GEO Investing

dan-david-nyse-10-12-2016Yesterday, I made an appearance on the floor of the NYSE during CNBC Closing Bell.  I discussed with Kelly Evans and Bill Griffeth the work that my team does to uncover short opportunities. The discovery of fraud or material misrepresentation (as was the case with Tech Pro Technology) is usually the impetus we use to go on the ground to establish correlations between public disclosures and what is actually happening or documented.

CNBC Discussion – Geoinvesting’s Due Diligence

I touched upon some of the key things that GeoInvesting does during its due diligence process on companies operating in foreign countries (particularly China).  Geo’s Sohn Hong Kong presentation on Tech Pro Technology (03823.HK) coupled with additional research released weeks later by Glaucus Research led to an eventual 91% decline in the stock’s price.

Geo has 3 more short ideas in the pipeline.  They represent situations where we believe that, based on our on-the-ground due diligence, fraud or material misrepresentations are present.  When pressed about what those ideas were, I explained that there is ongoing due diligence on them.  I’ve also been approached dan-david-cnbc-closing-bell-10-12-2016by others asking for clues on what some of those ideas might be, but any dialogue would be premature, for obvious reasons.

We are expanding geographically.  Historically, we focused on Mainland China in our foreign research, but our reach is ballooning to other markets such as Singapore, Germany and Japan.  We are proud of the fact that investors even approach us with ideas that they feel we will be able to investigate more thoroughly than other research boutiques.

As always, first and foremost, we like to keep our members informed when we release our in-depth research.

Balanced Approach to our Research

While I spoke with CNBC about the bearish opportunities present for Geo and its members, anyone that follows us knows that we take a very balanced approach to investing.  As a matter of fact, I’d say that our research is rooted and weighed more to the bullish side.  We are opportunistic investors who like to leverage business intelligence.  We use business intelligence to our advantage before the investing public fully digests it.  This is in essence is an information arbitrage model that has enabled us to perform in any market condition.


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