Chai-Na-Ta - Ginseng Message Board

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Gold/Mining/Energy : Chai-Na-Ta - Ginseng

CC 11.83

-1.0%

Dec 30 3:59 PM EST

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To: Stephen E. Cooper who wrote (31)	8/6/1997 11:45:00 PM
From: Randyfb	of 69

I just returned from a short trip and noticed the results for the second quarter. I am astounded at such mismanagement. The Company says they shipped lower quality crops to customers who had prepaid for what they were expecting to be higher quality crops. This resulted in non-payments, claims for price concessions, and product returns. The resulting loss pretty much wipes out last years earnings and in fact should have been recorded in the last quarter of the year. The excuse that they were only recently able to fully assess the impact of this problem is crap. Shareholders should have at least been informed of the difficulties before now. I also wonder about how the Company's image will look to their customers after this fiasco. I bought a small amount of CC at 9ish and sold at 12ish last year when I saw the year end earnings at Imperial Ginseng drop off. I expected the same problem with CC's earnings and sold having this concern. CC of course announced strong earnings instead and I thought I had made a mistake selling. I have continued to monitor CC since. This quarter's charge to earnings proves I was right and management has tried to cheat customers with poor quality crops and concealed the problem from shareholders. I won't have to monitor CC any more. These are not my kind of people. Randy B.

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