Geoff Gannon may be on this site, but I read on his blog that, "surprisingly", a lot of deep value stocks (i.e., net-nets) that show in up domestic screens are incorporated in Nevada.
For example, I did a quick search for stocks trading below NCAV with positive earnings that weren't obvious reverse-merger stocks. (The list is not long nowadays.) Nova Lifestyle (NVFY) was one stock that came up. Their 10-K reveals: incorporated in Nevada. A little digging inside: a Chinese reverse merger.
Is this no coincidence? Does Nevada law have lax standards that make it easier for potential fraudulent reporting?
I wonder if I should just eliminate Nevada stocks from my screens. Do fellow value investors out there do the same?
Any and all insights would be most helpful!