If Little is a fraudster, why did he post so publicly online? Why risk hundreds of millions in law suits? Either he's crazy or he had his lawyers review everything in advance. Some of his targets have bounced, others not (CCME, CBEH). What is more likely, that he's trying to ruin his life by committing open fraud in public view ... or trying to uncover fraud by companies in China?
Bashers such as Little have been writing exaggerated and falsified reports and posts on many Chinese stocks. These include CHBT, PUDA, CCME, CGA, and CVVT, to name a few. Up to now they have made a lot of money doing this and suffered no adverse consequences. These companies are obviously not experienced in dealing with USA culture. They have had little to do with the USA.
The stage was set for overconfidence, specifically attacking DEER. Unlike those other companies, DEER has experience in dealing with Americans.
He is an idiot, his current staying in China just proved that. Even if he was right, he ruined so many companies, and it will tough for him to survive there (in China, if you prevent people from making money, what do u think they will do to you?), if he is wrong, he had better come back to prepare for his lawsuit and bankruptcy.
what do you mean by posting so openly ? In most of his (and others) exposes, they use inference to instil doubt and fear. Even in DEERS case, he talked to people in china (who may or may not have been the right people), showed a document (which could have been real, be even so may not have been the correct one), stated the land price was too high by comparison to like properties, and said something about channel stuffing and margins (both being mostly opinions, or opinions based on poor metrics). Even though the article was rather pointed (hence the lawsuit), much was opinion. And opinions can be tough to sue against (I think it is the strong tie to shorting then offering opinions is the basis for the lawsuit).
Which is more likely ? Do people you hang with fall for that ?
What is most likely, is that he is interesting in making money the old fashion way, by not adding value or working for a living.
Disagree. His reports go into more detail than necessary to incite fear. And he's left himself wide open to enormous penalties if guilty. I certainly don't know his story ... but I applaud the fact that he's shaking up a market far far away from any regulator's reach.