Sino Grandness

[CY09]

I will highlight the dangers of investing into china stocks. If many will remember, we had a stock called China Eratat. It looked a very legit company; gave constant dividends, real shop front which sold Eratat products and was a sponsor for a Chinese TV program. So things may seem real and even can be bought in China, but still what is reflected on B/S was faked. Other warning signs of Eratat was its High receivables (more than 90 days of revenue), high cash and yet raised more capital and the sudden renovation subsidy to its customers.

Some of the traits are again reflected in the SFIG case, I am vested but just issuing some warning for rather new investors.

Addition stuff to clarify: SFIG shares are held by TTA and not the Thai Tycoon himself. Therefore TTA holds 9% of SFIG currently.In turn, the Thai holds less than 50% of TTA. Also, the investment into SFIG is only 1.7% of TTA's market cap