Ivy League grad, summa cum laude, 4.0 in Economics, Columbia J.D., 20+ years experience identifying early trends and themes b4 the Wall St herd. In search of undervalued, underfollowed, explosive growth opportunities, principally in, but not limited to, the biotech sector.
The Forensic Factor (TFF) believes that individual investors are disadvantaged when investing in certain smaller companies. TFF believes we can profit from market inefficiencies while also identifying companies that are misrepresenting their prospects or financial results. By illuminating corruption in the capital markets, individual investors can make more informed decisions when investing hard-earned capital....
With that said, TFF is a profit organization and will frequently trade in the securities about which we write. Our positions will always be disclosed in the posting. TFF goes to great lengths to ensure that all information is factual and referenced. All facts that we present on this site are true to the best of our knowledge. All opinions presented are our own and accurately reflect our actual opinion on the relevant subject being discussed at the time
I am a Wall Street veteran. Based on a few incidents a few years ago with Chinese companies. I have become a specialist in identifying techniques that Chinese companies use to misrepresent their business prospects (accounting fraud) and how they use these representations to organize large-scale thefts from US investors without judicial reprecussions, even when they are caught red-handed. I have spent much of the last year shorting and writing about Chinese fraud.
I strongly encourage anyone interested in investing in China to talk to people who have conducted business there first. The concept of business ethics is rare (much much more rare than someone from the West could ever imagine). Yes, this statement may seem over-the-top and black & white... but don't take my word for it... talk to others... if you spend time in China and investigate, my guess is you'll reach the same conclusion that I did.
Adam Gefvert is the head researcher for White Diamond Research, a research firm for hedge funds and high net worth individuals. Primarily a short seller, he has saved investors millions of dollars by exposing highly overvalued small cap stocks. He has a 90%+ success rate with his Seeking Alpha short ideas. He specializes in technology, energy, and biotech stocks, because those are the sectors with the greatest valuation inefficiencies.
You can follow Adam on twitter @shiningboy
Andrew Left's Citron Research (http://www.citronresearch.com/) (formally known as Stocklemon.com) seeks to expose companies whose management is in some way misleading investors. Left digs into SEC filings, financials, management histories and other data to uncover such situations, and he is usually short the stocks he writes about. Mr. Left has been publishing for 7 years and has created a track record that is unrivaled in short selling. Mr. Left has been cited in Barron's, Wall St Journal, CNBC and other major publications repeatedly for his work. Mr. Left was also an invited speaker at the reknown Master Investor Conference.
Visit: Citron Research (http://www.citronresearch.com/)
Ben Strubel is the President and Portfolio Manager of Strubel Investment Management, LLC ("SIM") a registered investment advisor. Strubel Investment Management provides separate account management services for clients and also publishes The Value Investor's Edge Newsletter. Ben Strubel is a Graduate of Drexel University with a Master of Business Administration in Investment Management. After graduation Ben founded SIM. Prior to founding SIM Ben worked for several years in the Information Technology field at a Fortune 1000 company. Ben has a unique three pronged approach to investing. First, seek to lower costs as much as possible by avoiding high fee mutual funds and tax inefficient strategies. Second, diversify client funds across multiple uncorrelated asset classes. Third, maintain a value investing focus. Ben selects individual securities for the equity portion of client portfolios and focuses on buying companies with excellent fundamentals that have fallen out of favor with the market.
Ian Bezek worked for 3 years as an analyst at a New York-based hedge fund. He's currently living in Mexico, pursuing some entrepreneurial opportunities.
Feel free to contact him regarding investments, writing, or speaking opportunities.
I am interested in all things ECD. I am not affiliated with but am a fan of Energy Conversion Devices. Topics that draw my attention: Energy Conversion Devices, United Solar Ovonic aka Unisolar or Uni-solar, Ovonic Materials, Ovonic Battery Company, Cobasys, Ovonyx, flexible thin film photovoltaic laminates, NiMH batteries, phase change memory aka PCM or PRAM, etc.
For the latest, visit my blog at: http://ecdfan.blogspot.com/
A*L was established in 2010 by Jon Carnes, a growth and value-oriented investor who lived for six years (from 2005 to 2011) in China where he researched and invested in dozens of Chinese companies, first long (2005-2009) and then primarily short (2010-2012). Mr. Carnes outperformed other investors by performing extensive “on the ground” due diligence, conducted by a team of experienced analysts and local researchers. His investment opinions were greatly respected by other China focused fund managers attracted to the booming economy but wary of getting duped.
Over several years of scrutinizing over a hundred companies in every corner of China, Mr. Carnes realized that many of those that had gone public were seriously exaggerating their financial performance in their SEC filings. Investors raced to invest billions into Chinese companies that were dishonest and legally accountable to no one, a recipe for disaster for investors, both large and small.
