Advanced Battery Technologies: An Egregious Chinese RTO

Variant View Research submits:

I am short Advanced Battery Technologies (ABAT) for the following reasons:

The Chairman appears to have transferred ownership of ABATs key subsidiary to himself without explanation or compensation;

ABAT leads investors to think that it makes cutting-edge electric cars, when in fact it produces cheap scooters and bicycles;

ABAT claims unrealistic margins in what it admits is a commodity space;

ABAT claims to have increased revenue from $4.2 million to $97.1 million from 2005 to 2010 while DECREASING its employee count;

ABAT claims distribution relationships which appear to be fake;

ABAT is a serial issuer of equity at low prices;

ABAT spent $20 million to acquire a company linked to the Chairman without disclosing the relationship;

ABAT spent $22 million or 7x sales to acquire a failing and possibly related company;

ABAT issued 11 million shares to the Chairman and other individuals to repay a loan which appears to be

China :: Business :: Deals