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Short selling
blacksheep
post Posted: Aug 15 2019, 08:06 PM
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One half of the former Glaucus Research team, Soren Aandahl, founded Blue Orca Capital. The other half founded Bonitas who recently took aim at ASX listed RFF

Blue Orca Capital has released a new short report on HK listed Ausnutria Dairy Corp Ltd (提供中文版本) - https://www.blueorcacapital.com/ Ausnutria owns a couple of dairy properties in Australia

Not sure if this attack on Ausnutria will have an impact on other ASX listed stocks in this sector

QUOTE
Ausnutria has a long-term strategy to steadily expand its international corporate position. In 2011, it acquired Ausnutria Hyproca B.V. (formerly "Hyproca Dairy Group B.V"), a dairy company with over 100 years of history in the Netherlands. In 2014, it initiated the investment and construction of the Pluto Factory and the Hector Factory, also in the Netherlands. In 2016, it acquired Nutrition Care, an Australian nutritional products company, and co-invested with Westland (a dairy company in New Zealand) to establish the PNL Factory. In 2017, it acquired ADP and Ozfarm in Australia. In October 2018, Ausnutria introduced CITIC Agricultural Fund as the Company’s single largest shareholder.

At this time, Ausnutria possesses ten factories around the world, among which there are two in China, five in the Netherlands, two in Australia, and one in New Zealand. They provide a diversified product portfolio covering infant formula, toddler formula, adult formula, liquidity milk, and other nutrition products.

http://www.ausnutria.com.hk/en/about/overview.php

QUOTE
AUSNUTRIA DAIRY CORPORATION LTD
澳優乳業股份有限公司
(Incorporated in the Cayman Islands with limited liability)
(Stock code: 1717)
CLARIFICATION ANNOUNCEMENT
This announcement is made by the board of directors (the “Board”) of Ausnutria Dairy Corporation Ltd (the
“Company”, together with its subsidiaries, the “Group”) pursuant to Rule 13.09 of the Rules Governing the
Listing of Securities on The Stock Exchange of Hong Kong Limited.

The Board noticed that a market research report published by Blue Orca Capital on 15 August 2019 (the “Report”)
contains certain allegations on the Group. The Board vigorously denies the allegations contained in the Report and
considers them to be inaccurate and misleading.

Save as disclosed above, the Board confirms that it is not aware of any other information which must be announced
to avoid a false market in the Company’s securities or of any inside information that needs to be disclosed under
Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
It is important for shareholders to be aware that the relevant allegations are the opinions of a short seller whose
interests may not be aligned with those of shareholders in general, and that it may be intended specifically to
undermine confidence in the Company and its management, and to harm its reputation. Accordingly, shareholders
should treat such allegations with caution. The Company reserves its right to take legal action against Blue Orca
Capital and/or those responsible for the relevant allegations.

The Board considers that the Report contained certain factual error, misleading statements and unfounded
allegations which may lead to unusual price movement. Shareholders of the Company and potential
investors are advised to exercise caution when dealing in the securities of the Company.
Further announcement(s) will be made by the Company to clarify and address the allegations concerning the Group
raised in the Report in due course.

https://doc.irasia.com/listco/hk/ausnutria/...nt/a190815a.pdf



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 15 2019, 07:48 PM
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In Reply To: blacksheep's post @ Jul 31 2019, 08:00 PM

Seems Viceroy Research compiled a "critical report" on UK Burford back in July 2017. Muddy Waters came out with a "bear raid" last week. Many dismissed Viceroy as cowboys when they first hit ASX stocks.

STOCK MARKET WATCH: Deja vu for litigation funder Burford Capital two years after first alert
By JAMIE NIMMO, FINANCIAL MAIL ON SUNDAY

QUOTE
PUBLISHED: 07:55 AEST, 11 August 2019 | UPDATED: 21:40 AEST, 11 August 2019
Short-selling firm Muddy Waters shocked the City last week with a ‘bear raid’ on Burford Capital as it accused the litigation financing firm of misleading investors through murky accounting – causing the shares to plummet.

Burford hit back at what it called ‘false’ claims by Muddy Waters, which is run by American Carson Block.

But Block isn’t the first short-seller to have raised questions about the AIM-listed firm. Another such outfit raised red flags two years before Muddy Waters.

Viceroy Research, run by former social worker Fraser Perring, compiled a critical report on Burford in July 2017.

iceroy was instructed to investigate Burford by a private equity firm which was weighing up a possible takeover bid.

In its report, which I have seen, Viceroy questioned how Burford had ‘spectacularly’ outperformed rival litigation funders such as Australian firm IMF Bentham and the AIM-listed Juridica Investments, which later went into voluntary liquidation.

Needless to say, the private equity firm in question decided against making an offer.

