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Andres Rueda

 
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  • Why I'm More Confident Of My Herbalife Short Position Today [View article]
    The presentation was a disaster for Bill Ackman. Truly embarrassing. He brought nothing to new to the table, just blah, blah, blah about the "poor people" who do business with Herbalife, and when he started crying... all anyone could think is, PHONEY. That's why the stock popped. He was laughed off the stage.
    Jul 23, 2014. 12:59 AM | 7 Likes Like |Link to Comment
  • Petrobras Argentina SA - Heavily Undervalued, And Worth The Risk? [View article]
    Never written about this company before...
    Sep 11, 2013. 08:44 AM | 1 Like Like |Link to Comment
  • Has Paragon Shipping Turned A Corner? [View article]
    Hi J. Without the CEO's $10 million investment into Paragon, the company would have likely gone bankrupt or had its ships repossessed. This was an equity infusion required by the company's creditors. The investment was made in exchange for company shares issued at prevailing market prices. I think you underestimate the difficulties in raising third-party equity capital for small drybulk shippers. That is why, in my view, an insider had to step in.
    Aug 15, 2013. 11:55 AM | Likes Like |Link to Comment
  • A $132 Million Company Worth Less Than $0: Short Inscor [View article]
    Ha, ha. I could not stop laughing at Rob Goldman's post. The penny stock man comes out of the woodwork. President Obama? Nelson Mandela? Oh, boy! I am sold!!!! Where do I wire you the money??????? Please, while funds are still fresh in my bank account...
    Aug 10, 2013. 08:33 AM | 4 Likes Like |Link to Comment
  • A $132 Million Company Worth Less Than $0: Short Inscor [View article]
    Yes, agreed. But you have to look at the volume when you deal with pink sheet or over the counter stocks. That some fool in Nebraska pays $50 for a couple of shares in a moon dust distribution scheme means nothing if the stock has no volume. The fact that the company has 100,000,000 shares issued and outstanding does not mean that the company is worth $5 billion if the only volume comes from the two shares purchased by the fool from Nebraska.
    Aug 9, 2013. 10:52 AM | 1 Like Like |Link to Comment
  • A $132 Million Company Worth Less Than $0: Short Inscor [View article]
    Hi, Ashraf. I don't doubt the analysis of your excellent article. The small cap and micro cap space is full of frauds and promoters who overhype stocks of dubious value. However, in terms of actually shorting these pink sheet, low volume names - how practical is that? How readily can these names be borrowed for shorting? How easily is it to cover your short? Given that the price of these names can so easily be manipulated by others, are you in danger of a huge run-up of the stock, even if its fundamental value is zero or close to zero? What about the risks of a short squeeze? Sometimes, these companies change their names and ticker symbols just to squeeze the shorts. I've never done this type of trade before, and I am not sure I have the risk appetite for it. I am just curious how this type of thing works out in practice.
    Aug 9, 2013. 08:52 AM | 5 Likes Like |Link to Comment
  • After A Dismal Second Quarter, How Long Can Genco Shipping & Trading Stay Afloat? [View article]
    Hi, Brian. You are indeed correct, and the numbers have been updated accordingly.
    Aug 8, 2013. 06:37 AM | Likes Like |Link to Comment
  • Longwei Petroleum: The Most Brazen China-Based U.S. Listed RTO To Date [View article]
    The company responds to GEO's allegations with its own security videos, taken on same dates, which directly contradic GEO's videos:

    http://bit.ly/URU211

    http://bit.ly/NTCRvp

    If the company's videos are true, then it appears that the fraudsters and crooks are the short sellers, not the company. In any event, this episode warrants an SEC investigation, because someone perpetrated a fraud here, it is just not clear who - the company or the short sellers.
    Jan 11, 2013. 04:28 PM | 1 Like Like |Link to Comment
  • Longwei Petroleum: The Most Brazen China-Based U.S. Listed RTO To Date [View article]
    I was also wondering about that. Why cameras on the truck zone, but not the rail area? And were the cameras on the truck zone correctly positioned? The short sellers claim they were, and emphasize that in their article, but it may not be so clear cut.

    In any event, the company needs to provide a meaty response, and fast.
    Jan 4, 2013. 12:03 PM | 1 Like Like |Link to Comment
  • Longwei Petroleum: The Most Brazen China-Based U.S. Listed RTO To Date [View article]
    Also, I found GEO's attempts to associate LPH with PUDA unconvincing. It's a "friend of a friend of a friend"-type argument.
    Jan 3, 2013. 08:35 PM | 1 Like Like |Link to Comment
  • Longwei Petroleum: The Most Brazen China-Based U.S. Listed RTO To Date [View article]
    What I do not understand is... if the company is a complete fraud, why does it pay Chinese authorities so much in value added taxes? Photocopies of these tax receipts are contained in the company's website:

    http://bit.ly/RvBrsy

    Are these receipts fake? Because these are value added taxes, you can calculate the company's revenues by working backwards. In fact, the auditor confirmed the tax information, and reconciled it with the company's financials.

    I don't think GEO satisfactorily addresses the tax issue. Either the receipts are fake, or they are not. I doubt a company that is a fraud would pay taxes over phantom revenue.

    Something fishy here, I'm just not sure who to believe... the short sellers or the company. In any event, tomorrow we'll have a press release from the company, which should shed light on the situation. It should be interesting.
    Jan 3, 2013. 08:32 PM | 1 Like Like |Link to Comment
  • The Fed owns about half or even a majority of Treasurys across several different maturities along the yield curve. If we toss in holdings by China, Japan, and banks borrowing for free from the Fed, are there any real-money investors still holding U.S. government debt? [View news story]
    Fed intervention in the long end of the T-bond curve has created a situation where these instruments are dangerous for investors. These instruments offer little yield, and are by Fed design exorbitantly expensive right now. Because of convexity, even a small upward movement in interest rates can cause the price of these long duration bonds to crater. Extremely high risk (i.e., no so-called "safe haven"!), and no yield. Buyers beware.
    Sep 19, 2012. 11:49 AM | 1 Like Like |Link to Comment
  • Petroleum & Resources Commits To 6% Annual Dividend: Is It A Buy? [View article]
    The discount at which PEO trades is not justified by its fees, which are relatively low. Perhaps a slight discount may be warranted by built-in capital gains? These gains are a non-event provided that the fund does not liquidate its positions.

    In any event, closed end funds that commit themselves to fixed distributions frequently trade at a premium. The dividend yield on PEO's positions will probably be insufficient to fund PEO's own dividend. Some positions may need to be liquidated, which could result in adverse tax consequences to PEO's investors given the likely built-in gains and pass through tax treatment to investors.
    Sep 17, 2012. 12:10 PM | 2 Likes Like |Link to Comment
  • QE3: Ineffective Parachute for Fiscal Cliff [View article]
    So "fiscal cliff" is the new "Greece"? Market prognostication by sloganeering is a bore. Equities are still cheap relative to bonds. Once that relationship changes, I'll start getting concerned.
    Sep 14, 2012. 07:48 PM | 2 Likes Like |Link to Comment
  • There's No Longer A Bernanke Put [View article]
    Ok, so irrational negativity will now be replaced with irrational exuberance. Fine. At least irrational exuberance is fun.
    Sep 14, 2012. 07:12 PM | 2 Likes Like |Link to Comment
COMMENTS STATS
174 Comments
287 Likes