Hindenburg Research published another very detailed research today. This time the target of the research is NASDAQ listed company Singularity Future Technology with a ticker symbol $SGLY. After the publication of this research already in the downtrend stock price of $SGLY drops even more and below $5. I am surprised it hasn't even gone lower. As usual markets don't always follow logic.
Hindenburg Research does a great job in investigating publicly traded company that may have some serious problems, and their research team is good at uncovering not so honest business practices, fraudulent behavior by companies, and attempts to scam investors. Not only Hindenburg Research share their findings with public but they also take short positions once they complete their research.
Every time I read their newest publication, I end up asking the same question - How is it possible for such companies to be listed on major exchanges? Researches like this also point out the flaws in the system. Regulators like SEC are either understaffed, unwilling or not capable of protecting the investors as they claim is their goal every time they go after any company. And they want to regulate crypto? To be fair there is a lot of scams going on in crypto world as well. As long as scams in regulated markets like stocks continue to operate, I have little confidence that regulators can actually do any good regulating crypto.
Singularity Future Technology used to be Sino-global and only recently in 2021 changed its name to Singularity Future Technology. It specialized in a global logistics and ship management services. But recently changed its business to blockchain technologies, AI, and, crypto world. At least that's what their website at sino-global says. There are already red flags. How do you go from a shipping logistics company to a blockchain companies, and why change your name and confuse investors? Not like they came up with an original and interesting name either.
Some of the articles written about the company earlier this year also outline some financial troubles Singularity has been having financial difficulties with debt, losses, and spending of cash. None of them go into detailed research like Hindenburg has done. Hindenburg dedicated a lot of time investigating Singularity's CEO, Yang Jie and half of the research focus is on this individual who has fled China and is alleged to be part of $300 million Ponzi scheme. Yang Jie may or may not have fraudulent background. It is difficult to say, and I would ignore this part of the argument why Singularity may not be a good company to invest.
More interest parts of the research is that the company claims to be in the business of builds crypto miners, have sold many already within a very short period of time. There is no evidence of them selling any mining equipment or making money from such business activities. And the miners they presented they have engineered seems to be the pictures of another already existing miners by some other company. The story gets even more interesting when Hindenburg uncovers that Singularity's orchestrated partnership in large sums of money with a fake company that was only created for deception purposes. This company is Golden Mainland, was newly registered and had no assets contrary to what singularity claimed. It has no employee and its founder used gmail address on official SEC documents.
Feel free to read the full research - Singularity Future Technology: This Nasdaq-Listed Company’s CEO Is A Fugitive, On The Run For Allegedly Operating A Massive Ponzi Scheme.
I am grateful for companies like Hindenburg Research who conduct all the quality and detailed investigations and while take short positions themselves, also share their research with the public. This reminds us once again the importance of research, be skeptical about publicly traded companies, be aware of deception tactics, and always try to make educated decisions when it comes to investment. I don't know what will happen to this stock $SGLY, but I sure will stay away from it myself.
This shows, once again, that money is made in the markets not only in longing stocks or other financial instruments. There are plays made on short side of the trading as well, everyday. Taking a short position can be risky business. So is taking a long position. For some reason, we the retail traders see more risks in taking short positions rather than long ones. Shorting may even seem counter-intuitive to our human nature. In fact, it is almost same as a long position when it comes to the risks and rewards. However, not all stocks are available to be shorted depending on the brokerage used. Some platform may not have shorting options all-together. Alternative to taking straight short position on a stock is buying put options.
None of this is a financial advice, nor am I suggesting shorting is a better way of trading. Rather I am reminding myself that shorting is also an option when trading, and without the ability to trade both side retail traders might be not fully be prepared or have developed a strategy that can work in markets under any conditions.
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Singularity sounds like bad news indeed. It's great that there are watchdog companies out there to investigate other businesses, even if it is out of self interest. I really need to check them out and see who else they are investigating.
Now thinking about it, that sounds like a good investment strategy. Fund investigations with profits from shorting these stocks.
Haha yeah that would work
Genius. lol.
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That would be an interesting article and I would be very interested in reading it.
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Hold up.
You are telling me I can go research and find scam companies being publicly traded. Short them. Release my research to the public and laugh all the way to the bank.
BRB.
lol. You don't need to release the research. On the second thought, releasing the research will help pushing the prices down even more, so your short position profits even more. Is there a Hive shorting community?
Not that I know of.
Maybe we can start one.
We will all buy the same stock, and then we will all write the articles.
SOund like a plan? Tag me when you get started. lols.
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Nothing suspicious, its very close the shipping and logistics sector to AI and blockchain. I heard every day news like these. Its as usual as a dancer turn to aheart surgeon or airplane pilot! ... Of course iam trolling! Nice post!
Thanks for probable scam alerts though I research less and follow articles of experts like you. Thanks for enlightening us with these blogs. It helps many to take the right decision.
You gotta keep up with the technology shifts to stay competitive.
Haha Simpsons. There's a Simpsons reference for everything in life. I used to love that show.
Good point. :)
Hindenburg make good research for finding scam companies, in a short sale transaction, the broker benefits more from stocking because it charges large interest on lending its stock. Where the actual owner of shares does not benefit because he has hard conditions placed on the margin and this is bad exploitation
The partnership it made with the American energy producer was misleading, as it contributed to the rise of its shares at first, but then it fell to more than half. Changing the specialization and orientation of companies is always exploitative.
Despite what people have against short-sellers, I think their research is a great addition to the market. They have no choice but to make sure that their information is correct because you can expect them to lose lawsuits afterward. While it sucks to everyone involved in that stock, I think knowing the information now is better than waiting until later
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That is very true. I didn't even think about legal problems if their information is inaccurate.
With a rate hike blood bath going, activist short-sellers must be cashing in, I do respect what short sellers are doing, its a risky and selfless job and putting zombie companies out of business in a low interest rate and QE environmnet is no easy task
After this post and your comment, this looks like somethign I want to spend time learning how to work on.
I'd like to read more posts on this topic because I feel like I must read a lot of different perspectives before I start truly understanding how something like shorting works.
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shorting is a momentum trade strategy or if you have an edge and know something the market does, it isn't something people should use without being really confident if you have a hunch you can lay puts or calls, it's cheaper and you can still make a return if you're right but 95% of options expire worthless
that 95 percent sounds like the reason why I have looked into this and stopped so many different times.
thanks for taking the time to explain.
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These companies are all scams. It's almost always to do with money. The miner business is lucrative, using this cheat people is bad. Hindenburg Research do good job !
This sort of scam stocks are in my local stock market as well. The correlation between stock and company is not realistic. Such stocks are used to play the market.
Such an interesting read @geekgirl
Great to be able to do a bit more research about this and that others are doing it too.
Have a great day!
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When we look at it today, all European stock markets closed the day with a decline. Fed decisions affect the market quite a lot. Even the euro and dollar parity can be seen with a decrease of 0.44 to the level of 1.14. I can say that a difficult process awaits those in the market.
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Banana peels everywhere! Singularity “is an extremely obvious total scam, with little to no actual business operations.”
cool, some good knowlege.. good to know about all the things out there.. :)