There is an interesting article in this weekends Barron's concerning the SEC's investigation of Chinese listed companies. I think what will happen, is that exchanges here in America will de-list a lot of these problematic companies. Just an opinion!! Now onto good old HOGS!! As I am long a boatload of these shares at all different prices, I am slowly being convinced that rather than cutting my losses, I am just being plain pig-headed (get it??). There are many Nasdaq listed Chinese companies with the same projected earnings, and they also are trading at unbelievable low multiples. There is something not right, and if these are all shams, then China will have done more damage to our country, than Dodd-Frank!! Why do we put more emphasis on some pork products being sold out of a store-front, than the new processing facilities being constructed all around China by HOGS?? Arent there pictures of these plants for validity reasons?? What has happened to the buy-back?? If the earning projections are correct, buying shares down here, are a gift!! Hopefully, we are just caught up with the bad press, and after the earnings are released in early November, we will have some clarity??
lawwman, why do longs so easily fall for the short line that when a stock goes down it's a problematic company rather than a problem with the way the stock is being manipulated in the market ? How can a company be problematic if there are just allegations and innuendo and no proof ?
American investors should not be denied the opportunity to invest in very cheap fast growing companies because government pressures exchanges to delist in an effort to " protect ". The only ones they'll be protecting are short sellers who have instigated inquiries and investigations in an effort to destroy share value so they can profit.
" Why do we put more emphasis on some pork products being sold out of a store-front, than the new processing facilities being constructed all around China by HOGS?? "
Because shorts don't want you to focus on the big picture but rather some inconsequential notion they've dreamed up which may appeal to certain of our prejudices.
The next earnings will give us a snapshot in time of how HOGS is progressing. Ideally it will be good news but it is unrealistic to expect every report to beat our expectations. The only investments which deliver predictably positive results through every time period are of the Bernie Madoff type and we now how that ends.
Its a self-fullfiling prophecy!! Most investors cannot bring themselves to take a loss, so they need to find someone to blame it on!! The easiest excuse now are the "shorties"!! Its easy enough to follow the short interest in a stock to see if indeed it has a growing amount, but right now, Chinese stocks are truly out of favor! They are like any group that has lost a following, so we have to wait for the pendulum to swing our way again. As long as the company is real, and has a business plan, and can provide guidance, we should be okay!!