Since the 2007-2008 global financial crisis, companies have pushed aggressive accounting to its limits, said Muddy Waters CEO Carson Block. Most of the companies he investigates have not done anything illegal, but have exaggerated their value.
"There's a lot of low coupon debt to be refinanced," Block said. He was referring to companies that borrowed at low interest rates over the last 10 years, but now face higher coupons on repayments as rates rise.Block said that low borrowing costs had encouraged fraud because any increase in earnings, real or exaggerated, would have a large effect on the company valuation, its stock price and the amount of financing available.
Clues that led to Muddy Waters' most recent short included an in-person visit to the property sites of real estate investment company, Vivion, to find out if their rental properties were as valuable as the company said. One they found was "vacant and derelict," Muddy Waters' report about the company said. Vivion said it would respond with a further statement and that this picture was not accurate.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Delta lifts its 2023 guidance as travel stock takes offDelta Air Lines is lifting its 2023 guidance as holiday travel picks up and travelers return to the skies
Source: FoxBusiness - 🏆 458. / 53 Read more »
Here are some of Credit Suisse's top stock picks heading into 2023Credit Suisse has refreshed its list of top U.S. stock picks. You mean the criminals that are under constant investigation and paying fines? That Credit Suisse? Wait…the same credit suisse that’s bleeding money? Yeah. No thanks.
Source: CNBC - 🏆 12. / 72 Read more »
AMD, Nike, Zillow among UBS stock picks with the 'highest conviction' for 2023UBS analysts are out with their 2023 stock picks, which include chipmaker Advanced Micro Devices, retailer Target, and footwear powerhouse Nike. Others among the top 23 bullish picks include Allstate, Charles Schwab, Gitlab, and Yum! Brands.
Source: MarketWatch - 🏆 3. / 97 Read more »
Cramer picks favorite down-and-out stock for 2023 and calls a bottom on another nameThere are two stocks in our portfolio that are in rough shape. But Jim Cramer said during the Club's December 'Monthly Meeting' that he has hope for both. Buying the down and out and shorting the bottomed one. Inverse Cramer is the best strategy 2022 “Market in Turmoil” - but at least Cramer was able to take his daily Elon cheap-shot : comparing Twitter/Musk to FTX/SBF. It’s almost as if Cramer’s talking points for CNBC are coming from an agenda-driven political entity 🤔
Source: CNBC - 🏆 12. / 72 Read more »
The 2023 Nissan Ariya Is a Shining Electric LightNissan’s EV future is increasingly promising.
Source: AutoweekUSA - 🏆 229. / 63 Read more »
AMC Entertainment To Offer Co-Branded Visa Card For Stubs Members In Early 2023AMC Entertainment plans to offer a co-branded credit card starting in early 2023 for members of its loyalty program, a first in the theatrical exhibition industry and the latest venture by the movi… JanJak_AMC Count me in! On the waitlist! 🤑 AMC AMCcreditcard
Source: DEADLINE - 🏆 109. / 63 Read more »