Quote

Great quote by George Soros:

"Economic history is a never-ending series of episodes based on falsehoods and lies, not truths.  It represents the path to big money.  The object is to recognize the trend whose premise is false, ride that trend and step off before it is discredited."  ~ George Soros

As a value investor, I don't think I can agree with the 'ride that trend and step off before it is discredited' part - sounds like the greater fool theory to me.  But world economy strikes me as a farce at times like this.

NVC Lighting (tkr: 2222 HK) and Yurun (tkr: 1068 HK) Founders Depart

Not a good sign when the founder of a company decides to quit (read here for NVC Lighting and here for Yurun).  I don't have much to add as both are widely suspected frauds.  Founders tend to step 'up' (not 'down') during difficult environments, they will do anything to turn the company around (if real and salvageable).  Stepping down is not a good sign.

There seems to be more founders/CEOs running away/stepping down in China recently.  I wonder if it is due to the rapid economic slowdown in China - companies are finding it harder to keep up the facade as liquidity dries up.  Founders/CEOs are trying to create more distance between themselves and the listed entities.  Keep an eye on whether more board members resign for 'personal reasons'.

ps. The respected Webb-site.com keeps a tab on directors resignation/change for listed companies in Hong Kong.  Always a good place to check.