Tuesday, September 13, 2011

SVM fruad update

Well, I told you it was going to get worse. That why I buy options. Nonetheless I hope this keeps getting smoked, b/c I will buy a shit ton soon. From the press release, "We see this as an important first step towards mitigating the damage done to Silvercorp's reputation," commented Dr. Rui Feng, Silvercorp's Chief Executive Officer. "We are cooperating fully with the BCSC and other regulatory and law enforcement agencies so that truth can be restored, Silvercorp's reputation can be cleansed, and those involved in this manipulative scheme are held accountable."

This will take time. I am waiting this one out till the time is right. Dont underestimate the stupidity of sheep selling this now, dont be surprised if its get cut in half before this is all over. I remain a speculative trader till the time is right.

That being said there is a fairly large call volume on the Jan 21 $10 strike.


  1. In my previous comment I wrote:

    SGS: Thanks for clearing that what you meant by "50/50". Sometimes your writing can come across as ambiguous - passionate but ambiguous (to the lay person; like me).

    Here is an example of what I meant:

    Dont underestimate the stupidity of sheep selling this now, dont be surprised if its get cut in half before this is all over.

    It appears to me that you are taking both sides. If you wouldn't be surprised to see the stock price drop by half, then why call someone a stupid sheep for getting out now (and buying back later)?

    Please help me understand.


  2. Sheep beleive rumours, panic, and sell. Herd mantality and it usually has a very quick turn around to the upside. (USUALLY).

    I should also mention that I wouldnt be surprised if its back to $10 by next week too.

    And that 50/50 explaination was for Tinka. There are several 50/50 explanations in the trading world. SOrry to confuse.

  3. +6000 puts traded on Sept $6, open interest hasn't moved much. definetly some dirty dirty going on.

  4. Unless you have special knowledge about this company and know for a fact that it is legit, I would stay far away. I've been through this before with another company and got steamrolled. Never again. When a company responds aggressively to "baseless accusations" especially anonymous ones, that usually means there's some truth there.

    Again I know jack shit about SVM and had some call options that I dumped several weeks ago when it tanked. It could be fine, or it could have a nice counter trend rally but why risk it? There are many ways to speculate without taking on the risk of going to zero.

  5. UPDATE: 2012 1 oz Dragon's are now in the US. Ive been scouring the net for anybody that has these physically in stock, there are a few sellers on eBay that claim their items are in stock and ready to ship. I suspect we should see APMEX and Gainesville both listing these for sale sometime this week. I will post here the second they do become available at APMEX, as my new home page is the 2012 Lunar Dragon APMEX page for the remainder of the wait. Fuck payin $180 on eBay.. they will be around $60 when released online.

  6. Thanks highrise,

    From today!

    Hello Malcolm,

    Thank you for contacting APMEX. Unfortunately our product managers do not have any information on when they are coming in or how many we are receiving. As soon as we have any information it will be listed on our website. I apologize for any inconvenience this may cause. If you have any questions please contact us. Thank you for choosing APMEX.

    Have a great day!

    Leah Babb

    Customer Service Representative

    American Precious Metals Exchange
    226 Dean A. McGee Avenue
    Oklahoma City, OK 73102
    (405) 595-2100


  7. SVM is a fraud. These aren't rumors, unfortunately they seem to be hard facts

    muddy waters is shorting as well


  8. MC,

    Who is the Author of that report. What are their credentials? I am asking because when you submit a "report" like that its always copyrighted, sourced and authored, that report fails the sniff test, sorry!

    Additionally, no one is claiming responsibility for it strange, no?

  9. There aren't even page numbers on it, not professional at all!

  10. Fk it I sold out for a 5k loss. better than 30k loss. This pig has problems and will always be tainted now. Legit companies don't break like this pig did. GPR got attacked fell back but held and many others but this dog is being eaten for dinner in China.

  11. The report is from Alfred Little.

  12. People said earlier this SVM might follow into footsteps of Sino Forest, being Chinese company under scrutiny and such.

    What if Sino is not really the fraud people think it is? Richard Chandler bought into it big before it stopped trading and so did Mandarin fund. I have hard time thinking they didn`t do any due diligence. Check profile of Richard Chandler. He`s very rich billionaire investor who made lots of money buying into seemingly rotten companies. http://www.theglobeandmail.com/globe-investor/sinoforest/the-billionaire-investor-who-bought-into-sino-forest/article2147102/

    Eventually no company is clean as a whistle. When they start investigating them following some short seller report, they might find few problems but doesn`t mean whole thing is worthless. All companies are taking shortcuts these days.

    Perhaps many sold out fearing a Sino Forest scenario, as in sell now and ask questions later.

  13. @Green Trivial,

    Ask yourself Cui Bono, who benefits? How can SVM pay a divined, why so much money in the bank. Who is Alfred Little (euphemism for short) im not buying it!

    I'm well versed in reading and authoring reports and this one stinks to high heaven. They said they were at the property to 2 weeks, really and management didn't know. The picked up dropped ore and sampled it were by what lab, and what are the fucking credentials for the god damn lab!

    Come one guys get a grip!

  14. "Sheep beleive rumours, panic, and sell. Herd mantality and it usually has a very quick turn around to the upside. (USUALLY). "

    I think you are also forgetting that many people (like myself) use Stop Losses often. When they trigger, that puts a sell off as well.

