Intelligent investing is nothing more than maintenance and expansion of capital while managing risk in a world of imperfect information and uncertainty. To do this, one must think clearly and avoid letting emotion or fear corrode rationality.

On June 20, 2013, the Securities and Exchange Commission (the “SEC”) brought yet another enforcement action against a China-based company that went public on the U.S. markets through a reverse merger.

Fake Agreements: Whether it`s a fictitious name so an employee can get merchandise or a fictitious name for a friend or relative, by creating an agreement using another name other than the name of the real customer you are committing fraud.

Several Chinese companies have taken criticism for lacking legitimacy, rocketing multiples to outstanding lows.