This page has been archived and commenting is disabled.

Alfred Little Takes Down Silvercorp Again With Full Report Detailing Company's "Substantially Inflated" Earnings

Tyler Durden's picture




 

Just out from Alfred Little: "SilverCorp Metals (NYSE and TSE: SVM) is a $1.2B market cap silver mining company deriving all its sales and income from mining assets located in China. Following the publication of our initial findings we are today publishing our complete report with substantial new findings..." Judging by the immediate stock price reaction (down 8%), the latest alleged Chinese fraudcap may have just been exposed.

Summary from the report:

  • Audited Financials of SVM’s JV Partner Prove Henan Found’s Net Income is Overstated by 5.2X and thus SVM’s reported Net Income is Overstated by at Least 5X
  • SGX (Ying) Resource Estimates were Wrong from the Start: 2005 Henan Provincial Land & Resource Bureau Detailed Resource Report Directly Contradicts SVM’s Initial 2004 Technical Report
  • 20 Days of Video Surveillance of Trucks Passing Through Henan Found’s Weigh Station Indicate Production is 43% Less than Levels Reported in the Three Months Ending June 30th 2011
  • SVM Failed to Disclose its Largest Customer is a Related Party Under Chinese Accounting Standards applicable to Henan Found.  SVM’s Largest Customer Reported Zero Sales in 2010.  98% of Henan Found’s Sales Growth in 2010 Came from Two Questionable Customers.
  • Henan Provincial Land & Resource Bureau mining reports contradict the production, quality and resource estimates of SVM’s key SGX (Ying) mine as shown in its 40-F and independent NI 43-101 reports that rely heavily upon data provided by management.   No independent geologists have visited SVM’s SGX mine since 2008.
  • Additional Outside Tests of Ore Obtained from the SGX Mine Continue to Reveal Low Silver Content.  Independent Metallurgical Tests of SGX Ore Quality Last Occurred in 2005.
  • Recent Auction Sale of 5% of Henan Found Values it at nearly a 90% Discount to SVM’s Market Value
  • SVM Acquired Yangtze Gold from Chairman Rui Feng’s Relative for $60.27 Million Giving Him a 1500% Gain in Six Months

Full report below:

 

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 09/19/2011 - 11:04 | 1684600 gojam
gojam's picture

Alchemy bitchez!

Mon, 09/19/2011 - 11:21 | 1684713 trav7777
trav7777's picture

only an idiot would trust China with his money

Mon, 09/19/2011 - 11:29 | 1684766 Pladizow
Pladizow's picture

How much of your money does China hold?

Mon, 09/19/2011 - 11:35 | 1684804 strannick
strannick's picture

Alread Little is a short who was spooked by the companies stock buyback. Another of their silly claims in this bogus 'report' is that Silvercorp's silver grades are lower than stated because Alfread Little looked at some material that fell from one of Silvercorps trucks.

Mon, 09/19/2011 - 11:52 | 1684876 spiral_eyes
spiral_eyes's picture

I won't comment on the veracity of all of this...

But I'm glad I got into Silvercorp at $4, and out at $14. 

Mon, 09/19/2011 - 12:29 | 1685044 DormRoom
DormRoom's picture

read the open letter by the CEO about today's allegation:

 

http://www.marketwatch.com/story/silvercorp-turns-corner-on-short-distor...

 

Maybe you'll jump back in and gain a quick 100% when the shorts get squeezed.

Mon, 09/19/2011 - 12:44 | 1685114 bigkahuna
bigkahuna's picture

I have been buying all I can for the last week. In fact, I have not seen anything look so much like a sure thing since I used skf to make a bunch of money about 6 weeks ago. As soon as Silvercorp started buying tens of millions of it's own shares back and then cancelling them, I have pretty much gone all in.

We'll see at the end of the month if I'm right. 

Mon, 09/19/2011 - 11:38 | 1684817 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

BTFD!!

Mon, 09/19/2011 - 12:14 | 1684977 JW n FL
JW n FL's picture

 

 

trav7777

only an idiot would trust China with his money
Toooooo Wit!!!
We are a private investment fund and have targeted your
company as being of interest for a direct equity
investment.

After reviewing this information, if you meet our criteria
please contact us so we can begin our due diligence process
and send you a proposed term sheet.

Let me tell you a little about our fund and some of the many
benefits of having us as your financial backer.

Zigong Commercial Equity Partners Fund SP provides fast,
efficient and inexpensive access to equity capital.

We have funding commitments on many exchanges including
USA, Frankfurt, Australia and South Africa.

If you are not yet listed on a stock exchange, we can
help arrange this in a manner that will save you time
and expense.

We fund listed companies through the purchase of their
shares based on a small discount off a volume weighted
average price formula.  The Company controls the timing
and amount of each requested draw down, usually based
on fifteen trading day periods.

Our funding agreements are not complicated and we can
usually close within two weeks.  

In the last 12 months our funds have signed
22 commitments in fourteen different countries
to invest in non-controlling direct equity interest into
the following sectors: Banking, Energy, Media,
Steel Mills, Flour, Sugar, Cement, Mining,
Real Estate, Communications, Construction,
Technology and Infrastructure.

