We’ve come along ways from the day when a short seller might pour over a company’s books to spot something ugly going on.
This video comes from Muddy Waters, a company that identifies Chinese stocks it claims are frauds, publishes damning material on them, while also shorting them.
Supposedly, a salesperson from Chinese firm CCME (a company that Muddy Waters has been hammering) just out of the blue called a Muddy Waters analyst, and for no reason started admitting to lies in the SEC filings. And the Muddy Waters analyst happened to have a perfect recording tool handy (two minutes into the call). Muddy Waters has of course released this as “irrefutable proof” of fraud.
The stock is off 10% today, so it’s obviously working