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 Tracking 1260 U.S. listed China Stocks and Counting...
 Tracking 3141 U.S. Stocks and Counting...
Created: 01-Jan-2008

Extra Insight into some of the more controversial issues surrounding China Companies

  • 9:30 AMmore... 
    Tht Heat Transfer (NASDAQ:THTI) - According to a Chinese media source, the company recently engaged a cooperation with China General Nuclear Power Group in the heat exchanger business. 
  • 9:30 AMmore... 
    Kandi Technologie (NASDAQ:KNDI) announced that the Car-Share Program is expected to be launched in Chengdu with the delivery of 1,000 Kandi brand electric vehicles before the year-end.
  • 9:30 AM 
    Youku Tudou Inc. (NYSE:YOKU) announced collaboration with Alibaba Group Hol (BABA) to innovate online video marketing. 
  • Yesterday, 9:30 AMmore... 
    China Green Agric (NYSE:CGA) - In the company’s 10-K/A filed yesterday, we found a peculiar statement that notes that Tao Li’s private placement (seemingly performed as a result of our short thesis) is now subject to stockholder approval. This would indicate to us that the transaction has not yet taken place. We see this to be more smoke and mirrors from CGA:
    "On October 1, 2014, the audit committee and the Board approved a private placement investment in the Common Stock from Mr. Tao Li, pursuant to which the Company will issue 496,445 shares of its Common Stock, par value $0.001 to Mr. Li, pending the approval from its stockholders."
  • Tuesday, October 28, 2014, 09:30 AMmore... 
    Shanda Games Limi (NASDAQ:GAME) announced that Mr. Xiangdong Zhang has stepped down as CEO of the Company and has been removed from the Board of Directors, the Compensation Committee, the Corporate Development and Finance Committee.
  • Tuesday, October 28, 2014, 09:30 AMmore... 
    Nova Lifestyle I (NASDAQ:NVFY) announced that it has received new orders for their Grandscape project in Dallas,Texas from Nebraska Furniture Mart, an Omaha-based subsidiary of Berkshire Hathaway Inc.
  • Tuesday, October 28, 2014, 09:30 AM 
    Nq Mobile Inc. Am (NYSE:NQ) - The board formally rejected the Bison Capital privatization offer.
  • Monday, October 27, 2014, 09:30 AMmore... 
    Concord Medical S (NYSE:CCM) announced that it received government approvals to establish a free-standing radiotherapy cancer center, Datong Meizhong Jiahe Cancer Center in Datong City, Shanxi Province.
  • Monday, October 27, 2014, 09:30 AMmore... 
    China Information (NASDAQ:CNIT) announced that it has entered into a strategic partnership with Tianjin Pengfeng Investment to jointly establish an automobile new media platform.
  • Monday, October 27, 2014, 09:30 AMmore... 
    22nd Century Grou (NYSE AMEX:XXII) terminated the employee agreement of Joseph Pandolfino, the Company’s chairman of the board and CEO.   Recall, on 08/27/2014 the GeoTeam released a short thesis report on XXII highlighting what seemed like previously undisclosed stock manipulation charges against Mr. Pandolfino from the SEC. The 8-K out this morning, which was not accompanied yet by any type of press release, says the company is considering Mr. Pandolfino for the role of Chief Technology Officer. 
  • Friday, October 24, 2014, 09:30 AMmore... 
    Wuxi Pharmatech ( (NYSE:WX) congratulated its business partner TaiMed Biologics for receiving the Orphan Drug Designation from FDA for ibalizumab, a humanized monoclonal antibody for the treatment of HIV/AIDS infection. 
  • Friday, October 24, 2014, 09:30 AM 
    Lakeland Industri (NASDAQ:LAKE) announced a private placement of $11.2 million at a price of $10.00 per share.
  • Friday, October 24, 2014, 09:30 AMmore... 
    GeoBargain on the radar Igi Laboratories (NYSE AMEX:IG) reported strong Q3 2014 results: Total revenues of $6.7 million in the third quarter of 2014, an increase of 67% over the same quarter in 2013 and ahead of analyst estimates of $6.4 million; Q3 2014 EPS of $0.00 vs $0.00 in the prior year and ahead of analyst estimates of a loss of $0.01. Full year 2014 revenue guidance implies Q4 revenues will be ahead of analyst estimates of $9.4 million. 
  • Thursday, October 23, 2014, 09:30 AMmore... 
    Vimicro Internati (NASDAQ:VIMC) announced $29.2 million contract win in Chenzhou City of Hunan Province to provide video surveillance cameras and systems to the Municipal Government. 
  • Wednesday, October 22, 2014, 10:16 AMmore... 
    See our follow-up Seeking Alpha short thesis on China Green Agric (NYSE:CGA): "China Green Agriculture Chairman's Fulmination, Accusations Of Terrorism, And Another 'Sell' Rating".   
  • Wednesday, October 22, 2014, 09:30 AMmore... 
    China Mobile Game (NASDAQ:CMGE) announced that it is granted the right by Sanrio to develop mobile games based on 12 famous characters including HELLO KITTY
  • Wednesday, October 22, 2014, 09:30 AMmore... 
    Himax Technologie (NASDAQ:HIMX) announced that Google Inc. (GOOG) decided not to exercise its previously announced option to make an additional investment in HIMX's subsidiary, Himax Display Inc. ("HDI"). 
  • Wednesday, October 22, 2014, 09:30 AMmore... 
    China Auto Logist (NASDAQ:CALI) received NASDAQ notification that it is no longer in compliance with market value requirement, the company has 180 days to regain compliance.
  • Wednesday, October 22, 2014, 09:30 AMmore... 
    Wuxi Pharmatech ( (NYSE:WX) announced that it has entered strategic collaboration with Foundation Medicine to offer best-in-class comprehensive genomic profiling in China.
  • Wednesday, October 22, 2014, 09:30 AMmore... 
    GeoSpecial Super Micro Compu (NASDAQ:SMCI) reported strong Q1 2015 results: Q1 2015 sales of $443.3 million vs $309.0 in the prior year and ahead of analyst estimates of $417.5 million; Q1 2015 non-GAAP EPS of $0.46 vs $0.22 in the prior year and ahead of analyst estimates of $0.38.
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Zon4Ever 02-Dec-2010 09:35 AM
Post Type: Public Public
by Maj Soueidan As indicated in my recent article, Limit Risk While You Invest in ChinaH (#4746) 02-Dec-2010 09:35 AM

