RE: RE: A word of caution...In the past I always added to GLG if it was below $7.00. I suppose I may again, but I'll have to think about it. If I do, I certainly won't be diving in like a mad fool.
Obviously some things are probably out of this picture, I'm going to assume: grossly inflated revenues and unrealistic growth etc. are unlikely, since the numbers are hardly magical to date. If anything, they are trailing original expectations by enough, if you think back.
But again, its China, transparency is zero, so I can only make assumptions.
I do expect a lot more pain and suffering though.
I have seen Carson Block of Muddy Waters interviewed, and I have read things he has stated . He makes it VERY clear: he has a vast amount of targets on his hit list. This is systemic and widespread, and nowhere near being finished. And the scams are of all shapes and sizes. Some are outright scams, with no tangible value, some are operating businesses that are legit, but have inflated their numbers, some are successful businesses that may even be relatively large, but money is being funneled into pockets that is being recorded as operational expenditures, phony or overbooked capital spending, etc.
This is going to go on and on , and there will be a tipping point that we have not yet hit, where basically almost every remaining western investor packs it in and leaves. And there won't be any quick forgetting. China is going to be equated with pond scum for a long time. The Chinese government will be forced to address it eventually, as investment flows into the country dry up.
This has been a long systemic bilking scheme.
Don't be surprised to eventually find out everything coming out of china is complete crap: GDP growth, the works.
What are everyones plans for GLG? Will you consider buying more??
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