Chanos pitches shorts on CNBC


Sotheby's (BID) stock price does a pretty good job tracking speculative bubbles, says Jim Chanos appearing on Squawk Box with this chart to explain his short of the name.

On China: The government is "panicking" over the economic slowdown. "One has to keep in mind, if you're a Western investor in stocks and bonds in China, you are investing in a scheme, not a market ... You are basically providing capital to them and you might not see any profits or dividends from them."

On the Dow's best-performing stock of the year: Chanos says he's still short Caterpillar (CAT).

Multi-level marketers, i.e. Herbalife (HLF): It's "no secret we side with the bears on this one."

On the round-trip in Greek bond yields (they're back to pre-crisis levels): "I find that stunning ... and scary."

China ETFs: FXI, PGJ, GXC, FXP, YINN, KWEB, HAO, ASHR, CHIQ, TAO, CHIX, YANG, CQQQ, MCHI, PEK, QQQC, XPP, YAO, CHXX, YXI, CHII, CHXF, ECNS, CHIM, CHIE, KFYP, FCA, TCHI, CHNA, KBA

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Comments (38)
  • Quoth the Raven
    , contributor
    Comments (2063) | Send Message
     
    Hmm, wonder why he sides with the bears on HLF? Maybe he's another in the long list of idiots like me, Matt Stewart, Herb Greenberg, Whitney Tilson, Bill Ackman - yeah, maybe we're all wrong.
    3 Apr 2014, 09:06 AM Reply Like
  • monkey see
    , contributor
    Comments (617) | Send Message
     
    @QTR. On HLF "... Maybe we're all wrong"

     

    No doubt about it.
    3 Apr 2014, 09:42 AM Reply Like
  • herbs4mike
    , contributor
    Comments (2064) | Send Message
     
    Why should anybody side with Ackman when Fusion research totally busted out his employee's analysis right here on SA...

     

    http://seekingalpha.co...

     

    For all who read, you just gotta scroll down to the bottom of the linked article to see the conversation between Shane, Bill Keep, and Fusion Research. Fusion's research leads Bill to totally deflect the straight forward questions. Shane is then full of questions, as he is trying to provide answers to his boss, Ackman. Then Fusion wrote another article just to answer Shane's questions. It was all classic and filled with knowledge from much more knowledgeable people than us about what constitutes a pyramid scheme....
    3 Apr 2014, 01:24 PM Reply Like
  • Abigsoxfan
    , contributor
    Comments (1248) | Send Message
     
    Glad he's losing his ass on CAT. Not only is he getting killed on the performance of the stock, he also has to pay dividends for the privilege of losing that money.
    3 Apr 2014, 09:13 AM Reply Like
  • jumpnjoey77
    , contributor
    Comments (1222) | Send Message
     
    Job cutting and closing none productive plants are all ways good for a positive move. Like a t-ball trade.
    3 Apr 2014, 10:17 AM Reply Like
  • The Sociology of Finance
    , contributor
    Comments (955) | Send Message
     
    I think Chanos is right on the money will all of these calls, especially China, CAT and greek bonds.
    3 Apr 2014, 09:14 AM Reply Like
  • TheLittleGoat
    , contributor
    Comments (105) | Send Message
     
    Well we will find out how he does. So far the CAT call especially has cost him badly.
    3 Apr 2014, 11:56 AM Reply Like
  • MedTechBio
    , contributor
    Comments (3261) | Send Message
     
    Let me assist with reading the above notes. Chanos didn't make a call on Greek bonds, he merely stated the yields are "scary."
    Wow...
    3 Apr 2014, 08:19 PM Reply Like
  • fluteman
    , contributor
    Comments (44) | Send Message
     
    Bears have been taking a beating in the markets. How is Chanos doing in HPQ and CAT. Not sure I would be touting Chanos right now.
    3 Apr 2014, 09:17 AM Reply Like
  • mlfinegold
    , contributor
    Comment (1) | Send Message
     
    missed comments on coffee stocks- where can I find them?
    3 Apr 2014, 09:18 AM Reply Like
  • 6608281
    , contributor
    Comments (52) | Send Message
     
    He said he was long Starbucks and has a short on another coffee stock. He did not mention it, but did say it was obvious.
    3 Apr 2014, 04:58 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (5167) | Send Message
     
