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Strategies & Market Trends : Value Investing

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To: Graham Osborn who wrote (57630)7/29/2016 7:16:00 PM
From: Spekulatius3 Recommendations

Recommended By
E_K_S
Jurgis Bekepuris
MCsweet

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Re TCPI -
I like that the company is headquartered in Switzerland and not China
Well, most Chinese companies listed in the US are structured as a holding company with virtually no assets in a tax haven, and the operatoring sub being in China. TCPI is the same - they have their nominal headquarter in Zug/Switzerland, but there are no assets in Switzerland and the cash and most of the facilities are in China. Good luck getting your hands on any assets if there is a problem.

All the frauds that were so abundant in 2012/13 had the same structure. All the Chinese company (even the one that are not frauds) are set up this way, it certainly doesn't mean that they are a fraud, but it means that you would not be able to do much, if they are.
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