Sorry guys and I know I might cop a lot of stick for my sudden U-turn but I’m out, and that’s due to what I found out last night. I know we usually do our research on management on the ASIC website but we never think to research on the SEC website...
After finding out that Xipeng Li was charged with fraud after being investigated by the SEC due to the forging of signatures on an announcement released to the NASDAQ on the company he was the CEO of at the time (CIIC) which led to the company being de-listed and investors losing everything, this was a strong warning bell for me. He was also charged with 3 other counts of fraud and ordered to pay $300k and $1,500,000 from his own pocket and the company’s, respectively.
The historical dowanward trend which is available to see online and the dishonesty behind CIIC also tells me that shareholders were not looked after.
Seems convenient to me that on Mr Li’s profile page on the jat website, it omits that part of his job history but it’s available on Bloomberg.
All you need to do is google ‘Xipeng Li fraud’ and all the details will come up. The full details of the court case and the penalties imposed.
I do not believe management have shareholders best interests at heart and that the well established connections are used to leverage capital from retail investors and to provide shares on the cheap to mates (who I don’t doubt will be good for the business but will almost certainly cause dumps and hence lowering the SP)!
I think the SP could definitely see large gains next year but without the company caring about shareholders this isn’t something I’m even interested in. There’s also something about Crimmins that I don’t trust but that’s another story haha.
Sorry to bail out, I accept I could be completely off here but investing in a company that raises capital with share issues at a price so low, a company that doesn’t respond to calls and emails, has acquired a company with a residential address that was exposed in the Panama papers (just google green forest international panama papers) and whose management has a track record of listed companies with downward trajectories and with the last straw...the non executive director being a convicted fraudster who lied to American shareholders and is now the director of an asx listed company...I’m no saint but from a moral standpoint I’m out.
Has finding out that Mr Li has been done for fraud on a previously delisted company warped my vision of the company? Maybe. I don’t want to be invested in a company whose director has been convicted of fraud SPECIFICALLY when it comes to fraud committed by lying to shareholders.
I also don’t believe everything I read on HotCopper, the info could be complete rubbish but did anyone see that poster who accused Crimmins of taking money from him? Could be complete rubbish and I’m just thinking out loud but it definitely makes me think...
I wish you all the best and hopefully no hard feelings
Appreciate any feedback on my decision too - is is a noble decision to not be invested in shares with a convicted fraudster as a director? I certainly think so, but I’m a relatively young investor with a lot less experience than a lot of you so I accept that I could be wrong!
Cheers guys.
(20min delay)
