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U.S. China-based Stocks - Momentum Candidates that may Ride the Hype

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Update July 26, 2016

This week, low float U.S. listed China stocks (ChinaHybrids) such as SkyPeople Fruit Juice Inc. (SPU) continued to heat up.  We are currently cleaning up a list of low-floaters below that we published on December 1, 2015.  Since then there have been additional stocks that have undergone reverse splits, qualifying them for our list.  See our full update here.

Update December 1, 2015

The $KBIO and $EFUT hype are causing irrational moves in stocks similarly situated – low float stocks that market participants speculate are potential targets for large investors. To recap briefly, a couple of weeks ago, biotech investor/CEO Martin Shkreli took a significant position in defunct biotech KaloBios at prices near $1 – and on the news of him taking the position, the stock ran as high as over $40. Following that, U.S. listed China company, EFUT announced a major investor taking a large (~50% position) in their company via a 13D filing, sending the stock from about $8 per share to over $20 at one point.

Today, Acorn International, Inc. (NYSE:ATV) has exploded from the $2 range to over $19 after announcing a reverse split/share restructuring and providing a business update on its conference call. You can listen to the replay of that call here.

On the call, the company supplemented a presentation showing that the company will turn profitable in Q1 2016 and that it plans to sell real estate assets totaling about $40M.

Obviously, Geo isn’t going to comment on the legitimacy of what’s going on, but we are certainly on the lookout for other stocks with similar characteristics that investors could gravitate toward for short term opportunities.

Below is list of low float Chinese stocks that we believe could be prime candidates.

Do your own diligence, as we will. We’re starting by looking at companies with alleged low P/E’s and low P/B’s.

 

Equity Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional Disclosure(s): We may potentially execute short-term trades on some of the stocks listed, but we currently have no intentions of establish core positions for extended periods of time
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