Here's something you don't see very often in Value Line. China Biotics had been (for quite some time) on the very tops of all of my profile screens (such as Value Stocks, Growth Stocks, etcetera). Apparently, to one degree or another, the underlying data obtained from 10Ks and 10Qs was something less than stellar. Buyers of some Chinese stocks, beware...
Disclosure: Value Line is my primary source for stock evaluation... I appreciate very much their alert message(s)...
SUBSCRIBER ALERT: CHINA BIOTICS
Value Line analysts rely on the mandatory reports filed with the Securities and Exchange Commission (“SEC”) by the companies we cover. These reports, which include 10Q (quarterly) and 10K (annual) reports, among others, are audited annually by independent accounting firms. They are, thus, expected to be truthful representations of a company’s finances. Occasionally a company will provide inaccurate or misleading information in these reports. Value Line has no choice but to accept facts as represented by companies, reviewed by auditors, and filed with the government. Recently it came to our attention that a company under our review, that appeared to be a favorable investment opportunity for our subscribers, may have been less than upfront with accurate financial reporting. Value Line reported on concerns and rumors in a Supplementary Report dated June 17, 2011. At that date, due to the concerns over the financial reporting of China Biotics (CHBT), Value Line removed this company from our coverage universe.
SUBSCRIBER ALERT: CHINA BIOTICS (CHBT)
In a Supplementary Report dated June 17, 2011 Value Line reported on a number of concerns about the financial statements of China-Biotics Inc. The company was due to report yearly results on June 6th, 2011. No results were issued at that time. Subsequently, its auditor, the firm of BDO Limited (Hong Kong) resigned. NASDAQ sent China-Biotics a notice of an expedited proceeding that may lead to delisting.
Value Line removed this company from its coverage universe in mid-June. Value Line’s analysts rely on the reports filed with the Securities and Exchange Commission (“SEC”) by the companies we cover. These reports, which include 10Q (quarterly) and 10K (annual) reports, among others, are reviewed by independent accounting firms. Value Line has no choice but to accept facts as represented by companies, reviewed by auditors, and filed with the government.
EK!!! |