Here are just some of our many recent deals:

www.prnewswire.com/news-releases/zigong-commercial-equity-partners-fund-launches-in-china-to-fund-listed-companies-123397048.html www.prnewswire.com/news-releases/funchal-equity-partners-fund-launches-in-brazil-to-fund-listed-companies-121864493.html www.free-press-release.com/news-equity-partners-fund-launched-to-market-1290998235.html www.pr-inside.com/joint-venture-to-provide-up-to-us-250m-for-science-and-technology-companies-entering-china-r2348479.htm www.free-press-release.com/news-joint-venture-to-provide-up-to-us-250m-for-science-and-technology-companies-entering-china-1294811757.html www.newsmaker.com.au/news/9882 www.newsmaker.com.au/news/10378 www.i-newswire.com/good-news-holding-group-bvi-corp/117378 www.prnewswire.com/news-releases/zfere-secures--100-million-in-equity-funding-125736063.html www.send2pressnewswire.com/2011/02/07/s2p4141_125734.php www.send2press.com/newswire/2011-05-0502-005-BioJet.shtml www.pr-inside.com/avjet-biotech-in-negotiation-for-strategic-r2562602.htm www.nexisholdings.com/engine/wp-content/uploads/2010/09/20100908-Press-release_Eur140m.pdf www.prlog.org/11056640-poly-optics-australia-pty-ltd-secures-euro-30m-private-placement-equity-line-facility.html www.sys-con.com/node/1653984 www.newsmaker.com.au/news/5947 www.newsmaker.com.au/news/5946 www.steppingstoneequity.com.au/transaction www.steppingstoneequity.com.au/news see my linked in profile for references about me.

www.au.linkedin.com/in/alvindonovan

Our criteria can be found here
www.equitypartnersfund.com/
click on the tab for criteria

If you are already listed on an exchange we are more
likely than not to want to invest in your company.

Private companies must have a minimum of USD$5 million
of well established EBITDA already and the intention to
list within 6 months.

Our investment committee procedures are:

1. You send us an email to start a dialogue with me.

2. We request some basic information about your company.

2. We send you a term sheet within 72 hours and can close
within 30 days.

Please make sure we are linked on BOTH linkedin and finroad
and please follow me on Twitter @AlvinDonovan.

Send an email to me now to donovan@epfundspc.com

All the best,

Alvin Donovan
Managing Director
Equity Partners Fund SPC
www.epfundspc.com Funchal Equity Partners Fund
www.funchalequitypartners.com Zigong Commercial Equity Partners Fund
http://tp.cfo-magazine.com/c.asp?986838&28e6af9659bc65a8&1
Join me on linkedinhttp://tp.cfo-magazine.com/c.asp?986838&28e6af9659bc65a8&2
Follow me on Twitter @AlvinDonovan
Phone: + 61 415810958
Skype: alvindonovan
"Lead, Follow or get out of the way!"

Genesis Building, 3rd Floor, Grand Cayman, Cayman Islands

LOL!!
 
Mon, 09/19/2011 - 15:22 | 1685721 JW n FL
JW n FL's picture

 

 

Keiser Report

http://www.youtube.com/watch?v=OJAjTa_u7Ns

Silver Corp CEO is gonna Die Fighting! whoever is telling the truth? Oops! I mean sending phoney (real{ish}) documents to everyone! LOL!!

Notice all the hot air and NO!! release of information??

I did.

Mon, 09/19/2011 - 11:42 | 1684798 Pegasus Muse
Pegasus Muse's picture

As many long-suffering gold & silver mining equity holders know there is a constant drumbeat of rumor mongering and naked short selling in the junior miner space.  It just goes with the territory since neither the SEC nor the Canadian equivalent will go after these white-shoed criminal fraudsters. 

Rather than drawing conclusions based soley on the posting above you might want to listen to these two interviews that came out over the weekend on Jim Puplava's Financial Sense website.  They will give you some insight into the underhanded shenanigans criminal "operators" use to manipulate the share price of targeted mining companies. 

Disclosure:  I have never owned shares of Silvercorp Metals, though after listening to these broadcasts I may be a buyer soon.

==========

Silver Stocks - Fraud or Manipulation? Expert panel discussion: Dr. Keith Barron, Dr. Leanne Baker, David Morgan, Chen Lin, and David Bond

In a special broadcast, Jim is joined by famed exploration geologist Dr. Keith Barron, Dr. Leanne Baker, Managing Director of Investor Resources LLC, silver expert David Morgan of the Stone Investment Group, analyst and metals newsletter editor Chen Lin, and silver expert and editor of SilverMiners.com David Bond to discuss recent fraud allegations against several silver companies, particularly Silvercorp Metals.

http://www.financialsense.com/financial-sense-newshour/guest-expert/2011/09/17/02/silver-stocks-fraud-or-manipulation 

====

Silvercorp Responds to Allegations In-Depth Interview with Lorne Waldman of Silvercorp Metals Inc., as well as Robert Archer of Great Panther and Jason Reid of Gold Resource Corp.

 

http://www.financialsense.com/financial-sense-newshour/guest-expert/2011/09/17/03/lorne-waldman-silvercorp-responds-to-allegations  

Mon, 09/19/2011 - 11:49 | 1684863 yabyum
yabyum's picture

Pegasus, Junior miners have driven me crazy. Manipulation both outside and inside, criminal fucks all of 'em. I'am LONG PRILOSEC!!!!

Mon, 09/19/2011 - 15:24 | 1685732 JW n FL
JW n FL's picture

 

 

ALL MINING STOCKS  ARE FOR LOSERS!!

 

UNLESS YOU ARE A PRINCIPLE YOU WILL NOT MAKE ANY REAL MONEY!!

BUY PHYSICAL METALS!!

 

DO NOT BE A SUCKER!!!

Mon, 09/19/2011 - 11:06 | 1684608 DormRoom
DormRoom's picture

interview with SVM corporate secretary who refutes each allegation point by point here:

http://www.financialsense.com/financial-sense-newshour/guest-expert/2011...

Mon, 09/19/2011 - 15:25 | 1685734 JW n FL
JW n FL's picture

 

 

Keiser Report

http://www.youtube.com/watch?v=OJAjTa_u7Ns

Silver Corp CEO is gonna Die Fighting! whoever is telling the truth? Oops! I mean sending phoney (real{ish}) documents to everyone! LOL!!

