Just like Carson Block of Muddy Waters, and Andrew Left of Citron these so called researchers are simply a bunch of shorts who find companies usually in a quiet period. They then call their short buddies in hedge funds and start shorting and buying puts. Then they either publish a bull ***t report or in some cases hire a Chinese PR firm to invent allegations and publish them on blogs, SA and anyone who will print their garbage. Take a look at NQ, now a double off the lows created by Carson Block. With DB and Stifel heavily defending MONT, the next thing you will probably see is DB or Stifel fining 13G reports stating that they took large position in MONT. Oh... in addition, the shorts hire a bunch of minimum wage bashers to inundate the message boards. Do you believe DB, Stifel and Price Waterhouse or a bunch of shorts looking for quick money out of your pockets.
The problem is that these reports, especially of Chinese companies, are damning and given the secrecy of the Chinese in cooperating with making accounting records available. Small cap Chinese companies are an easy mark for short sellers. Further, it takes months if not years for the companies to again get investor confidence. Just the facts of life. I wonder if the drop from $26 to $20, before the crash was due to short selling?