The Burford-Muddy Waters ding-dong is sure to rumble on over the next few weeks, but it raises the question about which other companies are in the sights of short-sellers.


https://www.thisismoney.co.uk/money/investi...ears-alert.html



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Jul 31 2019, 08:00 PM
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Interesting interview with Gabe Bernarde - Viceroy Research. https://twitter.com/OwenRask/status/1155721983037865984

Viceroy's early coverage included a couple of ASX listed companies - QIN and SYR
VICEROY’S COVERAGE
AMD NASDAQ:AMD
Caesarstone NASDAQ:CSTE
Capitec JSE:CPI
Ebix NASDAQ:EBIX
MiMedx NASDAQ:MDXG
NEPI Rockcastle JSE:NRP
Neuroderm NASDAQ:NDRM
Pareteum NASDAQ:TEUM
Pretium TSE/NYSE:PVG
ProSieben ETR:PSM
Quintis ASXL:QIN
Steinhoff ETR/JSE:SNH
Syrah Resources ASX:SYR



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Jul 20 2019, 10:46 PM
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Posts: 6,141
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Interesting article/opinion piece by Ben Pauley on the demise of ARI and the alleged role of short sellers - Barely legal: Arrium, a fee-fest for financiers, a misery-fest for shareholders
Jul 19, 2019
QUOTE
Hidden accounts, rapacious insolvency tactics, greedy bankers. The pillage of Arrium has been a travesty for shareholders and creditors and begs the question: should short-selling laws be upgraded to save vital industries from financial ruin? Investor and shareholder activist Ben Pauley writes this oped.


QUOTE
Short sellers smashed Arrium

The primary reasons Arrium went down are cleverly hidden. The company was effectively short-sold into administration.

In September 2014, when its share price was $0.60, Arrium announced a $754 million capital raising. The capital raising price was $0.48 and, on the first day of trading after the announcement, there were 37,582,199 shares short sold and the share price collapsed to 40c.

When the offer closed, the share price was $0.345. The capital raising had been sabotaged by a combination of short-selling and algorithmic trading.

Broker trading programs were tuned aggressively to take down prices. It was accomplished the same way countless stocks have had billions of dollars removed from their market capitalisations, that is, algorithms being tuned to make artificial adjustments to prices, relentlessly forcing prices lower.

Factor number two in Arrium’s demise was Arrium management itself.

After the savage attack by short sellers, the Arrium chairman issued an address at the AGM:

“Many of the questions or comments forwarded to me in the lead up to today’s meeting were, understandably, about the share price. Our share price performance has been extremely disappointing.

There are many factors that can influence a company’s share price, but negative sentiment around growth in China including the outlook for iron ore prices, steel over-capacity in Asia, our level of debt and uncertainty around the strategic review outcomes appear to be relevant factors in poor performance”.

The reality was that the “disappointing” share price was almost all to do with predatory short-sellers executing trades that conflict with the laws that govern the markets. That should have been obvious to the chairman.

Banks, corporate undertakers clean up


A related factor concerned the banks who were involved in margin lending. Hapless clients of the banks who purchased Arrium stock on margin (borrowing from margin lenders to finance their trading) found that their shares were, in turn, lent out to short sellers.

It was a bastardly act although perfectly legal, and one which epitomises the corporate greed and lack of ethics that has crept across the financial system. The system, as demonstrated by the Royal Commission into the banks, has become consumed by a culture of unmitigated greed and left to fester under regulatory capture and indifference.

Just imagine the uproar if a bank retained such power in the case of a house mortgage loan, that is, they lend the house to someone who they know will vandalise it. It should be illegal for a bank to share knowledge about margin loans they have against stocks with anyone.

Industry super funds were also lending out large volumes of their clients’ shares to short-sellers. Compounding the misery of Arrium shareholders, the iron ore price then fell to $35 a tonne. Arrium was placed into voluntary administration due to its large debt.


https://www.michaelwest.com.au/barely-legal...r-shareholders/



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: myshares  mullokintyre  
 
early birds
post Posted: May 13 2019, 03:04 PM
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https://www.afr.com/news/world/europe/the-s...y_Sent=13052019

And if any investors think Clark might change direction any time soon, think again. "If you talk to any manager," he says, "they always want to be bullish, and the classic line will be, 'There's always a bull market somewhere.' My observation is there's always a bear market somewhere."

=======================

one hell off shorter ----all or nothing. tip my hat off to him. hypocrite.gif



 
nipper
post Posted: Mar 28 2019, 11:13 AM
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weekly Short Report

https://www.sharecafe.com.au/2019/03/28/the-short-report-14/



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 


blacksheep
post Posted: Mar 24 2019, 12:54 PM
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Short & distort? The ugly war between CEOs and activist critics
Lawrence Delevingne
QUOTE

The short war

The advent of social media and a bull market for stocks gave rise to a small but powerful group of activist short sellers. Companies tend to call attacks market manipulation, while the investors accuse them of trying to silence legitimate criticism. The new, ugly battles between the two camps are exemplified by Farmland Partners’ pursuit of anonymous short seller Rota Fortunae for a negative assessment of the company in July 2018.

QUOTE
Yet targeted businesses say many short campaigns waged this decade amount to “short and distort” schemes. They accuse some activists of spreading false or misleading information to drive a stock down and then quickly cash out, a mirror image of “pump and dump,” where unscrupulous investors promote speculative stocks before selling out at the top.