Notice all the hot air and NO!! release of information??

I did.

Mon, 09/19/2011 - 15:26 | 1685736 JW n FL
JW n FL's picture

 

 

ALL MINING STOCKS ARE FOR LOSERS!!

 

UNLESS YOU ARE A PRINCIPLE YOU WILL NOT MAKE ANY REAL MONEY!!

BUY PHYSICAL METALS!!

 

DO NOT BE A SUCKER!!!

Mon, 09/19/2011 - 11:10 | 1684621 DormRoom
DormRoom's picture

SVM provides documentation: Chinese VAT receipts, and SAIC filing to show Alfred Little allegation are based on false data.

 

see SVM Sept 2 news release.  If you're bullish on silver, SVM is undervalued, from the recent shorting, and allegation by the Chinese-short wolfpack.

Mon, 09/19/2011 - 11:42 | 1684833 Raphio
Raphio's picture

also - expert panel hosted by Jim Puplava and David Morgan draw conclusion that fraud allegations are false and based spurious data from short sellers

http://www.financialsense.com/financial-sense-newshour/guest-expert/2011...

Mon, 09/19/2011 - 11:07 | 1684609 Cognitive Dissonance
Cognitive Dissonance's picture

Is there nothing 'real' in China? Other than 1.331 billion people (2009) that is.

Mon, 09/19/2011 - 11:10 | 1684624 X.inf.capt
X.inf.capt's picture

yeah, CD, rhe largest army in the world

DAMN!

Mon, 09/19/2011 - 11:12 | 1684634 dasein211
dasein211's picture

Isnt it more like 1.836 billion? Or maybe they already got to two bills?

Mon, 09/19/2011 - 11:11 | 1684626 SeverinSlade
SeverinSlade's picture

Tyler,

Can you comment on the following?

1. So far, Alfredlittle.com and Mr. Anonymous refuse to comment on high grade ore going directly from the mines to the smelter.

2. The silver content has been "verified" by two men standing on the side of the road, picking up dust and pebbles and taking to a lab to be analyzed.  First off, all of the ore bound for the mill should be expected to be of lower silver concentration as it does not include the high grade ore mentioned in the previous question.  Second this analysis cannot be considered credible due to the extremely low sample size.  Had these reports been based on analyzing tons and tons of ore then it'd be somewhat valid.

3. If the company is actively engaging in fraud why have they paid out taxes to the Chinese government that are consistent with their reported revenues and silver production?

4. The Canadian authorities have asked alfredlittle.com and Mr. Anonymous to come forward and participate in the ongoing investigation.  To date, no one has stepped forward.

5. All of these reports have been leaked anonymously and all contact information is being shadowed by a proxy. 

6. If the authors behind these reports are in fact credible why do they continue to lurk in the shadows?

Mon, 09/19/2011 - 11:19 | 1684703 DormRoom
DormRoom's picture

common sense please.  samples off the side of the truck is not scientific.  videos of truck loading from far away, so you can't tell if the trucks have been overloaded, weakens the claim.  Full documenation backing SVM against allegation from Albert Little.

 

Albert Little & Bronte Capital & Muddy Waters are likely working with a hedgefund, playing put/put-call spreads to profit off the options market, as they short in the equity market. Seems to be working for them.  share price are down 30-40%

Mon, 09/19/2011 - 11:11 | 1684627 flacon
flacon's picture

This is sick man. The TRUTH in this day and age is so shrouded. 

Mon, 09/19/2011 - 11:11 | 1684631 sunwheel
sunwheel's picture

All this dirty tricks, are not working anymore with this Company, I am susprised to see this great site to support this kinf od totally fake reports.

Mon, 09/19/2011 - 11:15 | 1684661 SeverinSlade
SeverinSlade's picture

Agreed.

I caution Zerohedge from getting involved in this ongoing story especially when taking the side of some unknown anonymous websites.  So far all of the claims in these reports have been refuted.  This most recent report pretty much regurgiates the same claims from the previous.  It seems that their most "damning" allegations are counting trucks bound for the mills being lower than expected...even though the reports fail to comment or even acknowledge high grade ore being sent directly from the mine to the smelter...

Mon, 09/19/2011 - 15:27 | 1685742 JW n FL
JW n FL's picture

 

 

Keiser Report

http://www.youtube.com/watch?v=OJAjTa_u7Ns

Silver Corp CEO is gonna Die Fighting! whoever is telling the truth? Oops! I mean sending phoney (real{ish}) documents to everyone! LOL!!

Notice all the hot air and NO!! release of information??

I did.

Mon, 09/19/2011 - 13:47 | 1685358 stacking12321
stacking12321's picture

i disagree.

the claims, even if false, are real news that have a real effect on share price and public perception.

also, the discussion of said claims, allow readers to have a better understanding of the situation.

this is good tradeable info.

Mon, 09/19/2011 - 11:12 | 1684632 oc
oc's picture

All refuted.

Looks like the shorts are getting desperate.

 

 

Mon, 09/19/2011 - 11:22 | 1684715 you enjoy myself
you enjoy myself's picture

yeah, still going through the whole "new" report right now, but this appears to just be a rehash of AL's earlier summary.  all of which was prety thoroughly (and quickly) refuted by SVM.  especially hilarious is AL's claim of lower than reported silver content -- they randomly grabbed a couple rocks that fell off of some trucks and submitted them for testing. 

Mon, 09/19/2011 - 11:12 | 1684635 swissaustrian
swissaustrian's picture

David Morgan is on the other side of the trade. He defends the company.

Mon, 09/19/2011 - 11:19 | 1684698 Temporalist
Temporalist's picture

I believe SVM is/was also a Schiff holding (EuroPacific).

