I can now add that the daily short volume was 78% yesterday which given the total volume and price movement indicates that possibly another short was covering.
southernred, I actually agree with your statement about trading this stock short term and that is what I normally do with all stocks I trade except in certain cases I retain a core position in addition to trading it and eventually reduce the core at higher prices. But sometimes as has been the case with GURE I have held the core for much longer than I had expected. My GURE holding has fluctuated between 30 to 130K but I never felt that the price was high enough to liquidate the core as I have done in numerous other cases where I held a significant position and this action is primarily due to my theory concerning a merger/buyout. None of the stocks I normally trade which are primarily manipulated and/or distressed stocks are really worthy of holding long term. Concerning your other remark, you know that in cases of multi-interest entrepreneur or conglomerates it is not unusual to engage in such a borrowing and it does also happen in the U.S. Not collecting interest is of a greater significance but the management has consistently claimed that they are planning an acquisition. You are correct in saying that most posters are unanimously negative about this management for various reasons. That judgment is based on the management's proven record of failing its fiduciary responsibility and some think fraudulent or suspicious behavior. Actions speak louder than words and you cannot sustain a lie for ever. Even the once more optimistic shareholders can no longer be fooled with false promises and see this management for what it is.
conover, what we see for most trading days is mickey mouse trading with hardly much bought or sold and a tight control on the price by the market makers. When we got volume few days ago when we hit $2.10 it was because a short was covering (or market maker was shorting to hold back the price) but the price was suppressed again since over 55,000 volume hardly moved the price. Today's volume hardly made a dent in the price either. This is unusual for this company (based on OINK price and volume history). The price is held back for a reason which in the past this reason was the new issues which were sold at what was claimed to be a premium (market price $1.93 while issue price $2.20; and market price $2.00 while issue price $2.40). So I expect a spike either just before or on the day of news release which I think is forthcoming. The news may involve capital injection or another acquisition using company shares and cash which shall reveal more about the share value possibly at much higher than the current price. At any rate, we should see nice price appreciation by the time of the earnings report.
gocots, there is always risk involved in holding stocks, including fraud and unforeseen events about which we had absolutely no clue and no research can uncover. Remember Enron and numerous other overvalued U.S. tech companies of early 2000 and net bubble? I don't claim to have the sure answer but what I am stating is the most reasonable and reasoned scenario for which I have put a significant amount of my own funds at risk. Whether the CEO or the Chairman Ming Yang is the main culprit is irrelevant as they are all part and parcel of the same gang inside and outside of the company working in tandem to profit from a cheap buyout as well as the continued manipulation of the stock price. You are also wrong to presume that previously the Chairman or anyone else directly attempted to promote the company or help to lift the price. If you are referring to their past declarations, letter to the shareholders, etc., I consider them as hot air and amongst the best evidence of their failure to do anything. When and where has this management taken a single step to fulfill its fiduciary responsibility? Isn't true that over the years many shareholders have incurred heavy losses relying on their false promises of building value? I entered this game at $1.03 and $1.08 with several profitable round trips and the current price is still above my $1.3867 average, but there were and still are many faithful shareholders who paid well over $4.00 and robbed of their hard earned money. What has this management done to protect their investment? In return they got a "letter to the shareholders" and false promises. If it quacks like a duck and walks like a duck, it is a duck. How else do you recognize cro-oks attempting a "legal" swindle?
conover, I have several posts on this subject. Other than what was released by the CEO and in their SEC filings, there is no financial information or history or performance of these acquired private entities. But the forthcoming 10-Q and certainly the annual report should provide much more information.
gocolt, what you are saying about the funds is nearly impossible unless the bank is also involved in a conspiracy. Various entities cannot claim the same cash deposit without the bank's involvement and that is the only way a less than competent auditor is fooled to verify the cash in an audit before it is signed. Of course, there are bashers or company shills that claim that the bank is also involved in this conspiracy or some even claim that the Chinese President and the Communist Party is leading a conspiracy to swindle the American shareholders. The reason the company is not doing anything to protect its shares and shareholders is obvious to me. The cro-oked CEO and his associates want a low price for their long planned merger/buyout on the cheap. If that is the case, then they have _absolutely no to reason or incentive to help to raise the price. On the contrary, the lower the price the better is their position to have a buyout offer accepted and approved by the tired and discouraged shareholders. They are in fact responsible for the depressed price, not merely by not fulfilling their fiduciary responsibility, but also by having their associates actively manipulate and recycle the stock and their hired bashers bashing the stock and perpetuating this myth about the missing cash, bank conspiracy, and multiple claims to the cash for which they provide not a shred of evidence. But regardless of what they do the price cannot be below $3.00 or the cash per share value. That is why they want you to believe that the cash does not exist and a price equivalent or higher than the cash value cannot be paid. I don't claim to know the absolute truth as the phony bashers like Detective Egghead and His shadows who are actually hired shills continually claim, but what I am saying is not strange or incomprehensible when we know that there are other Chinese companies which have gone the same route and cheated their shareholders. GURE will not be the first nor the last.
According to the October 7, SEC filing announcing the annual meeting on October 31, Ping & Li hold over 45% of the shares. Through their alliance they effectively control the company and are therefore well positioned to implement the new growth strategy through acquiring additional high growth companies as subsidiaries of ABAC. I think some of these, if not all of them, are private enterprises belonging to Ping Wang and his associates. I expect more acquisitions using a combination of cash and company shares, but I also see the possibility of additional capital injection through purchasing of company shares which I hope is purchased by unrelated investors.
for the Director Mo Zihui according to October 7, SEC filing. All the options so far have been at $2.50 which is very telling as to where they expect the price to go.
No there is no scientific antique index which is badly needed. There are several sources that have an index for the sales they reported which is not based on a scientific sample of the broader market and average sale prices.
I also bought yesterday at $2.04 and $2.00. Most these price movements are with very little volume in a funny mickey mouse trading where the bid and ask offers are often withdrawn or moved up and down frequently. Perhaps the contenders are more interested in showing their teeth and barking at each other rather than real trading.
It is trading at the bottom of its range when it had poor performance but has now just reported positive earnings, but liquidation into the earnings spike brought it down. Selling is now over or it appears to be the case. Good stock to accumulate. Will spike soon especially with another positive earnings.
No need for the tip. I am buying more shares of PME and I never trade IPOs, but I got 2000 shares of Yahoo at $36.10
Agree. It is actually under very deliberate tight control. Over 55,000 shares have hardly moved the price and it has been pretty much the same past several trading days which they kept in red by shorting until the very last minutes. So I expect big news.
He is a stubborn and determined buyer clearing out as many cheap shares as he can get. News must be forthcoming. Interested to know how much is paid for the new shares this time.