As Chinese reverse mergers and IPOs in the U.S. come under increased scrutiny, here's something to ponder: Any kind of listing on an exchange is not the equivalent for the Good Housekeeping Seal of Approval.
Example: Seattle-based L&L Energy , which is in the business of acquiring coal mines in China, announced two weeks ago it has been elevated to the Nasdaq Global Select Market from the Nasdaq Global Market. The announcement, coincidence of coincidences, came a day after I appeared on "The Strategy Session" mentioning the dubious backgrounds of several of the company’s top execs.
In its press release, L&L—originally created as a shell seeking a business —made it sound as though its elevation to the “select” market held some kind of significance. Parroting what the
L&L didn’t stop there. CEO Dickson Lee was quoted in the same new release saying: "We are proud to have qualified for the NASDAQ Global Select Market. This move is a significant milestone of our progress and indicative of our commitment to generating value for our shareholders. We believe inclusion in this top tier of companies reflects our commitment to accretive growth and vision to become a global coal company."