Replies to post #12669 on First China Pharmaceutical Group Inc (fka FCPG)

[Chargers Beat Writer]

I don't mind it. The daily price before the financials comes out means nothing. I have a couple other stocks performing well. Before FCPG financials come out, I hope one of them breaks out to give me the cash to add to my position at shorter's expense.

[1dmg1]

There are numerous views on how / why the trading activity takes place with Fcpg. Let's be honest, the volume doesn't indicate any great interest in the company and that's totally understandable. The reasons are obvious and documented. The little bit of activity we see, IMO, is a few longs buying in to average down slightly with discretionary funds hoping the ship will come back to shore. Admittedly, I'm one of those buyers. The balance we see traded, is naked shorting, not your traditional 'shorting' as defined by the SEC. There is a difference, and the SEC has virtually no control over it though they have dictated position papers abhorring it. If one takes the time to look up the definitions of the two there is a distinct difference. Best guess is you have a couple of mm's throwing a hook out to see if and when a fish might bite. By keeping the pps around current levels, when the damn bursts, the mm's who have been accumulating a few hundred thousand shares at low pps will be rewarded handsomely. Rest assured they are not spending large amounts of cash betting on a big victory. Until buying pressure is applied via release of financials, we are going to sit where we are. The decision to buy additional shares is an individual one, measuring the risk / reward ratio with dollars you can afford to lose. With the dialogue presented in their research, Novice and CBW, indicate that behind the scenes there is evidence of progress being made on numerous fronts. Again this be interpreted totally wrong, but I don't that's the case. Wang is determined to do it his way, and closed every door surrounding him that can lend insight, if even a small piece of information. Marcum can't force the issue, it's not there business. The fact that Marcum is probably on standby as statutory auditory agent, and have not legally separated their association with Fcpg, bodes well to this date. If that were to change and Marcum resigns, game over. But they haven't, and only IMO, they must see some positive(s). Plenty of upside for Marcum if everything works out well. I see the next few months where Wang will have to declare publically his intentions. January 2015 is a proverbial do nothing month in the PRC, but history in the pharma industry suggests that more scripts are written in the down time than in the usual day to day business activity. The population simply has more time to tend to their medical needs, it's as simple as that, and not unique to the PRC. The private equity holders are becoming more restless, and whomever has been privately funding the subsidiary to expand, hire and build, won't wait much longer to see results. It's a pressure cooker for everyone and Wang is the last one out the door. The question that remains, and the only question, is if Wang leaves the door open or closed. David