When asked questions about labor costs, Zhongpin's investor relations whiz Mr. Song MAY have alluded, to the rising costs of personnel across all of China, but did so out of context ZHONGPIN as an individual company.
NOR did he advise that profits from HOGS activities would suffer any degradation at all arising from these costs.
The selloff this morning is an orchestrated short raid on the eve of option expiration tomorrow, and the inexperience of customer relations folks at HOGS who will, undoubtedly, come out with just an "out of context" statement later today.
I'm assuming someone can post this article in its entirety, in the meantime, I have been buying hand over fist this morning.
I don't have any qualms with manipulators, I bought back my covered calls I sold against my shares for a 100% profit--my breakeven buy point is now closer to $10 than $11.
I'm going to sit here "naked" until further notice, but this kind of manipulation of what is admittedly a very low volume player, is exactly why HOGS came out with buy back news last week--I suspect those guns are waiting for the normal 50% retracement of today's sell off, and then will pounce today and tomorrow come option expiration and drive the price in the mid 11's--around $11.50 or so.
It just takes a bit of guts to hang until they do, and then we're off to the races again, with a company that has a forward PE of 4 ish.
Think LONG TERM with HOGS. You can wait and see if the downward pressures continue or pick your in point, but one thing is for sure; THERE IS OVER 1.5 BILLION PEOPLE IN CHINA. Somebody has to feed them.