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Carson Block and his Muddy Waters have been a one-firm China-stock wrecking crew - going after...

Carson Block and his Muddy Waters have been a one-firm China-stock wrecking crew - going after China MediaExpress (CCME) and Rino (RINO), now Sino-Forest (SNOFF.PK). Block knows his shorts have cost John Paulson and Hank Greenberg millions, but says the Street isn't doing its job on China: "I’ve started to think of investment banks... as just manufacturers of financial products."
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Comments (6)
  • realornot
    , contributor
    Comments (1281) | Send Message
     
    All I see is conflict of interests. A rating firm cannot engage in long or short activities for stocks that they take interest in.
    6 Jun 2011, 05:22 PM Reply Like
  • iansane
    , contributor
    Comments (80) | Send Message
     
    Carson Block is a shyster who will be sued into the stone age soon enough!Several analysts are backing Sino Forest and one was quoted in The Financial Post saying Blocks "report" was "garbage".When not short selling and ruining investors equity,his Co. Muddy Waters is basically a shake down operation-for $300,000 they'll write a positive "report".Ignore them and,well,you see what happends.How can one guy,who only last year was the owner of a self storage in Shanghai called "Love Box" help knock $3 billion off Sino's market cap.Really,it's mind blowing that people would actually LISTEN to this so called "analyst"Regardless,i'm buying in big time.Believe me,Paulson has it RIGHT!
    9 Jun 2011, 06:31 PM Reply Like
  • realornot
    , contributor
    Comments (1281) | Send Message
     
    Wait till they step on some big toes up in China. Shameful operation!
    9 Jun 2011, 06:37 PM Reply Like
  • RyanDolan
    , contributor
    Comments (81) | Send Message
     
    Regardless of Block, I'd suggest you take a look at the reports from CCME and see if you think the same of them. You're train of thought is precisely what some people were going through with that company 3-4 months ago. There are plenty of great companies out there to invest in (seriously, I wish I could buy more of some of them), why risk it, let alone increase your exposure?
    10 Jun 2011, 05:30 AM Reply Like
  • realornot
    , contributor
    Comments (1281) | Send Message
     
    Ryan, you are missing the point. Block makes money by taking down small Chinese companies.
    He is shorting them after he published the negative reports. It is much harder to bring a lawsuit in Hong Kong than in United States.
    He was once after ONP but was cleared.
    Read this link.... one man operation after companies for his own gains.
    blogs.wsj.com/deals/20...
    11 Jun 2011, 01:32 AM Reply Like
  • RyanDolan
    , contributor
    Comments (81) | Send Message
     
    I'm not missing the point at all - obviously I understand who we are talking about. The point I am making is that it is unwise to "buy in big time", as the morality of Block has to be considered as a separate issue from the legitimacy of the company. This is the same mentality that has gotten people in to trouble with CCME, RINO, etc. Long story short, just because someone you think is a liar says something is false, it doesn't make it true.
    13 Jun 2011, 08:49 AM Reply Like
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