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: Paul Senior who wrote (53260)	1/30/2014 12:59:02 PM
From: MCsweet	1 Recommendation Recommended By gcrispin Read Replies (1) \| Respond to of 78744

Reiterating Paul and Jurgis on Chinese stocks, I have taken a show-me-the-money approach and have managed to do pretty well avoiding the scams. If a Chinese company is at no-brainer valuations and not buying back stock or paying substantial dividends, it is either a fraud, incompetent, or the owners are running it as their own personal piggybank. I don't think you want to take the risk of investing in any of those three situations regardless of valuation. This approach has served me pretty well. After a couple of small positions (and losses) on some apparently fraudulent Chinese companies, I have made decent money on CCM, XIN, GAME, and a few other Chinese gamers. However,I give these companies a very short leash. XIN did some some stuff I didn't like, so I sold out. Actually, I don't own any pure Chinese stocks at this time. MC

To: Paul Senior who wrote (53260)	2/5/2014 4:42:18 PM
From: Madharry	Respond to of 78744

yes . this is akin to walking among a minefield where all the mines look like large diamonds, finding a large diamond and hoping its not a live mine. I am for the most part done with micro caps in foreign countries. I have followed mongolia growth group for awhile, thinking that i would jump in at some point. but what they have done seems very typical for these small caps. everything is alway looking rosy and things are about to turn up. everything negative is swept under the table. key assets are sold and one never knows if these transactions are at fair prices or at arms length. for example they made a big deal about building up the largest insurance company in mongolia, now a short time later they are selling it on the installment plan for about $3.5 million., supposedly to focus on real estate, they are also in process of selling several of their smaller real estate projects and have put lots of assets into development. how will it work out? i have no idea but the whole business seems rife for the principal to play heads i win tails you lose with shareholders or bagholders. what do you guys think of cliff?