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Stark Baddiin
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A money management professional managing a fund targeting the U.S. and Asian marketplace. The fund focuses on maintaining a balanced portfolio of approximately 50% long and 50% short and combines a variety of option strategies to ensure proper hedging principles. Prior to managing money he was a... More
  • CHBT's Richard Azar is Potentially Settting Up One Massive Short Squeeze 18 comments
    May 26, 2011 5:05 PM | about stocks: CHBT
    We know nothing about this company, but my lord this is one of the most interesting stocks to follow at the moment. 

    The Company is expected to file its 10k in mid June. They filed last year June 14th.

    Total Shares Outstanding                                   22.2
      
    Management                                      9.2
    Top Ten Institutional Shareholders                                      3.9
    Richard Azar                                      4.0
    Remaining Float                                      5.1
      
    Short interest as of May 31st                                      5.3
      
    Shares in Float Available To Cover                                   (0.2)


    If none of the management, Richard, or top ten shareholders sell upon filing 10k and there hypothetically will not be enough shares in the float for the shorts to cover period. 

    If this company files its 10k in June this could cause one of the craziest short squeezes we have seen in market.   The shorts may not even have enough shares in the float to cover if Richard keeps up his activity.  If the company doesn't file Richard will not be a happy camper.  I have this one on my radar as this could get very interesting either way.

    We have no position in the company, but option value I am almost tempted to go long, but almost seems to good to be true.
    Themes: China Stocks: CHBT
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Comments (18)
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  • nostores
    , contributor
    Comments (75) | Send Message
     
    "We know nothing about this company, but my lord this is one of the most interesting stocks to follow at the moment. "

     

    So you claim to be active in the Chinese RTO space and then bust out that beauty about one of best documented frauds there is?
    27 May 2011, 11:50 AM Reply Like
  • Stark Baddiin
    , contributor
    Comments (56) | Send Message
     
    Author’s reply » Absolutely. I only invest in companies that I visit and have my team do due diligence. I have read all the info on the company and am not invested in it just really amused by what is being claimed both ways and just flat out amused by this situation.

     

    I spend about 50% of my time in china with my team being there 100%. I assume you go to china as well?

     

    Also before you attack me how about you read that I have never visited the company and don't have an opinion either way, as unless I visit a company and spend considerable time there, I can't make a judgment. I assume you feel the same way.

     

    I was also one that called Al Little out about HRBN and his bad call on HRBN. I have been short there and have done very well on my call on that one.
    27 May 2011, 12:51 PM Reply Like
  • jonsjon1223
    , contributor
    Comments (225) | Send Message
     
    Little didn't make a bad call on HRBN. He was long from 17 and exited at 20+. It's now at 16 but he made his money.
    27 May 2011, 02:14 PM Reply Like
  • Stark Baddiin
    , contributor
    Comments (56) | Send Message
     
    Author’s reply » He surely was wrong. He said it was short proof company. That is ridiculous to say. I have done very well shorting it and believe I will make more money before i cover fully.

     

    I highly disagree with his calls on that I as I believe he did no where near the work he has done on some of his short calls. Seemed like it was just throw it out there type work versus doing real due diligence and analysis.

     

    There is nothing long with being 100% short or long, but don't try to sound non biased by throwing out a long call with no real due diligence other than management buy out offers.

     

    Just my opinion.
    27 May 2011, 02:17 PM Reply Like
  • jonsjon1223
    , contributor
    Comments (225) | Send Message
     
    If you mean that call, I see then you're right. I thought you meant his trade recommendation, which netted 20% in a few weeks.
    27 May 2011, 02:30 PM Reply Like
  • nostores
    , contributor
    Comments (75) | Send Message
     
    "Also before you attack me how about you read that I have never visited the company and don't have an opinion either way, as unless I visit a company and spend considerable time there, I can't make a judgment. I assume you feel the same way"

     

    Do you need to visit a company that post a list of 80+ addresses just to have them turn out to be empty parking lots and then have the company refuse to release a new list because they are closing the stores? LOL
    27 May 2011, 03:47 PM Reply Like
  • Stark Baddiin
    , contributor
    Comments (56) | Send Message
     
    Author’s reply » nostores - seriously. You are not a biased person are you? After you have attacked me I read some of your posts and you are just a pony boy running around and supporting others actions. Become original and do your own work.

     

    Yes - my investment philosophy is I don't trust anything my team doesn't verify on the ground and ourselves. If you trust others that's great, I don't. If I was to invest I surely would visit a majority of the stores if not all of them if they claim they generate substantial business from those stores. That's called due diligence and verification. I don't take risks like others as there is no reason to when you can actually do the work. I did this on others that I am short and long.

     

    I believe some of the people you follow do real work and I have agreed with them on many moves (not promoting HRBN as a long call though). Ultimately you just repeat what other say and don't have an original though in your mind. I am not trying to be rude, but start thinking for yourself if you are going to run around and post repetitive thoughts.

     

    With regards to this company clearly you are short and trying to get me to short. I don't know a damn thing about this company so am not going to make a bet based on what you say. Sorry sir. My instablog was purely out of amusement. Was not promoting or bashing either way - just saying this could get exciting, especially given I don't know anything about the company. If you know its a fraud then that's cool and if you are short you will make money. I have felt that way on others (long and short), but don't have an opinion here. The share structure analysis i did took a whopping 10 minutes to put together and that was enough to make me think this is exciting to watch - not to bet millions of dollars on.

     

    So instead I will repeat what I have said, this is a pretty interesting situation to follow and will be exciting to follow until such time as they file or don't file their 10k.

