Monday, June 30, 2008

China Automotive Systems Leaves Out the Numbers

China Automotive Systems (CAAS) issued a press release announcing what sounded like good news. The second paragraph reads as follows"\:

“The 2008 second quarter results were highlighted by solid performances across China Automotive Systems' business segments and strong cash flow from operations. China Automotive Systems has also renewed their contracts with all of its key customers.”

No financial statements of any description have been provided. They do not mention who the key customers are. If you know who the key customers are you will definitely develop a better insight than the average investor looking through the window. Also what are the terms and conditions? They have published who their major clients are in the past but a lot may slip between the cup and the lip.

Its just all too abbreviated.