Tilson Questions Whether NQ Mobile, HLF Are ‘Frauds’

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Numerous controversial stocks like Herbalife Ltd. (NYSE:HLF), NQ Mobile Inc (ADR) (NYSE:NQ) and others are named in well-known short-seller Whitney Tilson’s presentation which he is giving today. A copy of his presentation was obtained by ValueWalk. He is speaking today and tomorrow at the Value Investing Congress in Las Vegas. Along with naming several battleground stocks in today’s presentation, Tilson is also providing tips for those who want to try short selling, such as when to do it and how to find potential short candidates.

Interestingly enough, I noticed a theme which has been noted several times by Zero Hedge in the past. Investors seem to be betting against Tilson’s short recommendations because several of the stocks he mentions in this presentation have increased meaningfully. Some have even risen by double digits.

Tilson highlights “obvious bubbles”

One of the pieces of advice he gave was to look for what he calls “obvious bubbles.” Specifically, Whitney Tilson named the 3D printing and alternative power industries and “certain Chinese companies.” Within the 3D printing industry, he listed 3D Systems Corporation (NYSE:DDD), Stratasys, Ltd. (NASDAQ:SSYS), ExOne Co (NASDAQ:XONE) and Voxeljet AG (ADR) (NYSE:VJET). He also mentioned Organovo Holdings Inc (NYSEMKT:ONVO), one of his more recently revealed short positions.

In the alternative power sector, we again have some very recognizable names. Plug Power Inc (NASDAQ:PLUG) shares have been highly volatile for some time, and he recommends it as a potential short candidate in his presentation. Other names include Plug Power supplier Ballard Power Systems Inc. (NASDAQ:BLDP), which interestingly enough is up by 11% right now, FuelCell Energy Inc (NASDAQ:FCEL) and Capstone Turbine Corporation (NASDAQ:CPST).

In terms of Chinese companies, Whitney Tilson named NQ Mobile Inc (ADR) (NYSE:NQ), the company Muddy Waters accused of accounting fraud, Montage Technology Group Ltd (NASDAQ:MONT), which was accused of fraud by Gravity Research, and YY Inc (ADR) (NASDAQ:YY).

Tilson indirectly questions whether HLF is a fraud

And then there’s the slide on which he advises investors to look for “obvious bubbles, frauds and / or promotions.” Needless to say, he doesn’t want to directly accuse these companies of fraud. However, it’s interesting that he has included these particular companies here.

Whitney Tilson named Herbalife Ltd. (NYSE:HLF), Textura Corp (NYSE:TXTR), InterOil Corporation (NYSE:IOC) and Opko Health Inc. (NYSE:OPK).

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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at [email protected]

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