Efut trades in the exact pattern of all the micro cap China stocks-. The make a big move in you have at least a 50% pullback. CLNT 3-10$ back to 5$ KNDI 4-8$ back to 4$. CASS 4-10$ back to 6$. SGOC 2-4.50 back to 3$. The mid to big caps China that trade have been on massive tear nobody talks about. QIHU15-75$. Sohu -sina-40--70-80$ range. CTRP 12-35$ range. Bidu 90-140$. NOah 5-17$. NQ 7-18$. Kong 6-10$ range. THe big one's have real money while the small one's have traders hoping to attract real buying. They haven't thats why they pull back hard. The positive is the Generals(big cap) always move first as you have large money flow into them as a sector. Eventually it usually always trickles down. Efut is grouped with micro China so it moves 50-100% and sells off hard just like all of them. The question will Efut get a normal valuation? Either all micro cap China will start getting a normal value or Efut needs to separate itself from the group for it to move higher and stay? Nobody knows the future so only time will tell. Adam thinks its worth 20$ or higher( 1st quarter call) and thinks eventually the market for his stock turns to normal. Who's knows in 2-5 years? I think you got lot good news coming in the next 6 months based on 3rd and 4th quarter usually very strong and already guided a good third. IDC usually ranks EFut number one retail firm around this time. You got the roll out of the omni channel. China economy from the " PMI" starting to turn. General are doing great. Adam doing a roadshow in I believe nov-dec. Does efut stay in the same pattern of the micro caps or if your real long term player does it matter. Today- efut trades exactly normal of the micro cap sector -Don't over think it . You might say I will sell every rally which is fine because its a great return. However, what if one of these times efut breaks out hard. I sold qihu around 30$ for big gain today its 75$. Nobody know's -thats life
Good summary of the current state of EFUT. In my opinion in order for this company to break out of this pattern, they have to start putting numbers to their announcements e.g. contract size and impact to existing business, more transparency by way of better communication and also to show a profit. To have 15-25% Revenue growth does nothing to improve investor confidence when they are unable or unwilling to show a profit.
EFUT is in a strong uptrend since July 1st. As you said consolidation is expected and normal. A few days ago this was in the two's. Volume has dried up now and should continue to drift lower as the spring tightens. I doubt it will get below 3 again, but it might. But it's going to take getting to about 2.50 to reverse the trend so I like the chances on the long side here. Personally I think it will bottom at 3.30 or so and that is where I will come in heavy. I nibbled with 2000 shares at 3.7 average so far.