Replies to post #61372 on China Growth Stocks

[ratobranco]

SGZH - agreed. This is an OTC stock, so they aren't going to get the kind of institutional play that a PUDA or LLEN might get. It would be very easy to buy this one at the 6.90 ask, then watch the stock move back down to 6.00 over the next few weeks as nothing further is heard from the company.

You want to buy this name when it is quiet, not right now, a day after an earnings PR. That way, you get more price protection. It may be needed, as these guys have a solid record of talking heavy and then all-of-a-sudden surprising to the downside. JMO.

With that said, 2morrow is right that they may finally be turning things around.

[Rames]

SGZH - true, they are not cheaper than the average small cap China stock, however when compared to PUDA or LLEN they look very good. The big trigger for me was the excellent Q3 when their "brokerage business" brought in great results and the mine was still closed. If they can repeat that in the next few quarters then the $1.30 is far too low.