Mon, 09/19/2011 - 11:20 | 1684711 Habecki
Habecki's picture

I don't get the trust people have in the likes of David Morgan and other visible precious metal bulls.  The guy charges thousands of dollars to be his friend, this is laughable.  His forecasts are equally laughable, I read a piece a month or so ago where he was throwing at the idea silver would collapse to 5 dollars but then shoot to 80.  WTF type of prediction is this? 

 

Mon, 09/19/2011 - 11:28 | 1684763 swissaustrian
swissaustrian's picture

Thousands of $ for what?

the basic membership is $129.90 a year: http://www.silver-investor.com/amember/signup.php

Where did he make that $5 prediction? Never heard of that. He said the 50 dma ($ 35) would be his worst case for the year recently.

Stick to the facts ;-)

Mon, 09/19/2011 - 11:34 | 1684795 Habecki
Habecki's picture

David Morgan: "It is getting more difficult to predict what the market reaction will be to specific events. As people figure out that there really is no solution to the global financial system without a great deal of pain and some defaults along the road, more will seek the safety of precious metals. So, even when things calm down for the moment, it does not mean the precious metals will not get pushed down. You could see gold and silver react to the downside, perhaps dramatically—$5/ounce (oz.) silver is not entirely out of the realm of possibility. My best guess is we will see some pullback going into mid-August.

 

Hows that?  The guy throws out 5 dollars as a possibility, this is from just a couple months ago.  What is his motivation throwing out such a ridiculously INSANE low number like this?  Is he simply an idiot?

Mon, 09/19/2011 - 11:45 | 1684848 tmosley
tmosley's picture

You have bolded the wrong portion.  Look at the sentence before that.  He is predicting price manipulation.  There is nothing at all far fetched about that.  If the entire bulk of the money printing apparatus were to turn to shorting silver for a short time you would in fact see $5, but the explosion that follows would make $80 look the same as $6.

I myself have made similar predictions, and I have never read anything by the man.  

Mon, 09/19/2011 - 11:56 | 1684893 Raphio
Raphio's picture

Morgan is saying that that silver could react $5 an ounce to the downside - not go to $5 an ounce in price. I have been following him this year and his most dire prediction was that silver could hit it's 200DMA, which at the time was $28 - this was in June

Mon, 09/19/2011 - 12:21 | 1685005 Habecki
Habecki's picture

That is your interpretation, its unclear at best.  Considering silver had just dropped 15 dollars in the past couple months when this interview was conducted the use of the word dramatic at that time would fit my interpretation he meant 5$ an ounce, not a drop of that amount.

Mon, 09/19/2011 - 11:38 | 1684819 Habecki
Habecki's picture

And what about his "Premium" service which includes personal email/phone contact information? Or even more laughable his "Elite" service for which the price is so disgusting it can't even be listed.  But for that package you get be his friend with the right to call him anytime during business hours.  Unreal.

 

Premium Membership (Yearly) ($999.99)
Annual Membership (Billed Yearly) SAVE 17%
You receive everything in the Basic Plus membership plus... You become a Master Mind Series Member -- A Monthly Teleconference with David Morgan (Recorded and Transcribed). You'll also receive any recorded Keynote Speeches, Workshops, Webinars, Teleconference free of charge, Priority access to live Webinars & Teleconferences, Direct access to David's private email with priority response, and exclusive use of The Morgan Report Alert System (Instant Alerts right to your desktop)

 

Elite Membership (Yearly) (Email for Details) ?????
Annual Membership
Our Elite Membership includes everything in the Premium Membership PLUS...  David’s private phone number where you receive nearly total access to David. You can call anytime during normal business hours. If you are a Fund Manager, or very high net worth individual, this service is invaluable.  This is a one time charge for the year and you will have to renew each year. Please email support@silver-investor.com for details on pricing.

Mon, 09/19/2011 - 12:00 | 1684913 tmosley
tmosley's picture

Lots of people do that.  What is your point?

Or do you think that the time of businessmen should be given away for free?

Mon, 09/19/2011 - 16:56 | 1686135 ffart
ffart's picture

He's a PAID analyst. People pay him for his advice. If you don't want his advice, you don't have to pay anything. You fucking idiot.

Mon, 09/19/2011 - 11:28 | 1684764 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

he didn't say that

Mon, 09/19/2011 - 11:13 | 1684640 Matthew C
Matthew C's picture

Jesus.  Are the folks at ZH short?  Another anonymous report, with yet more "details", same as last week.  This is getting old. 

Mon, 09/19/2011 - 11:15 | 1684659 Zola
Zola's picture

Careful Tyler, this fraudcap story sounds very dodgy... Looks like a short raid manipulation...

Mon, 09/19/2011 - 11:18 | 1684686 medicalstudent
medicalstudent's picture

was going to buy at 6.35, but ill hold my tinka for now, thanks.

Mon, 09/19/2011 - 11:18 | 1684687 Habecki
Habecki's picture

For whatever reason a lot of blind belief in SVM here and on other forums.  Personally I find some of the allegations about this company a little alarming.  And the defense of the company from silly newsletter writers and analysts doens't make it go away.  You can disagree with how the short sellers are doing business but to say all the red flags have been addressed/refuted and everything is A-OK with this operation is crazy.

 

Here was a report from the first anonymous letter described in the initial PR defense from SVM.  I find this one a little better written than the Alfred Little reports.

http://blog.geoinvesting.com/?p=2724

 

Mon, 09/19/2011 - 11:24 | 1684728 swissaustrian
swissaustrian's picture

silly newsletter writers and analysts

David Morgan is one of the most trustworthy persons I know in the mining industry. His stockpicks have been very good. I´m a subscriber to his newsletter for 8 years. Jim Puplava isn´t a lightweight either.

