Market Overview

Jim Chanos and His Big China Short

Jim Chanos and His Big China Short

Legendary short seller Jim Chanos was on SquawkBox Thursday morning, talking markets and some of his individual positions.

Here are some highlights:

Will the Market Uptrend Continue?

  • Doesn’t have a direct view on the markets
  • Corporate profits as a part of GDP are all heading in one direction, and thats a concern.

On Herbalife (NYSE: HLF):

  • Chanos stated that his company no longer has a stake in the company, although he has shorted it in the past -Not crazy about multi level marketing
  • Thinks Bill Ackman is correct that when your customers are your distributors, you have a flawed business. -Scientifically the product provides no value
  • If you don’t sell a product that has value, you will
  • Covered when share prices cut in half in November to take profits


  • Was short on Dell, covered on single digits last year
  • Shorted the stock again on the deal -Revenue dropped from 4.7B to 2.3B last year
  • The problem with Dell model is that you get paid up front, so it has tons of payables, therefore it only actually has a few billion in cash, not a giant pile.

The Last Word:

  • Avoid anything having to do with Chinese property markets: Steel, Iron Ore, etc
  • Australia will feel the effects soon -Property bubble is growing bigger and bigger
  • Anything dependent on the Chinese economic miracle you should be careful of


Posted-In: News Short Sellers Hedge Funds Global Economics Success Stories Movers Media Best of Benzinga


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