China Growth Stocks

[derek2000]

Muddy Waters and Fish 2

Muddy Waters Research - the name comes from Chinese phrase hun shui mo yu, which literally means "fishing in muddy water".

The phrase started as a military strategy in China per ancient Chinese military strategy book - "Thirty Six military strategies". It is the 20th out of the 36 strategies described in the book.

The literal meaning is to to get the water muddy, the fish will be confused and disoriented, providing a best opportunity to capture the fish. As a military strategy, it is paramount to create chaos and confusion using whatever means, like faked attacks from different fronts. Then destroying the disoriented enemy and win victory.

What Muddy Waters did to CCME was copied exactly from this military book. It is actually pretty simple: 1) Set up a short strategy and positions, 2) Create massive confusions/chaos on the market by publishing a detailed report at most opportunistic time. The accusation has to look authentic but facts does not matter here. 3) At a panicking market, people rush to the exit, bring down the share price big time, and 4) Muddy Waters principles reap the profits and move to next target.