Carson Block of Muddy Waters on 500.com (WBAI):
- The company has a complex tax system, apparently 70% of last year’s income was attributable to a tax benefit.
Carson's wording is misleading and designed to excite bears and scare bulls. Why doesn't he explain why he believes 500.com's 2013 and 2014 *10% tax rate is a 'complex' tax 'system'?
If you ran a completely Transparent firm you would have mentioned the reason why WBAI was awarded a favorable tax rate status by certain Chinese Ministries, you'd even address the Time element.
It's possible that Carson did enough digging and chose his words carefully enough not to be caught in a blatant lie. We're fairly certain that Carson lined his pockets with easy loot on Tuesday, we'll explain below.
The whole truth regarding the 'complex tax system' and why 70% of last year's income was attributable to a tax benefit awarded with the designation of 'Nation Key Software Enterprise', so the co received a preferential tax rate of 10% in 2014 and retroactive to 2013. So what could be so complex about the co's tax system now?
Carson hand gesturing half-truths to the masses that continue to get juked by his manipulative and sometimes self-serving strategies.
It's possible that Carson did enough digging and chose his words carefully enough not to be caught in a blatant lie. We're fairly certain that Carson lined his pockets with easy loot on Tuesday, we'll explain below.
The whole truth regarding the 'complex tax system' and why 70% of last year's income was attributable to a tax benefit awarded with the designation of 'Nation Key Software Enterprise', so the co received a preferential tax rate of 10% in 2014 and retroactive to 2013. So what could be so complex about the co's tax system now?
Carson hand gesturing half-truths to the masses that continue to get juked by his manipulative and sometimes self-serving strategies.
Net income was RMB75.4 million (US$12.2 million), compared with a net income of RMB11.7 million during the second quarter of 2013 and RMB27.5 million during the first quarter of 2014. The increase in net income was in-line with the increase in total purchase amount and was also attributable to the Company's designation as a *'Nation Key Software Enterprise' by several government ministries which reduces the Company's applicable tax rate to 10%.
Non-GAAP net income attributable to ordinary shareholders excluding share-based compensation expenses was RMB83.2 million or U.S. $13.4 million, an increase of 156.8% sequentially.
But Carson Muddied the Waters and presented half-truths about WBAI in a closed door private investor meeting last Monday in New York. He said WBAI is a candidate to sell short.
The issue we have is that Carson made these bearish comments very late in the day on a September Monday as organic volume at that point was nonexistent. His masses reacted instantly by taking to their dumbphones, shorting WBAI, and Tweeting their friends caused shares to collapse, suspicious?
The issue we have is that Carson made these bearish comments very late in the day on a September Monday as organic volume at that point was nonexistent. His masses reacted instantly by taking to their dumbphones, shorting WBAI, and Tweeting their friends caused shares to collapse, suspicious?
An underhanded short-seller can do it behind closed doors and simply has to hoodwink a wealthy group of Traders to rake in a lot of cash overnight:
- he establishes a position ahead of a wealthy investor meeting,
- schedules the meeting 30-minutes or less before Market Close and or during a low volume summer day,
- throws the word fraud around often with no proof, then he reveals his new short candidate,
- tells half-truths and uses code words to instill fear and phrases that hint at trouble, like 'complex tax system'.
- mainly targets Chinese cos where the time difference is 12-hours and Executives are asleep,
- schedules an investor meeting during a Chinese holiday when no Executives are around to defend their co
On a very bearish Tuesday for stocks, September 9, 2014, and 1-day after his New York meeting where he bashed WBAI, shares actually closed up $1.00.
We're confident that at least a single 4%+ late-day stock drop on very high volume and then next day rally of 2%+ has left enough rat droppings to vindicate our feelings about highly suspicious actions taken by Carson Block on Monday, September 8, and if correct then the following day would be that much easier to verify.
It's obviously possible for short-sellers to Game the system but it requires a multi-pronged approach and a heartless individual to carry it out.
When we called Carson at 'Muddy Waters' it was exactly what we expected, his name wasn't even on the phone list. Carson works so hard that he needs a PR firm to answer his calls. As soon as we asked a question about Carson's accusations against WBAI some 20-something hung up the phone on us twice, pathetic that you can't even ask questions and challenge Carson's bogus research regarding 500.com.
500.com trades under the NASDAQ ticker symbol WBAI, it is an online and mobile Internet Sportsbook and Lottery business that's never been found guilty of wrongdoing. But since it operates in China we believe it is misunderstood and it's future Sales and Earnings growth is being underestimated.
What Carson Block did on Monday, September 8, just minutes before close cannot go unnoticed and undocumented by the Securities and Exchange Commission (SEC).
We think Carson Block is an Underhanded short-seller flying under the SEC's radar. Hopefully more wise people will take note of his dirty actions on September 8, 2014, as well as his bad track record over the last several months.
Thanks for Reading, Communicating, and Educating,
POTC~
We think Carson Block is an Underhanded short-seller flying under the SEC's radar. Hopefully more wise people will take note of his dirty actions on September 8, 2014, as well as his bad track record over the last several months.
Thanks for Reading, Communicating, and Educating,
POTC~
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