Caribbean Hot Film Company: Current share price is US$235 and market value is US$1.386 billion.

So cheap?

Isn’t that Mr. Bill Williams a billionaire? Isn’t he the boss and largest shareholder of a listed company? Then the best way to retaliate against him is not personal attacks or market competition, which is too low-level.

Abel decided to deal with you guys in what he is best at.

What is he best at?

Mr. Sefrosa is the best in the world!

Well... Although this aspect is very powerful, it has the function of getting pregnant whoever wants to get pregnant. But there is no way to take revenge on men in this aspect...

In addition to this aspect, what he is most powerful is actually the invincible terrifying ability in the financial market brought by the special smoke of fate.

The best way to deal with a small listed company and a small boss of this listed company is to make his company worthless!

How to make a listed company worthless?

In the stock market in China, it is very difficult to do unless the other party is trying to die. But in the United States, there are many ways to do it.

The easiest way is nothing more than malicious short selling!

Malicious short selling is actually very simple. By using false transactions, buying and selling yourself, and manipulating the market, it will eventually cause self-confusion against the target, ultimately conquering the other party's market value, and even delisting or bankruptcy.

There are many examples of malicious shorting of hostile companies that cause the stock prices of hostile companies to plummet, delist directly, and even go bankrupt. There are many examples of European stock markets and US stock markets that allow legal shorting.

As for why, the stock market here allows malicious short selling, but Huaxia does not allow it...

Perhaps this is the difference between socialism and capitalism! But this difference is actually beneficial to each other.

Huaxia, which does not allow malicious short selling, can ensure that the financial market is suppressed at the greatest possible level, which can ensure that those financial oligarchs are not allowed to grow bigger, and it also ensures that things like Wall Street will never appear in China.

However, it is also disadvantageous to not shorting, and the disadvantage is that it will make it difficult for the stock market to improve and develop.

Even because of the inability to short, a very bad phenomenon occurred in the Chinese stock market, which led to the Chinese stock market, when talking about ipo, the first reaction of Chinese stock investors is two words - "making money".

Anyone who has speculated on A-shares knows that many domestic companies in China are good at "face change". The prospectus is very beautiful, and it appears in its original form after its listing. The performance plummeted, which is "different from the situation described in the prospectus"!

Abel felt that the main reason for this situation often is that the cost of fraud in the A-share market is too low; the delisting system is in name but not real; it involves too many stakeholders, which makes it difficult for supervision to implement.

Compared with the A-shares, US stocks, Hong Kong, London and other markets that only have the function of raising money, they are relatively mature and much more standardized. The reason is inseparable from the terror and strength of short selling power.

Because in the market, there is the power of short selling in mature markets. If a listed company dares to commit fraud, false statements and other violations, it will give short selling institutions a justification, and they will definitely not give up such a good opportunity to make money.

Abel has seen several examples of this on Bloomberg. Some Chinese companies that are used to the market rules of China, companies that are addicted to making money have gone to the US stock market to go public, but they are playing the same thing as the Chinese stock market.

What's the result?

For example, on March 24, 2018, Huishan Dairy, a Chinese company listed on Nasdaq, suddenly collapsed. The intraday decline once reached 90%. In just half an hour, Huishan Dairy's stock price fell from 2.496 to 0.42 US dollars. If the market value evaporated into soft girl coins, it would be as high as more than 13 billion - the company's market value is only 16.5 billion soft girl coins.

The reason why this company is so miserable is that a company that specializes in short selling has set its sights on this Chinese company listed on the US stock market.

Short selling institutions, Crocodile Investment, published an article in the US stock market, accused the company of exaggerating profit margins by falsely claiming that all alfalfa is self-produced. Some ranches are suspected of capital expenditure fraud. The actual controller may leak assets worth at least US$150 million in listed companies, etc., and even if the financial situation is not falsified, it seems to be on the verge of default because its leverage is too high.

In addition, most of Huishan Dairy’s issued shares have been used as collateral for the loan. If the borrower cannot pay the margin, long-term holders will face significant risks.

In less than half an hour, the stock plummeted and lost more than 90% of its market value. Before publishing the article, Crocodile Investment, which maliciously shorted, had already shorted Huishan Dairy's stock through several brokerages through high-volume leverage.

Huishan Dairy suffered heavy losses and almost delisted. Crocodile Investment made 300 million US dollars in just a few hours...

It has become a typical example of a very successful malicious short selling in Wall Street.
Chapter completed!