Deciding to take action, Mr. Carnes decided to publicly expose the most egregious frauds he had discovered over the years, focusing on the worst offenders: companies that had exaggerated their profitability by at least 100%. In February 2010, he published a series of reports titled “Management Leaving Investors Stuck at the Pumps” showing that China Natural Gas (formerly NASDAQ: CHNG) management defrauded investors by failing to disclose and likely misappropriating $20 million from an acquisition of an undisclosed related party.
Unfortunately, when CHNG discovered that Mr. Carnes wrote the reports, its chairman Qinan Ji responded by sending an agent to threaten him where he lived in China. Frightened by Ji’s threat, Mr. Carnes removed the reports from the Internet. From this point onward Mr. Carnes knew that publishing the truth while living in China might get him killed.
Mr. Carnes nevertheless chose to remain in China to continue exposing fraud. Knowing that the safety of his researchers depended upon absolute secrecy and anonymity, he published my reports anonymously online using the obvious pseudonym “Alfred Little.” Beginning with CHNG, over the next two years Mr. Carnes exposed a diverse array of investment fraud committed by a U.S. listed Chinese companies.
After two years, CHNG Chairman Qinan Ji’s effort to conceal his fraud finally failed. On 9/21/11 NASDAQ halted trading of CHNG and on 3/8/12 CHNG was delisted. Most importantly, on 5/14/12 the SEC filed fraud charges against CHNG and its Chairman Qinan Ji.
Two more of the companies that Mr. Carnes first exposed faced the same fate. On 2/22/12 the SEC charged Puda Coal (formerly AMEX: PUDA) Chairman Ming Zhao with fraud, confirming each of the allegations in his 4/8/11 report, “Puda Coal Chairman Secretly Sold Half the Company and Pledged the Other Half to Chinese PE Investors.”
Then on 4/23/12 the SEC charged SinoTech Energy (formerly NASDAQ: CTE) and two of its officers with fraud. On 8/16/11, Mr. Carnes was the first to blow the whistle exposing CTE’s massive fraud in a report titled “SinoTech Energy: Enhanced Oil Recovery or Capital Extraction.” Unlike other numerous smaller “reverse merger” frauds, Sinotech was a $168 million IPO listed on NASDAQ underwritten by UBS and Lazard Capital Markets and audited by Ernst & Young.
Three companies, Deer Consumer Products (“DEER”), Sino Clean Energy (“SCEI”) and Silvercorp Metals (“SVM”) criticized in reports published by A*L sued Mr. Carnes for defamation. The three companies coordinated their legal and retaliatory efforts, both in the U.S., Canada and China to silence Mr. Carnes.
The epic battle that followed ended swiftly in a complete rout. NASDAQ delisted DEER and SCEI. SVM and DEER both lost their defamation claims against Mr. Carnes. SCEI abandoned its defamation claim against Mr. Carnes.
After winning the battle against DEER, SCEI and SVM, A*L emerged with the best track record of any China focused investment blog.
I look for opportunities to invest where the expected value is sufficiently greater than the cost to invest and look to invest the appropriate portion of the total funds available. To make a gambling analogy, a highly favorable investment would be one where you could invest $1 on a flip of a coin and receive $10 if it flipped heads and lose only $1 if it came up tails. However, you would not want to invest all of your funds because you would be broke if the coin turned up tails. Thus, the goal is to find investments where the edge is sufficiently large and then invest the appropriate portion of the funds. The Kelly formula provides a theoretical basis for the appropriate percentage of total funds to invest in a single opportunity.
However, in the real world, the precise odds are rarely known. Thus, I seek to develop the ability and obtain the knowledge to calculate the odds with a degree of accuracy, and conservatively enough, to be able to make intelligent invesments.
With regards to equities, which I have primarily invested in, I seek to understand the economics of the business so as to evaluate its potential for long term success or failure. I seek to use this understanding, along with an examination of its financial statements, to determine if the company is undervalued or overvalued. I may then decide to go long undervalued companies and I may decide to short overvalued companies. My preference is to find companies to purchase, rather than to short.
James Altucher was the managing director of Formula Capital, an asset management firm and fund of hedge funds. He's written five books on investing: Trade Like a Hedge Fund, Trade Like Warren Buffett, SuperCash, The Forever Portfolio, and his latest book, The Choose Yourself Guide To Wealth. He currently writes at Jamesaltucher.com and has released a newsletter, The Altucher Report.
Mr. Altucher is the founder of Stockpickr.com, a social network for finance that had millions of unique visitors per month when it was sold to TheStreet.com in 2007. He has written over 200 columns for The Financial Times and has written for TheStreet.com, Forbes, Yahoo Finance, Fidelity.com, and other publications. He was also the founder of a web services firm, Reset Inc, which he sold in 1998, at which time he became a partner at VC firm, 212 Ventures/Investcorp. Mr. Altucher regularly appears on CNBC, Fox News, Fox Business, and CNN Radio, and is also in his spare time a nationally ranked chess master. Mr. Altucher received his BA at Cornell University and attended graduate school for computer science at Carnegie Mellon University.
You can follow him on twitter @jaltucher.