American Superconductor (Nasdaq:AMSC)- One Product + One Customer + One Country = Many Problems

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During the past week, many companies associated with the wind industry in China have shown weakness.  Citron would like to single out one company which we believe has a lot more downside potential….and it seems as if the CEO agrees with us.

Background

American Superconductor is a classic old-school “story stock” … a company with an electric distribution grid innovation – a superconducting wire, that when supercooled, carries 100 times more electricity.  The company has touted this invention for more than a decade as “the next big thing”…but other than a single demonstration project, it has never been monetized. Read more

SinoCoking (NASDAQ:SCOK) Follow the Money!

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It is no surprise that Citron Research is not a big fan of Rodman & Renshaw. A few years back Citron had an epic battle with Rodman when  they placed a stong buy recommendation on a company called Home Solutions of America (NASDAQ:HSOA) that Citron called a complete fraud.

Flash forward a few years later and Home Solutions is now delisted —  yes, trading at 0.0006,  Its officers were indicted for accounting fraud, exactly as Citron reported. . 

http://www.sec.gov/litigation/litreleases/2009/lr21314.htm

Here You Go

Now they’re back with a new girl — an ugly duckling Chinese coal deal with an utterly improbably rise and ridiculously unsustainable run-up on the premise that $6 PIPE investors (plus warrants at $12) with a six-month lockup have a bought “great deal”.  It’s like a horse race with a donkey where the donkey is started with a one-lap lead. Read more

Seabridge Gold (AMEX:SA)… Did you know this?

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“Look around the table.  If you don’t see a sucker, get up, because you’re the sucker” – Amarillo Slim

Dreams of Gold vs Reality of Share Prices

Seabridge’s explicitly advertised and promoted investment premise is that it is a “call option” on the future price of gold.  Citron believes this premise is utterly false.
Aside from all the background noise about stock promotions, Seabridge investors invest in the stock because they hope it will rise in value as the price of gold rises.  As the company has told them, it is a levered play on gold.

But the price of Seabridge stock is not tied to the price of gold, it is tied only to the supply and demand for Seabridge shares.  That places shareholder returns squarely dependent not upon the price of gold, but upon the actions of management and insiders.  This is precisely why the past activities of Seabridge’s insiders are so troubling.  However, the proof is in the pricing. Read more

Seabridge Gold (Amex:SA) -Why the Majors are saying ‘No’ while Wall St. is saying ‘Yes’.

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There are now hundreds of junior gold mining companies throughout the world, doing extensive drilling. It is really getting challenging to look at every project.  Best practices for investors are to stick to companies that have partnerships, earn-ins and drilling agreements with major mining companies.

However, there aren't many with zero gold reserves and a billion dollar market cap.

And then there's Seabridge Gold. (AMEX:SA) Read more