Today's Chinese Fraud Du Jour: Sino Clean Energy (SCEI): "Complete Hoax" Per Alfred Little
If there is a day that passes without another Chinese fraud bottling up the Nasdaq's trading halt page, we feel a vague sense of abandonment. Luckily: not today. Alfred Little has just released his latest report on what appears to be the most recent Chinese fraud: Sino Clean Energy (Nasdaq: SCEI). This one apprears to be a total donut: "Sino Clean Energy (NASDAQ: SCEI) is the most outrageous Chinese fraud to date committed against U.S. investors. SCEI management pre?announced its first quarter 2011 results Tuesday in a press release (here) stating that revenues were $33.7 million. In its 2010 10?K (here) SCEI reported 2010 full year revenues of $106.2 million and adjusted net income of $27.9 million. However, four months of surveillance of SCEI’s three coal water slurry fuel (“CWSF”) factories clearly show nothing more than backyard?sized money losing operations. Incredibly, in December, SCEI’s fee?hungry investment bankers, Rodman & Renshaw and Axiom Capital Management, raised this scam company $33 million ($29.6 million net proceeds after deducting $3.4 million of investment banking, legal, due diligence and other fees). Did the banksters do any due diligence at all? Simply observing these idle operations proves SCEI is a total fraud, a fact urther confirmed by official tax records. Investors will never recover any money from SCEI and ts shares are worthless." As always remember: careful with buying options on a stock that may never reopen post the halt...
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