From yahoo message boards http://messages.finance.yahoo.com/S...3&tid=30326&mid=30326&tof=20&rt=2&frt=2&off=1
These small cap chinese stocks have taken a BEATING from anyone and everyone that cries foul play. "Muddy Waters" (strange name) is a 2 person research firm that accused RINO SEC filings of being WAY off of what they actually were. They also accused ONP of the same thing. ONP has hired an outside firm to prove there are innocent and expects to report the results anyday now. As for RINO, they havent really disputed these claims that the books are cooked. They are also had 4 ceo 's in 3 years and restated their financials twice. I'd stay away from RINO and have a feeling the news is terrible. Whatever happens it will either prove or disprove Muddy Waters and ONP should mirror whatever happens with RINO. I am short RINO and long ONP even though it doesnt make a ton of sense.
latest news Stocks To Watch Today News and commentary about the stocks you need to know about today Search Stocks To Watch Today November 18, 2010, 5:52 PM ET. RINO: Co Requested Halt, Preparing Defense: Source. Gap Drops: FYQ3 Rev Beats; Year View Light EmailPrintPermalinkShare: By Tiernan Ray A brief update, for what itâs worth, on the situation concerning Rino International (RINO), the China-based maker of water treatment equipment, whose shares have been halted for two days. I spoke a short while ago by phone with an individual with a brokerage house based in the U.S. whoâs familiar with the company but who asked not to be named. This individual said they had spoken this morning with Rino CEO Dejun Zou by phone, through a translator. The source tells me Rino specifically requested the trading halt yesterday, and decided to cancel the companyâs Q3 conference call Wednesday morning after conferring with in-house legal counsel. âThey [Rino] specifically requested the halt, and the stock will remain halted until they respond,â to recent allegations, said the source. âThey are still working on their defense, and as soon as their defense statement is ready, they will issue it,â this source says the company said, referring to a critical report last week by investment firm Muddy Waters, which alleged that the company lied about customers, among other charges. Zou said the company hopes to have the response this week, but would not say for sure when shares will resume trading, the source said. The decision to cancel the Q3 call, and to halt the stock mark a shift from the companyâs stance last week. At that time, my source says they had been in contact with CFO Ben Wang, who sounded confident about the companyâs ability to rebut all the allegations made against it. But, âAs soon as Zou came back [to China, from traveling abroad at the end of last week], the legal advice inside the company was not to reveal any information to anyone.â While I realize itâs hard to base anything on an assessment by an anonymous source, the individual I spoke with, whoâs done some research on the company over a period of months, believes that nothing has changed with the companyâs situation since last week, and that the company will ultimately be able to rebut the charges against it. âThis is not a report that provides non-biased information,â the source says of Muddy Watersâs critical report. âThose guys are short on the stock, and all their views are very one-sided.â âEven from my own due diligence, I would be able to address a number of those points in the companyâs defense,â the source continued. This individual cannot say definitively that the five customers Muddy Waters called into question were in fact customers of Rino. The companies in question are Chinese steel producers, and getting them on the phone without help on the ground in China is next to impossible. However, my source was able to verify six other customers of Rinoâs directly, and obtained external evidence to verify 3 or 4 other customers in addition. When asked if the company was sensitive to the anxiety of investors unable to trade shares, the source said Zou expressed understanding for the sensitivity of the situation. âEverything theyâve done, including canceling the call on Tuesday evening, was in response to their legal advice.â The trading halt may not have been the best move, in the view of my source. âThe halt was not the best thing. There have been a number of accusations against U.S.-listed Chinese companies in the last six months, and his is the first time Iâve seen a company respond like this.â Indeed, the trading halt is an odd matter: my own sources close to the Nasdaq had led me to believe that the halt was was imposed by regulators. The assertion that Rino requested the action makes the whole matter rather more confusing.