While it is true that CVVT is a great and solid company, caution is definitely required. The stock is going down for two reasons: 1) shorts are trying to make use of higher percentage of fraud found among Chinese small caps. Thus they want everyone to believe that CVVT is a fraud. Quite the contrary is true, CVVT has great relationships with Chinese govenment and of course is not a fraud. 2) Japanese disaster made the Chinese put nuclear projects on hold FOR NOW. Of course, nobody expects that China will turn its back on nuclear, but until the hold is lifted, these are the two strongs arguments for the shorts. So don't be surprised if the stock keeps plunging. However, if you are strong enough, you should rest assured that better days are coming. I wouldn't initiate a new position right now, but once the panic shorts-driven selling fades away, it will be the right time to load up the truck. So I rate the stock a "suspended" strong buy.
The only caution required is to be aware that illegal short-selling is happening. This short-selling began at the January sell-off when news of the related transaction with Abel Delight (Watts Technologies). Ever since, the shorts and the ambulance-chasing class-action plaintiffs' law firms have conspired to drive CVVT's stock price down to their mutual benefit. My guess is that some of the law firms and their clients have been doing the shorting. Hopefully, this will come out in discovery, assuming the attorneys aren't smart enough to grab an early settlement offer from the company. Yes, CVVT longs should be cautious- a bunch of low-life vultures masquerading as professional traders and attorneys have entered your world. It takes some guts to withstand their onslaught.
One of the reason I liked the last C.C. was the lack of any "pumping" from managment.
It's clear to anyone that follows the company the nuclear value business is going to be major revenue generator for CVVT (they are the ONLY Chinese company approved for value sales) yet during the C.C. they all but came out and stated their revenue estimates this year contained next to nothing for this side of the business. When asked why, they responded they wanted to be very conservative, and slowly get into this business.
So if management is really just a bunch of short term self serving pumpers looking for the quick buck, they are really bad at it.
As a side note, I don't encourage anyone to buy this thinking it will skyrocked tomorrow. Just the opposite is my opinion. You want a quick buck the odds are on the short side. I'm playing this weeks/months out, and claim no crystal ball where the bottom will be. I'm just comfortable with my own D.D. and not anyone elses (especially near sighted pumping analysts or short sided con artists).
Thanks for your view and opinion and no-pumping posts. I really appreciate honest, balanced and educated posts like yours. Its a rare on these boards. I am in the same boat and can only echo the same. We see the same pattern, sell off and slow comeback. I hope it will slow down or we will be trading in negative values next week. I also believe, that these guys do try to make things work and hope they will speed up the auditor pick.
this isn't all panic selling. Very real issue of changing margin needs (or need in the first place) as the chinese stocks have been hit really hard in the last few weeks. Was in that situation myself - had to trim portfolio due to unanticipated margin call. would rather be accumulating.