While he is in no way as moronic as the Glickenhausen, who continue to defend Chinese reverse-merger fraud posterboy China Agritech (CAGC) (Read Bronte Capital on China Agritech here, read about CAGC‘s CFO Gareth Yau-Sing Tang, superstar Director Gene Michael Bennett, and IR shill Kevin Theiss, and don’t miss the sad story of Jesse Glickenhaus here), Christopher Davis of Davis Advisors, another storied family firm, certainly owes his remaining clients an explanation. A big explanation as to why they owned so much (17%) of one of the biggest scams to come out of China, Sino-Forest (TRE CN), affectionately known as Tree-X.
Chinese Scams
Zhiguo “Full of It” Fu’s Hilarious Letter. (ABAT)
On the morning of 28 November 2011, then halted Chinese reverse merger company Advanced Battery Technologies‘ (ABAT) CEO Zhiguo “Full of It” Fu issued a howler of a letter, available here, to his long suffering shareholders stuckholders. Here are some choice bits:
NASDAQ decided that, solely because we are Chinese, we should be required to provide an extraordinary level of confirmation from our banks. Despite the lack of any evidence of wrong-doing on our part, NASDAQ insisted that we approach our banks, inform them that our U.S. regulators consider them untrustworthy, and ask them to permit our auditors to “look over their shoulders,” as it were, while they prepare bank confirmations. Initially NASDAQ insisted that this degrading procedure be conducted at the highest level of the bank. After we obtained written refusals from each of our banks, NASDAQ agreed to have the process carried out at our local bank branches.
No Zhiguo, you have it wrong.
Just where are those bank confirms? (ABAT)
In an 8k (get it here) filed yesterday, the 21st of November, Advanced Battery Technologies (ABAT), formerly a shell known as Buy It Cheap.com (BYCC), and now a sleazy Chinese reverse merger company run out of an office in New York City, revealed that not only did the NASDAQ request bank confirmations of the cash supposedly on the balance sheet, but that the company refused to provide the documentation.
The Staff of The NASDAQ Stock Market LLC has determined to exercise its discretionary authority under Listing Rule 5101 to delist the Company’s common stock based upon public interest concerns raised by the Company’s deliberate refusal to provide the requested bank confirmations. The notice states that, unless the Company files an appeal of the Staff’s determination, trading in the Company’s common stock will be suspended at the opening of business on November 30, 2011 and a Form 25-NSE will be filed with the Securities and Exchange Commission, which will remove the common stockfrom listing on the NASDAQ Stock Market.
The sons of ABAT, namely CHDA and CLTT, both managed to file their 10Qs, albeit late, yesterday and this morning. Catch up on the ABAT saga here, and let the delisting countdown begin….
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 – Advanced Battery Technologies halted – (ABAT)
At 2pm EDT today, the 15th of November, trading in shares of Advanced Battery Technologies (ABAT), one of a ring of Chinese reverse merger companies run out of an office in the Garment District in Manhattan (see here) was halted.
Just last week ABAT filed an NT-10Q indicating that it would be late with its required filing. Get it here.
Previously at BuyersStrike! we discussed the resignation of CFO Guohua Wan on the 25th of October. Catch up on that here.
Son-of-ABAT, China Lithium Tech (CLTT) filed an NT-10Q just yesterday, see it here. And, in what is sure to be a suprise, so did the third company in this circle of junk, China Digital Animation (CHDA), the filing is here. Shares of CLTT and CHDA still appear to be trading.
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 – Harbin deal not yet done? (HRBN)
Some very interesting news out this morning about Harbin Electric (HRBN), one of the strangest of the Chinese reverse-merger companies that litter the US markets. According to Bloomberg the DTC has not been provided with the $24.00 per share in cash promised to shareholders in the going-private deal:
OCC to Delay Settlement of Harbin Electric Exercise Activity
2011-11-03 12:02:43.346 GMTBy Joshua Fineman and Clyde Eltzroth
Nov. 3 (Bloomberg) — OCC was informed by DTC that paying agent hasn’t funded DTC for deal of $24/shr: OCC web site.
* OCC to delay settlement of HRBN exercise/assignment activity until confirmation that cash consideration has been paid
* NOTE: HRBN going private deal closed on Tuesday (Nov. 1)
Link to OCC site: http://bit.ly/vWD3Cr
Could just be a timing issue, but given the sleaze surrounding Harbin, perhaps someone at China Development Bank figured out the con?
