Emotions continued to run hot on Tuesday over Harbin Electric, the small-cap U.S. listed Chinese motor manufacturer, a week after a year-long management buyout process came to an end.
The company was finally taken private in a deal that paid $24 a share, but not before short-selling bloggers pummeled the stock to a 52-week low of $5.82 on June 16.
Short sellers including Andrew Left of Citron Research and researcher/journalist Roddy Boyd published research claiming the company was being run fraudulently. Harbin was one of many Chinese companies listed in North America that came under scrutiny earlier in the year.
In one of the most animated panel discussions this correspondent has attended in many a year, Harbin’s spokeswoman Christy Shue spoke up from the audience to attack Boyd, questioning his methods, asking him how he can trust his information.
Boyd, who sat on a panel organized by the law firm Loeb & Loeb, said he spends hours pouring over documents, speaking with competitors, suppliers, vendors, bankers, buyside investors, or anyone involved with a company to inform his viewpoint.