Business

Guillermo de la Dehesa
Chairman of CEPR, Member of the Group of Thirty, and author of “Europe at the Crossroads”.

The past year has plunged the Eurozone into crisis with many fearing for what 2011 has in store. In this column the CEPR Chairman argues that to prevent the Eurozone’s sovereign debt crisis from becoming a self-fulfilling contagion, the bailouts should not go beyond Ireland; they should not be extended to Portugal even less so to Spain. It outlines 10 reasons why.

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Christine Song of http://www.smallinvestinginsights.com/

I’m home for the holidays (ho ho ho) after spending this month traveling through China visiting companies, factories, the Wall, and of course, stuffing my face with the local foods. My first time there and to call the country vast is an understatement – a 2 hour cab ride in off peak hours and I’m still in the same city! now a lot’s been written about China’s ”ghost towns” – rows and rows of newly constructed but empty buildings as far as the eye can see, the government’s effort to essentially, employ people. And driving around Beijing, i couldn’t help but feel like i was in Vegas.

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By Ben Strubel of Strubel Investment Management, LLC

The red flags surrounding Universal Travel Group (UTA) are numerous. First, there is the company’s musical chairs approach to auditors; UTA has been through three auditors in one month. On September 1, the company dismissed Acquavella Chiarelli Shuster Berkower (ACSB) and hired Goldman Kurland Mohidin (GKM. Then, on September 29, GKM resigned and the company hired Windes & McClaughry. That is three accountants in one month. Second, the latest 10K reveals that auditors ACSB found material weaknesses in internal accounting and financial controls. The auditors’ opinion states it plainly: “The following material weaknesses were identified: The Company’s policy documentation of all controls identified during their assessment and remediation process was incomplete. Lack of technical accounting expertise among financial staff regarding US GAAP and the requirements of the PCAOB, and regarding preparation of financial statements.“ The third previous red flag identified is the company’s nonfunctional travel booking site. We won’t dive into these three issues here as they have been explored elsewhere, including Bronte Capital’s blog.

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