The March import/export

Looks like Facebook may have finalized its choice of a local partner as it gears up to create a social networking site in China, and Baidu (BIDU) is the winner.

Sohu (SOHU) is reporting that Mark Zuckerberg and Baidu CEO Robin Li have been talking about putting together a social network and have signed an initial agreement to cooperate.

BIDU is already the Google (GOOG) of China in terms of the web search market. If it can become the Facebook of China as well, look out.

This may be another lost opportunity for GOOG to compete on the global stage, The U.S. search giant has been effectively forced out of China — one of the biggest and fastest-growing web markets — and now

These analysts might be too optimistic in their forecasts. The first thing that came to mind is a series news stories by both Chinese and English media on the National Development and Reform Commission (NDRC), a powerful economic planning body in China. Near the end of March, NDRC asked Chinese coal miners to keep the coal prices low, as coal is the major input for generating electricity in China. Then, NDRC urged Unilever (UL) and other consumer goods producers to stop raising prices. A few

Zhao then recklessly leveraged Shanxi Coal by borrowing RMB3.5 billion ($530.3 million) from CITIC at an incredibly high 14.5% annual interest rate (including fees) to finance the development of its coal mines. PUDA shareholders are completely unaware of these transactions that decimate the value of its U.S. listed shares.

Background – An Industry Facing Government Mandated Consolidation

According to PUDA’s 2010 10-K filing:

In order to improve production efficiency, workplace safety and to reduce coal mine accidents, the Shanxi provincial government issued

The

Most experts consider the Chinese argument to be overblown. They estimate the annual amount of sales to China blocked by US export controls at US$2-3 billion. (The only hard number comes from a 2009 survey by the American Chambers of Commerce based in Beijing and Shanghai, which tallied US$560 million in actual lost sales). This barely puts a dent in China’s $252 billion trade gap with the US for

A recent example of this

We present, side-by-side, excerpts from ABAT's response and statements from their official filings. ABAT's response contains numerous false and misleading statements which directly contradict its filings. We have provided links to these filings to make it convenient for the reader to verify our claims.

In our report, we noted that Chairman Fu now owns the company's key subsidiary, which ABAT had previously claimed ownership of.

We wrote:

If the filings are accurate, the Chairman transferred ownership of the company's sole operating subsidiary to himself without explanation or compensation. If the filings are inaccurate, then the company is guilty of misrepresenting itself as previously owning 100% of HLJ ZQPT.

Excerpt from ABAT response on 4/6/2011:

[HLJ ZQPT] has been owned by 16 investors, including Chairman Fu,

Take a look at the charts below, which I gleefully borrowed from a recent Bank of Japan report on commodities:

[Click all to enlarge]

The Financial Times published the article “The best alternative to a new global currency,” authored by Joseph Stiglitz, a recipient of the Nobel Prize in Economics in 2001. Mr. Stiglitz points out some issues, as follows:

Further, when crises occur in many countries simultaneously, as happened, for instance, during the 1998 east Asian crisis, IMF lending could be totally financed by new SDR issues in unlimited amounts. If and when the world economy recovered or boomed, SDR issues could then cease, or even be reabsorbed.

1. ChinaCast has engaged in several dubious transactions with seemingly related parties.
2. It's quite possible that ChinaCast investors' funds were misused or misappropriated during these unusual transactions.
3. Several of ChinaCast's important subsidiaries were not audited by Deloitte, but rather, by largely unknown auditing firms.
4. There appear to be numerous errors and omissions in past ChinaCast filings with the SEC and communications with investors.
5. ChinaCast is highly reliant on creating future transactions to keep up its reportedly strong rate on growth.
6. ChinaCast's questionable management team is rapidly losing investors' confidence.

The Pitch

ChinaCast Education wants you to believe that it, a tiny Chinese company, has managed to create a prosperous education business by purchasing private universities at great prices from, among other people, a peasant farmer and the owner of a tiny printing shop. This outstanding

According to Wired:

For U.S. firms, the decision to manufacture overseas has long seemed a no-brainer. Labor costs in China and other developing nations have been so cheap that as recently as two or three years ago, anyone who refused to offshore was viewed as a dinosaur, certain to go extinct as bolder companies built the future in Asia. But stamping out products in Guangdong Province is no longer the bargain it once was, and U.S. manufacturing is no longer as expensive. As the labor equation has balanced out, companies—particularly the small to medium-size businesses that make up the innovative guts of America’s technology industry—are taking a long, hard look

Synopsis

ADY has serious financial problems. The company is heavily indebted, yet has a history of producing negative cash flow and no immediate prospects for operating improvements. It is highly questionable whether or not ADY should be considered a going concern. ADY is relying on the kindness of its PRC bankers to remain alive at the moment, but with huge near term payment commitments, this kindness will be tested. In order to survive long term, I believe ADY will need to raise at least an additional $100m in equity capital.

Yet, ADY is a Chinese RTO that has already burned through three other private equity funds’ money, has negative cash flow, has no proper CFO, and after over five years as a public company in the USA (including a stretch of

Background

In January 2011, the company claimed that it acquired Shenzhen Zhongqiang New Energy Science & Technology