Tiger Juice for Cindy
Back in May, I wrote a piece on my blogsite called Salmonella Sam Rides the Rocket.
In the piece, I posted my thoughts on just why I thought American Dairy, Inc. (NYSE: ADY) was a poor investment. Some folks sent me personal e-mails and told me I didn't have a clue, that the company was the best and that all of the folks they knew that were invested in the stock were going to end up bazillionaires.
Over the weekend, Judy Weil, one of the Seeking Alpha editors, in a Barron's story, American Dairy is Spoiled, vindicated me. Well I'm looking at it as vindication.
It seems that American Dairy hasn't been exactly transparent with it's shareholders, or the markets in general for that matter, and as I understand it, the SEC has decided to take a bit of wee peak into the company's auditing practices and the company's auditor.
At any rate, I said back in May that I believed a reasonable value for the stock was in the $6-$9 range, which is the reason I got so much grief from folks. Seems they didn't want to read the part where I said:
"I did look at the financials, or at least I tried to, but being a Chinese company, I have to wonder how closely GAAP is followed."
So for those of you that told me I was maroon on this stock, take a good long look. You see that vertical line? Yep, that's the one. Well that's where your lips go.