China Growth Stocks

[ari5000]

ADY chart:



http://stockcharts.com/h-sc/ui?s=ADY&p=D&yr=0&mn=9&dy=0&id=p98895093674&a=185875539

came up on a value screen for me tonight.

It is intriguing. I'm being more and more drawn to these dogs... GIGM, GRVY... this makes three now. I'll watch it a little more closely.


most importantly, like CSR, this has a huge short interest ratio -- 15% for CSR -- more than that for ADY. These heavily shorted names seem to have their own patterns... very powerful down moves.

Looking back at CSR -- the telltale sign that it's gotten as low as it's going to go would be two back to back strong up days on decent vol. That would have gotten you into CSR at 5.60 with nothing but upside from there.

However, I'm not seeing positive Free Cash Flow when I run a DCF calculator. Are these guys really making money or are they messing with accounting to make it seem better? First thing I'd find out for sure is whether they are burning cash or not.