     

    This is amusement for me, but if not for you I recommend you go visit the company otherwise you are just a lemming promoting or bashing things that you can't verify yourself. (Not saying your opinion on this particular situation is right or wrong, but its clearly not your opinion as you have nothing to base it off it off of other than what other people tell you).
    27 May 2011, 04:16 PM Reply Like
  • Stark Baddiin
    , contributor
    Comments (56) | Send Message
     
    Author’s reply » If he really made those trades then his investment was right.

     

    That being said his call that its unshortable or whatever was flat wrong. So what I meant is what he wrote in his article was not accurate and was probably based on very little if any due diligence. I believe he does good work on some of his short calls, but this long call was purely to make him look non biased. I may be wrong, but by the detail provided on shorts and lack of detail on long it appeared that way. Also given I believe he was wrong on his statement on HRBN.
    27 May 2011, 04:19 PM Reply Like
  • Jason Tillberg
    , contributor
    Comments (1258) | Send Message
     
    My sentiments exactly Stark.. a very interesting one to follow.

     

    Do you have a judgement of the overall situation with Chinese stocks that trade in the US? Are valuations mostly justified for the risks out there OR at this stage, like financials in late 2008, is it too late to short the sector and perhaps consider going long the good ones that are both legit and should be prosperous?

     

    I guess a good question is, if there was an ETF that comprised of all the Chinese small caps, would it be a buy sell or just stay out?
    27 May 2011, 01:20 PM Reply Like
  • Stark Baddiin
    , contributor
    Comments (56) | Send Message
     
    Author’s reply » You can't make broad statement about sector specifically you have to look at it company by company. Some are overvalued at any price and some are extremely cheap. All depends on what kind of transparency they will let you see to figure it out.
    27 May 2011, 01:35 PM Reply Like
  • hbball
    , contributor
    Comments (27) | Send Message
     
    You got the wrong name "Azar" not "Essa".
    27 May 2011, 01:46 PM Reply Like
  • Stark Baddiin
    , contributor
    Comments (56) | Send Message
     
    Author’s reply » Corrected, used his middle name instead of last.

     

    Nostores - Surprised you didn't bash me for that as well :)
    27 May 2011, 01:57 PM Reply Like
  • Stark Baddiin
    , contributor
    Comments (56) | Send Message
     
    Author’s reply » Short term option straddle on CHBT w/ premiums paid for a max of three weeks (post 10k release). Haven't visited co. so can't bet in one direction, but this stock will move for sure one way or another. Put prem weighted me on downside, but more risk of upside vs. downside based on current market.
    7 Jun 2011, 07:21 AM Reply Like
  • Stark Baddiin
    , contributor
    Comments (56) | Send Message
     
    Author’s reply » Just sold puts - love obvious movement plays, win either way. Holding calls til expiration as I can't sell for much at the moment and got huge gain on overall trade with the loss on calls.
    15 Jun 2011, 03:28 PM Reply Like
  • nostores
    , contributor
    Comments (75) | Send Message
     
    "love obvious movement plays" What about obvious frauds?

     

    You still long LLEN and GFRE? Any other POS's?
    15 Jun 2011, 04:04 PM Reply Like
  • Stark Baddiin
    , contributor
    Comments (56) | Send Message
     
    Author’s reply » Yes, Adding LLEN post site visits over past two weeks on the ground.

     

    Also met with government in province - was insightful.

     

    When are you going to say something of value versus just bashing with no factual statements of any kind. All you do is run around and promote al little and geo. I made great money short on HRBN despite your hero saying it was short proof.

     

    If you want to not just sound like an A** kissers why dont you say something unique. I see others call you out for this as well.

     

    You want to private trade anything? I am happy to escrow funds against yours on trade you want to go the other way.
    15 Jun 2011, 04:18 PM Reply Like
  • nostores
    , contributor
    Comments (75) | Send Message
     
    "When are you going to say something of value versus just bashing with no factual statements of any kind."

     

    I told you above that CHBT was one of the best documented frauds around after you said you didn't know anything about it. I don't need to produce unique views, plenty of people share their findings freely and select morons decide to stay long these turds keeping them propped up. Sometimes morons even threaten to sue these researchers for sharing their findings publicly.

     

    " I see others call you out for this as well. "

     

    Who is that AB? That seems the be the only tool who makes more ridiculous threats than you.

     

    "All you do is run around and promote al little and geo. I made great money short on HRBN despite your hero saying it was short proof. "

     

    FYI - I was short that before and after his post. I commented in his thread as well.

     

    I have faith in a lot more people than just Al Little and GEO, they are brought up more because of AB's stupid comments than because of my love of them.
    15 Jun 2011, 04:45 PM Reply Like
  • Stark Baddiin
    , contributor
    Comments (56) | Send Message
     
    Author’s reply » Right. I only comment on companies that I actually have my team visit or I visit myself. Hence why I know nothing about CHBT and I don't comment on companies unless i know for a fact as I care about my reputation and learned that relying on others doesn't make me money as everyone has an agenda.

     

    Funny - I made money on this one making a non-directional trade and you bash me for it.

     

    I could really care less what AL and AB do etc as its really irrelevant to the work that I do. Sorry i don't take investment advice from an entertainment sites as i prefer actual due diligence. In actuality the only time I commented on AL is when he put out a report saying companies are short proof as I believe he did this to appear non biased and with very little research.

     

    I don't give stock price targets nor try to provide investment advice. I post on here because i share my thoughts. If people care they read, if they don't they don't.

     

    But I surely don't listen to talking heads like you who just practice the art of being a lemming. Enjoy your non identity.
    16 Jun 2011, 08:54 AM Reply Like
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