Bad bid: We think the recent $16 take-private bid was an attempt to prop up share value. Our interviews in China and the company’s own Nasdaq prospectus suggest that Guangzhou Cornerstone, the company that says it will raise the money for the bid, has little capability to come up with the funding required. ‣ Low profits: We think this call center operator is improperly inflating profits by diverting costs into undisclosed related parties. This could drive up optical results while leaving the shareholders’ cupboard bare. CCRC reports 26% gross margins to U.S. investors and just 12% to its Chinese regulators. The company also reports lower revenue in China than it does in its SEC filings. Net profit reported in China in 2017 was just one-third of that reported in the U.S