Cases against short sellers are rare, though, given free speech protections and companies hesitant to put themselves under the microscope of regulators, lawyers say.


read more - https://www.reuters.com/article/us-usa-stoc...s-idUSKCN1R20AW



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: triage  
 
blacksheep
post Posted: Feb 20 2019, 01:59 PM
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BaFin have stepped in and instituted a short selling ban - haven't seen that before.

General decree of the German Federal Financial Supervisory Authority ( BaFin ) prohibiting the establishment and increase of net short positions in shares of Wirecard AG

QUOTE
1. Facts

Currently, unfavorable events or developments have occurred that pose a serious threat to market confidence in Germany. For in recent days, massive uncertainties on the financial markets are detectable. The main reason for this was the price development of the share of Wirecard AG in recent weeks.

Wirecard AG is a global payment service company based in Germany. The shares of Wirecard AG are admitted to trading on the Frankfurt Stock Exchange and are part of the DAX . The DAX is the most important German stock index, reflecting the performance of the 30 largest and most actively traded German stocks. The shares of Wirecard AG were added to the DAX on 24.09.2018 . One subsidiary, Wirecard Bank AG , is a domestic CRR credit institution.

Wirecard AG offers its customers solutions for electronic payment transactions. It has connections to more than 200 international payment companies (banks, payment solutions, card networks). In addition, Wirecard AG has contracts with relevant credit card companies.

Domestic companies have been targeting so-called short attacks in the past, jeopardizing domestic market integrity and market confidence in fair and efficient pricing. Wirecard AG was also targeted by short-term attacks in 2008 and 2016, in which short sellers profited by taking corresponding positions, which led to corresponding price falls for Wirecard AG . This also resulted in investigations by BaFin and the law enforcement authorities, among other things due to market manipulation. The short attacks were accompanied and favored by negative media coverage.

Since the end of January 2019, various negative press reports have again been observed. In the past two weeks, the price of the Wirecard AG share fell sharply. Between 30.01.2019 and 15.02.2019, the price fell from 167.00 EUR (opening price on 30.01.2019) to 99.90 EUR (closing price on 15.02.2019), which means a 40 percent reduction in market capitalization. A significant fall in prices was observed after the publication of a press article claiming employees of a subsidiary of Wirecard AGIn Singapore, bookkeeping had simulated higher sales. The press reports coincide with increased net short selling positions (NLP) and associated strong volatility of Wirecard AG shares . From 01.02.2019 onwards, a significant increase in the NLP in shares of Wirecard AG can be observed, which has clearly strengthened again since 07.02.2019. Also in the last days the NLP has continued to increase significantly. The NLPs are held by various holders, in particular from abroad, even below the publication threshold.

The events described led to uncertainty in the market, in particular with regard to the reasonable price formation for the shares of Wirecard AG . In the current situation, there is a risk that market uncertainty will increase and expand into general market uncertainty.

https://www.bafin.de/SharedDocs/Veroeffentl...smassnahme.html

Wirecard: inside an accounting scandal
A preliminary report by a top law firm has unveiled a pattern of suspected book-padding across the group’s Asian operations
https://www.ft.com/content/d51a012e-1d6f-11...26-46fc3ad87c65

FT statement on Wirecard reporting
FEBRUARY 18, 2019
QUOTE
Any allegation against the FT or any of its reporters or staff of market manipulation or unethical reporting in relation to Wirecard is baseless and false. It is a smokescreen obscuring the serious allegations that were revealed by the FT.

Our reporters have been investigating this company for four years, and in the last month published stories based on credible evidence of fraudulent accounting detailed in internal documents seen by the FT. Wirecard's response was also reported. These articles have a significant public interest and are free to read on FT.com.

We have not been contacted by the German financial regulator or the Munich prosecutor. Any investigation would therefore appear to be at the very earliest stage, with investigators not yet having spoken to those they say they are investigating.

https://www.ft.com/content/d51a012e-1d6f-11...26-46fc3ad87c65



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Feb 5 2019, 12:23 PM
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There's a double standard applied to short sellers: Carson Block
Carson Block, founder and CIO of Muddy Waters Capital, joins BNN Bloomberg to discuss the role of short sellers amid calls for more regulatory scrutiny on investors engaging in the short side of a trade.
https://www.bnnbloomberg.ca/bloomberg-marke...-block~1601531#



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Jan 15 2019, 07:49 PM
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extract AFR article

QUOTE
John Hempton's Bronte Capital and Robert Luciano's VGI Partners posted returns of 20 and 17 per cent after fees in 2018, distinguishing themselves from the widespread pain inflicted upon hedge funds in the bonfire that was the December quarter.

Bronte's Amalthea fund returned 20.2 per cent in 2018, smashing its benchmark by successfully shorting "over-hyped and over-levered" stocks that propelled it through December's market destruction. VGI's master fund returned 16.9 per cent in Australian-dollar terms over the calendar year.

https://www.afr.com/markets/john-hemptons-b...20190115-h1a3a1



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: early birds  
 
 


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