    Seems to me chanos is the one" panicking" ,not China,which is why he showed up on negative cnbc to tout his Losing program. Pure and simple,follow him or tilson and lose $$.
    I wonder what tilson's (how's that IBM short doing for you ? ) next fund name will be ?
    3 Apr 2014, 09:25 AM Reply Like
  • jumpnjoey77
    , contributor
    Comments (1222) | Send Message
     
    He needs to get an upper lip and a clue.
    3 Apr 2014, 10:16 AM Reply Like
  • Momintn
    , contributor
    Comments (6086) | Send Message
     
    CNBC gives too much air time to short sellers. I don't understand why they would want you to know their positions anyway. It just makes them look like bad decision makers. Long-term investors know that you make the most money by accumulating stocks that are cheap and out-of-favor over the long-term. If a stock hasn't done anything in several years and has a low valuation, I would think it is more likely to move up in a bull market rather than down. Just because a short seller wants the stock to go down, is no reason to sell the stock. The same bad news over and over again begins to fall on deaf ears and investors think the future has to be brighter so they do their own research on what the company is doing and begin buying. This buying squeezes the shorts who have to cover, especially when companies are buying back their own stock like CAT and IBM, and then you really get some gains. I would never short a stock that had a buyback and paid a dividend in a bull market.
    3 Apr 2014, 11:15 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11443) | Send Message
     
    The Sotheby's Test: http://bit.ly/OfiKJz
    3 Apr 2014, 12:56 PM Reply Like
  • combatcorpsmanVN
    , contributor
    Comments (1362) | Send Message
     
    I find it incredibly audacious that Chanos would step in front of a microphone, in the face of millions of viewers, after his yipping to short CAT when the share price was $83/sh.

     

    And, now w/ CAT over $100/sh in approx 6 months from that call -- he reiterates his short position. I wouldn't give Chanos a penny to manage -- he just doesn't get it.
    3 Apr 2014, 02:51 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (5167) | Send Message
     
    Neither does tilson.
    3 Apr 2014, 07:26 PM Reply Like
  • Mike Holt
    , contributor
    Comments (1869) | Send Message
     
    "One has to keep in mind, if you're a Western investor in stocks and bonds in China, you are investing in a scheme, not a market," Chanos said.

     

    The country still houses massive stretches of unoccupied residential complexes, with three to six years of unsold supply left over outside of Beijing and Shanghai, Chanos said. Chinese growth figures don't account for sales, so the country's enviable growth rate includes construction projects left empty, Chanos said. China fueled its construction boom largely on credit.

     

    "Anybody who thinks that can't collapse because of too much lending has not looked at economic history," Chanos said.
    10 Apr 2014, 07:56 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2753) | Send Message
     
    "unoccupied residential complexes,"

     

    but owned. Back in 2012, I asked a long-term Shanghai resident many questions amongst, where are all the migrants (building up the construction). He said that moved, but the buildings though less filled were/are owned.

     

    The RE investment (Shanghai) over the part 20 years has far outpaced any stock index, including Buffett's!
    10 Apr 2014, 09:19 AM Reply Like
  • MedTechBio
    , contributor
    Comments (3261) | Send Message
     
    Sam, "owned", but perhaps mortgaged to the hilt? Smells like subprime catastrophe all over again.
    10 Apr 2014, 07:08 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2753) | Send Message
     
    in no way can the situation in Cn be compared to the over-leveraging CDO crisis in those terms.

     

    In Cn, there needs to be at least 50% downpayment for the 1st property and it increases thereafter ...
    10 Apr 2014, 07:12 PM Reply Like
  • MedTechBio
    , contributor
    Comments (3261) | Send Message
     
    That's true for individuals. However, corporates purchasers and developers can borrow to build and buy based on projected market value. Now that market value collapsed, that leaves them horribly over leveraged. I don't think it is sustainable, some more correction in China is sure to be forthcoming.
    10 Apr 2014, 09:22 PM Reply Like
  • Tony Dee
    , contributor
    Comments (634) | Send Message
     
    Looks like his analysis is wrong and perhaps he needs a new pitch (like going long) ever wonder what Herbalife's secret is. It may in this quote:

     

    "The secret of business, especially these days, is to focus relentlessly on your unfair advantage - the thing you do that others don't."

