Do you know anything about Xin Net, a Vancouver based chinese internet company?
Answer Hi John. I don’t follow Xin Net closely so I cannot say for sure what their situation actually is. But, looking over the company I definitely see some things that ring alarm bells with me. Loud alarm bells. I have online an article about problems in the US OTC Market which you might want to check out – you can find it at www.taylorstock.com/OTCBB1.html. Alarm bell number one is that they are a Canadian company that trades ONLY on the OTCBB. There are several reasons why Canadians do that, and most of them are not good for shareholders. Again, I don’t know for sure in this case, but it is not an encouraging sign. Secondly, their business is in China, a very difficult place to do business and an area which is historically unprofitable. Due to Chinese Law, they have to conduct business through a JV, which further increases the difficulty of profits for them. Third, the company is handing cheap stock to their officers like water. An enormous amount of stock is being given to them fo
