Yesterday, I recieved this email advertizing this stock. While the first clue that the stock could be fraudulent is receiving an advertizement over email, I decided to look it up. Ever-Glory International is found on Yahoo Finance.
Looking at their income statement, they had no real financials for 2004, but in 2005 they supposedly made a profit of $1,044,000 on $10,814,000. Now if you look at their balance sheet, they had no retained earnings or shareholder's equity in 2004, but suddently have $4,450,000 in retained earnings. Retained earnings is profit not distributed to the shareholders. So with a million in profit, they were able to save 4 million? Hmmm... Sounds fishy to me!
1 comment:
Pump and dump! Pump and dump!
J.T. Marlin calling!!!!
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