Disclosure: The author has a short position in one or more of the shares mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Waiting for Naibu

By Lucian Miers

25 April 2014 07:47

As investors await the preliminary results of Naibu (NBU), the remarkable Chinese sports shoe manufacturer, about which I have written before, they should steel themselves to be extra cynical. While it is doubtlessly true that there are some decent Chinese companies listed overseas, the idea that the dodgy ones are just a few bad apples is, in my opinion, dangerous. On AIM in particular, it is the decent ones that are in the minority.

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Comments

Patrick Leahy

25 April 2014, 18:32

I’m glad you are bringing attention to Naibu’s questionable ‘business’. They were recommended by Investor’s Chronicle at the start of the year but when I conducted my own research there were too many question marks about its business – not least the gifts to the owner’s mother!
Paul Scott

26 April 2014, 10:06

interesting. My view is that ALL Chinese & Indian companies are uninvestable, as fraud so widespread, that you have to treat all the numbers as pure fiction.

Trouble is, even if you find a genuine company, the inevitable end game is that they are all likely to De-List. That’s an instant 50%+ loss on announcement of De-Listing.

The sooner all Chinese cos are gone from AIM, the better. These are value traps in my view. Why take the risk?