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.com

Kevin Theiss

Grayling

Phone: +1-646-284-9409

Email: 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.

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.

Global Hunter: Mega-Mega-Morons?

Global Hunter Securities, the comedic bottom tier shop just keeps on providing the laughs. GH, the former home of Chinese Reverse Merger High Priestess Ping Luo, and the shop that put out the hilarious Morons or Mega-Morons report, has done it again. Witness the report, dated the 15th of June from Global Hunter’s Joe Giamichael on Yuhe Int’l. (YUII), put out in response to a sharply critical piece from former YUII bulls Geoinvesting (read the Geoinvesting piece here). Here’s the juicy bit from Joe’s defense of troubled YUII:

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:

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:

Congratulations Echo He! (HRBN)

In a surprise victory, beating out both Carol Wang and Henry Ai, with almost 50% of the vote, the winner of the most recent Weekend Poll, “Who is the next Ping Luo?” is Maxim Group’s Echo He.

Echo released a report on Harbin Electric (HRBN), a prototypical Chinese reverse-merger company, entitled “It’s not about trust, but common sense; Reiterate Buy.” News flash for Echo, it is only about trust. And simply put, there is not a single sell-side analyst that should be trusted blindly, not ones who work at Morgan Stanley or Goldman Sachs and certainly not ones that work at third-tier SPAC shops like Maxim.

Harbin is not Echo‘s only bizarre call.

Weekend Poll. The next Ping Luo is?

[Update - Poll is now closed - Editor]

 

Every scandal plagued company has a supporting cast. Sometimes, like at Subaye (SBAY), it is the denizens of the Yahoo message boards, like this gentleman. Other times, at firms like China Agritech (CAGC), it is naive buy-side investors like young environmentalist Jesse Glickenhaus. At some, such as China Media Express (CCME) it is a chorus of sycophantic sell-side analysts best exemplified by Global Hunter‘s former star Ping Luo.

And so, the question asked in this weekend’s poll is who is the next Ping Luo? Who has blindly defended a company in the face of all evidence, potentially destroying their careers in the process.

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.

Global Hunter: Morons or Mega-Morons?

This morning, top tier Chinese reverse-merger shop Global Hunter Securities issued a truly enlightening research report entitled “China: Margin of Safety Investing in China – Oxymoron or Moron?” At the end of the report is the following chart, reformatted for this post:

               Research Cov.         IB Clients
Rating      Count   % of Total   Count  % of Total
Buy           68       55.3%      15      60.0%              
Accumulate    21       17.1%       3      12.0%               
Neutral       28       22.8%       6      24.0%               
Reduce         5        4.1%       1       4.0%               
Sell           0          0%       0       0.0%                
NA             1        0.8%       0       0.0%                
Total        123        100%      25       100%

Not a single stock in their coverage universe, not one, is rated a “Sell.” Is it possible that the sharp minds, like Ping Luo, at GH have been unable to detect even one shady Chinese reverse-merger stock? Given that fraud is endemic to both the reverse merger space and China, it seems absurd that these folks believe over 70% of their universe is a buy or accumulate. Are they so blind, so greedy, or so complicit that none are outright sells?

Considering that Global Hunter is one of the shops that recommended both China Media Express (CCME) and RINO Intl (RINO) to clients, perhaps the better question for investors to ask is “Global Hunter: Morons or Mega-Morons?“

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.