Thats the thing, we have seen companies that have NEVER been attacked by shorts and have NO short interest at all suffer tragically these past few months. We have seen companies which were attacked by shorts, responded in one way or another, have had no auditor problems and are also suffering.
I'm not arguing that shorts have not found fraud -- They certainly have. But I haven't heard them attack many companies and yet they are insanely cheap.
Have frauds attacked BSPM?
Have frauds attacked SIHI? (I remember something about this one, but I forget...)
Have shorts attacked CCCL?
Have shorts attacked TRIT?
Have shorts attacked SOKF?
Have shorts attacked CNYD?
etc etc etc. Many of those have almost no short interest in fact.
Then you have companies like YONG which seem to be winning against the short attack. You also have companies like GFRE which got attacked, responded decently, and things could still go either way (IMO)...
Some of the names listed above may turn out to have problems -- I'm not saying they don't and would not be surprised (I simply don't know on something like CNYD even though i've seen two of their touristic spots and their video-on-the-train segment). I'm just saying we can't use the same brush that we apply to SCEI/SBAY/CEU/CHNG on them without company-specific research proving something is really wrong with operations.
-Fernando
