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value1008

10/22/10 9:55 AM

#3076 RE: phillyfury #3073

Philly, the frustration over JADA's pps not rising is shared by investors in many other U.S.-listed China microcaps. Many of the more established smallcaps are the first to recover with the markets deciding that the risk trade is back on. Most of the microcaps, as Researcher59 has shown at the main CGS board, are still lagging at this point. Most of us, i presume, believe that the microcaps will eventually come up to fairer valuation. There was a lot of damage to sentiment in the attack on reverse merger China stocks by the Herb Greenberg / Bill Alpert ("ol' friends of Cramer") mugging this summer. Lots of casualties, including JADA. I think all of this will blow over and be forgotten as new investors eventually begin to pour into the China space, seeing all these ridiculously low P/E valuations, the profitable earnings, great margins, etc. Therefore, for a time, JADA might wind up being a "slow grower" in our garden of China stocks, but grow it will, adding cash to the balance sheet every quarter, and an increasing number of value investors will recognize this. I'm heartened by the buys outnumbering sells in recent days on relatively high volume, even though the market makers dropped the price.