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Newsletter Says Sell China Sky One Medical (CSKI)

September 24, 2009 9:40 AM EDT
CSKI Hot Sheet
EPS Growth %: -92.5%
The Asia Edge newsletter is now recommending investors Sell China Sky One Medical (NASDAQ: CSKI), after first recommending investors to Buy the stock in mid-August.

The newsletter writer Robert Hsu said after meetings with the founder and CEO Yan-Qing Liu, they strongly believe the company needs to improve its internal control and corporate governance. The newsletter notes CKSI once hired a 26-year-old graduate student as a director on its board. It was only after investors found out about this that the company replaced him with a former management consultant from McKinsey & Co.. Hsu says, "this kind of poor internal control and lack of governance is not uncommon among Chinese mom and pop firms, but it's unacceptable for a company publicly listed on a U.S. exchange."

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