“China Is Still a Short”: Part 2
By Eric Fry
Source: Non-Dollar Report
http://nondollarreport.com/2016/03/chin ... ?src=email
He still doesn’t like China. “The China story is the gift that keeps on giving on the short side,” Chanos said. “It keeps on morphing as the credit bubble gets bigger, bigger, and bigger and finds different outlets.”
One specific China name he mentioned was Alibaba (BABA).
From CNBC:
[Chanos] said he has “real questions” about financial metrics and cash flow for Alibaba, the Chinese e-commerce giant.
“We just don’t see how profitable or unprofitable that business is,” he told CNBC from the Sohn Investment Conference in New York.
Chanos, who added that he suspects Alibaba is unprofitable, did not say how large his position is.
Prominent short-seller Jim Chanos, the founder of Kynikos Associates, says there are seven things he looks at when making a short bet.
His checklist comes from a book called “The Seven Signs of Ethical Collapse” by Marianne Jennings.
The seven signs include: “pressure to maintain those numbers”; “fear and silence”; “young’uns and bigger-than-life CEO”; “weak board”; “conflicts”; “innovation like no other”; and “goodness in some areas atones for evil in others.”
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