HRBN - Harbin Electric

[Guest Hester]

 

Hester,

 

        Thanks!  I didn't have any financial interests in HRBN and was just trying to learn.

 

        I spent sometime listening to the Mp3 links that you put up. It is quite impressive someone went such a long way to interview the  managers of the JiangSu Lile.

 

       

        The tape is amusing in that apparently, the meeting was interrupted by a phone call as one can hear that the manager was saying/yelling to someone using the local dialect and not the Mandrain.

 

        To be frank, I don't know whether this group who did the interview is legitmate or not, either.  I suppose it is not hard for me to 1) take a picture outside of a buidling of JiangSu Lile by bribing, 2) set up some of my Chinese friends to play translator and manager and tape recording it.  If someone has gone the way to pretend as a potential customer....  How would I know?!

 

        So my conclusion is that this kind of investing is in the "too-hard" pile for me.

 

     

 

 

I think that's fair. The Too Hard Pile is always a good option.

 

Roddy Boyd was behind the interviews (not interviewing but behind it because he doesn't speak Mandarin), and I respect him enough to believe there was no wrongdoing on his part. He is a journalist and doesn't own anything long or short so he would really have no financial incentive.

 

Also it's not like that was the only piece of evidence of fraud, in light of the all the other evidence (numerous to mention and keep this short but perhaps the fraudulant land sales were the second most convincing) and the fact that the SAIC statements conformed to what was said in the interview, the odds that this interview was a fake are very very low in my opinion.

 

If one had the connections and financial resources, one could probably reach out and reconduct the interview themselves, but I don't think any major longs did this. But it was out there. HRBN was owned almost exclusively by retail investors, many of lower sophistication (I don't think any major arb funds owned any) and in the last months I'd say the majority of longs knew and acknowledged fraud but (correctly) thought the CDB would fund and the deal would go through anyway.

[zippy1]

 

I think that's fair. The Too Hard Pile is always a good option.

 

Roddy Boyd was behind the interviews (not interviewing but behind it because he doesn't speak Mandarin), and I respect him enough to believe there was no wrongdoing on his part. He is a journalist and doesn't own anything long or short so he would really have no financial incentive.

 

Also it's not like that was the only piece of evidence of fraud, in light of the all the other evidence (numerous to mention and keep this short but perhaps the fraudulant land sales were the second most convincing) and the fact that the SAIC statements conformed to what was said in the interview, the odds that this interview was a fake are very very low in my opinion.

 

If one had the connections and financial resources, one could probably reach out and reconduct the interview themselves, but I don't think any major longs did this. But it was out there. HRBN was owned almost exclusively by retail investors, many of lower sophistication (I don't think any major arb funds owned any) and in the last months I'd say the majority of longs knew and acknowledged fraud but (correctly) thought the CDB would fund and the deal would go through anyway.

The CEO is well connected politically, while CDB is probably owned by the government.....

The longs sounds like "I am a fool to be long on this, but there are bigger fools......."