 

 

 

Mon, 09/19/2011 - 11:29 | 1684769 Habecki
Habecki's picture

David Morgan: "It is getting more difficult to predict what the market reaction will be to specific events. As people figure out that there really is no solution to the global financial system without a great deal of pain and some defaults along the road, more will seek the safety of precious metals. So, even when things calm down for the moment, it does not mean the precious metals will not get pushed down. You could see gold and silver react to the downside, perhaps dramatically—$5/ounce (oz.) silver is not entirely out of the realm of possibility. My best guess is we will see some pullback going into mid-August.

 

This is your respected analyst?  The guy gives out mining shares, of course his picks are doing good, virtually every silver miner is in a serious uptrend.  Also worth mentioning how this guy turtles up everytime the topic of silver manipulation comes up.  You'd think as a so called silver bull he would be all over this subject and yet everytime its brought up he goes out of his way to avoid it completely and even dispel the "myth". 

Mon, 09/19/2011 - 11:35 | 1684802 realitybiter
realitybiter's picture

you don't know what you are talking about.  Morgan is actually quite conservative and he has successfully navigated a lot of the crazy moves.  He took a lot of heat when silver was moving past $40 in April and was suggesting lots of caution.  And there are plenty of crappy miners.  CDE?

Mon, 09/19/2011 - 11:56 | 1684888 Pegasus Muse
Pegasus Muse's picture

Habecki is an 8-week ZH wonder.  Haven't seen him post anything before.  Wonder why he has such a special interest in this story?  Maybe he's a part of it.  Maybe he is short the stock.  Whatever the motivation he sure is going after Silvercorp and David Morgan, who is well respected in the industry and has alway struck me as one of the "good guys".

Mon, 09/19/2011 - 12:16 | 1684983 Habecki
Habecki's picture

This type of thinking is exactly the problem.  There are few to no unbiased views on this situation from precious metals bulls, they just automatically feel the need to defend anybody attacking silver/gold in any form.

I am mainly a gold/silver bull, I have no real insights to post in 90%+ of the news posted on this site.  The paranoia I could be "in on this" and I have an agenda to bash SVM and David Morgan in 3-4 posts on a ZH is beyond belief.

Did you even read the report I linked about SVM?  There are clearly issues with the company.  Just for you I have no position in SVM.

And here is the respected silver bull David Morgan in action late last year on BNN, quite a performance here as he represents the silver investing community with gusto.

http://www.youtube.com/watch?v=ulnCAZBDRKY

Mon, 09/19/2011 - 12:28 | 1685041 Pegasus Muse
Pegasus Muse's picture

I read the report.  You might want to listen to the two Financial Sense interviews mentioned above.

Mon, 09/19/2011 - 13:34 | 1685309 PrintingPress
PrintingPress's picture

The chinastockwatch.com website is assumed to be put together by the same person or group that wrote the first anonymous letter at the start of September.

Mon, 09/19/2011 - 12:15 | 1684823 thunderchief
thunderchief's picture

David Morgan has been labotomized in the silver market.  He is like the Manchurian Candidate of the Silver market, coming back to assassinate his patrons.  I go elsewhere when it comes to David Morgan.  Rather buy my goods off a corner Street Hustler.

Just Kidding! 

 

Mon, 09/19/2011 - 11:32 | 1684786 realitybiter
realitybiter's picture

What weight does Alfred Little have?  

It is impossible to defend yourself against an anonymous offender.  The very fact that the AL used samples which fell off a truck as scientific geological proof should make anyone shorting this stock say, "huh?"  That is nuts.  At the very least, you should want some more data.  It just doesn't add up.  And with the SEC being a completely fat, toothless old hound, why not?  I just wonder when they cover and run to their next op?

Mon, 09/19/2011 - 11:26 | 1684744 Ay Caramba
Ay Caramba's picture

I don't consider Raymond James and Platt's Metals Review "silly newsletters."  They and a lot of other reputable sources are backing SVM.  You should get your facts straight.

Mon, 09/19/2011 - 11:18 | 1684688 yabyum
yabyum's picture

WHEN THE NEWS OF THIS STARTED TO APPEAR I DUMPED MY SHARES, I'AM NOW AVOIDING CHINESE  STOCKS LIKE UNDERCOOKED PORK.

Mon, 09/19/2011 - 11:19 | 1684693 The4thStooge
The4thStooge's picture

<---chinese fraudcap

<---reverse pump-and-dump

Mon, 09/19/2011 - 11:19 | 1684702 LookingWithAmazement
LookingWithAmazement's picture

Gold and silver lower (bitchezzz). Banks selling PMs to survive? Troubles over?

Mon, 09/19/2011 - 11:22 | 1684721 Ay Caramba
Ay Caramba's picture

Nothing new in this report, and I agree with the above writers that this is probably one tangle ZeroHedge would want to avoid.  There is a lot of evidence of stock manipulation on the part of various parties.  ZH should not be posting these reports uncritically, since it gives the appearance of compliance.

Mon, 09/19/2011 - 11:23 | 1684725 Long-John-Silver
Long-John-Silver's picture

I Laughed when I saw this in the Paper this morning. It reminded me of Math man.

http://www.arcamax.com/newspics/25/2547/254755.gif

Mon, 09/19/2011 - 11:23 | 1684726 Temporalist
Temporalist's picture

And JP Morgue is down 3.38%.  I'd take SVM over JPM if I had to.

Mon, 09/19/2011 - 11:25 | 1684739 Gandalf6900
Gandalf6900's picture

I love the smell of rotting meat in the morning

Mon, 09/19/2011 - 11:25 | 1684742 realitybiter
realitybiter's picture

It is impossible in America to conduct fraud in the stock market.  You could never counterfeit stock and sell infinite amounts short.  You could never post BS reports and then short without end.  Never.  Never, I say!

sigh.

