Laundering Securities: Harbinger, Spectrum Brands, Tong Lung Metal Industry Co. Ltd, and Stanley Black and Decker

Harbinger Group Inc is nothing but a special purpose vehicle constructed for the purpose of dumping illiquid, unwanted securities held by Falcone which he manipulated higher via complex share schemes, Enron style accounting, and things like payments to Fitch Ratings..  I believe it goes one step further however, and acquisitions such as the Stanley Black and Decker, are actually intended to acquire real and synthetic exposure to certain asset classes for which certain hedge funds are looking to short. 

This is how it was done in 2007 I've come to learn in my research, and I see the exact same thing happening now.  Same lines of business, same corporate structures, same types of mergers and joint ventures, and same corporate emphasis on expanding the balance sheet with debt and equity with no regard for long term survive. The behavior of insiders, patterns in share prices, and the same public misinterpreting the actions of certain hedge funds and their 13F-HR just as we saw 5 years ago.

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Could Steve Wynn be assisting banks in the shorting of $Wynn? Via Trust and corporate structuring, just like Hedge Funds do it? Why not? Illegal?

I just wanted to throw up a few of these corporate structures so you can get familiar with the games I think these guys are playing…I haven’t looked into Las Vegas Sands or Wynn extensively but from what I have come across as well as the cross over with Melco, I feel both are destined for steep declines. 

Steve Wynn and Sheldon Abelson have equity holders interests in mind about as much as Philip Falcone did when he manipulated and dumped Lightbridge & the package of residual housing bets that came with it on teacher pension funds.

If you follow the news about the tiff between Wynn and Kazuo Okada, how about this…they are in cahoots and this was a strategy to loosen up some shares.  Didn’t Wynn lie about getting divorced a couple years back, for the same purpose?

What the Big Boys are looking at

Here are two examples of what these guys are shorting (Click to Enlarge)

It’s a no brainer if you ask me; I don’t think it will take much of a slowdown in China for this market to run into trouble.  If you take a
forensic look at what the Hedge Funds, Banks, and Structured Finance
Arrangers are doing to the underlying market; infecting it with structured finance schemes which act like a cancer, at the same time act as fuel for the asset bubble—similar to what Magnatar was accused of doing back in 2007.

I almost hate to call these guys game out because it’s a great trade and I wish I had the means to put it on (in an ethical, honest fashion).  That last part I don’t believe is possible for these guys as they are just too big; instead they resort to fraud, deceit, and downright thievery in order to build a market large enough for them to short.  

The methods in which the Banks, Funds, and Arrangers employ for this will be the topic of future entries.

Feel free to contact me with any questions.

Donny