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

To: Paul Senior who wrote (47161)	3/23/2012 11:20:19 AM
From: Jurgis Bekepuris	Read Replies (2) \| Respond to of 78666

My feeling is that the people running these companies will eventually go to the next higher level of fraud -- give "investors" something to draw them in so as to prop up the stock price while the fraud continues. And that would be a cash dividend -- if the real company owners haven't siphoned the cash off the books yet. So you think that a dividend can be used for fraud paranoia too? What is the scenario you imagine? The company gives shareholders 10-20% stock price dividend, then what? Announces secondary? The stock price does not really go up much and would drop on secondary anyway. What other fraud possibilities you see that the dividend would enable? Isn't it silly to give out huge stock pile of cash as dividend that could be siphoned to the fraudulent management instead? And if the company is a fraud, where did it get the cash from anyway? Disclosure: I own large positions in GAME and PWRD. GAME has paid 20%+ special dividend. PWRD is going to pay 10%+ special dividend.

To: Paul Senior who wrote (47161)	3/25/2012 11:42:34 AM
From: Madharry	Respond to of 78666

I have been burned a couple of times myself but it has certainly tarred all the companies with the same brush. What is so alarming to me about this is that several funds with large analytical staffs and people on the ground in china have been burned as well and there seems to be no effort made by chinese authorities to crack down on this. now i am not sure if the situation is different for chinese subsidiaries of us companies.Im sure the accounting for these entities would be a facinating read. As a result like you I will not be adding to positions or investing in any more chinese companies. I dont believe that gure is a fraud and I am holding to what I own there. hopefully at some point the chinese authorities will recognize that they need to encourage private investment, will coperate to prevent the unlawful and inappropriate transfer of corporate assets and defrauding of outside investors. i hope they will do a better job than the sec too.

To: Paul Senior who wrote (47161)	7/9/2012 2:43:54 PM
From: MCsweet	Read Replies (2) \| Respond to of 78666

China stock basket? PWRD, GAME, XIN, CCM -- all seem cheap to me and are returning cash to shareholders via dividends and buybacks. As Paul warned, they all could be scams and paying dividends to juice the stock price so they could sell more shares, but this doesn't make sense to me. There is no guarantee they will get a return on the cash they pay out (in fact, none of the share prices are really up all that much). If they were scams, why not just keep the cash? At this point, I am thinking about owning a basket of these stocks in order to reduce the risk from an individual issue. If there are good ideas from the board, I'd love to see them. I would much prefer larger/well-regarded stocks and/or stocks buying back shares and paying dividends to stocks with just ridiculously cheap valuations. Right now is "show me the money" time. If a company is at a PE < 5 and not buying back shares or paying dividends (GURE, SPU a couple examples), I think the management must either be corrupt or incompetent and am not interested. I want to see the companies doing right by their shareholders. That being said, the stocks have to be cheap enough to qualify as bona fide value investments. Thanks, MC