Advanced Battery Technologies, Inc. (NASDAQOTH:ABAT)

CAPS Rating: 2 out of 5

The company designs, manufactures, and markets rechargeable polymer lithium-ion (PLI) batteries in China, the U.S., and Europe. Its products are used in portable computers and cell phones.


Player Avatar BuffettJunior1 (97.67) Submitted: 3/30/2011 3:23:29 PM : Underperform Start Price: $2.03 ABAT Score: +120.83

What a surprise! Another Chinese company in trouble for accounting fraud. I always warn people about investing in China. If a Chinese company looks too good to be true stay away from it!!! The overall business look shady as well, should have picked this to under-perform a long time ago.

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Member Avatar jasenj1 (34.35) Submitted: 3/30/2011 4:57:07 PM
Recs: 0

But they aren't in trouble. One SeekingAlpha article by an admitted short made all kinds of wild claims and accusations. The stock appears to have crumbled based on this one article.

How to make money:
1. Take a position in a company.
2. Post self-serving article to widely read web site.
3. Watch the automated-bot traders send the price the way you wanted.
4. Profit.

It's even more fun to post scathing articles about Chinese companies whose officers are asleep during the business day on the other side of the globe. You can make money before the company officers wake up and post a counter.

Member Avatar BuffettJunior1 (97.67) Submitted: 3/31/2011 11:02:08 AM
Recs: 0

I just don't like Chinese stocks. I've been tracking this company for 2 years because the fundamentals looked really good. However, the company and its management look shady to me so I'm staying away. I wouldn't short this stock in my real portfolio, but I have no problem picking it as under-perform here.

Member Avatar DrRonPaul4Prez (65.70) Submitted: 4/2/2011 8:47:33 AM
Recs: 0

My Chinese pick is Mindray Medical Supply (MR). The financials look as good as any other Chinese dream stock, and their auditors are PriceWaterHouse Coopers. The risk of fraud may be somewhat less because of that.

Member Avatar ScryingPool (< 20) Submitted: 4/20/2011 2:05:23 PM
Recs: 0

Take a look at all the Chinese reverse mergers. These are like small Enrons and they're occurring nearly every month!

Member Avatar BuffettJunior1 (97.67) Submitted: 4/20/2011 6:15:51 PM
Recs: 0

Its an easy way to earn CAPS points.

Member Avatar metoo105 (28.71) Submitted: 4/26/2011 9:16:57 AM
Recs: 0

"If a Chinese company looks too good to be true stay away from it!!"

Do you really think that that is what your namesake Buffett does? Do you think that this is how he made money in Petrochina, and how I am nearly certain he will make gobs of money in BYD. I think that what you mean to say is something more intelligent, like: if the margins look too good to be true, make sure that you dig a lot deeper.

This whole Chinese reverse merger thing has become such that any idiot can jump and present himself or herself as a market savior, post an article on SA using some alias, then reap the rewards of his or her massive short position. I say: if a trading strategy starts looking too easy, start digging around to see if there are any easy counter-trades to scalp money from the idiots jumping in like sheep to slaughter.

Member Avatar BuffettJunior1 (97.67) Submitted: 4/27/2011 3:31:14 PM
Recs: 0

Chinese companies are plagued by accounting fraud. Of course there are still some Chinese companies that can make good investments but they are few and far between. I always say that investing in China is like opening a fortune cookie, you never know what your going to get.

Investing in BYD is very speculative in my opinion, it pretty much a technology stock which means it can be very unpredictable.

Member Avatar cophan11 (< 20) Submitted: 7/20/2011 8:13:14 PM
Recs: 0

It has been months since fraud coming up and the company is still on trading . If there is any fraud , it should be shut down and delisted . It is very speculative that is very attractive for daily trader !! If you think there is no fraud then it is a good catch . I bought the stocks @ 1.50 and sold for loss of @ 1.40 then bought back at 1 and it is now 1.50 , i am up 50% . I will keep it until next earning and will decide to sell or hold .

Member Avatar BuffettJunior1 (97.67) Submitted: 7/21/2011 8:02:56 PM
Recs: 0

You are playing a dangerous game my friend. You're not investing, you're speculating. If you want to be a successful investor you must do your due-diligence. If a stock goes down it doesn't mean its undervalued, there could be a good reason for it.

I can assure you that ABAT is a fraud and if you do a little research you will agree with me. I hope you follow my advice, it could save you a lot of money.

Good Luck!

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