Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (38008)	5/24/2010 10:33:48 AM
From: Jurgis Bekepuris	Respond to of 78476

I have not seen many pharma upstarts buying convention centers from related parties (AOB). Well, real estate deals is a signature of the emerging markets. Practically everyone and their mother in Eastern Europe went into buying RE when the economy was booming. I am not saying that it is a great idea, actually I think that it is a bad idea, but it does not make it fraud. I'm not sure why they love the RE so much, but they do. Funny thing apparently US "investors" did too ;). They were just a bit more business-savvy :P not to buy the RE within some other unrelated company. for unsophisticated players they have set up nice legal structures (3 layers of holding companies, US, Cayman, Hongkong) that will make it very hard to enforce liabilities should any bad thing happen to shareholders You realize that most of those were set up from US side, not from the Chinese side? So perhaps then you should bark on the tree of the "sophisticated" US acquirers. ;) if there is a panic over the Chinese small cap fraud, you will be able to get a good and the bad ones at prices you never consider possible There won't be a panic over Chinese small cap fraud. However, when there is a panic over China - and we are almost there again - you are right we will get "good and the bad ones at prices you never consider possible". Actually I already did once in 2009 and looking forward to a repeat. More serious issue is that if there is a real Chinese depression - yeah, the one where its economy goes down and not just slows to 4-5% growth - a lot of these companies will disappear. The positive is that most of them are overcapitalized, so there is a chance for them to survive. However, they are built on optimism, so business slowdown can be brutal.