Why would they disclose the fee for presenting? Anyone can see on SeeThruEquity's web page that $5500 is the standard fee for "any" company presenting at the conference. 30-minute presentations including Q&A session and 1-on-1 meetings on site with preapproved investors. So investors can ask what they want. They won't give details on on-going allogations until they have completed the report.
Shorting Chinese Chicken Breeder Earns Wings for GeoInvesting
By James Sterngold - 2011-07-10
"The firm profited over the past few years, they said, largely by taking long positions in Chinese companies that gained U.S. listings through reverse mergers. The booming Chinese economy offers investment opportunities, and GeoInvesting had been upbeat on Yuhe because of growing demand for chicken, they said.
“We had high hopes for Yuhe, and our aim had been to reinforce a long position,” said Soueidan, 41, the son of Lebanese immigrants, who wore a kung #$%$ t-shirt during an interview at a Skippack restaurant. “We wrote a positive report on them last summer. But the more we looked, the more questions we had about the acquisitions. We had no choice. I don’t like being a short. I despise it. I just don’t like being that guy.”
Apparently he likes being that guy now.
He's right. Hitpieceresearch was asking Majed questions long before the hit piece on LLEN. They never got a reply.
"I repeatedly confronted both LLEN's management and securities counsel via a series of emails and phone calls from Oct. 14-18, 2013."
So what was llen's response? If he's going to make a case he should give both sides. Or is that on another page?
Dems have the most leverage and the backing of the media behind them. That puts more pressure on the Republicans to fold. There’s also many Republican’s in the Senate that have already folded. Mudslinging could get uglier though IMO.
As for profiting through short selling, Dan David explains, under the legal system of the United States, it is not only legal but also being encouraged. “The short selling wave is just like a process of washing the sands in the wave (Chinese idiom for survivor selection – by washing away the bad and keep the good)”, explained Dan David. In the 2nd half of 2012, after the previous round of shorting, the dramatic rally in US listed Chinese stocks basically showed that the ones that survived the short selling waves are valuable (investments), at least without major problems. “It’s like picking out the bad apples, what’s left must be quite valuable.”
How does the scheme played by these “hit piece research” providers work?
Hit piece authors and their cronies put together a “hit piece” “research” piece based on due diligence they claim they have done referencing public, non public, unconfirmed and unproven damning information about a company.
Hit piece authors and cronies distribute such information to their friends, subscribers, partners, etc.
They all trade in the security based on the direction the report is intended to move the stock price of such securities. To build a position to benefit from the market moving report they intend to release they:
a. Short sell securities to other investors that are then positioned to be harmed from the information they plant o release.
b. They sell call options to collect premiums to investors that are then positioned to be harmed from the information they plant o release.
c. They acquire put options from investors that are then positioned to be harmed from the information they plant o release.
They wait a few days to fully load up on such positions they are seeking to profit from.
They release the “market moving” information to the market – including public, non public, unsubstantiated and unproven malicious and damning information for the sole purpose of manipulating the share price in violation of SEC Rule 10b-5, which causes the security plummet in value.
They then either:
a. Cover their short position shortly after report is out locking in hefty profits.
b. They let the call options expire that they sold collecting healthy premiums.
c. They exercise the puts and lock in healthy gains or sell the puts at a hefty premium to what they paid profiting healthily.
Then they go long the security as when the company responds with the facts the security is almost likely to recover around 70% of its value in the market – profiting again from the average shareholder.
After stealing money from shareholders as a result of their “market moving” information they disperse the market they move on to the next security.
This is a great model, only if it was legal.
Rejoice as another great day has begun.