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Highpower International, Inc. Message Board

  • david.wiggins david.wiggins May 13, 2014 12:30 PM Flag

    Why the sell off?

    Earnings report seemed solid. Opinions?

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    • Guidance was positive but the year-over-year loss widened for the QTR. People didn't seem to care that the widened loss was from non-cash-related stock awards and R&D. That said, given the pattern yesterday it looks like folks had stop-loss points set and they triggered a cascade, which is easy in a low-volume stock. Given the volume traded during the big sell-off, it doesn't appear that many people were selling, just a few 20K types. The rest of the day it was pulling back up, which further supports the stop-loss order hypothesis. Not a broad sell-off... it will be back.

    • Because it reported a net loss for the quarter. So far its gross margin has been low-this industry has been a low gross margin business. And its business is very much highly leveraged-the current ratio is less than 1 at the quarter end and the short-term loan and notes payable have to be rolled over and interest rate is a real risk. Putting aside all these risks, the growth of Li-ion battery business has been significant and the management has been working for a substantial growth business down the road.

      • 1 Reply to o_xia
      • I agree with all on this thread. The up and coming events will be a good thing for investors to see what this co is all about. Some may not be that aware. Many will see a very good opp at a low pps, a very low float and avery low OS which boads will with high demand on the buying volume. I strongly also believe in the cascade effect on the stops. I have seen it many times. I don't use stop losses.

        Even the big dog who was once a huge short for goldman says ""do not'' use stop losses they only aide the short sellers as they can see all the stop orders and create just what we saw in taking them out. IMHO I am with a buy rating long term - 6-12 mo tgt 8.50/10.00. We'll see.

 
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