Several visitors asked new picks, here are a few more:
ACTS - a technology company with PE of 8.4. Even yesterday went up, the up-trend probably will continue.
CHINA - What else can be more appropriate to buy a Chinese stock with a symbol of CHINA?
As you can see that from technical standpoint the stock market has broken out to the up side generating a buy signal. Once that happens the bears who shorted the market knew that they were wrong, now they have to deal with their mistakes. And their wrong short positions "burn" their portfolio, each day goes on they loss more money. Therefore, this is a very profitable period of time for longs. Any dip should be bought.
Smart money followers predicted this turn-around long before anybody else. So buckle up and enjoy the ride!
Mkt Swimmer
Thursday, September 27, 2007
Market Overview and China Picks
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4 comments:
Hi,
since you recommended this stock it went up about 10%. Not bad!. Unfortunately I didn't have enough confidence to buy it.
In particular i didn't get your point about the shorts. This stock just has a 2.81% of float short, does not seem much. Also the Put/Call ratio is quite small, so I don't see anyone betting against it before rallying. I'm missing something?.
Thanks.
http://www.shortsqueeze.com/index.php?symbol=ACTS&submit=+GO+
Shares Short 1,925,600
Days to Cover (Short Ratio) 10.2
Short % of Float 2.81 %
Shares Short - Prior 2,096,200
Short % Increase / Decrease -8.14 %
Squeeze RankingTM -11
% from 52-Wk HIGH ( 9.50 ) -52.98 %
% from 52-Wk LOW ( 4.50 ) 27.54 %
% from 200-Day MA ( 6.03 ) 2.90 %
% from 50-Day MA ( 4.86 ) 21.74 %
Price % Change (52-Wk) -39.50 %
Trading Volume - Today 3,136,229
Trading Volume - Average 189,700
Trading Volume Vs. Avg. 1653.26 %
Total Shares - Float 68,450,000
Total Shares - Outstanding 85,943,562
% Held by Insiders 1.72 %
% Held by Institutions 5.10 %
Market Cap 533,718,114
EPS 0.74
PE Ratio 6.90
Hi semsons,
The key here is the low PE of 8 or 9 after the jump. The industry average is ~20. Less discount this little unknown company a little, but it still is worth of 16. Therefore, I consider fair value of $16. For that I would buy am willing to hold for 6 month to get the targeted price.
On the other hand, the 2 millions shares sold short, in terms of %float does not sound a lot, but for this low volume trading stock, the short ratio is 10 days, which means we are in day 2 or 3, it will keep doing this for another week. If you hold 1 million short positions, every day you loss $1 million dollars, tell me what you would do?
Friend, the shorts got burnt, seriously, this is called short squeeze.
Have fun,
Mkt Swimmer
Thanks swimmer for your explanation. So the game for this stock is regression to the mean (low PE) and short squeeze.
Best.
Yes.
Regards,
Swimmer
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