I talked to the head of AMCF's IR firm today. He said that:
1. He has been to China and personally toured the facilities.
2. Has found the management to be straightforward and understated. He said that he was never asked to embellish anything.
3. The company was whipsawed by rapid movements in the underlying commodity prices. That could happen some more but oil seems to be settling down. It's not so much the price of oil but the volatility that caused the problems.
All these Chinese small caps have been beaten down for months. At some point the pressure will be relaxed (same as happened to board stocks in late 2008/early 2009).
Look at the numbers: you know it's not mathematically sustainable for the shorts. They have to pay to borrow shares and the downward pricing can't go on forever. There's no logical way a profitable company will get a P/E of 0.5 for any sustained period of time or even likely that it will get there.
The SEC has invited the Chinese regulators to meet in the States in October I believe. Something is going to be worked out, but by that workout date all the great deals will have been priced in. MS and GS are already starting to buy in.
Do what you will with respect to your trading, but always be award that trends run until they don't.
"buy volume" and "sell volume" are rather technical terms. They pertain, basically, to whether or not the transaction was initiated by a buyer or a seller. Generally, a transaction at the bid is considered a sell transaction and a transaction at the asked is considered a buy transaction. Sell transactions are considered bearish and buy transactions are considered bullish.
A fair or legitimate market would be one where the daily price rises when the buy volume is higher than the sell volume, and vice versa. An unfair, or rigged, market would be one that doesn't follow those patterns.
The poster was just saying that today's market for AMCF looked rigged.