Chaoda Modern Agriculture (CMGHF)

[RealDutch]

First day of trading.

Here's what I think will happen. The shorts will beat it down aggressively from $0.15 (HK$ 1.10) to $0.05 from the first minute. Why? Because it doesn't pay to cover at $0.15. And if the company doesn't have a plan... If you are 200M shares short why would you care to short another 50M shares.

And then everyone will go, look, the stock is down 70%, there must be something wrong.

Bottom line, I think we may have to wait a few days to get any kind of decent value.