China Growth Stocks

[ratobranco]

Not sure, but the real question we need to be asking is, how can we profit from the terrorism? I think there are excellent ways to use the China RTO space, and also the dubious IPO space, as a portfolio hedge for the coming market downturn.

At the present time, it's impossible for these stocks to do anything but go down. With a few exceptions, you probably will never again see institutions touch them, they won't even be allowed to, given the taint of the "reverse merger" concept. Institutions are what drive stock rallies. So those banking on a rally (who have been banking on a rally for 6 months now) can fugghettaboutit IMO.

The basic confidence and trust necessary for the "stock trading game" to work has been broken--in my opinion, beyond the point of repair. I just can't see how it will stop being profitable for shorts to squash bounces in these names. And if it continues to be profitable, why will it stop? And if it doesn't stop, who is going to want to keep playing the long side, only to lose more and more money?

When shorts start getting things wrong in a definitive manner, that is when we need to go long this space. We obviously aren't there yet. Not even close. MW is a perfect 4 for 4. Citron is like 5 for 5. Geo is like 7 for 7.

People ridiculed my 95% fraud claim, but I think that claim may have been too lenient. I say 5% to be reasonable and not incite a CGS riot, but 5% of 300 companies is 15 companies. I can't find 15 legit companies in the RTO space. Can you? Maybe two or three, and even then I'm uncomfortable.