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Another Chinese Fraud? Alfred Little Believes Sinotech Energy (Nasdaq: CTE) Is Worth Between $0.00 And $0.63
After a brief lull, Alfred Little, whose track record in slaying Chinese fraudcaps is comparable to that of Muddy Waters (just recall the DEER in headlights), has released a report on what he believes is the latest Chinese publicly traded fraud: Sinotech Energy Limited (Nasdaq: CTE), where the catalyst is that its "largest customers and suppliers are likely nothing more than empty shells with little or no sales or income." Notably, this company breaks the mold of the surefire reverse merger frauds, and was actually taken public in an IPO by UBS, Citi and Lazard. Little's price target: somewhere between $0.00 and $0.63, a notable discount from the current price in the mid $3s. Below are the key highlights from the just released report as well as the full 30 page research report in its entirety.
- CTE’s sole import agent accounting for over $100 million worth of oil drilling equipment orders appears to be an empty shell with no sign of operation, a limited import history and negligible revenue base.
- CTE’s sole chemical supplier appears to be an empty shell, with little or no revenues, a deserted office and no signs of production activity.
- Likewise, CTE’s five largest subcontracting customers, providing the vast majority of CTE’s revenues, appear to be shell companies with unverifiable operations and minimal revenues themselves
- CTE’s oil drilling technology is questionable, mispriced and uncompetitive
- CTE’s audited financial statements filed with Chinese Government’s State Administration of Industry and Commerce (SAIC) further confirm its negligible business operations
- CTE’s board of directors lacks independence and effective oversight of management, evidenced by undisclosed related party dealings
- CTE stock is theoretically worth less than $0.63 per share but investors will likely recover nothing
Full report (and for what it's worth the authors have indicated they are short the stock... as would anyone else who is confident they have identified a massive fraud):
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Gold rises $27 to close at record $1,785 an ounce
http://www.marketwatch.com/story/gold-futures-add-27-to-end-at-a-record-level-2011-08-16?siteid=bnbh
Uh.... gold was over 1810 a week ago.
(*whispering*) Shh, you'll just upset him.
(Louder) There, there, JW, it's all right! Gold can only go up; just like real estate…
I was just posting the news.. sorry to offend!
good luck with the 1's and 0's!
Can you all keep that ice box door closed so we can kill all the roaches before dawn?
Thanks.
Sino-Forrest, SinoTech...anyone else seeing the joke?
Makes one wonder about SinoCapital, huh?
MEMO #: 29336 TO: ALL CLEARING MEMBERS FROM: OCC- FINANCIAL SURVEILLANCE DATE: AUGUST 17, 2011 SUBJECT: STOCK RESTRICTIONS (CTE) Due to a trading halt, as of Wednesday, August 17, 2011 and until further notice, SinoTech Energy Ltd (CUSIP 829359108) is no longer eligible for stock loan or collateral pledge at OCC. Only share reducing transactions will be allowed on outstanding stock loan and borrow positions. Any equity pledges for collateral purposes will receive no value. If you have any questions regarding this memo, please contact your Financial Surveillance representative.
WTF STILL BUYS CHINESE STOCKS?!
I know BIDU has been absolutely flushed over the past couple of days
Leo buys Chinese solars
Leo is in witness protection..
Leo is a good dude.
Tyler - I'm not sure what you are doing administratively with this site, but if I click on BB, I get an option to 'subscribe to all content from this user'...even if it doesn't seem to quite work yet it's exciting stuff. Please, please please let me get my BB content streaming to my iPhone. Make it happen!
iPhone sucks, brah. You need to get yourself an Andriod.
Note From Administrator to Vic Vinegar:
RE: BB content streaming to iFone
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Maybe the 2.3 trillion dollars that disappeared on 9/10/2001 described by Rumsfieldvin this music video.
Maybe the 2.3 Trillion burned up when the plane hit thePentagon.
Maybe the cash was just sitting there on that wing of the Pentagon.
LOL. I did.
http://www.youtube.com/watch?v=Xoglm_HcPzs
The S.E.Cs 3.87 trillion dollar lawsuit
http://agoracom.com/ir/CMKM/forums/discussion/topics/207582-cmkm-diamonds-q-a-update/messages/796561
http://cmkm.189025.free-press-release.com/
http://www.ripoffreport.com/investment-brokers/cmkm-diamonds/cmkm-diamonds-u-s-securities-67587.htm
http://m.youtube.com/index?desktop_uri=%2F&gl=pe#/watch?v=2C9ryVbCxHk
fix your link doofus!
So tell us again how the Chinese are such a juggernaut that will dominate the world in coming years. LOL!
Seems the Chinese ecomomy is just as much a ponzi scheme as the US or Europe. Maybe even more so.
Why don't you guys change the name to bitchingclub.com - negative nabobs of negativism. Everything is always "not going to work", "Armageddon tomorrow", "Crash is imminent" blah blah...
So, why are you here bitching?
First rule is no bitching.
(Please enrol my wife.)
I suggest The Joy Luck Gold Happy Club. Sounds Asian.
Maybe it's because the MSM won't do their job and point out the dark side of the argument, and the public always gets screwed because of it.
Maybe because in a kleptocracy peopled with conspirators and the whores that lie for them, there is a lot of material to criticize, and bit of skepticism goes a long way towards survival.
Now I don't expect you to understand this all yet, so go play with your dollies and let the grown-ups chat.
W? ài z?b?n zh?yì
Worth more than $0.63. Abandon the shit in a storage locker and let Darryll, Barry and Dave bid for it.
Too bad I can't naked short. Shares all gone from my brokerage already.
Baidu shares are coming under selling pressure for the second day in a row after China Central Television aired a report asserting that the China-based Internet search company continues to allow sellers of fake medicines to advertisers on the site.
http://www.forbes.com/sites/ericsavitz/2011/08/16/baidu-slides-after-chi...
how is muddy waters' sprd short working out? not so well, unless they covered the day their report was released.
Bush wanted to make sure everyone in America owns a "home."
More like the Congressional Black Caucus and ACORN suing banks and lenders to stop credit checks which they claimed was redlining.
President Hugo Chavez has celebrated that the Unified Regional Compensation System (Sucre) is being evaluated by the Union of South American Countries, Unasur. According to Chavez, the adoption of a single currency like the Sucre has the potential to become a tool to shield the region from the financial crisis caused by the global economic meltdown originated in the U.S. and Europe.
http://www.presstv.ir/detail/194159.html
Your Republicans are doing a Bang Up Job! fucking the whole Country over.. just to get some TV Air time..
Puts are available in CTE. The $2.50s at .30 that expire Friday look like the most speculative to play this story going wider..
Thanks for a quick trade with 30% return in 10min, you are priceless.
What does 2.3 trillion dollasrs buy you?
Just ask Donald Rumsfield in this here funny video...
http://www.youtube.com/watch?v=2C9ryVbCxHk
SinoPac Financial Holdings Co Ltd
Too mnay SINO-Frauds to copy and paste!
Halted the stock after the close.
The usual class action vultures have come in with grasping talons.
Carrion!
[Thanks for the heads up - these .25 puts should turn into $2 tomorrow]
Sino-Forest Shares Slide Further on Review Delay
08/16/2011 5:37:22 PM ET
TORONTO (Reuters)—The share price of embattled Chinese forestry company Sino-Forest slipped further on Tuesday [Aug. 16], on concern about the delay of an internal review into allegations of fraud.