     

    -- John Rollwagen, executive

     

    Herbalife is unique, different and better. That is their secret.
    11 Apr 2014, 01:55 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (5167) | Send Message
     
    Announced tonight:
    FBI looking into Herbalife .

     

    They may have more secrets than investors wish.
    11 Apr 2014, 06:56 PM Reply Like
  • Tony Dee
    , contributor
    Comments (634) | Send Message
     
    BAHAMASI,

     

    Another fake story that bombed: FBI looking into Herbalife. Yeah right and what happened to the 20/20 story and Connie Chung?? lol
    20 Jul 2014, 01:35 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (5167) | Send Message
     
    Tony Dee-
    nothing like a 3 Month late comment !
    21 Jul 2014, 08:32 AM Reply Like
  • Tony Dee
    , contributor
    Comments (634) | Send Message
     
    BAHAMASI,

     

    Another fake story that bombed: FBI looking into Herbalife. Yeah right and what happened to the 20/20 story and Connie Chung?? lol

     

    Still relevant. I don't live on these boards. I have a life.
    8 Aug 2014, 12:06 AM Reply Like
  • BAHAMAS1
    , contributor
    Comments (5167) | Send Message
     
    For someone that "has a life", seems like you keep posting.
    Whatever.
    8 Aug 2014, 08:30 AM Reply Like
  • Tony Dee
    , contributor
    Comments (634) | Send Message
     
    You dodged my question, what happened to the 20/20 and Connie Chung Expose? And I am not on here everyday and I do have a life. THANK YOU!
    9 Aug 2014, 02:11 AM Reply Like
  • BAHAMAS1
    , contributor
    Comments (5167) | Send Message
     
    No dodge at all...bottom line is who the hell cares about connie chung and what she and her network(s) say.
    One has to be able to read through the BS.
    glad u have a life.
    9 Aug 2014, 09:14 AM Reply Like
  • Tony Dee
    , contributor
    Comments (634) | Send Message
     
    I did read through the BS which is why I am long and ignored this and all other negative HLF reports/posts.
    11 Aug 2014, 03:41 PM Reply Like
  • Abigsoxfan
    , contributor
    Comments (1248) | Send Message
     
    That's always a good way to make educated investment decisions, ignore all counter arguments and read only opinions similar to yours. I promise, you'll make tons of money by removing all skepticism from your investment decisions.
    12 Aug 2014, 09:19 AM Reply Like
  • Tony Dee
    , contributor
    Comments (634) | Send Message
     
    I did read through the BS which is why I am long and ignored this and all other negative HLF reports/posts.

     

    Abigsoxfan
    That's always a good way to make educated investment decisions, ignore all counter arguments and read only opinions similar to yours. I promise, you'll make tons of money by removing all skepticism from your investment decisions.

     

    ---------

     

    So if someone says the world is square and I ignore that statement for what it is worth, that means I have not made an educated decision?? When you know the counter argument is bull, treat it as bull. It someone has an educated response (which never happens) bring it on!
    16 Aug 2014, 03:43 PM Reply Like
  • lensenkomedia
    , contributor
    Comments (5) | Send Message
     
    Chants is never wrong. Just sometimes a little early.
    14 Apr 2014, 08:32 PM Reply Like
  • Tony Dee
    , contributor
    Comments (634) | Send Message
     
    More info on Ackman:

     

    http://bit.ly/WvGT3F
    20 Jul 2014, 01:36 PM Reply Like
  • Abigsoxfan
    , contributor
    Comments (1248) | Send Message
     
    How's that CAT short doing for you Jimmy? Not only are you getting killed by the price of the stock, but every quarter you are short you have to pay another one of those damn dividends for every short share you have. Ouch!
    22 Jul 2014, 09:41 AM Reply Like
  • BAHAMAS1
    , contributor
    Comments (5167) | Send Message
     
    DITTO !
    22 Jul 2014, 01:08 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (5167) | Send Message
     
    Boy, if you went against chanos on CAT and bought HLF yesterday against ackman , one would have made a bundle !
    22 Jul 2014, 01:09 PM Reply Like
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