Can jump really quickly as bands are super tight. Forget the fraud bashing, this one will move on TA alone. At a PPS of $3+ then mid and long term valuations and uncertainties can merit a closer look. I'm thinking an easy double, perhaps even a triple from these levels.
You could be right for the short term, or you could be wrong. The work ethics of these people are strong so we could see a surprise. And quite frankly I was pleased that they made the announcement of a possible drop in revenues. I think that debunked the broard fraud claims, and to not include VALV in those claims. I believe their is a great need for their technology and they made the right move to focus on the more profitable international market. Naturaly because of greater profit, but also to sell to clientel outside of China as an additional way to make believable, and verifiable their products and profits.
Don't hold your breath, as timing this will be impossible. Just take comfort in the fact that its business is growing, the valuations are ridiculously low by any standards, and they are innocent until proven guilty. The quick jump is based on TA. Longer term if the model/statements are not proven to be false then this could rise back to $5 within a couple of quarters. The relentless short pounding on chinese stocks will eventually subside as there is little profit left on the short side and far greater risk of being caught in a squeeze.