Professor @Wharton; Forensic Analytics; expertise in financial data analysis, SEC filings, accounting fraud, and insider trading.
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touch grass. reflect. be thankful. I love my wife. I love my life. And I wish you my kind of success.
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Who is harmed by insider trading?… The people’s faith in markets and their government. We are starting to see a normalization of insider trading. Where are the SEC and CFTC 🦗🦗🦗 @SECGov @MichaelSelig.
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Thats a -30% loss avoidance by large shareholder in US-listed Chinese companies. And the SEC JUST EXEMPTED THEM AGAIN FROM DISCLOSURE !
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Did you know since Q1-2024, 64% of all Chinese IPOs in US markets have already crashed more than -50%?
A recording of my @SECGov presentation on Chinese Pump and Dumps is now available. This is as animated as SEC presentations get. piped.video/watch?v=dJ2nr4Q-…
SEC rules have failed miserably at protecting investors in US-listed Chinese companies. And so has @NASDAQ. Take 20m to stop scrolling and learn about all the egregious loopholes that US-listed Chinese companies are exploiting, and the systematic evidence.
At 16:55 @StockJabber's website StopNasdaqChinaFraud.com gets a mention. @adenatfriedman @Nasdaq
Today at 10am, I will presenting to the SEC Investor Advisory Committee, on closing loopholes for US-listed foreign companies with a huge focus on China and associated “pump and dumps.”
We have a China problem, and it is long past time for the SEC to end exemptions for US-listed Chinese companies from (1) 8-K reporting requirements; (2) Reg FD; and (3) Form 4 reporting
The agenda for the meeting is here, where a livestream will be posted
sec.gov/about/advisory-commi…
My slide deck is here
faculty.wharton.upenn.edu/wp…
I wanna h/t to @NateHindenburg for being ahead of the curve on cataloging the pump and dumps, and @StockJabber for creating a site where investors can upload screenshots with evidence of pump and dumps stopnasdaqchinafraud.com/
Finally, shout out to @muddywatersre, @blueorcainvest @WolfpackReports for the original work on the China Hustle.
All of this context makes an appearance in my SEC deck
THANK YOU FOR YOUR ATTENTION TO THIS MATTER
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Thanks for your interest. Recording is here piped.video/dJ2nr4Q-Ptk?t=25
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Today at 10am, I will presenting to the SEC Investor Advisory Committee, on closing loopholes for US-listed foreign companies with a huge focus on China and associated “pump and dumps.”
We have a China problem, and it is long past time for the SEC to end exemptions for US-listed Chinese companies from (1) 8-K reporting requirements; (2) Reg FD; and (3) Form 4 reporting
The agenda for the meeting is here, where a livestream will be posted
sec.gov/about/advisory-commi…
My slide deck is here
faculty.wharton.upenn.edu/wp…
I wanna h/t to @NateHindenburg for being ahead of the curve on cataloging the pump and dumps, and @StockJabber for creating a site where investors can upload screenshots with evidence of pump and dumps stopnasdaqchinafraud.com/
Finally, shout out to @muddywatersre, @blueorcainvest @WolfpackReports for the original work on the China Hustle.
All of this context makes an appearance in my SEC deck
THANK YOU FOR YOUR ATTENTION TO THIS MATTER
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How do you know it isn’t hallucinating? In this case, it made up a Hindenburg report whole-cloth. How would you know if the info it provided to you was (in)accurate? I’d recommend some due diligence. Most ppl assume a high level of detail implies truth, but not so.
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I am one of those ppl. My use cases all entail very high costs on any errors/false attributions/false facts. In many cases I’ve tried to use it, five minutes of due diligence reveals ChatGPT just made stuff up. For example, Hindenburg never published on $QUBT
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What I’m Reading: Excellent book on how statistics are used (and abused) to support a false narrative. Very relevant in today’s world. Highly recommend! @aedmans
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But wait there is more.... this isn't unique to EH. Many Chinese companies listed on NYSE/NASD are controlled by members of the CCP. Here is Tuniu (NASD: TOUR). Will @FinancialCmte @FSCDems put America-first and end the insider trading exemption for these companies?
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I wish I could say this was an exaggeration. But it isn't piped.video/watch?v=55892jT0…
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Why do we allow companies with 34% ownership by CCP/SOEs raise money for US investors? From the 20-F (3/3):
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Great interview w/bipartisan @SenJohnKennedy @ChrisVanHollen on >> Holding Foreign Insiders Accountable Act << that CLOSES the loophole exempting foreign corps in US, from US insider trading rules. @SquawkBoxCNBC @JoeSquawk piped.video/watch?v=XZWIF2Q8…
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Thanks to @HindenburgRes ppl r reassessing likelihood of fraud at Indian companies. In 2022 we analyzed trades of insiders at Indian companies listed in the US. Avg (median) insider sale at US-listed Indian companies is followed by -35% (-16%) return! That's incredible mkt timing
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Some material to prepare for the SEC’s 11am meeting finalizing new rules that govern pre-planned insider sales. Click links to learn more about 10b5-1 plans. … Slide deck: analytics.wharton.upenn.edu/… SEC Presentation: piped.video/heQ-5J3kCaw
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If u are a retail investor, or care about Payment for Order Flow, you need to read this academic blog post by @blynch41. He finds $HOOD provides ZERO price improvement (relative to direct market) across 100s of trades in random names. But TD crushes it. wifpr.wharton.upenn.edu/unca…
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Those are incredibly high FICOs given the macro environment. Reminds me of S&P ratings on mortgage bonds pre-Financial Crisis.
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Ugh. Office next to mine got reassigned. I have a feeling the new occupant will be unruly. Neighborhood went downhill fast. @retheauditors
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So glad SEC finalized rule to make 144s electronic and searchable on EDGAR. sec.gov/news/press-release/2…. Just gotta wait 6 mos or so. In meantime, maybe someone should study trading of Cayman entities. Oh wait …corpgov.law.harvard.edu/2022…
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🚨Maybe I am late to the party, but did anyone else notice a $3B sale by corporate insider in $BABA on May 26. Same day as earnings announcement!! Paper Form 144. Cayman entity. Nothing to see here.
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All things considered it went pretty fast. Here was our original Comment Letter. sec.gov/comments/s7-24-20/s7… and of course the day we discovered the paper filings. [file cabinets in SEC reading room were full of them]
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great coverage by @lizrhoffman and analytics by Tom McGinty ! And yes… 10,000+ PAPER FILINGS in SEC reading room.
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Insiders at foreign US-listed firms do not have to file Form 4s. Their only disclosures are …. the paper 144s stored in SEC file cabinets Remember those? @rwmcmorrow
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Here’s Moderna 1273 in adults. nejm.org/doi/full/10.1056/ne… I’d LOVE to be corrected by an expert MD/PHD (@drsarahsam) but it seems the efficacy is much greater in adults. - Pro Vax’r who knows stats.
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Wharton is vacc + mask required. Current admin plan is 100% teaching in-person. But with exponential case counts among young, and no countermeasures at state/fed level, that may not be realistic. i’d prep for a switch to full remote in Oct or sooner. i am teaching in Spring.
Blue is stock perf relative to industry over 6mos after avg insider sale. Red is stock perf relative to industry over 6mos after avg 10b5-1 sale, where 10b5 sale is within 60 days of plan adoption. Do those 10b5 sales look uninformed to you?
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and even when they are disclosed, the market underreacts. here is the 3yr price path in excess of size/growth benchmark
@GrapefruitGals I have another answer for you. Form 144 just came through with a $100MM+ insider sale in $GSX.
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