mw is strictly in the business of frontrunning its own research. if you have to ask , maybe you should not even be trading.
well if that's not illegal it should be. It's illegal for IB analysts to selectively disclose their upgrades/downgrades ahead of release to clients. MW would be doing the same thing.
why should it be illegal. we should be free to say truthful things. we should be free to invest. we should be free to invest prior to saying truthful things. Many of the laws regarding the market are over reaching and if tested by defendants who were not screwing the public would not be upheld. By the way... the IB analysts thing... seems like a good question. Should broker dealers be held to a higher standard than non broker dealers or IBs ? Do IBs break that regulation almost every day?
They're just driving away Chinese names from the exchange. I find it interesting that they're not touching any of the US names (as if there aren't any scams going on in the US listings). The fact that they've been wrong a number of times really tells a story. Surprised there weren't any lawsuits, basically one fabricated paper drove off FMCN from the exchange. Others are jumping on the bandwagon though (Ackman/HLF). This seems to be a pretty easy way to manipulate the price and it seems that the regulators are fine with it as long as its not an US company. I read most of the MW report and there were numerous errors in there. People assume MW are reporters but they're just price manipulators making a buck the one way they know how.
MW provides a great edge to traders, like Citron. You just gotta know how to play it. There is no good and evil here, just free money.
It's been proven in recent years that there have been many Chinese frauds (CCME, DGW, ONP, RINO, SNOFF) to name just five uncovered by Muddy Waters. So it makes sense to write about frauds from the country where most of them are found. It tells a story that they're not perfect. A lawsuit for what exactly? For writing a research report that is negative on a company? Or maybe Ackman believes that HLF is a fraud. Again, I don't see what is wrong with outlining reasons why one thinks a company is a fraud. As you can see with the HLF situation, if you're wrong, then it can be very costly. Well if there are errors, you should welcome the report, because it means you can go long NQ and make a lot of money if/when its price goes above the price at which you bought it. And for the third time, I don't see how outlining why one thinks a company is a fraud is considered "price manipulation". People may be selling NQ because of their track record of successes (again, five frauds that crashed: CCME, DGW, ONP, RINO, SNOFF). Alternatively, they be concerned with the content of the report and think NQ is overvalued.
OK, but where do you draw the line. If Joe Sixpack is planning on writing an article for The Motley Fool or Seeking Alpha that is negative/positive on a company, would the SEC regulations dictate that he can't tell his trading buddies before the article is published? What is so special about Muddy Waters that you don't approve of them making money from their reports?