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Is It Time To Short Every Single Global Hunter "Buy" Recommendation?

Tyler Durden's picture




 

A week ago when we summarized the most recent round of inbound humiliation by one alleged bucket shop known as Global Hunter Securities, which basically has a buy recommendation on every single reverse merger ever to come to the US, even the acknowledged frauds such as in that particular case CCME, we said:"Oh well - at least we can be certain next week's non
seasonally adjusted initial claims number will be at a minimum one
(The
Seasonally Adjusted can well be negative - it is from the BLS after
all)." We were referring of course to the imminent termination of the sellside analyst covering CCME Ping Luo. You can therefore pardon our lack of astonishment when we read, literally minutes ago, the following release from Global Hunter: "We are discontinuing coverage of the following companies: AMCN,CCME, CHLN, CRTP, CVVT, HRBN, and SDTH. We are discontinuing coverage of these companies due to the departure of our analyst and due to a shift in our resources to other areas in the China space." Well, since we predicted the former, it was more or less expected, but we wonder what "other areas" in the China space has Global Hunter morphed to: will they soon be covering an as yet untought of pyramid scheme with a Turbo Buy? Or do by other areas do they actually mean perform due diligence instead of stamping everything that promises a coverage fee with a Buy rating. Which brings us to the topic of this post. Since Gobal Hunter's advisory reputation is smoldering in the sewer, we believe it is time to voice our own unsolicited advice, and tell readers to short every single company on Global Hunter's buy list. If today's example of DEER is any indication, the profit will be at least 20% in the span of a few weeks.

As readers know, we already discussed today's unexpected "discovery" by the analyst community that DEER (NASDAQ: FRAUD) is the latest stock to likely meet its reverse-merged maker in the purgatory of Over The Counter/Pink Sheet bulletin boards, where bid ask spreads are greater than the price of the actual stock. Yet as the chart below shows, we wonder just what magical demarcation line existed at precisely $11 for over 7 months! The flatline manipulation where there was a magical bid at all costs at $11 is beyond question. Of course, now that the stock has plunged below it, it is game over, as the next support is in the $8.00 range, following which the stock is taking the bullet train straight to zero.

We are curious if the porn-addicted securities regulator will actually move a finger to explain this chart which even a blind, mute and deaf monkey would recognize the inherent manipulated price floor in the name (until it breaks of course).

What we are not curious about, is the opinion that Global Hunter had on the name as recently as March 14, with a Buy recommendation and an $18 price target, this time by another analyst, Joe Giamichael - alas Joe may be joining Ping on the seasonally unadjusted initial claims line very soom. The gist is pretty much along the lines of what one would expect from any other alleged bucket shop.

Global Hunter

So back to our recommendation: Global Hunter currently has a Buy recommendation on 71 companies and an Accumulate on 21, is Neutral on 28 and has a Reduce and Sell on precisely Zero. While we don't know nor care how many of these 92 companies are Chinese in origin, we are confident enough in the firm's alleged incompetence that we would put on a Short - Long basket in a 4 to 1 ratio, where we sell all companies that Global Hunter likes and go long all their Neutrals. In a month we are convinced we will have made at least 20%.

The selected companies that can be used to build this Short Global Hunter alleged incompetence portfolio come straight from the firm's just released research update.

Those who are confused can create a simple CIX which shows the average
price of all names in the table listed above. We have a sinking
suspicion when we refresh this data in a month or so, we will again be
proven correct as the inverted 45 degree slope persists.

We urge readers to do their diligence, which means reading even 1 sentence from the predominantly fraudulent public filings of the Buy-recommended companies above, as this would be more diligence than either the abovementioned company or most investors have performed when they decided to go all in on margin in this latest bubble which is about to deflate.

Happy Hunting.

Full coverage universe from Global Hunter.
Global Hunter Complete Update

 

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Mon, 03/21/2011 - 17:45 | 1083354 jkruffin
jkruffin's picture

It is time for everyone to take their gold/silver profits across the globe, and short the hell out of the U.S. markets.  For real!  Keep your original gold/silver holdings, use the profits to make a fortune shorting the ponzi.  That's my opinion anyway.

Mon, 03/21/2011 - 18:19 | 1083474 malikai
malikai's picture

Ask RoboTrader how well that works when there's QE going on. Suddenly his strange diatribes make sense. This is not to say there's not money to be made riding the wave of unease before QE3 is announced, but it is risky business.

Mon, 03/21/2011 - 18:24 | 1083495 mdwagner
mdwagner's picture

"Everyone" couldn't even come close to fighting the computers with an unlimited amount of money.

Mon, 03/21/2011 - 18:35 | 1083538 Debtless
Debtless's picture

Short in May and go away.

Tue, 03/22/2011 - 00:12 | 1084806 Xkwisetly Paneful
Xkwisetly Paneful's picture

Fighting the FED rarely works and this time is no exception.

But when QE ends if it ever does look out below and not just in regards to equities but everything else that QE took for a magic carpet ride as well.

Mon, 03/21/2011 - 19:37 | 1083756 bankrupt JPM bu...
bankrupt JPM buy silver's picture

Someone let me know when to by $34 puts on NFLX, AAPL, and any other monstrosity headed this way please.

