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Any explanation why this company is so undervalued?

I bought some shares of China’s New Borun (NYSE: BORN), because it was priced at $33M while it has 270M as shareholder’s equity. P/B ratio of 0.1x. I thought it’s a good opportunity.

It’s been roughly 2 weeks. I didn’t lose my patient, but I am still wondering why this company is priced so low? It went on public in 2010 and never issued a dividend. Can this be the reason? Also, it’s not in an English-speaking world; it does not have any good story (it produces edible alcohol).

I am just sort of curious of why this is happening. Any thoughts are welcome!

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No offense, but you probably should have known the answer why before investing. 

I love my cheese. I got to have my cheddar.

Yeah, I was going to say, probably because the Chinese lie on all their accounting statements anyway…

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LOL you are absolutely right.

Thank you Blop. These articles are very helpful! I will try to dig in a bit more.

That would be bad if what I am seeing is fake. If the reports were fake, do you think SEC will take care of it?

Take care of it as in pursue the company? Maybe. Take care of it as in mitigate your losses? No