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 – Advanced Battery CFO flies the coop (ABAT)
This morning beleaguered Advanced Battery Tech (ABAT), plaything of promoter John C. Leo (of MH Myerson infamy), and one of a ring of Chinese reverse-merger companies that shares offices and much more (read about that here), issued a very brief 8k stating:
On October 25, 2011 Guohua Wan submitted her resignation from her position as the Registrant’s Chief Financial Officer and from her position as a member of the Board of Directors. Ms. Wan stated that she was resigning in order to attend to personal matters.
Perhaps she was tired of signing off on 10Ks and 10Qs with what any reasonable investor could conclude are material omissions with respect to related party transactions?
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.
Presenting Lewis Fan, ex-Rodman analyst? (RODM)
A mid-weekend peek at the Rodman & Renshaw (RODM) website shows that, as predicted on Friday by Bloomberg and Dow Jones, the sad excuse that passed for a research group on Chinese companies has been shuttered. Surprisingly, Amit Dayal is still listed as an employee, but the name of another Rodman Chinese analyst cheerleader is missing. Mr. Lewis Fan is nowhere to be found on the RODM website now, but here is a link to a cahced copy of the old site. Your author also captured a copy of Lewis‘ coverage list as of the 14th of October. It is a who’s-who of reverse merger wonders, not one of which Lewis thought was a sell.
The list is a cheerleading performance rivaling Matthew Kaplan‘s love of Repros Therapeutics. There is Irving Kau’s SEED, Bryant Cragun linked SCOK, Christopher Wenbing Wang‘s GSI, Zhongpin, a stock even Global Hunter doesn’t love, and even Jesse Glickenhaus‘ favourite stock Crazy Gareth and Gene Michael Bennett‘s China Agritech. Full list after the jump:
Not with a bang, but with a whimper, Rodman to shut Chinese “research” group.
According to a mid-day report from Bloomberg, famed PIPE shlock shop Rodman & Renshaw is shutting down its Chinese equity “research” group.
Oct. 14 (Bloomberg) — Rodman & Renshaw expected to close research operations in China-based stocks as interest deteriorates, DJ said, citing a person familiar.
• Rodman to make announcement Monday: DJ • Rodman didn’t immediately comment to DJ
One of Rodman’s chief Chinese stock pumpers analysts is Amit Dayal, who does not have a single sell recommendation in his entire active coverage list, which includes familiar names ABAT, a bunch of Westpark Capital WRASPs, Ping Luo favorite SinoHub, and AutoChina. Here is the complete list, according to Bloomberg:
AutoChina says goodbye to PWC, NASDAQ, Credibility (AUTC)
It has been a busy few weeks for controversial Chinese reverse merger AutoChina (AUTC), previously examined here. Of course, the annual report for 2010 is still nowhere to be found.
In a letter to shareholders, dated the 26th of September, AutoChina has revealed that PWC is no longer their auditor. AUTC‘s CEO gave the rather lame excuse that they could not “come to an agreement on the timing of the completion of the audit.” To translate from Scamtonese, “PWC is suddenly actually checking things, and that takes a very long time, these new guys we hired will be less thorough and fast.” Read the whole letter here.
Update – AgFeed Industries and Benjamin Wei aka Wey (FEED)
BuyersStrike! readers may recall this post here, from the middle of May, which introduced a wretched promoter of sleazy Chinese reverse mergers and one of his pets, and the surprise appearance of Dick Fuld.
The promoter is Benjamin Wey aka Benjamin Wei aka Benjamin Tianbing Wei, who is also responsible for such lovely Chinese companies as Harbin Electric, Inc. (HRBN) and China Natural Gas (CHNG), both of whom we explored yesterday and previously here.
Today Benny is the subject of a must-read, fantastic piece by Roddy Boyd at The Financial Investigator, available here.
One of Benny’s weaker deals is a wholly unimpressive Chinese reverse merger company called AgFeed Industries (FEED). In May there was a rash of insider selling by the Chinese nationals who formerly served as company management.
Last night, AgFeed announced, like so many frauds before, that a very Special Committee of directors has been formed to investigate accounting issues:
NEW YORK, Sept. 29, 2011 /PRNewswire-Asia/ — AgFeed Industries, Inc. (Nasdaq:FEED – News) (“AgFeed” or the “Company”) announced today that its Board of Directors has established a special committee to investigate the accounting relating to certain of the Company’s Chinese farm assets (acquired during 2007 and 2008) used in its hog production business, as well as the validity and collectability of certain of the Company’s accounts receivables relating to its animal nutrition business in China and any other issues that may arise during the course of the investigation.
Perhaps the only question a reasonable investor, or a competent Board Member should ask is “Are the books as cooked through as properly prepared pork?” Is anyone even remotely surprised?