On April 24, 2017, Glaucus Research Group released a report on Fullshare, claiming that the 2013 reverse merger is one of the largest stock manipulation schemes ever to trade on any exchange. The report goes into detail regarding questionable trading in Fullshare Holdings (HK:607) stock, as well as numerous transactions of subsidiaries and private companies between Fullshare and entities that we also found to be undisclosed related parties. At the time this report was released, FG Alpha, in conjunction with GeoInvesting, was putting the final touches on months of on-the-ground due diligence that we were performing to try and address similar concerns about Fullshare.
Today, FG Alpha Management has released the details of newly revealed on-the-ground due diligence that supports our conclusion that Fullshare is a completely uninvestable stock and likely an accounting scheme that will eventually implode, costing shareholders most, or all, of their invested capital.Summary
- We were concluding months of on-the-ground research into Fullshare Holdings (607.HK) while Glaucus Research Group ("Glaucus") issued its own scathing report calling the company a "stock manipulation scheme"
- The Glaucus Research Group report focused heavily on numerous related party transactions Fullshare has made; we push the case forward and offer newly revealed exclusive findings on numerous other transactions
- Newly revealed Chinese regulatory filings and the investigation we performed confirms the case that the company is self-dealing to undisclosed related parties and creating an accounting scheme that's bound to eventually implode
- Newly revealed share pledges of Fullshare stock for bank loans, combined with suspicious end of day trading is reminiscent of Tech Pro Technology, another FG Alpha Management short that is down over 90% in the last 12 months
(Editor's note: For clarification, GeoInvesting and or F.G. Alpha Management have never had any affiliation or "research cooperation" with Glaucus Research. To put it plainly, as with last year's Tech Pro Technologies report, we had no knowledge, conversations, or correspondence either direct or indirect with Glaucus related to Fullshare.)
Please see the entire in depth due diligence report here.
Disclosure: I am/we are short 607.HK.