Evening Bamboo Insight: 10 Jul 2014

Evening Bamboo Insight: 10 Jul 2014


1. Carlos Slim bows to Mexico telecoms reform; offers to shrink his Mexico telecoms empire

2. Scoping the new subprime as watchdogs cry ‘bubble’

3. Fed Sets October End for QE Bond Buying

4. Companies Selling Stocks at Record Pace This Year; Offerings of Stock and Similar Securities Have Raised $510 Billion in 2014 Around the World

Asia Pacific

1. (China) – China’s yuan global ambition faces payments hurdle

2. (Korea) – Over 3,000 small, established firms put up for sale in S. Korea

3. (India/Healthcare) – India likely to extend price caps to more drugs

4. (China) – Shaolin Monastery plans to develop mobile games; At present, the offices of the Shaolin Monastery have a Wi-Fi connection and every young monk has a smartphone

5. (India) – Modi should end his own honeymoon

6. (Taiwan/Tech) – Hon Hai soon to deploy self-made robotics for production

7. (Taiwan/Tech) – Cher Wang: A visionary tech founder returns to HTC

8. (Spore) – Moody’s retains negative outlook on Singapore’s banks

9. (Taiwan) – Taiwan should invest more in ‘invisible assets’: think tank

10. China’s audit office plays powerful but silent role in anti-corruption crackdown

11. Strong Luye Pharma debut boosts prospects for ‘China orphan’ firms that had been previously listed elsewhere

12. (China/Tech) – Xiaomi Users Spend More Time In Apps Than iPhone Owners In China

13. (Korea) – South Korea’s Costly Obsession With English

14. (China) – China Finance Minister Says 7.5% GDP Target Not a ‘Floor’; Comment Suggests Beijing May Be Comfortable With Slower Growth

15. (Isia) – Widodo Claims Victory in Indonesian Election, Subianto Won’t Concede

16. (Myanmar) – No fairytale ending for poor, divided Myanmar; An end to war and a transition to democracy are not the same as peace

17. (China) – Xi Jinping and Mao’s Playbook; The anticorruption campaign does not signal a reformed Party


1. Are you a visionary director? A checklist for building shareholder value

2. VMware CEO Patrick Gelsinger Explains Why 3-Pronged Focus Is Right; Gelsinger abides by what he calls the “abundance theory” – the more time he spends with employees or business partners, the more he’s likely to learn

3. Why countries need to invest more in research

4. What Corporate Climbers Can Teach Us; ‘Dark’ Personality Traits Can Help People Rise Through Ranks

5. 13 Most American Companies

6. Probing Brain’s Depth, Trying to Aid Memory

7. Lessons of a For-Profit College Collapse

8. Teaching Young Students the Fine Art of Arguing; More Schools Offer Debating Instructions to Younger Students

9. The Magic Fades for Gowex’s Jenaro García; Lauded as an Innovator, Wi-Fi Entrepreneur Personifies Challenges Facing Spanish Economy

10. Two Important Lessons From Crumbled Crumbs Bake Shop

11. Berkshire’s All Stars: The Enduring Value of Values; nine traits in subsidiaries, including budget-consciousness, earnestness, kinship, entrepreneurship, autonomy, and a sense of permanence 

12. For Crumbs, Growth May Have Come Too Fast

13. Bosch Korea CEO mixes football, military, management; ‘I learned to not just issue orders, even in the army. Give people some background, explain the target to them.’|home|online

14. How A Lucky Run In Vegas Saved FedEx

15. Hui Wing Mau: The self-made Australian billionaire that nobody knows

16. Why Bill Gates and Warren Buffett are so successful, in one word; Focus as a noun; Know how valuable your time is

17. Why ABBA Turned Down $1 Billion To Reunite In 2000

18. The Faulty ‘Mental Models’ That Lead to Poor Disaster Preparation

19. Has ‘Disruptive Innovation’ Run Its Course? Not Yet.


1. Eventbrite’s Hartz hopes she’s found the ticket for a lasting company

2. Confessions of a Computer Modeler; Any model, including those predicting climate doom, can be tweaked to yield a desired result

3. A look back at classic deals of Sun Valley’s past

4. Teen interns in Silicon Valley getting ‘insane’ pay

5. How Intel, Microsoft and Apple show there is too much focus on disruption; The ‘lightbulb moment’ of a disruptive idea is important – but it’s the follow-up work keeping the lights on that is arguably more valuable

6. No Revenue, No Assets Social Media Company CYNK Up Over $1 Billion (+110%) Today On 57K Shares Traded; Full List Of Companies “Audited” By CYNK’s Public Auditor

7. (China/Tech) – Can WeChat Become A Major Advertising Platform?


