Drexion, UTA has gained credibility, but
still has no more than CCCL or GURE(and probably less) which sell at 2 PEs going forward. I would say, the stock is a buy below $3, but I wouldn't touch it above that. Right now, there is nothing that looks better than GURE for risk/reward. The fact that the CEO said he's selling no shares for 3 years, and then two days ago they took the shelf off the table means nothing less than greatly increased credibility, and much more likelyhood of the financing they need going through for Daying Project. Short interest is down 16% over from 4/31 to 6/31, and I have a feeling it will be down quite a bit from the 6/31 figure of 4.1M when they next post short numbers.
However at the same time R59 points out that put premium remain high for GURE, and finding shares to short is difficult. My problem with all this is, if you want to get paranoid, you could say- well CCME put premiums were sky high, and put acitivity was sky high, and shares to short were non existant with them, so GURE is likely is a fraud as well. Then again, the same kind of thinking when AERL declared a dividend just as CCME, would have cost you huge(75% profit if 3 weeks) in not playing AERL around $6 after their dividend announcement.
In other words, to say that so and so was true with CCME, LFT, or RINO, therefore similiar claims by companies today mean they're a fraud, is irrational. In fact I view it 180 degrees. That is, for companies today to use the same tactics as the frauds used months ago would be irrational, and makes no sense. I mean if I saw several guys next to me get caught for stealing over and over, why would I now steal ? Wouldn't I be infinitely less likely to try and get away with it now ? Now that's not to say that some of the remaining RTOs are not frauds, just that things are vastly different today than they were when the whole RTO fraud thing started.
I believe to make a lot of profits going forward, we need to hone in on the best risk/rewards, ie only with companies were short interest is tiny or at least decreasing, and where they are doing one thing after another to prove credibility ie GURE, LIWA, CCCL, and AERL.
There are no gimmies and it's a gamble, but what better place to be for huge gains IMO than the China RTO and IPO sector right now.
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