Tuesday, July 24, 2012

John Paulson Connection to Madoff…

I'm very interested in the story of John Paulson.  The brilliance that he seems to get assigned is completely counter to the vibe he throws me.  Listening to his congressional testimony and the occasional story in the paper he never really struck me as a sharp guy; especially compared to a Soros, Faber, or Jimmy Rogers.
From the Big Short,

Monday, July 23, 2012

China Property CDO's...Merged On You're Balance Sheet...

Despite my efforts of sending my report to a large number of fund managers in Melco, global regulators, company auditors, reporters, and a good number of the Funds in the ISDA club, the stock seems little interested.  

Friday, July 20, 2012

What did Deutsche Bank and Morgan Stanley do with that Synthetic?

I mean just read how ridiculous this is.  A lease hold?  Its painfully obvious DB and ML, are advancing $ for the ramp up of a CDO.  I'll write some commentary on this soon, along with a big relationship map of how Melco connects to the HK and Chinese property market the hedge funds are currently shorting.

Tuesday, July 17, 2012

Macau Gaming license was revoked, Whats the rest worth?

What is the Equity of Melco, Las Vegas Sands, and Wynn worth if its Macau Gaming license was revoked for violations of law, thus subjecting it to asset seizer by the Macau Government?

Real simply: (From Melcos 20-F)

Propublica.org Las Vegas Sands Article: Inside the Investigation of Leading Republican Money Man Sheldon Adelson

This was an great piece.  Something I found especially interesting was that Leonel Alves, being on the Macau legislative board, was outside council for Las Vegas Sands and billing exorbitant rates.  Worth nothing is that back in May 2006, there was a deal where Melco paid a down payment as part of a partnership with an entity managed by Angela Leong On Kei, member of Macau Legislative board, wife of Stanley Ho, and mother of Lawrence Ho (CEO of Melco).  The deal was terminated 40 months later: thus the whole thing seemed to just act as a 100M HKD loan, to the entity Angela Leong On Kei represented. 
What is also interesting is that as you can see from the 2009 filing, Angela was on both sides of the deal, which seems itself inappropriate, not to mention the possible foul play with that deal in regards to her being on the Legislative board and the purpose of the transaction to acquire concession rights.

9-17-2006 Downpayment                     http://www.hkexnews.hk

Termination Dec 2009                          http://www.sec.gov

For more of this and things like the connection between Stanley Ho and Sino-Forest, I recommend you read my report posted here titled IHS Research Report Macau.

Donald Shekels