As the shorts sell down to create pessimism by borrowing a proxy excuse of impending war in Europe, a golden opportunity to buy cheap has been created!
Let’s do some maths!
If a shorter sells naked at usd3 with the hope that the company winds up eventually, at the most he will gain usd3 per share , right?
But unfortunately that will not happen as the company is debt free and businesses are running very well in China whether there is a war in Ukraine or not . Our customer base is 100% in China and the core business is in telecommunication products and services plus insurance which are all essential needs even at times of turbulence.
But once we announce the ever increasing quarterly revenue in April then July and October, there will be a glaring divergence of stock price and revenues!
When the dichotomy is so obvious , even the blind institutions would want a piece of this cake . That when it happens will trigger an avalanche !
Just to recapitulate….
We have 42 million shares and if the price is ONE USD and the annual earnings is estimated at only 42 million usd very conservatively then the PE RATIO becomes only 1. Too attractive not to be part of the company right?
When the price then escalates to stratospheric level say usd20 , the loss incurred on those naked shorts who sold at usd3 would then be Usd 17 per share
They would suffer unimaginable losses and may ( out of fear) join in the bandwagon to become buyers to cover their positions
Thus a short squeeze phenomenon is created and our celebration begins victoriously !
This day will come as we had experienced the monumental surge of 17ct to usd17 ( a hundred fold ) from April 2020 till January 2021 before!
That event which temporarily made us the best performing company in the world took place when we were not even in nasdaq and were not on such sound footing as now with regards to our fundamentals!
So the next time this happens , I guarantee and fervently believe it will not be a mere usd17
US market is thus this crazy roller coaster ride and the astute , courageous , insightful with foresight will see through the devious scheme of the naked shorts and not get beguiled by their poker face !
My advice is buy gradually on the way down without fear no matter how disappointing the scenario is in the interim period !
