Oh my! Another dirty Chinese reverse merger SPAC deal has been halted this afternoon, AutoChina (AUTC). This is another Jay Srivatsa, of Chardan Capital fame, buy recommendation. As of late March, Jay had buy rating and a $40 price target on the stock. The stock was halted this afternoon at a last sale of $29.19 and a fairly healthy $575mm market cap. Naturally, one can expect both to shink considerably once trading in AUTC reopens. That makes two Jay stocks that in the news this past week. Read about Jay’s defense of Spreadtrum (SPRD) here. And here is a little bit of the awesome contained within AUTC‘s press release:
Month: June 2011
Quick Take – Chardan Capital vs. Muddy Waters (SPRD, LIWA)
Today saw the release of a short report from Muddy Waters on Chinese semiconductor company Spreadtrum (SPRD). Read the letter here.
And in the tradition of potentially career ending responses like that of LFT apologist Henry Ai, CCME booster Ping Luo, and Tree-X‘s one-time cheerleader Paul Quinn, an analyst from bucket shop Chardan Capital, Jay Srivatsa, told Bloomberg news there is “little to no merit” to the Muddy Waters report. Chardan has been responsible for such lovely Chinese companies as halted A-Power (APWR), Origin Agritech (SEED), home of CFO Irving Kau, the man who wouldn’t know a reverse-merger if he were working for one, and many more. Read about Chardan here.
Jay has a buy rating and a $31.00 price target on SPRD shares, and he is also a fan of reverse merger wonder Lihua International (LIWA) fka Plastron Acquisition I. Whom to believe, a sell-side analyst working for Chardan, a company responsible for foisting a bevy of bad Chinese merchandise onto the American markets, or Muddy Waters. Good luck Jay, you’re going to need it.
The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.
Quick Take – Kevin Theiss’ Very Bad Day (CHBT)
In the excitement over yesterday’s 8k from China-Biotics (CHBT) revealing the fake web site scam, read about it here, your author skipped right over CHBT‘s second 8k filing of the afternoon. In it, CHBT discloses more about its delisting notice from NASDAQ.
The delisting is a tardy, albeit expected, and by CHBT standards, tame, development. However, attached to this 8k is a press release, read it here, that is quite fascinating. Scroll all the way down to the bottom and readers will see the re-emergence of blogger-threatening, Chinese reverse merger Investor Relations superstar, Mr. Kevin Theiss.
Contact:China-Biotics, Inc.Email: ir@chn-biotics.comKevin TheissGraylingPhone: +1-646-284-9409Email: kevin.theiss@grayling.com
it was quite a surprise to see that he is still employed by Grayling. Read about Kevin‘s other clients, like delinquent China Automotive (CAAS) and shameful China Agritech (CAGC), along with his Very Bad Week, here.
The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.
Quick Take – Have Chinese fraudsters gone phishing? (CHBT)
After the close of trading on the 23rd of June, China-Biotics (CHBT) issued an 8k, available here, which announced the resignation of CFO Travis Cai as well auditors BDO. Attached to this 8k is a startling series of letters from BDO to the company and its Audit Committee. The letters describe, quite vividly, the amazing lengths to which CHBT has gone in perpetrating a fraud, that while not as large as Tree-X, is certainly the most brazen. Read more about China-Biotics, here, at Citron Research.
Things we’re still waiting to see. (CAAS, ECTE, FSIN, SBAY)
Since the beginning of the year, there are many things that the folks here at BuyersStrike! HQ have been anticipating. Some, like the mythical short squeeze promised by the Yahooligans enamored with James T. Crane‘s former home, Subaye (SBAY) will clearly never happen.
Others, like word from the FDA on the 510(k) submission of Echo Therapeutics (ECTE) ‘s rehashed ultrasonic lidocaine machine, are perennial “any day now” stories. Echo, a favourite of Florida bucket shops and Meir “Mark” Nordlicht’s Platinum-Montaur, submitted its 510(k) for the new version of its old, failed, product, in the middle of November 2010. Here is what ECTE had to say last November:
Just who buys this stuff – Guerrilla Update (YUII)
Add another name to the portfolio of halted Chinese reverse mergers owned by Peter Siris. This morning, after a painfully funny conference call by Yuhe International management, yesterday’s “suspension” in research coverage by crack analyst Joe Giamichael of Global Hunter, and the previous day’s reiteration of his buy rating, the NASDAQ halted trading in YUII.
As of the most recent filings, the stuckholders include old friend Tim Halter, whose Halter Financial held 948k shares (4.68% of the company), Ardsley Advisory Partners with a whopping 2.5mm shares (12.35% of the company) and Peter Siris‘ Guerrilla Capital, whom we met here, with over 488k shares (2.41% of Yuhe). Fine work gentlemen!
