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No. of Recommendations: 2
There are two issues here that stick out at me. One, not all Chinese companies are using accounting tricks. Two, just because a stock goes down does not mean it is a bad company -- or that its future is tarnished.

I own Baidu and AgFeed. Baidu's stock is close to its 52-week high. I have a nice profit and it is an excellent and respected company.

AgFeed is a speculation. I knew that when I purchased it. I still like it, especially because it replaced its executive management since its legacy farms failed to perform. It has fallen 34% since I purchased it. I wish I had waited to purchase it but am holding it while it tries to institute better pork-raising technology. Its purchase of US-based M2P2 was the driving force behind my reason to risk speculating in China. I will probably purchase more over time.

Buying stocks involves risks. Buying foreign stocks of any kind adds significant risk if you are not familiar with the country and its laws. I took on a ton of risk with both Chinese purchases because I purchased "the story" instead of knowing the country. With Baidu, I think that was an OK move. AgFeed was an attempt to get a multi-bagger quickly. So far, not so good...

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