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China XD Plastics Company Ltd. Message Board

  • joshzan4 joshzan4 Jul 31, 2014 2:34 PM Flag

    Thoughts/Outlook

    From what I see, stock bottomed at open today and is being WAY oversold in terms of RSI. Last wave of smart shorts squeezing all there is left to juice and are leaving the market. Remaining shorts are gambling on 2Q results, which seems dumb given the company's financial statement history. More likely shorts being greedy and banking on CXDC being a complete fraud/financial restatement. My prediction is that the stock hovers around this range/ticks up between shorts leaving/buyers playing 2Q results at a huge bargain. Let's hope for good Q2 results. But even then I think it's hard to see the huge breakout longs have been waiting for. I'm guessing a lot of buyers will be cautious given the pending lawsuits, SA article, recent drop etc... Stock will not fully recover until lawsuits are refuted and positive exposure on this company. Nonetheless, great value to buy right now. I got in a week and a half ago when I thought the last waves of shorts left, but I was wrong. Wish I waited to get in now but I predict CXDC will go up to mid $7's after 2Q results and continue to go up from there.

    Sentiment: Buy

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    • july 15 short volume according to NASDAQ. 2,186,632 That is a lot of shares short. most it's been in at least a year.

      Sentiment: Strong Buy

      • 2 Replies to rjanderson383
      • CXDC's short position is not much... as of 7/15/14 is only 2.2 mill shs... vs. about 47.8 mill shs o/s diluted... for a ratio of about 4.6%... but remember... the 2.2 mill shs is as of 7/15/14... the article alleging fraud came out on 7/7/14... it's quite possible the short position has gone up... something is driving the stock back up... up 9.9% today to $5.55/sh

      • Where did you find that info.? From what I see short volume was 13.73% of shares outstanding as of 7/15, making it larger then the number stated above (possibly greater from the drop we've seen in the last 3 days?) Still a lot of shorts need to cover vs. average volume being seen. I should've said first wave of shorts leaving* seeing the low volume gain today. Maybe a short squeeze in the coming days? Can't see this thing going any further down until earnings.. Either that or a few large buyers entering into the market. Approximately a quarter of the volume was seen today within a 15 min. span this morning. My post 2Q results may be conservative.

 
CXDC
5.78+0.06(+1.05%)Aug 31 4:00 PMEDT