  15. Silver is back from vacation I see...

  16. There is some banter about "Alfred Little" being an alias. “Alfred Little” is a “cover for a group of investors and research analysts, most of whom are Chinese, who are making money exposing fraud in Chinese U.S.-listed companies” and who run Alfredlittle.com.

    Don't know how much truth or fiction there is to this...

  17. At this rate the NIA pump stocks GRO and Mega Precious McDonald's look good buys, hahaha.

  18. @DM,

    More like TPTB, trying to undermine the creditability of Chinese PM's prior to page.


    Get ready to pounce on these baby's. When you get em, Put em on eBay ASAP and shear those sheep payin $200 per oz.

  20. SGS, what if you go long Jan '12 $8 calls and short Oct $7 calls for a debit of 40 cents? If it goes south you still have November and December to make up the 40 cents by selling calls. If it goes up, take back your shorts and gear up for a BIG pay day.

  21. http://www.bloomberg.com/news/2011-09-13/silvercorp-metals-falls-as-block-s-muddy-waters-says-it-s-shorting-stock.html

  22. Even if all this "news" is false this stock could be in the shitter for a long time before they get it all sorted-out potentially, no? That thing is waaaaaay too risky to hold in my opinion but props to all you guys who have the cajones to shrug off recent events and hold-on. ;)

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  24. The genie is out of the bottle!
    The Dutch Ministry of Finance together with the Dutch Central Bank (and with the German Bundesbank and the German Ministry of Finance) are preparing for ‘an orderly Greek default’ and an exit of Greece from the EMU. The default of Greece is now deemed no longer avoidable by the Dutch and German government. The emphasis is being put on ‘orderly’ to mitigate the effects of financial contagion for the other PIIGS.

  25. "We have tried our best to present the facts as they stand, with as little interpretation as possible in this report. These are facts that SVM, its independent directors, auditors and regulators urgently need to address. The independent directors of SVM would be wise to honestly investigate these facts and to hold management to a higher standard, considering the market cap of the company. The board has, in our opinion, so far fallen short in its duty to investors by failing to catch the undisclosed related party dealings and by approving the questionable related party acquisition. Management should not be allowed to simply brush aside this report as false, misleading or defamatory. Nor should management try to escape the facts by attacking the messenger. The contributors to this report live and work in China. They feel threatened by the companies they expose so understandably they value their privacy. We seek only to profit from the truth."

    Re read those last two sentences please.

  26. Perhaps that fact that the rumors were anonymous should be a sign of strength. Legit rumors would likely come from a legit source. However, when the price of silver breaks out I'd suspect this stock to rise commensurate with the price of silver. Demand is demand and the Chinese have a lot of money.

  27. Jim Cramer - check out this vid and see how corrupt the market is - no wonder nothing makes sense its a fraudulent free for all HF***. http://www.youtube.com/watch?feature=player_embedded&v=EaNuRsNA0OU#!

  28. As Bohemian posted on Turd's blog:

    New Pacific Metals, NUX.V, down another 16% today. It was founded and is run by the same guy, Rui Feng, who founded and runs SVM.

    Put your Sou'wester, raincoat and rubber boots on, there's a shitstorm a' comin' me thinks.

  29. Interesting observation the "report" was released on a Chinese holiday, therefor the Beijing headquarters is closed.

  30. OK, sold my SVM (hate it when this happens) for a er.... um.... loss.

    I will be watching for this to turn around and hope to buy back at lower price??

    Fk, shit, damn, piss, ass, etc. etc.

  31. ZGR's Take:


  32. @ Buckanear2 - thanks for the post

    truth syrup

  33. I just received this email from David Morgan's group:

    September 13, 2011

    Dear Adam

    We have received a record number of emails today regarding SiverCorp (NYSE -SVM).

    During the day your editor did speak with the company, additionally Jim Puplava of www.FinancialSense.com discussed the topic and we are planning to do an interview on his show this Friday.

    As it currently stands, we will have someone from Silvercorp, Jim Puplava, myself and perhaps one or two more guests. The plan is to address all the issues that have been raised about the company.

    For background see:


    For the negative side of the story and...


    For the latest information from Silvercorp itself.

    Please plan to tune into the program if at all possible--


    David Morgan

  34. Sniff, sniff I think I smell another Bri-X. Is that a helicopter with a geologist in passenger seat w/out parachute?

  35. BRE-X was in 1995 before even the slightest clue of rules and reg.

    This SVM thing is starting to intrig me more and more b/c a lot of huge hitters are long this stock such as Schiff.

    I still say this is a short sellers miracle, and they are making a ashit ton of money now that 35 fucking million were traded today.

  36. UBS in a research note on Monday said it had seen no indication of fraud at Silvercorp."We have toured Silvercorp's mines in China and have had regular meetings/conversations with senior management and have no reason to believe Silvercorp has conducted fraud," said UBS analyst Chris Lichtenheldt.---------------------------------------------------------------------------http://uk.reuters.com/article/2011/09/13/silvercorp-idUKS1E78C24N20110913

  37. When the fuck is someone going to get arrested for perpetrating this slander against SVM? Someone needs to get butt fucked!!!

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  39. 2 Adam

    It is taking place now. as soon as BCSC is a joke RCMP will do the investigation