by Maj Soueidan

As indicated in my recent article, Limit Risk While You Invest in ChinaHybrids (U.S. Listed Chinese Stocks),  I track daily new highs in an attempt to identify momentum value plays.  A trend I have noticed is that even as the RTO stocks have once again corrected many ADRs, some with premium multiples are attaining new 52 week highs. Short investors have asserted that ADRs are of higher quality than their RTO counterparts and that their PRC filings match SEC filings.

ADR/ADS stocks listed on major exchanges that attained 52 new highs even as the Chinese RTO space has pulled back:

51 Job Adr (NASDAQ:JOBS)
China Digital Tv Holding Adr (NYSE:STV)
7 Days Group Holdings Adr (NYSE:SVN)
Global Sources (NASDAQ:GSOL)
China Techfaith Wireless Adr (NASDAQ:CNTF)
3 Sbio Inc Ads (NASDAQ:SSRX)
Hollysys Automation Tech (NASDAQ:HOLI)
Fabrinet (NYSE:FN)
China Yuchai Intl (NYSE:CYD)

A couple well-followed RTO stocks have recently attained new highs:

Lihua Intl (NASDAQ:LIWA)

The following stocks on the BB have recently attained new highs, most on light volume:

China Electronics (OTC BB:CEHD)
Horiyoshi Worldwide (OTC BB:HHWW)
Shun Cheng HK (OTC BB:BRBH)
Zhongchai Machinery (OTC BB:EQPI)
China Agri-Business (OTC BB:CHBU)
Gfr Pharmaceuticals (OTC BB:GFRP)
Sino Oriental (OTC BB:SMPN)
China Shesays Med (OTC BB:CSAY)
Jinhao Motor Co Common (OTC BB:GIMC)
Asia Pacific Wire & Cabl (OTC BB:AWRCF)

I also like to observe stocks that are within striking distance of a 52 week new high. One such RTO stock caught my attention due to the fact that it sports a trailing P/E multiple of over 20 that most RTO stocks would kill for.  I was obviously excited, thinking that the market had placed its quality stamp of approval on Kingold Jewelery (NASDAQ:KGJI).  Shares have risen from a 52 week low of $0.56 to $8.87, off its high of $11.95 in August 2010.

The company also claims to be the leader in its industry:

"Kingold Jewelry, Inc. is one of the leading professional designers and manufacturers of gold jewelry in the central part of China including Hubei, Hunan, Henan, Jiangxi, Anhui and Sichuan Provinces. According to statistics provided by Gems and Jewelry Trade Association of China, KGJI ranked first and second in the PRC's gold industry nationwide in total volume of production in 2007 and 2006, respectively."

As a precaution, I now run many of my potential ChinaHybrid stock selections through my Chinese attorney I call "Bob" in order to respect his privacy. Recall that Bob was instrumental in my article, The SEC vs SAIC Fact Finding Mission, published on August 25, 2010.  I asked Bob if he was aware of KGJI.  He was, and the news was quite interesting.

Bob writes:

KGJI tried to list in Shenzhen stock exchange in China in 2008.  However, it was rejected by China Securities Regulatory Commission on Aug 4th. 2008 ( 

KGJI planned to sell 33,340,000 shares which would have equated to 25% of the total shares after the planned IPO.  The book value per share before the IPO is RMB 1.59 yuan. As the IPO is rejected by China Securities Regulation Commission, we do not know what the planned price was. However, if we assume KGJI would have applied a 20 P/E (China market has a high P/E), the price shall be around RMB 0.30 per share.

Translation from CSRC site:

"China Securities Regulatory Commission, the Audit Committee issued its 115th meeting in 2008 at the August 4, 2008 meeting, the meeting reviewed the results now announced as follows: Wuhan Golden Phoenix Jewelry Co., Ltd. is not approved."

I am 100% percent sure this KGJI Wuhan Golden Phoenix Jewelry are one the same. Wuhan Golden Phoenix Jewelry has the same address, same legal representative and financial statements as well. In its prospectus submitted to CSRC, KGJI applied its English name as "Kingold Jewelry" on the cover which is the same as KGJI. Wuhan Golden Phoenix Jewelry is the direct translation of its Chinese name. When you say the logo of KGJI, it is a golden phoenix.

Bob goes on to comment:

The media reported that possible reasons for the rejection dealt with falsified financial books.  There were several reasons applied to challenge the prospectus submitted to China Securities Regulatory Commission (CSRC) by KGJI (Prospectus: 

At first, it has been speculated that the company intentionally increased (forged) the value in its asset appraisal report for machinery and raw materials invested by Zhihong Jia, CEO, in 2004. Secondly, the increase of the revenues from 2006 to the first season of 2008 was challenged.   Thirdly, it has been speculated that suspicious share transactions from Zhihong Jia to other shareholders existed.  (

I read the prospectus of KGJI in China (2008), the reverse merger documents and its S-1.  Apparently, the annual increase rate of revenue of KGJI is more than 100% for three years.  The Chinese media challenged the increase in 2008.  The financials in the PRC prospectus, reverse merger documents and the S-1 match, so the company used the same filings submitted to the CSRC.  Now, we need to figure out more details in 2010.

To be clear, the CRSC did not mention that it rejected the application for the IPO due to fraud allegations.

In addition to Bob’s findings and with help from a new due diligence panel I have assembled, I have provided the following information that investors may find useful:

  • It looks like the Company will tap the equity market, as determined by a recently amended S-1 and a blurb in the 2010 third quarter 10Q -

“We expect that cash generated from financing activities may increase significantly as a result of additional financing being obtained.”

We will continue our probe into the KGJI story in order to confirm or refute fraud allegations.  From the strong possible pricing indicated in the S-1 it appears that investors have given a vote of confidence. We welcome input from investors.

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