Muddy Waters is Short TAL Education Group (NYSE: TAL US)

Muddy Waters is short TAL Education Group. Investors might recall the dark days of 2010 and 2011, during which numerous U.S.-listed China companies went down as frauds. According to the recent documentary, the China Hustle, there were approximately 400 frauds from China listed on U.S. exchanges. Out of literally hundreds of blatant frauds, almost no company chairman did any prison time. Charlie Munger is fond of saying “Show me the incentive, and I’ll show you the outcome”. Defrauding U.S. investors from China has proven to be a “heads I win, tails you lose” proposition. So, it does not shock us when we see that TAL began fraudulently creating profits as early as FY2016. Since the beginning of FY2016, the value of Chairman Zhang’s shares have skyrocketed from $900 million to close to $7.5 billion. The prospect of becoming Bobby Axelrod rich is a powerful incentive, especially when you have no downside if caught.

Hi Everyone, here is an updated IBD watchlist with IBD50/Sector Leaders/Big Cap 20. I update this every weekend and would be glad to share.
http://tos.mx/0OPGCo (remember for opening TOS shares: copy link, open TOS setup, “Open shared item”, paste link)
If you don’t have TOS: ABMD,FIVE,HTHT,TTD,TWTR,BZUN,GRUB,TAL,ALGN,NFLX,SIVB,SEDG,ETFC,NVDA,ZTO,LGND,VNOM,HQY,MOMO, GOOS,KEM,PANW,NOW,ZBRA,ADBE,RHT,LULU,ANET,SUPN,PAYC,ILMN,CPRT,ODF,MA,TEAM,NOAH,MU,FND, ENTG,PGTI,IPGP,PLNT,IBKR,TRU,BOFI,GMED,BABA,IDTI,MTCH,HCC,CRM,RP,ULTI,YY,TIF,OXY,FB,INTU,AMZN,PYPL,ISRG,CLR
IBD50 has an ETF: FFTY

There’s a lot of great names in the list now for wonderful synthetic covered call opps–my favs: TWTR, GRUB, ALGN (I haven’t done anything lately in this, can be a little hard to exit), NFLX, NVDA, PANW, RHT, MU, BABA, CRM, AMZN, ISRG, MA

My favorite indicators right now are pretty simple: MACD in a buy config above the zero line for any new longs, the “Sue AD Score” that was shared in the last week, and Ichimoku, oh-and recently the “DMI Oscillator” with an ADX overlay vs the regular DMI. If you have the Sue AD score, just read the description inside the code for more info on it. Indies come, indies go, but “Sue AD” stays on my charts all the time–in fact I’ve added it as a column on watchlists for sorting–very useful for sort/scan.

I have a big desire to help other people be successful in the business. The first step in doing that is finding my own success, then sharing with others. This is a very hard business. There are no shortcuts. It takes seasoning, mastery of self, lack of emotion—but plenty of passion. Constant learning, developing, testing. Riding highs, riding storms. Embracing risk, but controlling risk. But, I’m preaching to the choir, because, from what I see…everyone here at Bistro knows this already 🙂

Sue