buying in China

Fear not everyone, I am still here. I have a couple of posts ready as soon as my positions have been filled.

I wanted to take a minute to post about some of the news regarding Chinese stocks, particularly reverse mergers that are fraudulent. As an investor in a couple of Chinese companies (MGO and ZUN), I have been following some of the better articles. Some of the better bloggers have been very helpful in educating a layman like myself. Others have already made their positions and are blogging to either encourage movement in share price or help encourage feedback. I have provided some of the better links that I have read. There is even more in-depth research out there, but there are only so many hours in a day. You can really see how short sellers have played a big role in uncovering some of the names.

I don’t think that either of my two Chinese companies are frauds. I am comfortable with the accounting firms and the disclosure that both have. That doesn’t mean that they don’t have any issues.

Geoff Gannon

Jae Jun

News article from Bloomberg

Bronte Capital

Feel free to roam the internet looking for more information on Chinese frauds. Put the coffee on first as there is a huge amount of material. If you are already familiar, feel free to post a link to some more interesting sites.

Dean

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