China Sky One Medical (NASDAQ:CSKI)

Chinese reverse merger fraud.

CSKI seems to be real. At this price its a value.

CSKI has been the target of relentless short attacks that are based on wild distortions. Of course the company has some problems, as do the strongest companies in the U.S. But it also has outstanding metrics and shows great promise in extending its business beyond traditional Chinese medicines. It is a well run company and its success is sure to be recognized by institutional investors and quite possibly by international drug manufacturers seeking a cost effective entry into the vast Chinese market.

Tracking portfolio for China based companies that gained listings on US exchanges (Nasdaq, NYSE, or Amex) after conducting reverse mergers. Stocks that have been delisted have been omitted. Start date: Jun 24, average P/E of these companies: 3.

Too cheap to not buy. I doubt there is fraud with this company.

This is a throw the baby out with the bath water stock. The hero is the fireman who catches the little one. The SEC has announced investigation and to date nothing. The leaders of this company have commented on this and have been adament that there is no foul play. While there maybe slight fudging the truth is the cash ir real and the debt levels are as well. In spite of a loss of distributors they are still making there 10-k's. They are still profitable. CSKI is now launching new products.

Once clarity is achieved even if there are adjustments this compnay will rocket. Even if the EPS dropped from over a buck to .5 this company would still be at a 6 P/E. I just don't think there is anything to support a continued price drop. There is much more upside (this was once a 20 dollar stock) then there is downside.

The truth as we know it:
Currently they do have an auditor and this auditor is not one of the ones embroiled in all the RTO mess.
Currently this company is trading at a .3 to book and they are generating more profits not losing so the price to book is only getting cheaper.
Currently the ownership group is out of Nevada so any shenanigans actuallys affects actual U.S. citizens not some distant Chineese group or individuals. The detterant of jail is real.
Currently this company will earn atleast a 1.2 over the year go forward. That's a sick P/E.
Currently cash flows are positive not negative so they are cash rich.
Currently they have no debt!
Currently they have expanded operations into buying of land and farming some herbalistic stuff. Whether you believe or not there is an actual asset value to this direction especially with soft commodities showing such strength.
Currently the U.S. dollar is weakening. Pressure on the yuan will grow and the yuan will appreciate thus expanding the dollar denominated profit statements and values for this U.S. dollar denominated stock listing.
Currently they have 13 new products coming to the market which will only add to their portfolio of products and profitability.
Currently the short interest is over 20% of float and there is an 8.5 day cover spread. This will make for a big pop!
Currently the volume is dropping which is indicative of a base. 1 big volume day from either a clearing of the loose leaves and a boom or just a plain boom upwards.
Currently the insider and institutional ownership is strong and guess what they haven't sold a share throughout all of this.

This is baby with the bath water. I invite everyone to stand underneath and say Come to Papa! Back up the truck. Here is my next 400 point Caps bagger.

This is a tracking portfolio of all CAPS-ratable tickers in the Chinese RTO/SPAC space (i.e., companies that listed without filing an IPO).

China Sky One Medical, Inc. went public via a reverse merger in 2006. The company is based in China.

Price/earnings of 1.61, Price/book of 0.37, Debt/equity of zero, Return on Invested Capital (TTM) of 29.03, sells OTC nutritional products in China.

misunderstood just had a NYC accounting firm go over 3 years of books and gave them a report that says they are in good shape with the US accounting rules in general.

familyfund2 haiku

Fake fraud charge cuts deep.

Yet, four bagger by years end.

Forward PE three

CEO says "buy my stock", so we buy.

Buy low, sell high. When thewitch-hunt clears, this stock will flourish...

While I can't prove that this company isn't lying about its numbers, I can say that the one time I went to a pharmacy store in China to buy something, the lady recommended something from this brand. From what I can tell, this should actually be a legit Chinese company..

John Bird aka "Waldo Mushman" (waldomushman.com) has been attacking companies such as CKSI for years (do a google site search for waldo_mushman on yahoo finance message boards). He's largely been ignored by the caps community until now--now that thestreet.com and bloomberg.com have posted articles about him. Last year it was all about Orient Paper (ONP). Waldomushman.com was series of fraud allegations against the company (similar to muddywatersresearch.com) mostly just discrepancies between SAIC and SEC filings (see http://bit.ly/fdaYSW ). Since then, after John and Muddy Waters presumably made a fortune on their short positions, ONP fraud allegations have been proved false (http://bit.ly/hXsCNO). Now CSKI is in John's cross hairs. Who else is on John's list? CHBT, CHNG and even CCME to name a few. Personally, I have more faith TMFBabo, vanamonde, TMFUltraLong, TSIF, etc… who believe CSKI is legit.

Bloomberg report, 1/13/11, "texas short sellerfights china fraud in $20 bil U.S. shares"

because

I have no idea what is wrong with this stock. Its so good I'm suspecting there's got to be some sort of fraud or something. Have you seen this stock? It has cash coming out its a**! The P/E is 3.40 and revenues are GROWING! Not knowing anything about this company, I would honestly have been less surprised if their P/E was 34.0! Their quick ratio is something rediculous, like 8. I guess there is either a fraud issue or some issue with the chinese government... Anyone have any inside info on why this stock isn't worth $30?

$15 quite possible sometime in 2011. Of course the financials are sparklingly glorious... it's China.

trading at roughly 2x its NCAV. AWESOME fundamentals.