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Fined: Third500, LLC fka Healthios Capital Markets, LLC Fined by FINRA

Fined

Third500, LLC fka Healthios Capital Markets, LLC Fined by FINRA

15 November 2018

An AWC was issued in which the firm was censured and fined $50,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it allowed four individuals to conduct investment banking activities without requiring that they pass the Investment Banking Representative (Series 79) examination, and become qualified and registered as investment banking representatives.

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Release: Ribbon Communications, Inc. Investor Alert Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action lawsuit has been filed in the United States District Court for the District of Massachusetts against Ribbon Communications, Inc. (f/k/a Sonus Networks, Inc.)

Release

Ribbon Communications, Inc. Investor Alert Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action lawsuit has been filed in the United States District Court for the District of Massachusetts against Ribbon Communications, Inc. (f/k/a Sonus Networks, Inc.)

15 November 2018

Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action class action lawsuit has been filed in the United States District Court for the District of Massachusetts against that a class action lawsuit has been filed against Ribbon Communications, Inc. (f/k/a Sonus Networks, Inc.) (“Ribbon” or the “Company”) (NASDAQ: RBBN) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Ribbon securities between January 8, 2015 through March 24, 2015, inclusive (the “Class Period”).

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Article: Short seller Andrew Left has his doubts about Canadian pot stocks, says he’s betting against Canopy

Article - Media, Publications

Short seller Andrew Left has his doubts about Canadian pot stocks, says he’s betting against Canopy

Thomas Franck, 14 November 2018

Citron Research’s Andrew left reiterated his bet against the Canadian cannabis industry Wendesday, telling CNBC that he’s short Canopy Growth and Cronos Group in addition to his already disclosed wager against Tilray.

Fielding a question from “Halftime Report” host Scott Wapner, Left said his doubts on the space aren’t confined to just one company. “I’m also short Cronos, I’m short Canopy, I’m short Tilray. So I’m short a basket of the names,” he said. “Once the U.S. licensed producers come on — the faster it becomes legal in the U.S., the quicker the Canada names go lower.”

“They won’t get the exposure in the U.S., they’re not players internationally,” Left added. “I don’t care how many press releases they put out, they’re not going to be shipping cannabis from Canada to Australia. Not happening.”
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Article: How ex-JP Morgan silver trader’s guilty plea could boost manipulation claim against bank

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How ex-JP Morgan silver trader’s guilty plea could boost manipulation claim against bank

Dawn Giel, Dan Mangan

CNBC, 13 November 2018

A previously secret guilty plea by a former commodity trader at J. P. Morgan Chase, who admitted that he rigged precious metals markets, has drawn the attention of a lawyer who has already accused traders at the nation’s largest bank of similar conduct.

The lawyer, David Kovel, told CNBC he was struck by how much in common his civil case pending in New York federal court against J. P. Morgan Chase has with the conduct outlined in the ongoing criminal case in Connecticut against John Edmonds.

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Article: How ex-JP Morgan silver trader’s guilty plea could boost manipulation claim against bank

Article - Media, Publications

How ex-JP Morgan silver trader’s guilty plea could boost manipulation claim against bank

Dawn Giel, Dan Mangan, 13 November 2018

A previously secret guilty plea by a former commodity trader at J. P. Morgan Chase, who admitted that he rigged precious metals markets, has drawn the attention of a lawyer who has already accused traders at the nation’s largest bank of similar conduct.

The lawyer, David Kovel, told CNBC he was struck by how much in common his civil case pending in New York federal court against J. P. Morgan Chase has with the conduct outlined in the ongoing criminal case in Connecticut against John Edmonds.

Edmonds, a 36-year-old Brooklyn resident, pleaded guilty in October to fraudulently manipulating the precious metals markets from 2009 to 2015.

He admitted working with “unnamed co-conspirators” at his former employer, J. P. Morgan, the Justice Department made public Nov. 6, when it unsealed the case in U.S. District Court in Connecticut.

Edmonds’ criminal plea related to “spoofing,” a certain type of improper trading that has been the subject of a broader regulatory crackdown on market manipulation in the decade since the 2008 financial crisis.

So far this year, the Commodity Futures Trading Commission has announced 26 enforcement actions that involved market manipulation, attempted manipulation, false reporting, spoofing or deceptive conduct. That is more than double the number in 2017 — and six times that in 2016.

Prosecutors said Edmonds learned the deceptive strategy “from more senior traders” at the bank, and that he “personally deployed this strategy hundreds of times with the knowledge and consent of his immediate supervisors.” His guilty plea related specifically to trading in silver futures contracts, as well as in gold, platinum and palladium futures.

Nearly four years ago, Kovel sued J. P. Morgan on behalf of a colorful hedge fund operator and big-stakes poker player, Daniel Shak, and two metals traders, Mark Grumet and Thomas Wacker. The civil lawsuit accused J. P. Morgan of manipulating the silver futures market from 2010 through 2011, costing Kovel’s clients $30 million in losses.

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Article: Citron’s Left calls Tilray surge its ‘worst day ever’ in market

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Citron’s Left calls Tilray surge its ‘worst day ever’ in market

David Randall, 12 November 2018

NEW YORK (Reuters) – Andrew Left, one of Wall Street’s most prominent short-sellers, said Tilray Inc gave his firm its “worst day ever in the market” two months ago when its shares almost doubled in one session, but he remains bearish on the Canadian cannabis company.

