well this one did the trick for me-i dumped my 900 shares as soon as i saw this news at a loss of $260 overall. Even if this is a hog wash or just a dirty trick for people to panic and sell theirs just before the earnings-i cannot wait and see my money tanking again like it did over past few weeks and then finally getting halted over an unknown period of time for no reason. I am done with small chinese caps!
Actually, this is something really good for the stock.
What it means is that these people that sold shares “naked” (they actually didn’t have the share and they were counting on get them “loaned” by someone else) and were unable to get the shares loaned are now going to be forced to buy the share at market price. This action is illegal, but is not until more than 13 days of not covering the stock you sold naked that the SEC is obligated to take action and force these shorts to buy the stock.
We should expect a “short squeeze” in the next days, which hopefully will propel the stock much higher.