China Fraud Basket Update

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Tue, 04/12/2011 - 14:16 | 1162367 slow_roast
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Tue, 04/12/2011 - 14:36 | 1162459 Mr Lennon Hendrix
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+ 1,

Zero Hedge rules supreme, best to recognize.

Tue, 04/12/2011 - 15:09 | 1162612 Ahmeexnal
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Chinesisch fetzen!!

Tue, 04/12/2011 - 14:42 | 1162486 Robot Traders Mom
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Agreed. I have been telling other brokers at the desk I am officially a Zerohedge kool-aid drinker. There is literally nothing else in the media world I take with 100% confidence.

+1 Tyler

Tue, 04/12/2011 - 14:16 | 1162369 vast-dom
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Yo Tyler give us some hot pics to short! 

Tue, 04/12/2011 - 14:17 | 1162384 ZeroPower
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ZH never gives investing picks.

Besides short china RTOs, long silver and gold, short GS and cramer, and short all world equities.

Tue, 04/12/2011 - 14:21 | 1162396 Tyler Durden
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What's the P&L on that basket?

Tue, 04/12/2011 - 14:29 | 1162439 The Axe
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Like a hedge there Short Cramer Long Goldman  

Tue, 04/12/2011 - 14:32 | 1162450 ZeroPower
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Pretty darn green, sans the global market short.

Tue, 04/12/2011 - 14:33 | 1162456 Tyler Durden
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What part of "stay out of stocks thanks to massively manipulated equity capital markets" (Zero Hedge August 2009) is still unclear?

Tue, 04/12/2011 - 18:18 | 1163203 Arthur Two Shed...
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your welcome....

Tue, 04/12/2011 - 14:45 | 1162487 SheepDog-One
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Youre looking for equities to go long on here? No problem- Just wait for Robotrader posts, he always finds some retail towel store or leotard monger that has a boner chart to go long on. Of course its always a different 'basket' of boners every day so buyer beware.

Tue, 04/12/2011 - 14:57 | 1162555 punxsutawney phil
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I don't know what you have in that basket, but the borrow on some of those names is upwards of 50%!!!!  CCME which has been halted was trading borrow at 70% prior to the halt.  You could have priced that borrow rate from the options.


Tue, 04/12/2011 - 15:30 | 1162691 Ruffcut
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What basket? Easter basket early? Filled with piles and piles of dog turds again, this year?


Tue, 04/12/2011 - 14:16 | 1162377 Ransom
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Mmm Mmm Mmm!

Tue, 04/12/2011 - 14:23 | 1162385 Mercury
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You can't game fraud so it always = SELL.

ZH should run with this 'fraud basket' concept and get on the ETF bandwagon...

Tue, 04/12/2011 - 14:19 | 1162390 The Axe
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they killing those China boys today....blood

Tue, 04/12/2011 - 14:20 | 1162391 AR15AU
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Wait, isn't silver up 100% YoY?

Tue, 04/12/2011 - 14:20 | 1162395 Cdad
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Thank you Duncan Niederauer.  I can see why shareholders are rewarding you while you sell the fucking floor of the NYSE to the Germans.  Nice work if you can get it.  Another fuckwad steps fully into the light on the Wall Street and demands applause.

But enough about that...someone quick start another conversation about Lulu Lemon!

Tue, 04/12/2011 - 16:47 | 1162963 MSimon
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Does she pucker?

Tue, 04/12/2011 - 14:19 | 1162398 cosmictrainwreck
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but...but...but, fraud is against the law in China! they shot some guy for making bad baby formula.... oh, in the market is OK, huh?

Tue, 04/12/2011 - 15:33 | 1162695 UninterestedObserver
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Correct fraud IN China bad - selling stock of scam companies to Americans AOK

Tue, 04/12/2011 - 16:24 | 1162890 chumbawamba
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I guess they didn't like us diluting the value of those two trillion worth of treasuries we dumed onto them in exchange for their cheap crap, eh?

Nigger is as nigger does, niggers.