 

If SVM is telling the truth (publicly identified and accountable) and AL Little (anonymous and unaccountable) this manipulation is going to be an incredible sale.  I just wish we had some Chinese justice in the US and liars and manipulators lost real blood.  chop.

Mon, 09/19/2011 - 11:26 | 1684746 notadouche
notadouche's picture

I ask one question.  Who has more credibility in the metals and mining companies than Casey Reports?  To this point, they have investigated every claim made by the short seller and refuted each one.  Doesn't mean they can't make a mistake but they have a major track record in the mining game and thus far they whole heartedly support this company and the management and their financials.  In the end he said she said won't matter and the truth will come to light.  If these shorts are acting fraudulent they should be thrown in jail.  If the company is fraudulent they should be thrown under the jail.  Where is Dodd's "Cop on the beat" he so adamantly touted?  Maybe the first place the cop should go to is Dodd's mansion in Ct.

Mon, 09/19/2011 - 11:28 | 1684759 SeverinSlade
SeverinSlade's picture

Since ZH's tweet of this story (at 8:00) SVM has rallied from $6.45 to 6.80.

Seems like this most recent report isn't exactly scaring people out of the stock?

As I said previously, this report is basically a carbon copy of the original one.  No real new evidence other than a few handfuls of rocks being gathered.

I again ask ZH and alfredlittle.com to comment on the high grade ore that goes directly to the smelter.

Mon, 09/19/2011 - 11:54 | 1684884 Honey Badger
Honey Badger's picture

The half life of these rumors / allegations is getting shorter.

Mon, 09/19/2011 - 11:54 | 1684885 Honey Badger
Honey Badger's picture

The half life of these rumors / allegations is getting shorter.

Mon, 09/19/2011 - 11:31 | 1684779 steve.stuart
steve.stuart's picture

I personally think Zerohedge should not be posting something that is not fully verified or have information about the author .. this is like supporting some stock manipulators.

Mon, 09/19/2011 - 11:33 | 1684784 Matthew C
Matthew C's picture

Captain Benny over at TF Metals Report compiled this document detailing recent SVM related events.  Check it out:  http://bit.ly/p1hnbu

Mon, 09/19/2011 - 11:38 | 1684821 Captain Benny
Captain Benny's picture

Thank you for posting.  I submitted the timeline to tips [at] zh.com TWICE yesterday and they have ignored both requests.  The SVM story is far from over.  Anyone who doesn't know the facts should definately read the timeline I compiled.

Mon, 09/19/2011 - 11:44 | 1684844 Matthew C
Matthew C's picture

Thanks for your work there.  Keep adding to it as new news appears.  Looks like ZH really is dropping the ball on this story--laziness.  Calling it out this morning....

Mon, 09/19/2011 - 11:33 | 1684790 thunderchief
thunderchief's picture

At what point should I pump more cash into Silver Corps? 

Maybe they can take it down to 5 or even 4. 

Who are the real con men?  A company that mines silver in China, just as they do everywhere else in the world, or a bunch of paper pushers trying to get their shorts covered.  I say even if there is any truth to this, the stock is probably still a buy. 

Mon, 09/19/2011 - 12:01 | 1684921 tmosley
tmosley's picture

If I were inclined to own paper, SVM would be my first stop.

Mon, 09/19/2011 - 11:39 | 1684792 strannick
strannick's picture

Alfread Little, the cornered rat  barring its fangs, taking samples falling from a truck, writing annonymous letters to the securities regulators. Another day in the silver market.

Mon, 09/19/2011 - 11:42 | 1684832 FranSix
FranSix's picture

Take note of the fact that the swindles are mostly in the silver mining.

Mon, 09/19/2011 - 11:45 | 1684849 SeverinSlade
SeverinSlade's picture

Tyler I also would like to know why you're just posting this now without any critical analysis?  I'm sure you were well aware of this story back on September 2nd.  You've had almost 3 weeks to go over the original report and come to your own conclusion yet you haven't. 

I've been a loyal follower of ZH for a few months now and many of my collegues have been following for years.  I must admit that your lack of analysis is a bit troubling for me.  Perpetuating the same rumors without any analysis is dangerous and misleading IMO.  If ZH truly cares about protecting its followers from potential fraud one would imagine that they'd do some actual research into these claims instead of just linking to the story.

Mon, 09/19/2011 - 11:49 | 1684865 FranSix
FranSix's picture

Ok, here's a quick, simple analysis that you can easily assume and argue the facts.  This problem is not going away, in fact its getting worse.  So the indication here is that its over in the silver market if there are too many swindles.

Remember, when the tide goes out, you find out who's been swimming naked.

Mon, 09/19/2011 - 12:00 | 1684883 SeverinSlade
SeverinSlade's picture

It's getting worse because the same anonymous short-seller put out a "damning" report that is essentially a duplicate to the one they released about a week ago?

Also using your logic we should all sell our physical silver simply because its a manipulated market.

My point was that ZH shouldn't fuel the fire without doing its own research and analysis. 

Mon, 09/19/2011 - 12:01 | 1684918 FranSix
FranSix's picture

I can see that point, but the facts don't make money.  Ppl. who bought in early to Bre-X made fantastic amounts of money in the largest swindle in  mining history, so the price is one fact that does not do its own due dilligence.

You can be wrong and make money, and can be right and lose money.

We'll have to wait and see.  For my book, I go by the gold/silver ratio.  If you were betting on gold, you were totally wrong as silver peaked out.  But by now, the gold bet is the winning one.  I look a little bit with some suspicion at silver miners, since silver is not money.

Mon, 09/19/2011 - 12:08 | 1684949 SeverinSlade
SeverinSlade's picture

"since silver is not money."  Neither is gold in today's world (yet).  Gold is now being considered as a valuable form of collateral but its role as money has not been established yet since the world still uses fiat.

