CHBT to CCME
New angle - get someone in China to write a slur piece, in a foreign language, mangled and confusing in translation, partly referencing Citron, introduce a new lie - tax irregularities - to make it sound like someone on the ground in China has some inside knowledge.
This is bad news for CCME. That these attacks can be so simply and reliably mounted. One only needs a remotely plausible sounding article. Just enough to get the self fulfilling herd reaction momentum started. Or maybe just buy a few thousand puts is enough?
There has mostly been very little to zero substance to these hit pieces but the FUD easily manipulates weak longs into caving. CCME has a history of weak longs caving in. Knowing what you own doesn’t mean much to your net worth when the majority is heading for the exits.
After shorts took a bath after the last Regsho why won’t they mount an attack to avoid that happening again here?
It doesn’t really matter that CCME is in actual fact pretty much unimpeachable, strong longs are minority holders it seems and at this stage, there is nothing to show institutions hold significantly larger positions or the shares are in stronger hands yet.
CHBT down 19% in a day.
CVVT now just 30c above it’s smear piece day close, despite a strong and immediate PR and conference call.
FUD works. Why won’t the same happen to CCME? Down big on a smear piece then painfully slow to recover.Substance and quality of the FUD doesn't seem to matter as much as the tone and language! Any manufactured doubt will do.
Then rinse repeat by the shorts?
Sean Wright obviously got it wrong in his SA CEU article yesterday, suggesting the time to buy is after the smear has happened. Any future variation on the same lie will panic longs in the same stock again.
Weak longs are the problem, not opportunist shorts. We no longer have patience or conviction or believe we know what we own.
What a stupid game we are trying to play in this space, expecting a margin of safety in undervaluation, when in fact fundamentals hardly matter anymore.
Angry!
