Thanks for the info montecher. Agreed. A long term investor should think in terms of $8.00 or better. The key word for Pington Marine is Xuechu He. Check it out and follow the Fat Cats.
Using standard investment valuation criteria such as book value, cash per share, earnings, etc are misleading yardsticks in case of highly manipulated stock. This type of information is necessary so you don't select a bad stock but not sufficient to select a good stock. Many profitable Chinese stocks are trading at a fraction of their book value and some below their cash per share value. In case of highly manipulated stocks the trading behavior is just as important as the standard investment criteria. You must consider both not only in selecting the stock but also determining the entry level. Otherwise you will be highly disappointed and in your state of bewilderment and confusion fail to understand the nature of price movements for a highly manipulated stocks. If you understand the trading behavior you must also understand that you must buy the stock when it is highly depressed and _while the price is going down. If you don't understand this aspect you are left with lots of pain and suffering while the price is dropping; whereas if you understand it, you welcome it with great joy and add more shares. Then you conquer fear when and where fear dominates. Of course, you could be wrong as there are no guarantees and I have been humbled and humiliated by the market many times in the past, but if you do your homework and are mentally prepared for the onslaught, then the odds are always in your favor. If you want to rely on only the standard investment criteria, then you should not trade this type of stock.
But they are required to file a SEC form unless they are small holders but the volume in case of this selling does not indicate a small holder selling shares. You state:
"When the company or Chairman has inside knowledge of going private, and buys shares near to the date of the new offer, they could be subject to class action legal issues."
Legally this is correct but his associates and friends can and are buying shares. This is how it is done and it is not limited to Chinese stocks. They recycle the stock using one or more offshore accounts and reduce the price while their associates are buying those shares. It is done all the time especially in cases of organized short action, capital injection, and merger/buyouts.
They will try to buy it on the cheap but can't offer less than $3.00 without getting into trouble especially in the light of their previous offer which had an over $3.00 proviso. But the lower they get it they force more selling and get more shares cheaply and less minority shares left to deal with.
Maybe it was just a good vacation opportunity. I had many of them in the old days when you could go nearly anywhere on a business trip with no questions asked and all expenses paid. That was before Uncle Sam and companies tightened the restrictions. I miss all those exotic business trips and free lunch and dinners I had at fancy restaurants. I recall one dinner for 6 with a $8,500 bill which was outrageous in those days. We got asked about it but still no hassle. In this case I hope our executives had lots of fun but didn't get cleaned out gambling with our money :)
Clever? This one sounds more stupid than the one who was scaring the shareholders about J. Lebed doing a pump and dump job.
It will drive it towards us nickolus. I got a bid at $1.88 and I hope it gets hit especially if bufordshinghway is forced to sell as he indicates. Of course, I am certain you know that there is no universal rule for institutions selling a stock when it goes below a certain price, whether $5.00 or $2.00. Some actually specialize in trading penny stocks. But if going below $2.00 will get rid of some institutions then that reveals even more about our crooked CEO and his associates. A buyout on the cheap without institutions is much easier. So getting this down on low volume gets him two birds with one stone. At this stage all selling is at a loss and although the volume has died down several hundred thousand shares were sold at a loss and since there is no trace of it I can confidently assume that there were no institutions selling so far. If they begin selling we shall then be able to pick up some shares at bargain give away prices. I welcome that.
I expected CGA to show a short term lift just based on GRO performance. But I considered GRO turn around a much better opportunity and will be accumulating it now on a longer term basis. Of course, its trading behavior has nothing to do with performance. It is a highly manipulated stock and as to why? I am now leaning more in the direction of a merger/buyout.
Agreed. So far no forward move at all. But we know that the conditions and prospects have changed. So it will be moving forward and upward. I am betting on it by adding more shares with nice dips.
Agree. It is now going lower than when the first buyout offer was proposed and in the light of positive earnings the only reason for this trading behavior is another buyout offer. Like you said it has to be over $3.00, I think well over $3.00. So I will be adding more shares on Monday if the take it lower.
Most of the stocks on which I have made mega profits are not followed by Morningstar. If you trade based on what Morningstar does you could lose lots of money. Learn how to become a self-reliant investor.
Nice to see you posting again montecker. I don't think CCCL will go below $1.00 but if it does it is a fantastic buy. It will also force the CEO to take measures such as larger dividend and stock repurchase. I think we just saw the reversal in ABAC. We may get news soon. GRO is a highly manipulated stock but their great turn around and profits reported today will take it up. It could go down before it goes up as it trades crazy. GRO is a Chinese company but most of their assets and source of revenue is outside China. I played it as a swing trade but after today's report it is much more attractive and I added more shares though I had already sold about half of my position just before the report at $1.39 and $1.44.
conover, CCCL got screwed by its CEO mainly because of his incompetence, but conditions have changed and it is now trading just above $1.00. It is a strong buy at this price and I have averaged down by buying 30,000 shares from $0.80 up to $1.04. My original holding was at an average of around $1.60. I hold a very significant position in CCCL similar to ABAC.
You are so stupid that you don't even know that no stock ever goes down to zero. This baby is going to fly. If you watch carefully you may learn something.
I know all about PGG Wrightson. Be patient. I will pay off. When they manipulate a stock this way it is actually to our advantage. I might actually buy more shares if it goes down.
bu I got 2000 shares of BYDDF at $5.50. Planned to buy more but got my cash put in other Chinese stocks by adding shares of ABAC, PME, ZX, CCCL, and GURE and BORN which had fallen. Maybe that was the wrong move :)