lowtrade

[lowtrade]

Doing some home work tonight and found this one. SIAF A OTC China food company, which just closed large $33 mil funding deal 25% discounted, 10.5% interest for 5 1/2 years. With conversion rights only, way out at Oct. 2015 for $1.00. No common issued. Non toxic funding. Ps; large functioning company. Not mom & pop.

This will be interesting to watch and see what happens. First it gaped open to .53 from .46 (20%) then huge volume during the day, while hovering high, as being bought. (volume came in) This action is just NOT how pennylanders play. So Who's buying that open pop and why.

There were 8 mil debit conversion issued/reported June 30 2014, from .40 to .45. Wondering if that debit was with the same VC as the new $33 mil deal. At any rate Fridays 3 mil volume wasn't any retail herd action. NO price increase after gap open. NO emotion for a retail herd mentality to get hooked on. Plus odds are any pennylander which read the funding PR had no idea this funding was non toxic. And first thought into their head was dilution, BAD. So how many pennylanders do you think jumped in up 20%, during stall all day, on good funding news. IMO zero. Friday was accumulation by knowledgeable investors. And how many knowledgeable investors follow pennyland China food companies. Only those involved with the company.

So IMO has to be VC with 8 mil, or insiders loading and causing attention for next wave up possible. Only a big guy / M&M relationship can gap price 20% on pennyland funding news.

This one will be interesting ! And high risk. If my tin foil hat guess is correct, there should be 3 mil & 8 mil dumped into a run. How that run plays out is the risk. I'd only day trade this one.

Ps; the chart is wrong, there was no long candle tail below. It opened @ .53 popped to .59 in 10 minutes and walked down to .55 all day.

http://stockcharts.com/h-sc/ui?s=SIAF&p=D&yr=0&mn=3&dy=0&id=p19932320561