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China Green Agriculture, Inc. Message Board

  • KLZP KLZP Mar 29, 2010 10:46 PM Flag

    CGA Affected by CAGC Wednesday

    I believe CAGC will drop Wednesday after earnings announced. It seems that CGA rides the coat tails of CAGC. does anyone out there think CGA will also fall if CAGC dives?

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    • < It seems that CGA rides the coat tails of CAGC>
      Actually, CGA and YONG are more similar in movement than CGA and CAGC. CAGC broke off from the pack a few months back and has been running on irrational exuberance ever since. Here is a graphical representation of all three:

      You do raise a good point KLZP. Those who do not follow the warrants issue with CAGC or do not understand its implications (as demonstrated earlier this month after YONG’s annual results release), will probably feel an inordinate amount of fear tomorrow and will end up panicking. That panic could very well spill into CGA and YONG which in turn will open up some amazing opportunity to pick up some ridiculously cheap shares. Current PPS for CGA is very cheap already (no warrants issue either with CGA!) so any dip below current resistance level in CGA, stress the word 'any' any, will probably only last minutes if not seconds. There are plenty of investors, myself included, who will set limit buy orders tonight for CGA as in case a few tasty ducklings fall on the pond. Should be an interesting day tomorrow. Cheers! Stinky

      • 1 Reply to stinky_perro
      • KLZP - IMO, it looks like the short interest cushion is keeping CAGC from accelerating down. To us CGA investors, that means that a significant drop in CGA's PPS based on sector fear is now unlikely and thus an opportunity to snatch some super-cheap shares will not materialize. On the other hand, as CAGC drifts down in price, I suspect many CAGC holders will make the switch to CGA. For those that become disillusioned with the effect of warrants on a company's balance sheet (and I suspect there will be a lot of people disillusioned), I think CGA will be the obvious choice. With solid fundamentals and YoY growth rate of 42%, we should see a nice influx of new money into CGA company's stock. Cheers!

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