JRJC

[David Randolph]

As you're probably aware many Chinese stocks are entering a bubble like territory, and that is a worrisome development, because speculative bubbles often signal the end of a long term bull market. I think/hope that this bubble will pop fast, not getting large enough to upset the global economic stability, specifically China's economy.

Of course, in bubble land everything is possible. For example, BIDU now trades at what, 130 times earnings? But this company is very profitable and its revenues are growing extremely fast, so at least there's a plausible excuse for the valuation.

But as I look at JRJC, which isn't much more than a www.3stocksonfire.org in China ... being valued at $708 M, still not counting with the new shares on the pipeline ... I think its valuation is really insane.

Anyway, this isn't, by itself, a cause to sell the stock short, also because I don't see much long term benefit from shorting stocks. But StockLemon wrote an article yesterday which could very well be the trigger for a 30% to 50% quick correction:

Citron Research warns on JRJC

This stock is extremely liquid, as it traded 17 million shares yesterday. The company issued 2008 guidance which made me laugh, it's so obvious they did that to sell the 5 million shares registered the night before. Ah, these crooks.

My plan is to capture a quick 20% profit selling JRJC short at the open. As I look to the chart and the lack of fundamental sustainability, I believe this is almost as cash in the pocket.

The Trading Plan is:

Sell JRJC short around the open, 6.66% of capital as always (ONLY if the open is not down more than 5%). Take a 20% profit if you get the chance and never look at JRJC again.

[realcoolhead]

Not shortable at IB 

[David Randolph]

Not shortable at IB 

That's strange realcoolhead. If you're willing to call the broker I'm sure you'll be able to short it, many times the shortable list isn't updated. The stock traded 17 million shares yesterday, probably many people at IB are holding shares which can be lend.

[trexkerry]

I use IB too and cannot short - their message says that they are looking for shares.  I'll give them a call if I don't have my order filled in an hour or so.

[kpunarc]

i use scottrade and i can't short. 10 min day chart is showing incredible weakness. It's having too much hard time sustaining where it's at...

This is going to be an interesting day for JRJC...

[berloga]

TDAmeritrade claims they are out of shares too... David, can I sell some of yours? 

[realcoolhead]

He does not have either. 

TDAmeritrade claims they are out of shares too... David, can I sell some of yours? 

[David Randolph]

I see almost nobody was able to sell JRJC shares short. I've aborted the trade on the Main Portfolio as I want the portfolio to accurately reflect what users are able to do in the market place.

[trexkerry]

Thanks David, you would have already been up 10% on this and I for one appreciate the integrity you have by eliminating it from the portfolio and from your yearly return calculation.  Very nice move, and much appreciated.  Great stock pick too, by the way!

[guitarman]

Hmmm
I gave it a shot on my Fidelity account and got "Shares Restricted"
Good try anyway.
Thanks
GMan

I got into ETLT a while back - Stocks on Video - Is this a good time to get out? It's only been going sideways.

Thanks Again

[David Randolph]

I got into ETLT a while back - Stocks on Video - Is this a good time to get out? It's only been going sideways.

All stocks in the Video are attractive long term investments, even TRT The CEO has been buying shares in the open market after this stock's collapse on weaker than expected earnings.

As for ETLT.OB ... the stock is one of the cheapest in the market, I know it has been trading sideways, you have to be patient.

I need to go there and update the analysis on those stocks, I've been a slacker. But not today. Got to go now. Have a nice day

[calven]

JRJC shares are fairly valued at $30 per share given current subscription projections, heres why:
http://www.chartsetups.com/articles/49/1/JRJC-Subscriber-Dependant-Valuation/Page1.html