China-Biotics, Inc. (CHBT)

[viking86]

it's kinda scary how things can change so fast within a day or two. The stock had a nice runup the whole week and suddenly bamm... 20% down on no real bad news. That chinese article doesnt raise really any serious issue that would justify such a selloff (although it's hard to understand the Google translation... Danisco, the Queen...the 3 big dairies not buying CHBT's products (what are they talking about? those guys were invited to the Investor Day and had nothing but good words for CHBT).

Rato's post said something about this stock being widely traded by Chinese who are concerned about CHBT's tax evasion with its SAIC filing... nothing really new here, Chinese should know about that tax issue better than any of us and CHBT is not the only chinese stock with that issue. So what the deal? Anyway, like most of you longs I lost 20% today on my commons and 40% on my Feb 17.5 calls. Hoefully will get some of that back pretty soon. Like you I hold a core position with the stock for the long haul (2-3 years at least) and try to trade a little with options.

Here is a copy of rato's post on CGS in case some of you has not seen it. Have a nice weekend for now!!

CHBT - That's just a translation. Of course there are weird terms. I talked to a chinese contact and he says the theme of the article is tax evasion and what CHBT's true tax liability is if the SEC earnings are true. He also said that he thinks chinese people trade this stock a lot, so I wouldn't assume that this is just hedge funds bolting or shorts adding or whatever else.