Left, whose Citron Research has been betting against the stock since it traded in the $70s, was caught unprepared for the surge, which took the stock as high as $300 in intraday trading on Sept. 19, he told the Reuters Global Investment 2019 Outlook Summit in New York on Monday.
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Article: Palantir Has a $20 Billion Valuation and a Bigger Problem: It Keeps Losing Money

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Palantir Has a $20 Billion Valuation and a Bigger Problem: It Keeps Losing Money

Rob Copeland and Eliot Brown, 12 November 2018

According to the complaint, throughout the Class Period, Defendants misrepresented and concealed that (1) ACM Research’s revenues and profits were diverted to undisclosed related parties, and (2) consequently, the company materially overstated its revenues and profits. Investors allegedly began to learn the truth on Oct. 8, 2020, when J Capital Research published a report entitled “Dirty business,” bringing ACM Research’s reported financials into serious question.

More specifically, J Capital concludes ACM Research is a fraud, over-reporting both revenue and profit. According to the report, “ACMR reports industry-beating gross margins of 47%” but “[w]e believe the real gross margins are half at the best.” J Capital also concludes revenues are overstated by 15-20%, undisclosed related parties are diverting revenue and profit from the company, the key means by which ACMR tunnels over-reported profit out of the company may be through about $20 million in overstated inventory and through cash that is inflated or compromised, and warranty and service costs are understated by at least $11 million.
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Article: A big short growing in Italian debt

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A big short growing in Italian debt

Abhinav Ramnarayan, Saikat Chatterjee, 09 November 2018

LONDON (Reuters) – A surge of interest in Italian bond futures may be a sign of a substantial short position building up in the derivatives market as tensions rise over budget negotiations between Rome and Brussels.

The big short in the futures market reflects a buildup in speculative and hedging activity after a tumultuous summer in the Italian markets and also indicates rising concerns of capital outflows. Continue reading “Article: A big short growing in Italian debt”

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Fined: RBC Capital Markets, LLC Fined by FINRA

Fined

RBC Capital Markets, LLC Fined by FINRA

8 November 2018

An AWC was issued in which the firm was censured and fined $215,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to implement and enforce a supervisory system reasonably designed to achieve compliance with the applicable securities laws and regulations, including SEC and FINRA rules, regarding the close-out of fail-to-deliver positions.

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Article: Bitcoin spikes as CEO predicts crypto revolution

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Bitcoin spikes as CEO predicts crypto revolution

Jonathan Symcox, 07 November 2018

The CEO of a rival to eCommerce giant Amazon expects that cryptocurrency will be adopted around the world as established financial systems collapse. Overstock boss Patrick Byrne likened the present system to a Ponzi scheme in an interview with crypto YouTuber Naomi Brockwell.

“People turn to it where they collapse, like Venezuela or Cyprus or Syria, something like that,” Byrne, whose platform began accepting bitcoin back in 2014, said.

“When people start getting into it is when their own financial systems collapse.

“So yes, given that I think the entire modern financial system is a big Keynesian, magic money tree Ponzi scheme, I do expect that the day will come when people turn to crypto.” Continue reading “Article: Bitcoin spikes as CEO predicts crypto revolution”

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Fined: J.V.B. Financial Group, LLC Fined by FINRA

Fined

J.V.B. Financial Group, LLC Fined by FINRA

6 November 2018

A Letter of Acceptance, Waiver and Consent (AWC) was issued in which the firm was censured and fined $50,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to establish, document and maintain a system of risk management controls and supervisory procedures reasonably designed to manage the financial, regulatory and other risks associated with market access.

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Article: BlackRock CEO Larry Fink earns recognition as a climate fraud

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BlackRock CEO Larry Fink earns recognition as a climate fraud

Friends of the Earth International, 31 October 2018

NEW YORK– In recognition for his outstanding contribution to climate change, the activist group Friends of the Earth U.S. today presented BlackRock CEO Larry Fink with a “climate fraud” award. BlackRock holds more stock in companies contributing to climate change than any other company in the world. Continue reading “Article: BlackRock CEO Larry Fink earns recognition as a climate fraud”

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Article: Dollarama shares drop after short-seller says ’broken growth story’ could tumble 40%

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Dollarama shares drop after short-seller says ’broken growth story’ could tumble 40%

Svea Herbst-Bayliss, 31 October 2020

BOSTON — Spruce Point Capital Management, which focuses on in-depth research of companies’ vulnerabilities, sees room for Dollarama Inc’s stock price to tumble roughly 40 per cent after the Canadian retailer raised prices and fewer customers are shopping at its stores. “Spruce Point believes Dollarama is a ‘strong sell’ with an approximately 40 per cent downside risk,” Ben Axler, who runs the hedge fund, said at an investment conference on Tuesday, according to a person familiar with his presentation. He examined the company’s products, pricing and what he called “troublesome management and governance red flags.”
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Article: Why Dollarama Is A Broken Growth Story And We See 40%+ Downside Risk

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Why Dollarama Is A Broken Growth Story And We See 40%+ Downside Risk

Ben Axler, 31 October 2018

Spruce Point believes that Dollarama (TSX: DOL / OTC: OTC:DLMAF or “the Company”) is now a broken growth story that will fail to hit its lofty long-term growth targets, placing its industry-leading margins and valuation multiple at risk of material contraction. As a result, we see ~40% downside risk to C$24.60 per share.

Rising product prices, progressively saturated markets due to heightened competition, and increasingly stale stores out of touch with Millennials have caused per-store traffic to contract for several years as consumers realize it is no longer a true dollar store. The Company is on pace for its lowest new store count in years despite management’s continued efforts to expand the store base. Dollarama’s gross and EBITDA margins are inexplicably high relative to peers, and seem too good to be true. Management also claims to have never closed a store for performance reasons. We expect growth and profitability expectations to fall back to reasonable levels as a number of fundamental factors – tougher competition, wage increases, FX, and logistics costs, among others – pressure the business going forward.
Continue reading “Article: Why Dollarama Is A Broken Growth Story And We See 40%+ Downside Risk”