Replies to post #1338 on Jade Art Group Inc (JADA)

[value1008]

Witty, i have to disagree with you that "JADA's rise of late [is] without basis in its fundamentals." Yes, there has been no news and no filing (yet) of the 10-K.

But the broader fundamentals (no debt, cash on hand, high profit margins, high inside ownership, etc.), along with the very nice Q3 results and, last but not least, the higher prices that JADA is evidently getting for selling its jadeite in recent quarters-- all suggest that this stock should easily be trading over $1 on a trailing P/E of about 5 and a forward P/E of about 3.3, based on conservatively estimated 2009 EPS (0.19-0.20) and 2010 EPS (0.33).

So we would likely do better to view this pps move, not so much as a "rise," but as a "rebound from irrationally pessimistic, oversold levels." I.e., it made no sense whatsoever for JADA to be selling in the 30-50 cent level at a forward P/E of 1 or 1.5 based on likely 2010 EPS of 0.33 (a conservative figure).

I do agree with you that we may see more profit taking than might normally be expected on a company with such excellent fundamentals, given recent moves since Feb. 1 by the Big Seller/Manipulator.