I bought modestly back in this am. Now, a caveat or two from a shareholder. I have a little piece of another Chinese/American company and it seems to me that SETO will have to deal with a couple of the same issues.
Issue one, which is minor, is getting the money back out of your investment. I forget the technical name for it, but you can't just put your Chinese krugerands in a suitcase and bring 'em home. I think they have to set up some kind of brokering deal like trading the credit for bull semen which is traded for sneaker credits which becomes cheeseburgers which are more easily mailed to Malaysia via Hong Kong. Anyway, Pian has been working Asia for a long time and probably has that part figured out already.
Issue two is doable, but is time consuming and relates to listing. If this company is like other Chinese companies, GAAP is jeans your cousin send you in the mail. The SEC and exchanges won't even look at their version of finacial records. The whole current system and a bunch of history has to be converted to real accounting, like that's any easier to decifer.
Anyway, trading 42 cent shares at dollar face value is probably going to equate to a good deal. If it's anything like the TT deal, it could be a steal. Listing won't be overnight, but by the time they establish the requisite share price etc., the rest of the junk could be well under way.
Musings from the couch,
Mike |
