Paul Scott STOCKOPEDIA Small Co Value report10 Aug 2019 11:07
I reviewed Burford's rebuttal document here in yesterday's SCVR. It comes across very well, I think - giving plausible-sounding explanations to refute Muddy Water's claims. Similarly, I tuned in to the conference call yesterday afternoon, but had enough after about 90 minutes. Again, management seemed thorough in their answers, and give the impression of being determined to restore theirs and the company's reputation. Subjectively, it seemed to me that management were giving honest answers, and didn't seem to be hiding anything.
It seems fairly clear that Burford is likely to take Muddy Waters to court, over what it seems as market manipulation. I think that's probably a good thing. Shorting dossiers are fine if they reveal a fraud, like the many Chinese companies, and others like Globo, and Quindell.
However, if they try to deliberately trigger a plunge in share price, by putting out a dossier that turns out to be full of inaccuracies & misrepresentations, then the shorter looks, prima facie, guilty of market manipulation.
https://www.stockopedia.com/content/small-cap-value-report-fri-9-aug-2019-snd-bur-otb-pen-502356/
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