Short-Seller Attacks Spur Big Investors To Double Down

September 03, 2013   |   September 2013 Bond Updates
Short-sellers of overseas-listed Chinese stocks have scored some memorable hits - Sino-Forest, Puda Coal (both delisted) - and some big misses, such as Qihoo 360 Technology (stock up 185% this year). Lately these short-sellers, who target companies with bold claims of overstated and false earnings, then profit from panic selling, are casting a wider net. China-focused companies listed in Hong Kong and Singapore are on their radar. The latest target is China Minzhong, a vegetable processor whose Singapore-listed shares fell nearly 100% last week after Glaucus Research, a short-seller, alleged that the company's results were fraudulent. The company denied the claims, but the damage was done. However, investors may have stampeded too soon: the stock rebounded Monday after a friendly takeover bid by Indonesia's largest noodle maker that values the firm at $576 million. Short-sellers are on the retreat and those who bought the stock at its depressed levels are sitting on huge gains.

View more at: http://www.forbes.com/sites/simonmontlake/2013/09/03/short-seller-attacks-force-big-investors-to-double-down/
 
Related News
Home| About us | Contact us http://www.bondupdatesdailynews.com/