Silver is a long term play just like gold.  When gold does become currency again do you really think silver won't follow?  Silver is the "poor man's gold."  When the majority of the population can't even afford 1 toz of gold you better believe they'll opt for silver.

Mon, 09/19/2011 - 12:14 | 1684969 FranSix
FranSix's picture

Gold's role as money has long been established, in fact it never stopped being money.  Silver, on the other hand, was de-monetized long ago.  I assume if you walked into a realtor's office that you could buy a house for a few kilos of gold.  Not so sure about silver.

But its true, I can see silver being used in the form of coins.  After, all a one ounce silver coin would fetch a few groceries.

Mon, 09/19/2011 - 12:18 | 1684993 SeverinSlade
SeverinSlade's picture

Obviously it's never stopped being money.  My point is that it is still not PERCEIVED as money.  Even in today's world it's still commonly referred to and talked about as a COMMODITY.

Gold (and silver) are slowly making their march toward being recognized as a form of currency but we're not there yet. 

Mon, 09/19/2011 - 12:24 | 1685021 FranSix
FranSix's picture

Unless you can get someone to accept a minted coin or bullion in exchange for goods, then its not really money.  Central Banks kept their gold, but did not stockpile silver.  There's a very obvious difference there.

Gold was a depreciated asset that is adjusting for inflation, but I personally think silver has marked up for inflation for the time being, like oil has, or the base metals have.

Lease rates in the bullion markets will have some serious repercussions on price, but since there's so  much fervour in the silver market, its possible that other precious metals might have been sold as gold.

Mon, 09/19/2011 - 17:08 | 1686177 ffart
ffart's picture

Most of what you are puking onto your keyboard is nonsensical, but I think you're hitting an interesting point here: Unless you can get someone to accept a minted coin or bullion in exchange for goods, then its not really money.

There are two parties in a transaction. If the trade is gold or silver for goods when they accept infinitely dillutable fiat, which you can obtain plenty of with your silver and gold reserves, why would you even OFFER them your precious metals?

Mon, 09/19/2011 - 20:45 | 1686887 Temporalist
Temporalist's picture

No and no.

Gold and silver are money as long as currencies are exchanged for them.  If you can trade your precious metals in any country you go to, and perhaps more now that are shunning FRNs, for the local currency then it is money.

You don't need to go to a store to use it although more stores are going to be accepting PMs, as are states for tax payment, so that point is moot.

Mon, 09/19/2011 - 11:58 | 1684904 MachoMan
MachoMan's picture

Well...  if you see ZH post articles with executive analyses and then an article comes along without one...  maybe you should simply discount it accordingly...  you already have your answer.

Mon, 09/19/2011 - 12:04 | 1684932 Matthew C
Matthew C's picture

Discounted accordingly, but just adds fire to the accusations and apparently legitimizes the AL site given no (even one sentence) commentary. 

Mon, 09/19/2011 - 12:00 | 1684912 Matthew C
Matthew C's picture

Well said.  The story here is that ZH did not take the time to offer any analysis.  The link here to MW is mysterious--why no critique of anonymous rumor mills linked up with Muddy Waters?  What, the "high tech video surveillance" and picture of a pile of rocks wasn't enough to convince you of fraud? What if they offer two pictures of rocks that fall off of trucks?  What if they offer a video?  New reports daily about the fraud, all containing regurgitated accusations from last week? Will that be enough to get you to sell your shares?  Please?

At this point, who the hell cares about Alfred Little?  That site has to my mind been thoroughly discredited.  That ZH posted this as is today is interesting.

Mon, 09/19/2011 - 14:11 | 1685449 bigkahuna
bigkahuna's picture

In case the editor is looking--I also have been wondering where the usual thorough coverage is of topics like this? We usually get a well disected view followed by the fight club. This time we got the MSM story with no dissection? 

 

Well, I guess the MSM is not making it past Fight Club.

Mon, 09/19/2011 - 20:39 | 1686863 Temporalist
Temporalist's picture

With all information you must interpret it yourself.  I agree with not disseminating fraud but because the "rumors" have brought down the share price that is a story in and of itself.

 

Why doesn't Alfred Little and Muddy Waters do a story on how Goldmansux and JPMorgue are serial mass murderers and government puppeteers that distort the markets, cook books, bankrupt nations and enslave the globe to debt?

Mon, 09/19/2011 - 11:55 | 1684890 Quinvarius
Quinvarius's picture

Once you watch a video like this, you realize that you should never buy a Chinese stock.

http://www.youtube.com/watch?v=0US7JEfhsrA

These guys have zero scruples.

Mon, 09/19/2011 - 12:05 | 1684936 tmosley
tmosley's picture

So should I avoid buying American stocks because drug dealers are unscrupulous?

Or maybe we shouldn't judge entire groups of people by the actions of a few, hmmm?

Mon, 09/19/2011 - 12:03 | 1684929 Poule Mouillee
Poule Mouillee's picture

Been a fan of SVM for years.  Dumped it during the freefall, but I'm back in now.  I don't know for sure that they're an upstanding company, but I do know that some of the A.L. claims are completely wrong (e.g. "Failed to Disclose its Largest Customer is a Related Party").  I remember that being discussed openly online...  All it takes is one fabrication like that to make me doubt the depth of their investigation.   I may turn out to be wrong, but I'm seeing a huge buying op.

Mon, 09/19/2011 - 12:33 | 1685063 oddjob
oddjob's picture

Dumped it during the freefall, but I'm back in now.

Fuck does that sound like a methman post. You could have posted the day you sold, but you chose not to...I wonder why?..on the other hand i posted here telling people to sell long before your fabricated trades. Anybody buying SVM here is a nutjob.

Mon, 09/19/2011 - 12:54 | 1685156 Poule Mouillee
Poule Mouillee's picture

Thanks for your valuable input, oddjob. 

