Quick Take – Fidelity wakes up, sells FSIN and SEED

This morning, in a 13G/A filing, FMR LLC, commonly known as Fidelity, revealed that they have been selling off their once massive stake in Christopher Wenbing Wang‘s Chinese reverse-merger company Fushi Copperweld (FSIN).

Neither C-Wang (see here) nor FSIN (see excellent work here from Muddy Waters) are strangers to controversy. Are some large institutions finally seeing the light and realizing these Chinese companies are merely machines designed to rapidly separate Western investors from their money?

So what has happened?

Fidelity held a 10.3% stake as of the end of 2011, with most of that being in their Low Priced Stock Fund. Today they hold only 4.6% and are no longer required to make 13D or G filings.

Another large holder, GMT Capital, has also been selling off their position. At the end of 2011, GMT held an 11.06% stake, by the middle of March it was down to 9.36%.

In another 13G/A filing issued this moring, Fidelity revealed it finally dumped all of their Origin Agritech (SEED) another shady Chinese reverse-merger firm (which was explored previously here). At the end of 2011, Fidelity held 13.27% of the company. Today? Zero.

Unlike some dumb-dumbs, at least Fidelity has woken up.

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.
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s