The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.
Mega-Moron Update – Still not a ‘Sell’ (YUII)
The afternoon of the 16th Joe Giamichael of Chinese reverse-merger powerhouse Global Hunter Securities, the one-time home of Ping Luo, decided to “Suspend Coverage” of Yuhe International (YUII). Just a day before, in the face of overwhelming evidence, Giamichael reiterated his Buy rating and $16.00 price target. Read about yesterday’s hilarious note here.
Here’s what the GH brain trust had to say in today’s note:
Following the recent allegations and the formal response from management we were finally able to speak with Mr. Zheng to get his first-hand commentary regarding Yuhe’s public response to the allegations from GeoInvesting and the subsequent recorded conversation; in which, Mr. Zheng supposedly reiterated that the transaction never occurred and that the documentation that has been provided is false. Having contacted Mr. Zheng using the contact information provided in the SAIC documents, published by GeoInvesting.com, he confirmed to us what was previously stated in the GeoInvesting article.
But, GH didn’t tell its marks customers to sell, oh no, Joey G. did not even move his rating down to Hold. He just ‘suspended‘ it. Sadly, trading was not suspended YUII closed the day under $2. Global Hunter‘s long suffering marks customers lost 51.96% in just one day.
The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.
Who buys this stuff? – Guerrilla Edition (JGBO, CCME, KEYP, PUDA, HQS, CRTP, CELM, etc)
The Wall Street Journal recently ran an interview with famed China investor Peter Siris of Guerrilla Capital, in which Peter defends Chinese companies. One of the more memorable passages follows:
To be sure, Mr. Siris says, there are frauds out there. He also acknowledges mistakes, saying a lesson learned over the years is that, if there’s the “least bit” of questionable activity, he won’t “hang around.”
So, your author decided to pull up the most recent filings and take a look at the Guerrilla Capital portfolio. Based on Peter’s portfolio, the definition of “least amount”, “questionable activity” and “won’t ‘hang around'” are Clinton-esque. Here are some of the stocks Guerrilla Capital owned as of the end of March, 2011:
Quick Take – More bad news for Westpark Capital and the WrASPs – (CIL, CDM, etc.)
The SEC announced today, in a press release, that it has instituted Stop Order Proceedings against two of Richard Rappaport‘s Westpark Capital WrASP deals. To catch up on Buyersstrike! coverage of Westpark and it’s special brand of reverse mergers, dubbed WrASPs, see here, here, and here.
According to the SEC release:
Washington, D.C., June 13, 2011 – The Securities and Exchange Commission today announced that it has instituted proceedings to determine whether stop orders should be issued suspending the effectiveness of registration statements filed by two companies – China Intelligent Lighting and Electronics Inc. (CIL) and China Century Dragon Media Inc. (CDM).
The purpose of a stop order is to prevent a company or its selling shareholders from selling their privately-held shares to the public under a registration statement that is materially misleading or deficient. If a stop order is issued, no new shares can enter the market pursuant to that registration statement until the company has corrected the deficiencies or misleading information in the prospectus.
Both companies mentioned in the SEC release remain halted since March. Two other Westpark deals, ZST Networks (ZSTN) and Highpower (HPJ) miraculously still trade.
The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.
Origin Agritech’s Irving Kau, caught in a lie? (SEED)
[UPDATE – Here’s a pic of Irving. – Editor]
If a Bloomberg report is accurate, Origin Agritech (SEED)’s Interim CFO Irving Kau just issued a whopping lie in a pathetic and transparent attempt to divert attention away from the warning issued yesterday by the SEC concerning reverse mergers, see here, of which Origin is one of many. According to Bloomberg:
12:54 *ORIGIN WASN’T FORMED BY REVERSE TAKEOVER, CFO SAYS :SEED US
12:54 *ORIGIN FORMED BY SPECIAL PURPOSE ACQUISITION COMPANY, NOT RTO
12:54 *ORIGIN SAYS SHARES ARE A GOOD VALUE AFTER DROP :SEED US
12:54 *ORIGIN AGRITECH CFO KAU SPEAKS IN PHONE INTERVIEW FROM BEIJING
12:53 *ORIGIN AGRITECH CONSIDERING SHARE BUYBACKS, CFO SAYS :SEED US
If Irving Kau thinks that Origin Agritech (SEED) was not once a little shell called Chardan China Acquisition Corp (CAQC) he is delusional. All it takes is a simple search to find a press release from from November 2005 which states: