Muddy Waters Announces It Has Started A Short Position In Spreadtrum (NASDAQ: SPRD)

Tyler Durden's picture

There was a time when markets looked to pre-discredited titans such as John Paulson new position announcements and surged appropriately on any kind of news. Now, it is small, actually due diligencing outfits, such as Muddy Waters, which move stocks by up to 50% on mere position initiations. To wit, MW has just reported that is has started a short position in Spreadtrum Communications, (SPRD). "Muddy Waters, LLC has begun researching Spreadtrum, Communications Inc. (NASDAQ: SPRD), and we have taken a short position in it. (Please see our disclaimer below.) We have identified a number of issues in SPRD's filings, and we believe that there is a high risk of material misstatement in the reported financials. Our concerns are gravest regarding 2010 and 2011 numbers. The below link is to an open letter we have written to SPRD chairman Li regarding our concerns." Next up: stock implosion.

Complete MW letter:


And while Paulson is not a loser on this one, here is who is:

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Cdad's picture


"Jefferies initiates coverage on Spreadtrum Communications (NASDAQ: SPRD) with a Buy rating and $19.25 price target."


Just in case it is lost on anyone just what the hell is going on with the criminal syndicate known as Wall Street.                    


SheepDog-One's picture

Jefferies anal-cyst MM chop shop, they were the ones pumping the crap out of RIMM at $148 for example.

Cdad's picture

Morgan Stanlely leading the next total bullshit, bubble IPO of Zenga, or the maker of "Farmville" for...wait for it...$1 billion...while also simultaneously offering bonds on the mythical farms. Sounds great...put me down for 1000 shares.

Oh man, I am heading for the protective cover of the cosmic bunny hole today, Dog.  Who the hell is buying this crap?

NotApplicable's picture

You ever watch someone play Farmville? It's digital crack in the form of a skinner box.

I have no doubt this company will be successful in some form.

SheepDog-One's picture

Only problem with things like Farmville, crack for the addled-brained and other video games is a 2 month attention span period.

SheepDog-One's picture

Cdad funny thing about the Farmville farmers is none of em could grow an actual tomato to save their own lives and will soon starve to death. Hooray Farmville.

Libertarians for Prosperity's picture

Anyone want to venture a guess why they call themselves Muddy Waters?  Start with reading the 36 Strategies of Ancient China.

Pay particular attention to Chapter 4, Strategies to Confuse the Enemy.  In China (where MW is located), catching a fish by "muddying the waters" is considered a very low brow, cheap way to fight.  

Then go to the Muddy Waters website and check out the inconceivable, knee-buckling douche-baggery on display. They've got everything from cheesy Gordon Gecko quotes to American Psycho-like models, donning square Oliver People's glasses and pinstripe Valentino suits.


These guys are nothing but a bunch of Boiler Room wannabes, "swindlers who come forward to expose the greed," as one of their quotes say.

Key word: swindler 

A.W.E.S.O.M.-O 4000's picture

I'm sure glad I didn't see my broker on the list of suckers - DeMarco Bros. Investments and Catering

quintago's picture

I just read this article about SPRD last week ....

I wondered what the fab had to do with a fabless designer; shitty article, but funny if this turns out to be a flop nonethelss

Franken_Stein's picture


Down -26 % as of now.


ZerOhead's picture

Hey-Zeus Christo... here we go again!

What next? The Federal Reserve Ponz... errr... Bank?

A.W.E.S.O.M.-O 4000's picture

Well that sucks. I didn't even get a chance to buy it at the higher price. How will I lose all of my money now?


Oh yeah, that's right. Give it to the Government to hold!

GeneMarchbanks's picture

What a coincidence, so am I!

Greeny's picture

If he was SHORT prior to writing that, this guys should be

behind bars by now. Where is the SEC? This is just criminal even worse

than insider trading.

chrisd's picture

Explain how it is different if a hedge fund / mutual fund manager is long the stock then talks it up on TV. It isn't. Talking your book is as old as the market

SheepDog-One's picture

Right, throw this guy behind bars, but nevermind others who pump the hell out of this kind of crap day after day with their 'strong buy' calls at the top, like Jefferies for example.

Greeny's picture

Listen we are talking about 30% loss for someone in like

minutes for no obvious reason other than that f*cking guy


Did you check EARNINGS?

1) I don't see pumping on the Chart

2) This company does EARN money last 2 quarters

0.61 and 0.55 per share, we are talking about more than $2/share

yearly, which = P / E ratio of just 5.3, that's why this Guy

is a Idiot criminal.

SheepDog-One's picture

Did you read the report? It says upon investigation, it appears the company is bankrupt and mis-reported years worth of data. 

Greeny's picture

What makes you think this guy is any better

than other f*ck from Jeffery with Buy recommendation

earlier? Mean while share are down 11%. from been down 30%..

They all f* criminals. :)

chrisd's picture

Why should we believe you? Your diligence consists of looking at filings that are no way verifiable

SheepDog-One's picture

'30% loss for someone in minutes'....who, YOU?

Greeny's picture

No, I don't own communication stocks especially without

Div. I need 5% + Div to get interested at least.

SheepDog-One's picture

So what are your feathers so ruffled for then? You dont own it, what do you care? And if youre such a watchdog why dont you write about your outrage over 100 P/E stocks that go up 5% daily?

'Dividends' yea talk to Robo about his dividend stocks which pay 2% but lost him 10% on cap already.

Greeny's picture

Actually I can ask you the very same question. Why do you care?
Btw this story is interesting, I'll keep that stock under radar
and see what develops next. I think that Report is just made up
sh*t writing for one purpose: Hit and run, 30% not bad for 1 day.

SheepDog-One's picture

You got all pissed, I didnt, I just laughed....thats the difference.

SheepDog-One's picture

And looks like MW's last short call on CNTY was a great call, down 50% still. If you think this is just some guy putting out fake calls to make a quick short, I think youre wrong.

bourbondave's picture

but they've been right?  Has it been shown that they keep putting these short positions on, make their announcements, immediately close their position and then are found out to have been full of shit?  I haven't seen that.

For the people so upset about being down 25% because of these guys releasing their analysis, this should be a great buying opportunity at a "25% discount".  Good luck to them.

Freddie's picture

Do really accept any EPS numbers or any financial statements especially from China?  American banks are even worse.  PE ratios?  It assumes the numbers actually mean something.  They float this ChiCom sh*t in America because if it is a fraud in china the CEO gets a bullet in the head.  They know the SEC will do nothing to Chinese companies.

GeneMarchbanks's picture

'Where is the SEC?'

Watchin pornography on an oversized HD screen. "Woooaa! Is that a 12 foot vagina?"

buzzsaw99's picture

I heard the SEC's days are numbered. Good riddance!

carbonmutant's picture

I know Schapiro's days are numbered...

Bernard Madoff, in an interview by the SEC inspector general David Kotz, said that Mary Schapiro was a "dear friend".

Scisco's picture

You are right it is worse than insider trading. It is due diligence which must be made criminal and pursued to the limits of the law. If this is let to slide, people might realize the ponzi scheme that is our markets and cash out.

SheepDog-One's picture

How DARE someone actually look into some companies reports and call 'bullshit'....isnt that highly ILLEGAL or something?

SheepDog-One's picture

So Greeny basically you went long on Jefferies strong buy call today, and got kornholed? Oh well.

Joeman34's picture

You are totally and completely wrong.  MW is a private company publishing their proprietary research reports.  They do not have inside information as they analyze public disclosures.  Therefore not subject to insider trading rules.  You have proven you truly are a moron.

Going Loco's picture

No. Wrong. If the information is available from outside the company, not inside, he is entitled to do his research, take a position, then publish his research. If the research is fraudlent he will be sued by the company. If it is accurate he is just publishing facts which he has discovered. There is no difference if someone does research, takes a long position, then publishes. The only reason people like you jump up and down is because Muddy Waters is trusted, so his shorts go down the pan. The traditional publishers of research are now not trusted. At least not by me. Have you studied the Muddy Waters site? Have you read their research? It's all there. Page after page of it. Fascinating to read. If all the world had to go on was the sell side analysts the Chinese frauds would still be ploughing forward, sucking up more of the world's capital. BTW the thing that stinks to me the most in the report on Sino Forest was right at the bottom of page 2 of the main  report - see

Let's all club together and pay Carson Block to let his team loose on the Fed. 

Devore's picture

There is no insider trading here for SEC to look at. Just due dilligence research reports published, something everyone should have been doing on their own already. If you believe this company is solid and has been unjustly slandered, there is an easy solution for you: buy it at a 25% discount.

chrisd's picture

wrote the same thing as someone else. Comment deleted and flaggin' myself as junk

doomandbloom's picture

can they research JP Morgan?

Bay of Pigs's picture

I'm waiting for their short annoucement on GLD and SLV.

Azannoth's picture

Just wait till Muddy Waters downgrades the credit worthiness of the USofA

Imagine the headline 'Muddy Waters shorts 10 year US bonds! Market Implodes!'

Franken_Stein's picture


Astonishing how many people on planet earth just want to live off of managing other people's money.

Looks like any idiot today can start an asset management or equity management firm.


All these paper pushers and money changers need to go bankrupt and learn how to hold a shovel and a hammer instead of running around in pinstripe suits, with greased hair and wearing white collar and Oliver Peoples glasses.


Fuck them all !

Useless vermin.


SheepDog-One's picture

Yep fuck em all, I cant wait for the day when theyre falling from the sky on Wall St or running from rioting mobs. To hell with all these 'high class connected' losers who cant do anything but skim off the top of other peoples money, no matter which direction it goes. To hell with em.

spanish inquisition's picture

That is why Greece needs to be crushed.

The people who are living off the government are interfering with the bankers who want to live off the government.

That about sums it up...

carbonmutant's picture

"Astonishing how many people on planet earth just want to live off of managing other people's money."

I think you're using the word "managing" rather loosely....

scatterbrains's picture

Looking at a daily bar chart of FAS they look very similar.

Franken_Stein's picture


Down -30 % as of now.


SuperRay's picture

how do i become a MW client?