6 Reasons I'm Short ChinaCast Education

Ian Bezek submits:

I am short ChinaCast Education (CAST) for the following reasons:

1. ChinaCast has engaged in several dubious transactions with seemingly related parties.
2. It's quite possible that ChinaCast investors' funds were misused or misappropriated during these unusual transactions.
3. Several of ChinaCast's important subsidiaries were not audited by Deloitte, but rather, by largely unknown auditing firms.
4. There appear to be numerous errors and omissions in past ChinaCast filings with the SEC and communications with investors.
5. ChinaCast is highly reliant on creating future transactions to keep up its reportedly strong rate on growth.
6. ChinaCast's questionable management team is rapidly losing investors' confidence.

The Pitch

ChinaCast Education wants you to believe that it, a tiny Chinese company, has managed to create a prosperous education business by purchasing private universities at great prices from, among other people, a peasant farmer and the owner of a tiny printing shop. This outstanding


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