1. Alzheimer’s Blood Test Progress Boosts British Biotech Company

2. Women’s Cancer Risk Raises Doubts About FDA Oversight; Critics See Morcellation Risk as Sign of Weakness in the Monitoring Process for Medical Tools

3. Rapid Price Increases for Some Generic Drugs Catch Users by Surprise


1. Billionaire Jumps Into Headphone Battle Against Beats Audio

2. Emerging Markets’ Chocolate Lovers Boost Cocoa Prices; Appetite for Chocolate in Developing Countries Has Sparked Rally in Cocoa, Near Three-Year Highs

3. Crumbs closes in bitter end for biggest U.S. cupcake chain; Crumbs’ Downfall Shows Limits of American Cupcake Addiction; The Crumbnuts Weren’t Enough, as Cupcake Chain Closes Amid Glut

4. (Consumer/Tech) – Home Depot Sales, IT Collaborate on the Connected Home

5. Supermarkets Could Soon Manipulate Where You Walk

6. Quinoa Rides the ‘Superfoods’ Wave; Once-Obscure Peruvian Seed ‘Is a Perfect Collision of Trends’

Investing Process

1. Jonathan Booth on GM And Why BBBY Reminds Him of BRK

2. The Moneyball of Quality Investing: What Is Quality?


1. Big Commodity Traders Gain Clout; Trafigura, Vitol Among a Handful of Firms Shaking Up Markets


Gotham Research Founder Fears For Safety After Article Published

Gotham Research Founder Fears For Safety After Article Published

by Mark MelinJuly 09, 2014, 1:36 pm

Gotham Research is considered an enigma on Wall Street – and this is how its founder, Daniel Yu, likes it.  When they first boomed onto the scene, really having been “discovered” within the last year, there was a “who are these guys?” whisper after their scathing research reports were quickly noticed and resulted in publicly traded firms collapsing in value.

Gotham Research’s cloudy background

That whisper turned into an overt scream yesterday when a major financial newspaper published an article outing the firm’s somewhat clouded background. In a statement to ValueWalk this morning, Yu expressed frustration that publicity could damage his business and even endanger his safety. This might not be that unfounded as Carson Block, another hedge fund short seller who publishes research on potential fraud, is said to have expressed similar concerns. Yu would neither confirm nor deny any personal details, however, ValueWalk independently confirmed the identity of Gotham’s founder, but agreed to leave out all details after a request from Yu. He is in the business of publishing research on publicly traded companies he believes are engaged in fraud. This indelicate focus resulted from his personal history of losing on stocks due to deceit and fraud, as was recently reported. This focus translates into the most celebrated research success in the firm’s short history: LETS GOWEX SA (OTCMKTS:LGWXY) (BME:GOW), a Spanish high flying tech stock.

Gotham Research’s report on GOWEX

After Gotham Research published a scathing research saying 90 percent of LETS GOWEX SA (OTCMKTS:LGWXY) (BME:GOW) revenue is “fake” and the company was engaged in accounting fraud, the stock immediately tanked nearly 50 percent – highlighting how, oddly, this firm with a short track record that had an almost non-existent public background could issue an opinion and collapse a publicly traded company. Gowex the firm being attacked wasn’t just any company, but a highly celebrated European technology success story. The CEO, who would later admit to committing accounting fraud, was honored by auditor Ernst and Young with Spain’s entrepreneur of the year in 2011.

Modern day vigilante in the finance world?

A VC’s Amazon Review, and a Quirky Approach to Disclosure; Is it ethical for a venture capital investor to praise a product put out by a company he’s invested in without disclosing his financial interest?

Jul 9, 2014

A VC’s Amazon Review, and a Quirky Approach to Disclosure



Is it ethical for a venture capital investor to praise a product put out by a company he’s invested in without disclosing his financial interest?

James D. Robinson IV, a founder of RRE Ventures in New York City,  which is currently investing from a $280 million fund raised this year, did just that. RRE  is an investor in Quirky Inc., Palantir Technologies Inc. and OnDeck Capital Inc.

In a review on AMZN +1.90%, Robinson praised Aros, an air conditioner introduced in May by Quirky Inc. and General Electric GE -0.19%rating it a high five out of five stars.

