SwingTrade Member Forum

[Rawnoc]

Going to short STV via PUTS for earnings tonight. Buried in their last Q report:

"The Company noted that its customers typically defer major purchasing decisions during the first quarter of each year as the result of a number of events that occur in that period. The annual meeting of the China Content Broadcasting Network, a major trade fair for the digital television, broadband and related industries usually takes place in March. Cable television network operators, as well as other companies in television and related industries, carefully observe and analyze this meeting for potential market trends. Additionally, Chinese Lunar New year falls in late January to early February of every year during which customers tend not to make major purchases As a result, the revenue generated in the first quarter of a year is usually lower than that of the preceding fourth quarter."

Smells like a HANS-type of warning. Low float, overvalued China tech POS.