Zeev's Turnips Patch-No Politics (ZEEV)

[fabian]

An early heads up:

Just posted this to Fly's site [comment section] after he went on a long rant about shorts targeting China Small Caps.
His piece titled "What's Wrong With a Little Lie".
http://ibankcoin.com/flyblog/2011/01/27/whats-wrong-with-a-little-lie/


"Fabian says:
January 27, 2011 at 7:01 pm
Potentialy major opportunity:
I’ve owned these China names for years [long termer] and made a lot of money but have gotten hammered on stories of alleged fraud this past 6 mo. [not all are untrue but most are]
The abuse will continue until it no longer is profitable for the shorts. So far it has been an extremely lucrative game for them.
2 hours ago, before Fly’s piece, it hit me what might make it stop and when. [It won't be the SEC doing it's job and great engs reports have not been doing it]
One of the stocks I own is China Media Express CCME. It was up 16.7% today on 333% of normal vol. High short position [see todays story-Yahoo News] and previous target of a hatchet job.
The stock gapped up and continued up from there without pullback right into the close. High vol. the whole way. Closed near it’s all time high. [no company news].
Had the Hallmark of the start of a short sqeeze. [If so, this stock could run a long ways fast given its growth, valuation, and short position]
We think it is possible the legit China small cap stocks will increasingly see short sqeezes.
This may become a new game for momentum traders who will then be looking to target [long] the next potential China bogus fraud claim/high short position stock. .
That is what Fly is-has been looking for in BORN. It may or may not happen soon with BORN but watch CCME especially at this time.
If this is the start of a huge short sqeeze with wild upside action, it’s quite possible the game of raid the shorts has begun. If so, there are dozens of China small fries that seem legit but have a high short position [and low valuation].
While one can not say for sure by one days action in one stock, keep a close eye on CCME or any other China Tot that appears to be getting the upside sqeeze.
Why??
You will then increasingly see a snowball rolling downhill effect gathering momentum and upside action more furious and fast than any seen for any other group this last year.
The whole group is a dry box of tinder waiting for some spark to get the momentum traders flooding in.
A potential bull raid on the bear shorts like you have not seen in a long time.

We’re talking about 50% to 100% moves in 10 trading days or less.

You want to be in on that and in at the start of the move, so keep your eyes peeled"

We do want to stress...this is a heads up from just one days action in one stock. May or may not be the start of something but being prepared and watching for a specific situation to start to develop is half the battle to making serious money.
Fabian