Can you detect any shenanigans going on at Tesla?
If so, then this would be a very good stock to short.
How to Detect Business Fraud
71–73 of 73 posts
Re: How to Detect Business Fraud
#72The China Hustle[1] is a great documentary about the systemic securities fraud committed by Chinese companies selling into the American markets in a way that allows them to avoid much of the disclosure and due diligence typically required. It follows investors from the Muddy Waters firm mentioned in the this article and was made by the same group who did documentary version of The Smartest Guys in the Room. I believe…
Except, the problem, is that the China Hustle displayed AliBaba in a bad shape and I doubt the guys were short the NYSE:BABA stock. The film was slightly hinting that you should be shorting or offloading your BABA stock.
But what happened since? The film was released in 2017 (BABA around ~90) and now the stock is trading around ~195.
So if you offloaded your stock, you'll have lost on some nice gains. It's worse if you have shorted: It'd have been a real hustle and it's not clear when the stock will correct.
Re: How to Detect Business Fraud
#73The China Hustle[1] is a great documentary about the systemic securities fraud committed by Chinese companies selling into the American markets in a way that allows them to avoid much of the disclosure and due diligence typically required. It follows investors from the Muddy Waters firm mentioned in the this article and was made by the same group who did documentary version of The Smartest Guys in the Room. I believe…
Except, the problem, is that the China Hustle displayed AliBaba in a bad shape and I doubt the guys were short the NYSE:BABA stock. The film was slightly hinting that you should be shorting or offloading your BABA stock. But what happened since? The film was released in 2017 (BABA around ~90) and now the stock is trading around ~195. So if you offloaded your stock, you'll have lost on some nice gains. It's worse if y…
IMHO, exposing issues at the company does not guarantee its stock will go down. After all, investors (broadly defined, as in individual ones, 401k, mutual funds, pensions, etc) can keep momentum up. Something about the market can stay irrational longer than an individual investor's account positive.
So it is risky no matter what, just perhaps risk/reward ration increases maybe?