As a member of the 10% Promise team, I see all kinds of wild stock moves, but some leave a bigger impression than others. Here are a couple of things that caught my eye this week.
Can I pay myself and call it revenue?
Subsidiaries are commonplace for operations in foreign countries, but having a string of subsidiaries in the U.S. can make an investor's head spin. Especially when they all have "Cheniere" in their name.
The twisted web may have caught up with Cheniere Energy
The irony is that the allegations aren't what caused this week's move but rather Cheniere Energy's lawsuit claiming defamation, business disparagement, and other causes of action against Centerbridge. If something as seemingly simple as a company's corporate structure is too complicated to understand, maybe I should just stay away.
Chinese companies are tired of being picked on
Scan the tickers of the Nasdaq or NYSE exchanges and you'll run across a slew of Chinese companies trading in the U.S. But an idea that sounded great a few years ago has turned sour, as transparency and fraud by some have put a black eye on a wide swath of companies. As a result, short sellers have moved in, and valuations have suffered compared to U.S. companies that are viewed to be "safer."
China Fire & Security
I wonder if this will turn into a wave of Chinese firms being bought out by management or private equity firms. It may, but as we've seen with the ongoing battle over China MediaExpress, the trouble is trying to distinguish the studs from the frauds.
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More Interesting Moves This Week: