MY 2 CENTSMy 2 cents…
It would appear that Muddy Waters Research would not bearany reproach if (when) proven incorrect in their allegations. Their previous and very similar attackon Orient Paper in June-July of 2010 caused ONP’s stock to fall as well. If Block shorted their stock before issuingthe report (likely), he faired quite well – but not the individual investors! Orient Paper was shown to be clear of anyallegations “ascertained” by Muddy Waters. The Muddy Waters Research suffered nolitigation penalties that I am aware of. They are still around and for some reason,seem to be able to affect the investor’s herd mentality with TREmendous success. People are so fear-driven that any hintof trouble makes them panic and run to the exits. I know.I had to work my way past them to get these “on sale” $5.00 shares.
And because it seems that Muddy Waters seems to be free fromlegal reprisal (either by locale or disclaimer), they still find it okay toshort a company’s stock and then publicly bad mouth them to bits. Perhaps the Chinese government may eventuallylearn to not protect these “gentlemen” from international law suits. It looks bad on China to harbor these kinds ofpeople. It may eventually lead to some kind of economic repercussions as oneposter here mentioned.
I have seen a lot of banter here demanding that SF producethis record or that record to put to silence the alleged claims of CarlsonBlock. That sounds real good from theshareholder perspective and likely from many shareholders who lost 70%of their investment in very short order. Of course they want answers; we all do. Are we 100% positive that SF management doesnot have good reason to withhold the information according to what they said? I surely am not positive. There could be many reasons why the names (proofs)are being withheld. Perhaps there are businessconflicts with the original sellers and they do not wish this information tobecome “super” public. Not only is MWbullying SF, but so are the shareholders.
SF management has calmly advised us to pay no heed to the MWreport but the fear and panic-driven sheep are grasping so tightly to theirhard-earned dollars that they could care less.
I am absolutely amazed that a report from this guy has madesuch an impact. Single-handedly, he hascaused 5 billion dollars to “disappear” from a major company. He must be dressed in coat and tails with anice top hap and wand…
He should have been put in prison and booted back to theStates to face incarceration, fines, and general humility for what he did toOrient Paper and their shareholders. Butinstead he is free to do it again and again. This time he has chewed off way too much and taken on way too much clout!! First there were shark attacks in Jaws andnow there are short attacks from lawyers.
One kind of wonders if MW approached SF and asked for money to write a positive report but were turned down. Time will definitely tell.I hope it isn’t too long.