by Travis Johnson, Stock Gumshoe | March 21, 2011 2:55 pm
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Source URL: https://www.stockgumshoe.com/2011/03/deer-short-selling-firestorm-heats-up/
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Jeez-um crow, Chinese reverse mergers and small caps falling like dominoes lately — latest from Herb Greenberg, who writes about these stocks a lot: http://www.cnbc.com/id/42198301
So … clearly, any blogger who puts out anything that sounds like real research and alleges fraud can drive down the share price of a small cap Chinese stock now, particularly if it’s a fairly recent reverse merger — but just as clearly, there is certainly some stink out there and, as we’ve seen, either fraud or stuff that smells a lot like fraud at some small companies. Like I said, makes you want to avoid the whole category … which is probably the market sentiment now in general … but, for those with stronger stomachs and good strong green eyeshades, there’s probably some huge bargains out there in the rubble. Not inclined to go searching for them right now myself, I’m afraid that the democratization of the short seller’s pulpit has me seeing the wisdom of the “sell first, ask questions later” strategy.