Comments on: Radio silence at China Expert Technology (CXTIE.OB)

By: Jim Galbraith

Jim Galbraith — Wed, 19 Sep 2007 23:22:19 +0000

Why are there no law suits here. It seems obvious that there is fraud, and that managers lied to investors. They should be held responsible. The auditors should also be held responsible, as that is what they get paid for, to find out the truth.

I understand that there are numerous law suits agains Chinese equipment manufacturer under far less suspicious circumstances. Here, the whole company appears to be a fraud, or that it is cheaper to fold the company than admit what went wrong.

Legal opinions, please?

By: Mike

Mike — Fri, 14 Sep 2007 03:26:01 +0000

In response to the previous comment about other Chinese companies suffering due to lack of trust, look at CHCG. CHCG is an example. The good news is rather than ignoring the situation, they have at least issued a statement that they are going to clarify their 8K regarding restructuring, and what they own exactly, which I think left too many questions and speculations to run amuck. The bad news they waited for the stock to drop all the way to 2.70 before bothering to say they would clarify. Was there an overreaction? Probably, but it’s because of stories like CXTI on everyone’s mind.

I am long on CHCG unfortunately, but I think the org of how the subsidiaries are controlled really wasn’t a big deal, but with preferred holders dumping left and right in the last month and a half, it makes you wonder who gets to know what and when. Anyhow, the stock will probably make its way back to the mid 4s next week after they clarify things. It’s performing fine fundamentally, and deserves to be much higher than it is, but trust is just as important as fundamentals, and I think CHCG will have a hard time getting back much higher than the 4s until there can be some trust in these companies.

I know CHCG has to be somewhat legit, as you can’t make up physical stores, but I guess you can make up sales numbers, etc., and what you really own or don’t own. I don’t know if they are doing that, but it makes you wonder. They could end up being the next CXTI if they keep screwing up in communicating.

By: J. Fose

J. Fose — Thu, 13 Sep 2007 20:31:39 +0000

if CXTI(e).ob turns out to be a total lie, then I will never ever invest a single penny i Chinese Stocks at Pinks or OTCBB – any more.

My confidence in Chinese companies listed at the smaller US markets will be zero in the future, if you after this “show” will end up with a stock worth zero.

Other Chinese companies will suffer, due to this “show” that the management of China Expert Technology, how will the investors ever trust small cap companies like this in future. let’s see what is going to happen, but the odd are very very dark.

By: M.Ruiz

M.Ruiz — Thu, 13 Sep 2007 10:45:55 +0000

I think the regulators should take action and stenghten the rules regarding foreign small caps companies listed over US equity marquets, or every smart scam artists of the world will continue to come up with their own fairy tales and lure investors money into their offshore bank accounts.
Sometimes i wonder what’s the use of an administration like the SEC, seems it has became, or it is so pointless for scammers to stop them thinking about how to steal money from investors pockets.
But one thing is clear by the way, the main task for the SEC isn’t to protect investors, but to protect the markets only.