Gold, bitches.

I am Chumbawamba.

Tue, 04/12/2011 - 14:23 | 1162415 TN Jed
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Tue, 04/12/2011 - 16:24 | 1162895 chumbawamba
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I'm going to give you props for that one because it was good.  Shame on everyone else for not doing so.

I am Chumbawamba.

Tue, 04/12/2011 - 16:55 | 1163004 TN Jed
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Much obliged Chumba. twas my first post.

Tue, 04/12/2011 - 17:54 | 1163155 Hephasteus
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Well bad first post. Don't leave much room for improvement when you have an opening punch like that. LOL

Tue, 04/12/2011 - 21:28 | 1163719 chumbawamba
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Heph's got a point.  You've got a lot riding on your second, er, I guess now third post.  Gotta live up to that first post orgasm.

Eighth rule of Fight Club: if this is your first post at Fight Club, you have to fight.

I am Chumbawamba.

Wed, 04/13/2011 - 01:12 | 1164240 TN Jed
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Damn, you're right.  One and done. CooooStanza!

Tue, 04/12/2011 - 14:27 | 1162430 Careless Whisper
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well they certainly know how to market cars in China

How to draw attention to your auto show in China: Paint some boobies and call it "art"


Tue, 04/12/2011 - 15:34 | 1162699 UninterestedObserver
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What cars?

Tue, 04/12/2011 - 23:34 | 1164041 Creepy Lurker
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He's painting her jugs like jugs. LOL

Tue, 04/12/2011 - 14:30 | 1162442 Jason T
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I'm bullish on China.  

Tue, 04/12/2011 - 14:32 | 1162451 nah
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Tue, 04/12/2011 - 15:00 | 1162568 punxsutawney phil
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Anyone who is short these names can you tell me if you are getting better borrow rates than the implied borrow rate from the synthetic.  Some of the worst names are in the 50-70% range.

Tue, 04/12/2011 - 15:37 | 1162705 UninterestedObserver
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I just keep buying puts and looking for more scam RTO's - it is like printing money, I almost know how Bernanke feels everyday (without the holy shit I am destroying the world part)

Tue, 04/12/2011 - 16:08 | 1162848 gosh
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ive been buying these companies like mad.  The same people that said the market would never recover in march 2009 are saying the same about these hidden gems.  Buy of a lifetime.  Of course when these stocks triple ZH wont run an article saying they were wrong (ZH is never wrong of course)

Tue, 04/12/2011 - 16:32 | 1162923 Tyler Durden
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So by now at least half your purchases are indefinitely halted?

Tue, 04/12/2011 - 17:48 | 1163142 bweis
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you've got to adjust this for the cost of borrow, like phil says above.  your 40% return quickly gets eroded with borrowing cost.  that's IF you can even borrow the shares.  fraud, no doubt...skeptical of china, count me in.  but your returns are misleading and assume that you could execute a short based on a bloomberg chart.  this is certainly not the case.

Tue, 04/12/2011 - 18:19 | 1163206 UninterestedObserver
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That's what options are for

Wed, 04/13/2011 - 10:33 | 1165034 bweis
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that's not what options are for, and the pricing is the same if you do it with an option (that's how somebody would price the lending rate).  if you want to use options, then you should at least approximate covering the bid/ask spread on the vol curve and 3m+ of option premium.  the returns are materially different, making this misleading.  a good trade, no doubt...but the returns imply that you can execute based on a bloomberg chart which simply isn't true.

Tue, 04/12/2011 - 17:35 | 1163104 UninterestedObserver
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LOLOLOL - so how much RINO,DGW,PUDA,CCME etc did you own? Not to mention the more than dozen names that are already trading in the pinks for pennies. 

Tue, 04/12/2011 - 17:57 | 1163162 sharkbait
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Got suckered into NIV.  Small position, big lesson.

Tue, 04/12/2011 - 20:29 | 1163575 Zero Govt
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China frauds busted, next winner, think the ticker is 'Wall Street'

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