I am not a holder of QIN .... but the thing I would want clarified are the terms of the senior secured note issued for $250M in July 2016.
I suspect the short interest in QIN is due to that note. It is a common practice for note holders to then short the stock.
QIN looks like a very promising company ... it is a couple of years away from an income stream, huge asset fully established and forward supply contracts signed. Is this an attempt to take over the company? Are there covenants attached to the issue of the secured note which can be breached to force an early settlement? What kind of vulnerabilities might be exploited by interested parties if they succeed in driving the SP lower?
When I look at the company I don't see any reason to think there are problems .... I think it has a bright future. That note by Glaucus reeks of BS. Highly emotional language and an invitation to panic.
What is happening to QIN reminds me a lot about what happened to LNC.
In 2014 LNC looked like a really valuable proposition and it was shorted very seriously [from a high of $3 to ~60 cents... initiated by the holders of a corporate bond issue] and it was an orchestrated attack [Credit Suisse bought and sold LNC shares between its different branches, in Australia and I think Singapore from memory, systematically driving the price down]. In the end LNC turned out to be smoke and mirrors but that only emerged much later. As a holder of LNC at the time I sold because what I thought was going on was a very sophisticated corporate raid. The final result for LNC is the assets were sold for peanuts.
QIN Price at posting:
$1.10 Sentiment: None Disclosure: Not Held
