FWIW, I decided I have enough invested in illiquid small caps already (three of which I would like to pick up a few more of) so didn't complete researching the final 4 stocks.
IMO he invests in the very same companies he writes against regarding lack of corporate governance. It is these same illiquid companies with microcaps that he can build sizeable stakes in. You wont see him writing about Tencent or some other real company tradied on the HKSE. At the same time his so called model portfolio has folks like you salivating trying to replicate it. This creates an opportunity for him to sell out his positions for gain. Dont you get it? Its a possible sham. I've never found any of his work interesting.
For some of you interested in taking risks on small illiquid companies, Chinese banks being sold on Taobao might be interesting.
https://www.bloomberg.com/news/artic...ers-at-auctionince May 24, when the Chinese government stunned the market with its first bank seizure in more than two decades, there have been more than 1,400 attempted sales on Taobao of mostly unlisted rural and city bank shares. Even with deep discounts, over half the auctions failed to attract bidders in their first attempt, transaction records show.
At least with small illiquid companies listed on HKEX and other exchanges there is a degree of market regulation – including the requirement to produce annual (audited) and interim reports meeting relevant accounting standards etc. For my purposes, it helps that the accounts are published in English.
Good point. Ditto many very large companies: Bre-X, Worldcom, Enron, Swiss Air, Parmalat, Kmart, China Metal Recycling and any number of banks/brokers.
Being subject to listing, audit and other requirements doesn't remove the risk of fraud - only make it less likely and harder to conceal.
Perhaps have a look at Cosco Shipping Int 517 HK as well. Share price at half the net cash. Minimal debt. 1H core profit up 30%. Dividend yield more than 8%. Provide shipping related services to Cosco Group.