Focus Media (FMCN) Slammed As Major Short Seller Calls 'Fraud'
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Focus Media Holding Ltd. (Nasdaq: FMCN) fell out of bed midday after a clear enemy of the company, Muddy Waters, noted that famed short seller Jim Chanos also thinks the company is a fraud.
Looking at a FMCN chart and you will see the stock plunged 8 percent mid-day before recovering and is currently down 4 percent.
The plunge coincides with a tweet from Muddy Waters at around 11:43AM ET. In the tweet, Muddy Waters links to a article in where Chanos said he thinks the company is committing fraud.
The article in question is from ValueWalk.com, which reviews CNBC's Maneet Ahuja new book "The Alpha Masters." One of the hedge fund managers highlighted in the book was Jim Chanos. ValueWalk summarizes the segment on Chanos this way:
Readers are taken from the very early days of Jim Chanos when he was a young analyst, to Chanos' famous short of Enron, and subsequently other companies including Tyco. Chanos discusses his latest short (China), and specifically mentions Focus Media Holding Limited (NYSE: FMCN), as a company he believes is committing fraud. He holds several reverse Chinese mergers as short positions.
The book was embargoed until yesterday and is not in stores yet, so it appears the information in new for the market. What is not new is Muddy Waters short on the stock. But a little help from Chanos never hurt anyone.
Looking at a FMCN chart and you will see the stock plunged 8 percent mid-day before recovering and is currently down 4 percent.
The plunge coincides with a tweet from Muddy Waters at around 11:43AM ET. In the tweet, Muddy Waters links to a article in where Chanos said he thinks the company is committing fraud.
The article in question is from ValueWalk.com, which reviews CNBC's Maneet Ahuja new book "The Alpha Masters." One of the hedge fund managers highlighted in the book was Jim Chanos. ValueWalk summarizes the segment on Chanos this way:
Readers are taken from the very early days of Jim Chanos when he was a young analyst, to Chanos' famous short of Enron, and subsequently other companies including Tyco. Chanos discusses his latest short (China), and specifically mentions Focus Media Holding Limited (NYSE: FMCN), as a company he believes is committing fraud. He holds several reverse Chinese mergers as short positions.
The book was embargoed until yesterday and is not in stores yet, so it appears the information in new for the market. What is not new is Muddy Waters short on the stock. But a little help from Chanos never hurt anyone.
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