China BAK Battery, Inc. (CBAK)

[Ecomike]

CBAK stock holders equity is around $2/share. They can't keep it down for ever. They spent $2 million on R&D which was equal to their net earnings loss, so they are at break even before R&D expense, and they are deducting R&D as an expense (not capitalizing it), so it is a no brainer over sold stock here. Losses have been steadily heading to zero last 8 quarters, and the next quarter may show a small profit, and the next quarter after that could be gang busters. They cleaned out old inventory, took the losses already, same for bad debts, so they should be lean and mean now, and EV Li-ion battery sales (bikes, scooters....) were PR'd recently as taking off vertically. And if SAMSUNG announces an order soon, boom!

Margin for shorts changes big time below versus above $1, so this will be the battle line at $1/share.