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No. of Recommendations: 1
At one point in time, people would have engaged in character assassination against me if I posted this material on Global Gains. I would have been told that what I had posted was "FALSE" and people would have "debated" using Ad Hominem attacks on the "Source". Various posters would have said that since the author of the information was "short" that it invalidated the information and this would have been done without any discussion about the information itself!!!

I know people wonder why I do not accept arguments against the source or accusations of a person being short as a valid argument of the source being incorrect. Well this would be the prime reason why:

From Marketfolly

The China Hustle is a recently released documentary from Academy Award winner Alex Gibney and Academy Award nominees Frank Marshall and Jed Rothstein and the producers of Enron: The Smartest Guys in the Room. The China Hustle features the story of the wave of Chinese reverse mergers that swept the market a few years ago.

It details a play by play of the various frauds that took place and the short sellers involved in discovering and drawing attention to them. Featured in the documentary are the likes of Jim Chanos of Kynikos Associates, Carson Block of Muddy Waters Research, Soren Aandahl of Glaucus Research and more.

The trailer is embedded below with a preview.

The China Hustle Documentary Trailer:

My how times have changed, once it became apparent that the stuff that occurred in this video would be "true", I can now get away with posting this without much highly negative feedback. The thing was that a lot of the risks about Chinese smallcap reverse merger stocks were easily discoverable to those that kept a open mind.

One of the ways in which I detect companies/industries in which I do not want to invest in, would be where I see that the risks in a company seemingly very easily discoverable and yet I find too many people having closed off their mind to the possibility of the risk or risks actually occurring because of excessive hype surrounding the company, sector or region of the world....this type of assessment "worked" for me in avoiding most of the great Chinese smallcap collapse that soured people on Global Gains.

The China Hustle was also featured on the latest Motley Fool Money podcast:

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No. of Recommendations: 4
I just finished watching this movie and the whole Chinese Reverse Merger situation was and remains a travesty. A particularly disturbing part of the movie was when they interviewed older investors who got caught up in the hype. One investor they interviewed invested in a company at $9 and only got 12 cents out of the company in the end. These were investors near retirement. One guy was 68 years old.

The worst part about it would be that nothing in the system got fixed. Everyone should do their "Due Diligence" because still to this day little information can be obtained on Chinese companies, even the "best" one's like should be considered somewhat speculative and people probably should not pile in with 20, 30 40, 50% of their money into Chinese stocks.

Oh yes, the movie mentioned Alibaba. There's no way I would invest in Alibaba....not enough information and they would be a somewhat shady company.

I believe, Baidu, Tencent & Weibo to be fairly ethical but because I can't rely on information coming out of China, no Chinese company deserves anywhere near the multiple of their equivalent US counterparts. A good size risk premium should be built into everyone's Chinese stock assessment.

By the way......all Global Gainers should watch the movie

All Global Gainers that thought they were so smart....that thought they had/have great ability to detect fraud and understand risks should watch this because the fraud that took place with Chinese small caps was worse than even I believed at the time and I very much turned against Chinese smallcaps around the height of their popularity.

It was a sickness to watch supposedly sophisticated TMF investors get bamboozled by outright obvious fraud which to me shows the dangers of Group think and simply believing what the sentiment of a stock board believes. It makes me resolute that everyone should be independent thinkers.

In my opinion, risks about companies should be talked about. My attitude would be "If you see something, say something" risks can be discussed. Some risks on various companies might not amount to very much but they should be discussed and censorship of different people's views should be discouraged.

Burying talk about risks does not make the risk go away. It only makes it so more people get hurt if a risk that people got discouraged from talking about manifests and the risk did not get proper attention.

To all Global Gainers....How much did your portfolio get blown out by outright fraud that you failed to detect??? One of Global Gains more popular companies, China Green Agriculture (CGA) was mentioned in the film

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