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Originally Posted by Hudson11
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I would point out re this article by Hindenburg Research (even the name should tell you something) that "Hindenburg Investment Research specializes in forensic research and
activist short-selling".
I am a regular user of SeekingAlpha which means I know the site is a stew of short sellers pitching their latest ideas to drive down stock prices. Like all research firms specializing in shorts, they make money selling their ideas to subscribers and clients. But SeekingAlpha is a free site so when they broadcast an idea for free on that site, you have to be at least a little skeptical of their motives.
Maybe they are right about Oceanwide but that certainly doesn't mean Oceanwide would abandon a project into which they've already poured millions (not just what has been spent on progress made but also they've likely ordered the steel and spent lots on other materials not yet delivered to the site as well as contract with the construction companies). At some point, it's a serious question whether the best way to get their money out is to stop or to proceed and I think they are probably near the tipping point if not beyond it.
Also, what Hindenburg is saying about Oceanwide can be said about most similar companies in China. China in general--companies as well as municipalities--is wallowing in mountains of debt. At some point it's likely to come unglued but there's no evidence that point is close.