Replies to post #1008 on Jade Art Group Inc (JADA)

[Traderfan]

Value

Of course there is no doubt that if JADA continues to bring in numbers which are even close to Q3 the stock is still undervalued and certainly I didn't want to imply that I think the stock is now fairly valued which it is not if Q3 is any indication of future results.

And I agree with you there is a difference whether you are an investor or a trader. Personally I'm something in between. I would never advocate to sell out everything like you said. That's a bad idea in any case as long as you one thinks the company is undervalued. But between selling out everything and selling out 20% or 30% or whatever after a triple in just 3 weeks just before earnings come out there is a lot of difference.

It probably comes down to how much you believe in good numbers coming up. As you said China is doing great lately and I read that Jade prices were going up in the last few months so yes there might be a case for getting Q3 like numbers.

I can't assess the situation well enough to be so confident to go with all my shares into the earnings. Especially at these price levels. One shouldn't forget that the last time they came out with 8 cents a share the share price went to 1 and then went back to 30 cents over time. But right now we are already at 1 buck so that makes the risk reward ratio less attractive than at 40 cents obviously.

Of course you can make the case that this time the stock would go much higher if they do another 8 cents and that could very well be the case.

In any way good luck I know you guys are more long term investors so you will probably be happy anyway with the company and the stock over time as it has very good prospects.

[canric]

Well said guys. Just throw in my 2 cents.

I am a long term value player, so usually I will take profit only when the share price hits my target fair price.

Same time, I will take profit if stock price up a lot in very short term, like Jada case.

About Jada, I sold about 16% my position at .9 last Friday, I bot at high 30 cents. In my original plan, I would sell more, not my core shares though. But after rethink about it this weekend, I decide to hold all my left shares and will buy more if there is a correction.

we all know in last two weeks jada up nearly 300%.
One unique thing is the 3 highest vols were at .75 to .9 range. We know many guys took profit at this range. Who is the buyer? I doubt they are small fishes like me. Do they know something we small fishes do not know. I think so, since they are basically crying "sell to me, whatever price I will take it".

Jada is sitting on a Jade mountain. 1 buck is far below its fair value. Same time, Jada is a young company. It needs time to be mature. Long term, it will have a great future.

Short term, vols are telling me we may have some surprise ahead.

Just my 2 cents, enjoy weekend.