Loading ...Deep Throat IPA … I mean IPO
13.)The CCP believes, and based on the West’s posturing, rightly so, that the most expeditious, least costly way to win a war is if your adversary doesn’t understand that they are actually in one. The “end game” certain to follow the establishment of these total war beach-heads described above and the stealth financial skirmishes taking place in every nook and cranny of the planet, is the greatest, coordinated, fraudulent, illicit wealth transfer in history, inevitably culminating in the eventual destruction of Western Financial Markets and the death knell of the Dollar as the worlds Reserve Currency.
Please read on for a disturbing discussion of the gory details….
https://www.deepthroatipo.com/its-not-about-tesla-or-alibaba-its-much-bigger-than-that/
(from 2021, but still … as relevant today if not more so)
via https://twitter.com/DeepThroatIPO/status/1750959858763923555
Add your favorite synopses
Here’s one
Here’s the scam:
Alibaba buys 1 million shares (50%) of a dog-shit business for $10 a share.
A year later they buy the next 100,000 shares for $20/share. This allows them to book a “valuation gain” of $10 Million and their new basis in the stock becomes $12 Million for 60% of the company.
A year later, Alibaba convinces a US Hedge fund to buy 10,000 shares of the dogshit company for $500/share. Alibaba loans the money ($5 million) to the hedge fund through a Caymans subsidiary so they can buy the dogshit stock. Alibaba likely provides some sort of scratch-my-back kickback or guarantee to get the deal done.
Alibaba’s 1,100,000 shares of dogshit can now be valued at $550 Million ($500/share) and they can, under IFRS Rules, book another “Valuation Gain” of $538 Million.
Keep in mind that the underlying stock is still “dogshit”. The economics and the business prospects of the dogshit company haven’t changed.
These types of hypothetical transactions have been repeated annually, with great vigor, with many, many dogshit companies in every Alibaba 20-F since the company went public in 2014.
The summary below describes the “Gains on deemed disposals” accumulated since the IPO.
One need only look at the track record of Chinese Stocks on US Exchanges and or, if you are unable to track these frauds, just take a peak at The China Hustle to see an obvious pattern. The aggregate market cap of all Chinese Stocks listed on US Exchanges has dropped from roughly 450 listings at $2.3 Trillion in 2018 (with several hundred Chinese stocks/ADRs/ADSs already “going dark” by then) to about half that many today.