 

www.silvergoldsilver.blogspot.com

Mon, 03/21/2011 - 21:00 | 1084145 jbc77
jbc77's picture

Never go against a central banker with a printing press. No market can fall anymore. Everything must be propped up. The Japan quake and subsequent Yen foolishness and outright ramping of the Asian markets is just one more example of the Twilight Zone of manipulation we live with day in and day out. They're not even markets anymore ina general sense. If a market cannot decline naturally, without intervention, to convey risk what good is that market? There are no more true markets free from fixing out there.

Mon, 03/21/2011 - 17:49 | 1083363 plocequ1
plocequ1's picture

Is it time? I dont know. Is it?

Mon, 03/21/2011 - 17:52 | 1083368 TruthInSunshine
TruthInSunshine's picture

JP Marlin says 'yes.'

Mon, 03/21/2011 - 17:56 | 1083385 Seasmoke
Seasmoke's picture

Get Short and Get Rich

Mon, 03/21/2011 - 21:16 | 1084193 Zero Govt
Zero Govt's picture

i'm short alright but not rich (yet!)

but hey you can get some knock-off dodgy gear on the street corners in run-down neighbourhoods... why not on the Nasdaq and NYSE too right?

i mean it's not like the NYSE and Nasdaq boards of dodgy directors are not up for some dodgy companies from the dodgy Big Boys of WS to flog to the unweary ...hell they got a completely bankrupt pile of crap, GM, that shafted investors once back for a second fleecing in double-quick time!

PS. last small private investor off the exchange, if there is any left, turn the lights out

Mon, 03/21/2011 - 18:04 | 1083406 Franken_Stein
Franken_Stein's picture

This front-running scheme is well known.

It's a replay of the .com/Tech bubble in 2000.

 

This scheme here in Germany was called "to lead the sheeple to the pasture".

In Germany we had an exchange specifically dedicated to Tech-companies, whose P/E ratio often was hopelessly beyond 100 without many people knowing what these companies were actually "producing".

It was called "Neuer Markt" which unsurpisingly doesn't exist anymore after the bloodbath in 2000.

 

The "pasture" in this case is the part of the chart, where the initial exponential rise in price (the sell-side luring in of the sheeple) gives way to a saturation (the pasture) with a much slower rise, but with the 1st order derivation still > 0.

 

That "pasture" is when the front-runners slowly and carefully sell their shares to the last dumb sheeple, that make up for the last bit of share price increase, but in a fashion, that no major drop in price or breaking of a supporting trendline is caused.

 

Then, when all the shares of the fake company are in the hands of the deluded sheeple now, sooner or later one of the sheeple loses restraint and sells and this starts a sell-off as the price of the company drops to its true valuation of near zero.

 

Mon, 03/21/2011 - 18:07 | 1083418 reader2010
reader2010's picture

"Whatever the price of the Chinese Revolution, it has obviously succeeded not only in producing more efficient and dedicated administration, but also in fostering high morale and community of purpose. The social experiment in China under Chairman Mao's leadership is one of the most important and successful in human history."– David Rockefeller

Now get back to work. Sell, Sell, and Sell!!!

 

 

 

 

 

Mon, 03/21/2011 - 18:37 | 1083543 disabledvet
disabledvet's picture

are you offering any "war prizes" for said activity?  i work better with "something other than a mere atta boy."

Mon, 03/21/2011 - 18:38 | 1083554 prophet
prophet's picture

Please use "suggestion"; "advice" and "recommendation" are scary words.

Mon, 03/21/2011 - 19:16 | 1083685 Josh Randall
Josh Randall's picture

Love it! Going to the craps table and playing the Don't Pass line right next to the guy rolling the dice is about as much fun as you can have in a casino -- it's got to be just as good in the Stock Market too

Mon, 03/21/2011 - 20:41 | 1084062 Black Swans
Black Swans's picture

Nice work, thanks Tyler.

Mon, 03/21/2011 - 21:57 | 1084386 Double down
Double down's picture

Could Joe Giamichael be related to Bang de Hoe?

Tue, 03/22/2011 - 00:08 | 1084790 Xkwisetly Paneful
Xkwisetly Paneful's picture

The NASDAQ enabled Chinese reverse merger fraud currently taking place   with familiar criminals like Bennie Wey et al is an abomination.    100% supported by SEC, NASDAQ, FINRA and any other applicable alphabet agency. Hell even Bobby Brennan's old mob buddies from First Jersey Securities are in on the action. One hysterical thing amongst others are the borrow fees for some of these issues-over 120% APR or ten times the Novastars before the crap hit the fan-and yet the alphabet agencies see nothing wrong here.

 

There are at least 40 that are complete frauds and maybe another 20 that are mostly frauds. .

Tue, 03/22/2011 - 00:17 | 1084818 Freddie
Freddie's picture

Global Hunter Securities is actually a FINRA broker dealer?  Where is FINRA and the SEC?

Tue, 03/22/2011 - 02:51 | 1085085 Long Silver Johnson
Long Silver Johnson's picture

Paper profits = Metal purchases

Tue, 03/22/2011 - 13:36 | 1086477 Xkwisetly Paneful
Xkwisetly Paneful's picture

Ping Luo canned from Global Hunter.

The largest promoter of fraud there.

Mon, 05/23/2011 - 18:50 | 1303294 RobertC
RobertC's picture

$200+ million & more to come?

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