“Beautiful, functional, smart,” he wrote. “As for cooling, seems to do a great job, and unlike some, it just doesn’t seem any louder to me.”  The loudness remark was a response to some critics who had cited the “noise” in their own Amazon reviews.

Morning Bamboo Insight: 10 Jul 2014

Morning Bamboo Insight: 10 Jul 2014


1. Uncertainty Abounds Around Fed’s Rate Rise

2. Profits Vanish in Venezuela After Currency Devaluation

3. Gowex collapse casts shadow over Spain’s alternative market listings

Asia Pacific

1. (China) – Muddy Waters founder Carson Block : China’s Fake GDP Is Over-Inflated By 25%

2. (China/Consumer) – Here’s What Investors Get Wrong About Chinese Consumers; what foreign investors get wrong is that they think of Chinese consumers as one big market, when in fact they’re smaller, regional markets

3. (Japan) – Doraemon charms U.S. viewers in first remake for a foreign market

4. (Japan) – Japan’s innovation challenge

5. (Msia/Healthcacre) – Malaysian botanical drug developer seeks $300 million Nasdaq listing

6. (Msia) – Worries over luxury condos, number of upcoming units in Malaysia’s Klang Valley ‘frightening’

7. (HK) – Within the space of 10 hours, HSBC fundamentally changed the tone of a market analysis report about Hong Kong

8. (HK/China) – The Hong Kong arms of the Big Four have got the rule of law wrong

9. (Asia) – Amid scratchy global economic growth, Asia accounts for nearly 30% of global foreign direct investment (FDI) inflows, making it the world’s top recipient of FDI

10. (Asia) – Currency Reserves Swell in Asia; Central-Bank Policy Makers Fight Tide of Cheap Global Capital

11. (China) – China says graft found at leading university, state food company

12. (China/Tech) – Overseas online shopping: China’s next ‘blue sea’

13. (China) – China’s Colonization Of America’s Luxury Real Estate Market In One Chart

14. (China) – China’s baddest billionaire builder Yan Jiehe, founder of Pacific Construction Group, China’s largest privately owned builder

15. (China) – More Chinese firms hungry for German businesses

16. (China) – Fearing graft probes, Chinese officials shun spotlight, seek retirement

17. (Korea) – The debt ratio of Korea’s 10 business conglomerates facing a harsh restructuring program has surpassed 260 percent on average, worse than a year ago


1. Robots will take over middle-class professions, says minister; David Willetts, the university minister, suggests high-level professions are more likely to be taken over by computers than those that involve apparently simple tasks such as making a cup of tea

2. America’s Richest Families: 185 Clans With Billion Dollar Fortunes

3. The Gilded Age Family That Gave It All Away: The Carnegies

4. How To Blow $9 Billion: The Fallen Stroh Family

5. 175 Years Later, The Mellons Have Never Been Richer. How’d They Do It?

6. Family Misfortunes: 8 Of America’s Richest Clans And Their Bitter Fights Over Billions

7. How The $1 Billion Kennedy Family Fortune Defies Death And Taxes

8. Sky Scrappers: World Trade Center Is A Risk For Everyone Involved — Except The Billionaire Durst Family

9. How types of Focus Influence our Lives; Heidi Grant Halvorson, a social psychologist and author talks about two types of focus and how they influence virtually every aspect of our lives

10. Seeker, Doer, Giver, Ponderer: The billionaire mathematician James H. Simons has led a life of ferocious curiosity

11. ‘The Walking Dead’ Creator Robert Kirkman Discusses His Creative Process

12. CEO Of Disgraced Spanish Tech Company Quotes Kipling In Email To Employees

13. This Startup Has Saved Its Users Billions Of Minutes By Cleaning Up Their Email Inboxes

14. “People who want to explore their inner experience need solitude to do so”

15. This Visionary Article From 1932 Holds An Important Lesson For America’s Workaholics

16. Motley Fool expanding its wealth management division; The firm, created as an investment advice newsletter 21 years ago by brothers David and Tom Gardner, is now offering more comprehensive financial planning with annual subscriptions


1. WPP founder Sir Martin Sorrell: The 10 Trends Shaping the Global Ad Business; The Most Powerful Man In Advertising Says Creativity Is Dying In Europe And The United States

2. Inside Narrative Science, The Artificial Intelligence Company That Could Put Journalists Out Of Work


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