For four months between November 2010 and February 2011 the shares of Deer Consumer Products, a Chinese manufacturer of household applicances, remained ironbound in a range between $11 and $12. It’s notable for several reasons, not the least of which is that a widespread rout was then well underway among Chinese reverse merger stocks. Yet [...]

To the casual observer, being a venture capitalist probably seems like being an American Idol judge: People kill for that one chance to show off their best moves while all you do is sit back, Sphinx-like, and with a nod of the head make a decision that will change their career forever. That it’s not [...]

Tianbing “Benjamin” Wey, the head of New York Global Group, a firm that functions as a sort of Grand Central Terminal for Chinese companies, appears to be a big fan of the concept of vertical integration. In the language of business this implies that a corporation’s various subsidiaries are united in one large supply chain [...]

On page nine of Harbin Electric’s 2010 annual report is a real snoozer of a paragraph, a combination of mandatory disclosure and corporate boilerplate drearily familiar to investors the world over: No customer accounted for more than 10% of the total revenues for the fiscal year ended December 31, 2010. Two major customers accounted for approximately 22% [...]

Editor’s Note: In response to reader questions, I added both a paragraph of text and a small chart illustrating the pricing difference between Department of Defense customers and collegiate customers. It looks to be easy street time for software developer Blackboard Inc. with the recent announcement of private-equity firm Providence Equity Partners’ offer to buy [...]

Hong Kong-based hedge fund Abax’s interlinking ties to Chinese reverse-merger battleground stock Harbin Electric is a matter of record: It has contributed almost $64 million to Harbin’s proposed management buyout and a former director of its funds is chair of the company’s audit committee. New information, however, suggests that Abax and Harbin’s ties are so [...]

The Securities and Exchange Commission has begun an investigation into Harbin Electric, The Financial Investigator has learned. The company received the SEC’s notice late last month and is using its longtime law firm, New York-based Loeb & Loeb, to advise it. The Loeb firm, whose China Practice chair Mitchell Nussbaum is an outspoken proponent of reverse [...]

Editor’s Note: In its response, Zagg insists that everything is acceptably disclosed because Harmer and Pedersen are one step removed from brothers-in-law. This begs the question of why didn’t they just disclose “Our chief executive’s sister is married to our audit chair’s brother?” As a work of public relations, this is high art. As a [...]

The world of penny stocks is always worth a stroll because no matter what you come across almost every company and its story ultimately follows the same script. A maker of cellphone and computer accessories from Salt Lake City, Zagg, is trying to buck that trend, and based on this chart, you could think they [...]

An investor can be forgiven for thinking that Green Mountain Coffee Roasters is the perfect stock. The reasons are many. The Waterbury, Vt.-based maker and distributor of coffee and coffee-makers–its signature products are the individual serving coffees and machines that are prevalent in so many workplaces–has a business that is understandable for the average investor [...]

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