Harbin Electric Buyout Approved: Implications For U.S. Listed Chinese Stocks [View article]
You make alot of sense, but I would like to point out the example for Geoinvesting. They went long the comps with lower chance of fraud and short the comps with higher chance of fraud. That didn't save them, they lost on their longs and lost on their shorts. You say picking the right company to go long or short in this minefield is possible. I sincerely doubt it. The evidence speaks for itself. There are companies with less credible fraud allegations than HRBN that got delisted because the auditor resigned, while HRBN goes to $24 a share. So, what influenced your profits, in my opinion has alot to do with luck.
Harbin Electric Buyout Approved: Implications For U.S. Listed Chinese Stocks [View article]
Except fraud allegations on HRBN were very credible. In fact so, the fact that the buy-out is closing does not mean a RTO-field changes from a short-sellers to a long-buyers perspective. It instead changes to a verifiable minefield. It actually supports the notion the RTO space is more unpredictable than previously thought. Because what seems good is bad, and what seems bad is good, it's a true minefield and an average stock investor should stay the hell away.
Harbin Electric Buyout Approved: Implications For U.S. Listed Chinese Stocks [View article]
Harbin Electric Buyout Approved: Implications For U.S. Listed Chinese Stocks [View article]