I’m revisiting an old Chinese stock I purchased back in 2008 and quadrupled my money in. For want of finding anything better, I’m going to get back in on China Automotive Systems Inc. (CAAS).
This despite having recently lost my shirt on another Chinese stock recommended here about a year ago which recently had its trading suspended: Lihua International, Inc. (LIWA). According to a recent story about that stock, the company “…made false and/or misleading statements and/or failed to disclose that: (i) the Company underwent a significant downturn in its business beginning in late 2012; (ii) the production activities of Lihua decreased in 2013 and nearly stopped after January 31, 2014; (iii) the Company’s warehouse was seized by a court in the People’s Republic of China; and (iv) one of the defendants is being investigated by Chinese police for larceny after attempting to move inventory.” Ouch!
Better luck this time.