SORL- If it goes down below $6 next week,
then I believe there is something wrong fundamentally with the company. Back in 2011, the PEs on my China frauds were all around 3-4 going forward. If SORL goes below $6, it will enter into a PE going forward in the 3s. I believe at that point, investors will be saying they don't trust the company or their prospects. Back in May, when the stock went to $9.50 or so, it was around a PE of 7-8 going forward after the super $.36 Mar qtr. You've got to wonder why after the blockbuster Sept qtr that beat expectations by 140%, and guidance which beat analysts opinions by 20%, the stock went down substantially since earnings day. Now it could be simply that earnings leaked to some, and those people got out on the earnings spike. Hopefully that will prove to be the case, and the stock will rally to at least a 5-6 PE going forward. If not, investors that got in on earnings day could be screwed(me included).
