By now anyone who invests in China stocks is familiar with the carnage going on with the stock of Rino International (RINO). On Nov.10, the Hong Kong based research duo (and dedicated short seller) known as Muddy Waters produced a 30-page report on Rino declaring it to be an abject fraud and with a target price of $2.45 vs. its then price of around $15.00.The stock has now been halted and the share price stands at $6.07, a decline of 60% in seven days. Their auditor, Frazer Frost, came out on Friday and confirmed that there were in fact phony contracts with revenues that didn't exist and other irregularities. I have been following this situation closely and I feel that there are a number of important lessons that can be learned from it.
Rino International: 6 Lessons for Investors
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