You wonder why I didn't post here when I sold?  Well, IIRC the trolls of legend have poor reasoning ability, so I guess I'm not surprised that you're left wondering.  I didn't post here when I sold because I didn't think anyone would give a shit.  Happy?

Please post the rest of your trades for the last month in response to this (and update it as you make more), won't you?

Mon, 09/19/2011 - 20:47 | 1686903 Temporalist
Temporalist's picture

I'm considering being a nutjob...it's worked before.

Mon, 09/19/2011 - 12:14 | 1684974 Hal n back
Hal n back's picture

all those folks have made svm a great day trading stock-I personally thank them regardless of the outcome as I am now working with OPM.

everybody speaking has a vested interest in this as they do in other stocks but rarely do you see so much BS flung for one particular company in the internet.

We have taken pump and dump to a new level and also the reverse.

 

With HFT and this sort of crap, no wonder marekts are so screwed up.

 

 

 

Mon, 09/19/2011 - 12:26 | 1685026 thunderchief
thunderchief's picture

Seal Team Six just confirmed the Video footage of underloaded trucks coming out of SVM's Mines!  

"They were loaded with underloaded Ore"  said a Black Water rep in control of a predator drone over the mining site.  "Hellfire missiles were sent in".. 

All trucks taken out, and in the ditch.

Booya shorts.

Mon, 09/19/2011 - 12:28 | 1685036 nedwardkelly
nedwardkelly's picture

Whenever I see the replies from the management of these companies I can't help but think they "dost protest too much".

If these are all lies and false allegations, why not ignore them? Wouldn't it be a great opportunity to buy back stock etc? After all, if they're lies the resulting dip in share price should just be transitory, as the lies are revealed?

Mon, 09/19/2011 - 12:33 | 1685065 SeverinSlade
SeverinSlade's picture

If SVM had done just that and stayed silent, people like you would be saying, "Why aren't they saying anything?  Are they hiding the truth?"  Silence in these situations is essentially admission of guilt.

I put myself in the shoes of the the CEO and the board.  If my legitimate company's stock price was knocked down 30-40+ percent due to some anonymous allegations would I be pissed?  Yes.  Now how would I react?  Would I sit on my thumbs and ignore the severe allegations giving the anonymous parties the illusion of credibility?  Or would I publicly say we're going to figure out who is spreading these lies and take legal action?

You have your answer.

Mon, 09/19/2011 - 12:36 | 1685073 rich_maverick
rich_maverick's picture

It's called "shareholder class action lawsuit".  They already have a few law firms (you know, the ones funded by hedge fund short firms) "investigating" SVM.  If management fails to act on this, they open themselves up to liability. 

Mon, 09/19/2011 - 12:34 | 1685067 rich_maverick
rich_maverick's picture

This is pure short manipulation theatrics.

Why keep throwing out new allegations?  Basically, they throw out a bunch one day.  Then, await the response.  Once they respond to the first set of alligations, throw out more allegations.  Wait again, and then throw out more.  Given what Alfred Little is doing, they obviously have prepared a bunch of reports over the summer to attack SVM (to profit from the shorts).  This is not likely the last one.  This is a clear and present attempt to ensure that the stock does not recover.  Personally, I don't think that will work.  They should have put everything they knew out on the table immediately.  Instead, they are obviously trying to keep the pressure on management to deal with them and not deal with operations.  

In my opinion, this whole SVM takedown is bogus.  The shorts simply saw a large market cap company they can focus on and attack. Given their location of operation being China, it is impossible for SMV management to fully defend themselves.

Mon, 09/19/2011 - 12:40 | 1685092 sunwheel
Mon, 09/19/2011 - 12:56 | 1685161 jekyll island
jekyll island's picture

Attack of a short selling by an anonymous group of trolls.  Anyone can cut and paste a document to make it look professional.  The issues they raise should be addressed directly to management, but they do not have the balls to do this, or even to identify themselves.  "We prefer to remain anonymous?"  Why?

1.  We don't have any ethics

2.  We have a short position and want to make money off of everyone who has done due diligence and doesn't play dirty.

3.  We may go to jail if we are discovered. 

 STFU, Troll

Mon, 09/19/2011 - 14:30 | 1685526 Elmer Fudd
Elmer Fudd's picture

sell the puts! 

Fri, 09/23/2011 - 14:23 | 1702555 oldtech
oldtech's picture

Looks like it will all flush out in court,... based on SVM actions today,... I will hold my positions and maybe buy a bit more.  I'm probabaly over extended on SVM... but....

 

SILVERCORP FILES LAWSUIT IN NEW YORK AGAINST STOCK MANIPULATION SCHEME


Fri, 09/23/2011 - 14:23 | 1702558 oldtech
oldtech's picture

Looks like it will all flush out in court,... based on SVM actions today,... I will hold my positions and maybe buy a bit more.  I'm probabaly over extended on SVM... but....

 

SILVERCORP FILES LAWSUIT IN NEW YORK AGAINST STOCK MANIPULATION SCHEME


Fri, 09/23/2011 - 14:26 | 1702570 oldtech
oldtech's picture

Looks like it will all flush out in court,... based on SVM actions today,... I will hold my positions and maybe buy a bit more.  I'm probabaly over extended on SVM... but....

 

SILVERCORP FILES LAWSUIT IN NEW YORK AGAINST STOCK MANIPULATION SCHEME


Fri, 09/23/2011 - 14:27 | 1702579 oldtech
oldtech's picture

Looks like it will all flush out in court,... based on SVM actions today,... I will hold my positions and maybe buy a bit more.I'm probably over extended on SVM... but....

SILVERCORP FILES LAWSUIT IN NEW YORK AGAINST STOCK MANIPULATION SCHEME

Do NOT follow this link or you will be banned from the site!