Guy frof San FRan says $36 bucks cuz its a short squeeze
#1 only 45K shares were short ahead of the news. #2 If there are an new shorts the are in the gree as longs are in the red. As of the close, this POS was trading below the Volume Weighted Average. #3 The CEO said that the move was unwarranted. He was to stupid to just say we don't comment on stock activity. The Street is now going to punish this POS tomorrow.
I am not in this stock, but you don't understand how the game is played. So take this as advice, not as criticism.
There was clearly shares being shorted by those in the know long ago. These shares were fully covered and the stock took off after short-interest disappeared. Those same short sellers that came in during the 2011 debacle in Chinese small-caps are probably those same ones coming in the night to steal this one cheap while the lights are off. No more..., it has awoken. This is the end of a downtrend as evidenced by volume and market-surprise. It will be interesting to see if investors who don't understand the game start to enter in on the short side - at that point it will be an interesting potential buying op after a 33% retracement or so.
If the CEO wants to help his buddies accumulate more, he'll obviously sack the enthusiasm to allow further price reduction before the next surge of volume.
Some of these stocks went way too low and entered absurd valuation territory - this is just phase one of a catch up. If you wait for the turnaround, your 1 year too late in current markets. Insiders within the industry know long before you do, so you just have to pick apart whether the buying is legitimate or manipulative. I believe this stock shows the pattern of legitimate buying by those in the know...
Efuture looks to be next... I don't want to make it happen myself, but it's horrendously under-exposed - but it is the long-term winner in the small cap Chinese space.
I truly don't wish to be the messenger, as I hate manipulation, but I expect those who buy at these prices may see some some immediate and long-term returns with all the craziness going on in this sector right now.