Carson Block Strikes Again
"We are short Superb Summit International Group Ltd. (1228.HK, "Superb") because virtually all of its reported 2012 and 2013 revenue belongs to a different company, its recent acquisition of a stake in coal liquefaction company Beijing Jinfeite ("JFT") is utterly without substance because JFT is effectively a one-man operation, and Superb has an unbroken seven-year track record of completely failing in every new line of business it has purportedly pursued. In short, Superb's raison d'etre is being a public company," said the report.
In fact, Block has said that Muddy Waters can find no record of Superb actually owning any forest at all - no coal company, no timber, no real revenue.
You may recall that Muddy Waters' most infamous short was Sino Forest, another timber company which ultimately filed for bankruptcy. Even some really smart Wall Streeters got caught on the wrong side of that deal, including John Paulson of Paulson & co.
Block's most recent public short position is in Chinese mobile ad company, NQ Mobile, which is down 53% year to date.
Here's what Superb's stock is doing.
