MicroCapClub Interview with China RTO Researcher Dan David Co-Founder of GeoInvesting

Ian Cassel Blog, Interviews 1 Comment

The trials and tribulations of the Chinese Microcap RTO arena have been widely publicized by CNBC, financial journalists, and short sellers.  Most of the scrutiny has been well founded. In a nutshell, over the last few years many Chinese companies went public mostly through means of a reverse merger/reverse takeover (RTO) because it was the easiest, cheapest, and fastest way to get funding from US investors. A couple years ago the first high profile Chinese microcap announced accounting irregularities which broke the flood gates wide open. Soon after, investigative journalists have uncovered irregularities on several more Chinese microcaps, and ever since the whole space has really been deemed guilty until proven innocent.   GeoInvesting was one of the first firms to put boots on the ground in China to do due diligence into some of these companies.  Dan David is the VP and Co-Founder of GeoInvesting who also heads up the company’s China RTO research division. (Click the Play Arrow to listen to the full interview)

 Dan David Interview

During the interview Dan David discusses:

  • His background and experience
  • What lead GeoInvesting to China?
  • Due Diligence on Chinese Microcap RTOs
  • The enablers of fraud
  • Are SAIC numbers relevant?
  • What needs to happen to bring transparency and credibility to China RTOs?

The MicroCapClub (mc2) is an exclusive micro cap forum focused on micro cap companies (sub $500m market cap). The MicroCapClub was created and founded by Ian Cassel as a way to share ideas and to learn from other seasoned like-minded micro cap investors. Our goal at MicroCapClub.com is quality membership and quality stock ideas.  If you are an experienced micro cap investor, feel free to Apply today.

About the Author

Ian Cassel

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Ian is a full-time microcap investor. He is the founder of MicroCapClub, CIO of Intelligent Fanatics Capital Management, and co-founder of IntelligentFanatics.com. Ian started investing as a teenager and learned from losing his money over and over again. Microcap companies are the smallest public companies that exist, representing 48% of all public companies in North America. Berkshire Hathaway, Wal-Mart, Amgen, Netflix, and many others started as small microcap companies. Ian’s belief is the key to outsized returns is finding great companies early because all great companies started as small companies.

Comments 1

  1. Good Interview Ian. This is a completely different approach to Due Diligence. Very interesting…Thanks!

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