Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: China Green Agriculture
So what: Today, law firm Brower Piven filed a lawsuit on behalf of purchasers of China Green Agriculture stock. This follows news last week that another firm, Hagens Berman, was investigating allegations that the company made "false and misleading statement to the US SEC."
Now what: Allegations center around material differences between statements filed with Chinese and U.S. authorities. When allegations like this start flying around, it’s never good for shareholders. This Fool doesn’t like to panic-sell, but I would stay away at least until these allegations get cleared up ... which could be a long time.
Interested in more info on China Green Agriculture? Add it to your watchlist.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
China Green Agriculture is a Motley Fool Global Gains recommendation. The Fool owns shares of China Green Agriculture.
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