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Because the stocks have been taken over, you won't see them listed anymore on news sites like Yahoo or Google.

Interesting. I will take a closer look into those. For the first three, I put in the symbol in google finance and couldn't find anything. Could you please provide some links to their google finance web pages?

I looked at CFSG one year ago. I didn't know there were massive frauds in China hybrid space, so I was only looking for longs, but I already found a lot of accounting red flags then, so I avoided long this stock. Anyway, I took a quick glance now, and its financing seems to be provided by "Bank of America, N.A, The Hongkong and Shanghai Banking Corporation Limited and Citigroup Global Markets Asia Limited". Neither of these are Chinese banks, which are ordered by the government to tight up lending to non-state owned companies. In addition, this one's events are rolling much faster than HRBN, which is taking forever to happen. So this is not a good counter to my arguments.

I have heard from three of my friends that recently visited China, telling me about the high interest loan story. The geographic regions that they visited are far away apart. It is also on news paper, so it couldn't be fake. If you don't read Chinese, try google translation.

http://finance.sina.com.cn/g/20110527/23269911476.shtml

Muscleman, if that were really true, how did recently four Chinese companies with USA listings got taken over? CPC, FTLK, CSR and CFSG (almost done). Especially CSR it has a connection with Abax. How did these private companies acquire financing if the average is indeed 60% rate for private companies?

My friend recently visited China, and found that the banks now are only lending to state owned companies. His home town has lots of non-state owned private business that are forced to close because the banks are refusing to lend to them anymore. 

Right now China is rampant with business jumbo loans with annual interest of 60%. The non-state owned companies are forced to choose to either take these kinds of loans or liquidate.

HRBN is a non-state owned company, so it is impossible to obtain a loan of even a small amount, not to say $400 Million. That is just a joke. Given the past fraudulent loan history of the chairman, it is pretty clear to me that the deal will break up soon due to some random unexpected reasons.

Good luck to all longs who didn't do their home work.

Thanks for the great advice, like so many others handed out by you, I should buy VALV, OSN, HOGS puts and now write HRBN puts and use the premium to buy the stock...hmmm, any more?

The truth is that I suspect you are taking the other side of those trades...at least some of them? Of all the above advice, I like the latest one the most, that's probably a money maker...I am seriously thinking about that, thanks, any suggestion as to the size? Kelly formule or All IN?

Oh i get it.. I know that CDB is part of the fraud...  I am only posing a slim possibility that they may actually experience a sense of kamasutra in its truest sense, and see the light.  If they do, the money made from a fall out will be much more than a pop if deal goes through.

Your understanding of what kamasutra represents is obviously misguided...    It really signifies carrying out ones life with grace and and a high moral standard.  CDB does is not following this code at all..

I fail to understand why you do not own Harbin Electric (NASDAQ:HRBN) at these prices.. According to you it is a lock for some easy money.   You should write puts and use the premium to buy the stock. 

Maj, you don't get it, CDB is in it, how obvious do you need it to be to figure that out? It's all about connections. Guanxi, you know, "kamasutra" in Indian.

you don't sound like a basher...I am long Zhongpin (NASDAQ:HOGS).

Jam..  Harbin Electric (NASDAQ:HRBN) did admit their fraud,,  the same way Yuhe Intl (OOTC:YUII) did. Agree that a halt may be hard to come  by.  The bigger issue is how CDB bank will eventually react to

• a company that has 100% lied about top customers
• SERIOUS internal control problems regarding recent acquisition.
• Admission they did not buy land in question after saying they just a few days ago. 
• An weakening economy that is impacting growth rates.
• they need to raise more money

They key issues

• the financing negotiations are being carried out at the local branch where there is likely collusion. Final approval will have to come from the Beijing branch... 
• the bank will have to  consider ABAX/HRBN ability to pay back loan given that it is likely a fraud. 
• You can bet that short sellers will be putting pressure on Beijing. With all this China RTO fraud going on, I am not sure they want to be part of the problem. 

Haha, I see why you think I am short SPY puts. 

When I said "It is really sad to see my SPY puts in the money but HRBN puts in trouble", I mean legitimate US stocks are falling like a stone, but fraud companies like HRBN are holding up firmly just because there is a fake buy out proposal.

I am not familiar with CFSG, but a quick glance shows that it hasn't closed yet. Just a shareholder approval.

Are you sure you are not long, or hired by some HRBN/HOGS IR firm? Your tone sounds like a die-hard long from yahoo message board........... I apologize for any potential offense here.

Who told you I am short SPY puts?

As long as the company doesn't admit their fraud and nobody resigned, I don't see how it is possible for SEC or Nsdq to halt the stock just because some dude writes an article and send a request? I have no stake in HRBN though I agree it's fishy. Record date has been set and most likely this deal will go thru. CFSG also closes now despite Bronte's hit piece. So we have a wave of RTO deals going thru, CPC, CFSG, FTLK, CSR and maybe HRBN and FSIN follow soon.  The key lesson here is that we see value differently from those guys in China...

You better cover your short puts in SPY, Greece is set to default for sure and that will be worse than Lehman for sure, maybe another 30% downside in a week or 2, you really think germany is going to bail them out don't u?

Maj, it looks like this company is totally immune from hit pieces.....

In the past cases, it seems like auditors have some conscious, and quickly resign when they found things are smelling bad, and SEC halted the stock and started investigation.

But for this one, it looks like their auditor is corroborating with their folks to keep the fraud going on, and SEC don't step in if the auditor doesn't resign. That creates a big problem for us.

I am wondering if this case now looks more like the GMCR case, where FBI folks already found their numbers don't add up, but SEC just don't halt the stock and let their auditor figure it out.

I hope SEC is reviewing your documents now.

It is really sad and bizarre to see my SPY puts well in the money and HRBN puts in trouble.............

I might buy some july calls here. Could really move forward now. Although it seems that the market doesn't believe the buyout just yet.

Here is the legaleze on the financing:

http://app.quotemedia.com/quotetools/showFiling.go?webmasterId=95523&name=HARBIN%20ELECTRIC,%20INC:%20SC%2013D/A,%20Sub-Doc%202&link=http%3A//quotemedia.10kwizard.com/filing.xml%3Frid%3D23%26ipage%3D7661901%26DSEQ%3D2%26SQDESC%3DSECTION_EXHIBIT%26doc%3D2&cp=on&type=HTML

-Fernando

http://www.streetinsider.com/13Ds/Harbin+Electric+%28HRBN%29+Surges+After+Loan+Facility+Disclosed/6571153.html

400 M. Hrm...... This is strange. I still don't believe they are really doing the acquisition. What is the colleteral for this term loan? The CEO's stocks as before?

I can't find the SEC filing from yahoo or google finance. Strange....