The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal

Discussion in 'Journals' started by Daal, Jun 8, 2012.

  1. m22au

    m22au

    Daal,

    Are you able to share your list of current and potential shorts?

    For what it's worth, mine are:

    NBG

    ACI and ANR (coal stocks that might follow PCX down the toilet)
    ALU (debt burden)
    AMZN (extreme valuation - see various Seeking Alpha articles)
    Bankia (unable to add due to short ban in Spain)
    BPOP (TARP dividend to increase to 8% next year)
    CLWR (debt burden)
    DMND (possible peanut fraud)
    EDU (possible fraud, although may exit position due to positive Seeking Alpha article)
    Fortescue (iron ore miner with debt burden)
    MANU (IPO couldn't rise on day one)
    MTG (deprived of capital; is not paying interest on some debt for next 10 years)
    NAV (debt burden; weak chart)
    NIHD (debt burden; weak chart)
    NOK (debt burden)
    Peugeot (debt burden and weak European car sales)
    Popular (unable to add due to short ban in Spain)
    PPHM (enough cash to last until April 2013 only)
    RNDY (debt burden)
    RSH (debt burden)
    STP (debt burden)
    SVU (debt burden)

    IYT UAL LUV DAL GOL GM F (QE pushes up oil prices and hurts transport stocks, airlines, autos)
     
    #261     Sep 28, 2012
  2. Daal

    Daal

    Trying speculative long on QCOR here on pre. Buyback will reduce float and stock is highly shorted. Might dump bellow $18.5, potential run to $22 on squeeze and income buyers
     
    #262     Sep 28, 2012
  3. Daal

    Daal

    Heres some from current index CHMR BRFH DOMK Z AAMRQ PVTA and QCOR after the squeeze is over
     
    #263     Sep 28, 2012
  4. m22au

    m22au

    Ah yes, I remember some good times with AAMRQ in the last 12 months.

    I haven't read the Citron article about Z but that might go onto my reading list for today.

    Thanks for the suggestions.
     
    #264     Sep 28, 2012
  5. Daal

    Daal

    Got stopped out on QCOR. I'm surprised by the lack of bounce, this stock is trading like a financial in 2008 but I'm not shorting it just yet, I just don't trust that it is going straight down to its fair value without bounces. I've been hurt by squeezes too many times to believe this BS. I'm only shorting this if it bounces nicely
     
    #265     Sep 28, 2012
  6. m22au

    m22au

    Various Twitter users say that Muddy Waters is out with new comments on EDU.

    There were some comments 17 hours ago on Twitter:
    https://twitter.com/muddywatersre

    however I can't find anything since then, that would explain the sudden drop at 2.10pm

    https://twitter.com/Street_Insider/status/252833552985632768
    Muddy Waters' Block issues neg. comments for $EDU
    (my comment: what new comments exactly?)

    Seeking Alpha has this:
    http://seekingalpha.com/currents/post/564841
    but the link to Muddy Waters is just to the old report from July.
     
    #266     Oct 1, 2012
  7. Daal

    Daal

    Muddy Waters' Block says New Oriental misleading market, Bloomberg reports
    Carson Block of Muddy Waters said in an email he is more convinced than ever that New Oriental Education is misleading the market, Bloomberg reports. :th
     
    #267     Oct 1, 2012
  8. Daal

    Daal

  9. m22au

    m22au

    Maybe most of the Chinese frauds were discovered last year, however John Hempton (and others) have written extensively about FMCN being a potential Chinese fraud. Hempton is listed as one of the speakers at the next VIC to be held in May 2013.

    Two others of the top of my head which may be fraudulent are EDU and QIHU.

    That SPLK short idea sounds like a good one, especially with the lockup expiry catalyst. However like most growth companies (LNKD and Z and AMZN come to mind), they can go very high before a decline starts.

    Lockup expiry reference:
    http://ipoportal.edgar-online.com/ipo/ipoOfferings.asp?view=lockup&IPO=1&ccmonth=10&ccyear=2012
    16 October for SPLK

    ***

    It is interesting that CRM is mentioned as a relatively cheaper company, because I have read several negative Seeking Alpha articles about that company.

    ***

    As I posted in my journal earlier this morning, AMD DELL HPQ LXK could be potential shorts, because their growth is slowing as a result of smartphone / tablet use.
     
    #269     Oct 2, 2012
  10. Daal

    Daal

    I'm short FMCN and own 2013 puts there as well. I covered EDU because the new trend seems to be buyouts to cover up the frauds so this is a risk there, at FMCN it was already announced so the risk is behind. $At $2.6B market cap that risk seems small now(FMCN at $3B+ is already one of the largest chinese buyouts ever) so its a potential reshort from current levels
     
    #270     Oct 2, 2012