Hmmm. That worked. I have been in ZSTN for over a year. Didn't mean to be, but I just can't get myself to sell a stock with a low PE growing at outrageous rates. There are a lot of bashers here and not once have they posted credible information. A year ago the concern was negative cash flow. Well, if you loan a set top box for a 6 month trial period, then it is correct to count it as negative cash flow. After 6 months, you suddenly realize either positive cash flow or increased inventory when the box is returned. Same thing happens here in the states.
I am also in emerging markets funds, which have been going down lately. Headlines point out that people want safety and are moving their money to US markets. BS! People are chasing momentum and right now US markets are going up and are fully valued. Emerging markets are undervalued, especially China. China is raising interest rates become of a real estate bubble, but their stock market is dirt cheap. ZSTN isn't the only Chinese stock with a low PE, there are many. I would be afraid of Chinese stocks with a high PE.
Technically the shorting increased in early January when ZSTN was already headed down. It only dropped a dollar. The smart shorts got out there. ZSTN was already rising into earnings and gapped up on earnings day. I expect it to fill the gap between 6.5 and 7.0 before resuming its climb, where I plan to buy more. This company is uniquely Chinese. Although they've limited themselves to Henpen Provence, there's nothing to stop them from selling to other provences once they have proven success.