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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I hold BABA.us in a registered account. I bought believing Chinese sponsored ADRs are subject to SEC disclosure requirements. Your response to my question on MOMO.us confirmed the above. But I am not so sure now that you or I are correct in our beliefs. I was not necessarily surprised to hear Jim Chanos say he was shorting BABA.us. That’s not odd per se. I was however startled to hear him go on to say his SOLE reason for shorting BABA was that he didn’t trust its accounting and filings. He went further and said BABA-- and I now presume other Chinese ADRs--- do not follow US or international acctng rules (IFRS, FASB etc. and not SEC regs). Yet BABA is by law required to file disclosure with the SEC. Please comment on the issue of the RELIABILITY of financials AND those all-important DISCLOSURES, that BABA and its auditors need to file with SEC. Should I believe those filings as much as you do? Chanos’ argument and puzzlement were over the fact that net value of BABA was lower today than when it did its IPO. Chanos wonders where the profits and cash are flows the company has generated and reported since IPO ! Chanos or his shop is do not slouch when it comes to doing homework on filings. What gives? Should I believe those filings (as stated in your response to my question on MOMO?) I have a lot in Chinese Tech ADRs and this issue now has me re-thinking the basis for my buy decisions.
Read Answer Asked by Adam on June 15, 2018
Q: It was shown in BNN that the Chinese company ( Sunny optical technology group- symbol SNPTF (OTC) 2382 (Hong Kong) surge 9500 % since 2008. Please comment on the financial health, Is all the good money has been made already ? Is it still a buy if I take 1/4 position , then some more in a pull back ?
Thanks very much.
Read Answer Asked by Lai Kuen on June 08, 2018
Q: hi Peter know you do not follow US companies but wondered if you had any general thoughts about the recent further investment by Fairfax in SSW(now up to 1 billion USD). the shares trade at under 14X and with a div of .50 cents yield 5.59%. the CEO is a former senior executive with Berkshire Hathaway SSW is using the capital infusion to buy or create strategic partnerships with competitor companies not sure about debt/equity thanks for your input Richard.
Read Answer Asked by richard on June 04, 2018
Q: Hi Team,
My question is China Mobile (CHL) and China Mobile HK (CHLKF) are they the same company - one listed in China and one listed in Hong Kong ?
I understand you are not specialize in US ADR, I sure hope you can have an answer for my question.
But if no, I understand !
Thanks as Always ,
Tak
Read Answer Asked by Tak on June 01, 2018
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