12 Signs and 158 Reasons Investors Should Avoid Chinese RTO Stocks
Alfred Little submits:In an article titled "Beware this Chinese Export" featured in this week's Barron's magazine, author Leslie Norton analyzed 158 Chinese companies that obtained their U.S. share listing via reverse merger and discovered that the median company’s share price underperformed the Halter USX CHINA Index by an astonishing 75% in the first three years of trading, resulting in large losses for investors in these companies. The USX CHINA index itself is down 15% in the three years ending August 27, 2010. Losses to reverse merger investors are truly staggering, begging the question why anyone invests in them at all. Fortunately, Leslie goes into great detail explaining all the problems with these investments. Her analysis is in fact very similar to my own.Complete Story »
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