Global Hunter: Morons or Mega-Morons?

This morning, top tier Chinese reverse-merger shop Global Hunter Securities issued a truly enlightening research report entitled “China: Margin of Safety Investing in China – Oxymoron or Moron?” At the end of the report is the following chart, reformatted for this post:

               Research Cov.         IB Clients
Rating      Count   % of Total   Count  % of Total
Buy           68       55.3%      15      60.0%              
Accumulate    21       17.1%       3      12.0%               
Neutral       28       22.8%       6      24.0%               
Reduce         5        4.1%       1       4.0%               
Sell           0          0%       0       0.0%                
NA             1        0.8%       0       0.0%                
Total        123        100%      25       100%

Not a single stock in their coverage universe, not one, is rated a “Sell.” Is it possible that the sharp minds, like Ping Luo, at GH have been unable to detect even one shady Chinese reverse-merger stock? Given that fraud is endemic to both the reverse merger space and China, it seems absurd that these folks believe over 70% of their universe is a buy or accumulate. Are they so blind, so greedy, or so complicit that none are outright sells?

Considering that Global Hunter is one of the shops that recommended both China Media Express (CCME) and RINO Intl (RINO) to clients, perhaps the better question for investors to ask is “Global Hunter: Morons or Mega-Morons?

The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.

One comment

  1. THere’s also one giant theory out there that the reason behind GHS’ stupidness – they are paid off by some companies or some people to pump the stocks. Rumor has it the people at Global Hunter’s research department has close relationship with known criminals such as Benjamin Wey from New York Global Group.

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