Glaucus Research Group California LLC is focusing on the negative aspects of Chinese stocks such as L&L Energy (LLEN, quote), Gulf Resources (GURE, quote) and Universal Travel (UTA, quote) so that more investors are not victimized like hedge fund manager John Paulson.
Glaucus issued “strong sell” on L&L Energy on August 2, a “strong sell” on Gulf Resources on April 26 — expecting that stock to go all the way to zero — and a “strong sell” on Universal Travel back on March 8, projecting that stock would fall to $1 a share.
Universal Travel is now at $3.96 a share, L&L Energy is now at $3.10 a share and Gulf Resources is at $2.99 a share, down more than 70% for the year.
Short interest on all three stocks is highly elevated, well above the 5% level that many traders consider struggling.
Many savvy investors — from John Paulson to Goldman Sachs — have been punished by wayward investments in China.
Paulson lost hundreds of millions on Sino-Forest Corp (SNOFF, quote), a Chinese timber company now being investigated by the Canadian police after trading in its stock was suspended on the Toronto Exchange in August.
Due diligence is needed for any investment, and Glaucus Research is providing an extra level of research for those considering L&L Energy, Gulf Resources and Universal Travel.