InvestorsHub Logo
Replies to #2834 on China Unlimited

RealDutch

01/07/15 4:16 AM

#2835 RE: axion-nl #2834

Couple of things to consider.

Insiders can't buy stock now, while in possession of material non-public info. Only once they release earnings for the 2nd half of 2014. The same applies for share buybacks.

They will do it in Hong Kong when trading resumes. The company can't repurchase stock on OTC Pink. Neither do I expect insiders to.

Book value will be close to $0.80/share. Last traded for $0.50. So even if it drops to 0.10, even if it drops to 0.05, I don't expect it to be down there for long. I think Hong Kong will value the stock at 0.20 or higher.

The shorts need to cover. There are about 140M shares short (reported on OTC). Are they really going to wait another month or 2 and see what happens? Even if they are planning another attack, it won't help them this time.

So, what I see is 0.20. Could be 0.30 but lets see the 2014 results first. Maybe I'm too optimistic and it will be 0.10. But I'm still very happy with that. I will just have a problem deciding whether to hold on or sell.

Is resumption a certainty? No, but we are close. Anyone who wants to buy the stock after trading resumes in HK will be too late.