Chinese Internet users face restrictions as to the websites that they can and cannot visit as China censors the Internet. It makes sense for Chinese companies to get an ICP number/license to ensure that its customers can easily visit its website without having to circumvent the ‘Great Firewall of China’.
When performing due diligence on Chinese stocks, I want to see that its website has an ICP number/license. Chinese websites will typically display the number at the very bottom of its webpages. Remember to check the Chinese version of a site as the English version may not show the ICP number.
CNIT is a very curious company. On September 4, 2013 it issued a press release titled “China Information Technology, Inc. Entered Into Exclusive Cooperation Arrangements with Biznest Internet &Software Co.” (see the 6-K filing). One might be led to believe that Biznest Internet & Software is an independent company.
However, the domain registrations involved with Biznest show chinacnit.com email addresses.
Nowadays when I look at a stock, I ask myself:
- If the company was legitimate, what would it be doing?
- If the company was a scam, what would it be doing?
Regulators everywhere (not just Canada) seem to have a history of going after those who expose fraud. I need to be more careful (e.g. apparently Canadian libel laws suck). So from now on, I won’t be so explicit.
On December 19, the British Columbia Securities Commission issued a press release titled “Securities regulator alleges fraud against Silvercorp short-seller” that links to a notice of hearing. In my opinion, the notice of hearing unfairly smears Jon Richard Carnes of Alfred Little. Secondly, I believe that the claims against him are extremely weak.
Short: JKS, CSIQ, SPWR, ZU, PCYO, EBIX (puts and common), AMT puts, TTS, YONG puts, AVID
Closed: KWG*, short NUS.TO, short BBRY, short CREE, short TLT
Today, Pretium issued a press release: Pretium Resources Inc.: Mineral Resource Estimate Adds Measured Gold Resources, Increases Grade at Valley of the Kings
Basically, Snowden is pretty much going to stick with its aggressive approach in modeling the VOK deposit.
The press release also contains some information aimed at invalidating Strathcona’s competing theory about how the resource should be modeled.