![]() The effectiveness of the short sellers has led me to believe that we (as a predominantly long-only investor) can learn some valuable lessons: Contrary to their criticism, it showed that high profile short sellers can bring accountability to misbehaving companies. It certainly adds another dimension for the investor toolkit in the recent spate of alleged misconduct by Australian companies.Īgain and again, these situations show the potential benefits of allowing short sellers in the market. It is a worthwhile watch for the everyday investor. These Chinese reverse takeovers are not exclusive to North American stock exchanges and can even be found in the ASX. In that particular case, the company inflated asset and revenue that resulted in “fraud, breach of fiduciary duty, and negligence.” The Canadian court recently awarded a C$2.6 billion damages against the CEO. The fact that it wasn’t even covered in the documentary shows how many examples the film-makers could have picked from. ![]() ![]() One of the largest scandal of this type was the Sino-Forest case. The documentary shows the journey of sceptical short sellers to uncovering the misconduct and profit from them. It explored patterns of faked numbers, technologies and facilities. The “Hustle” part of the title refers to the fraudulent nature of many of the listings. The documentary explores the sinister nature of Chinese companies reverse takeover into US stock exchanges. Over the weekend, I got the chance to watch “ The China Hustle”, a financial documentary by Jed Rothstein. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |