Yeah, it is crazy. Many of these have short squeeze playing a major role.Some guys specialize in shorting these micro Chinese ADRs for a very long time already. And they win most of time. Like CHNR, before this run up, they usually shorted it when it went to 5+, and cover at 3 something. Fewer and fewer people are willing to hold these stocks long, because it is very frustrating due to the shorts, especially naked shorts. I was long in quite a few of these before, and I say this out of my own personal experience.
CHDX is the same thing, I traded it a couple of times. And just sold it at 5 for a small gain after holding it for 10 days. One day after I sold, it started running/short squeeze. And now 8 days later, it runs up almost 100%, and I had 1000 shares.
Most of these micro plays have very low float, so when the squeeze coming, it is very hard, especially they do naked short on many of these. On top of this, more people are shorting it again after it runs up, so it becomes a loop<g>. (HANS is the same thing).
CHNR has only 1 million shares outstanding. I read from Yahoo board, quite a few people said they shorted at much lower price.
CESV today's move is also a short squeeze (shorts were in control of that one for more than a month now), especially that trade at $8.6 AH, must be a real panic short covering<g>. The 1000 shares I just sold not long ago (at 7.25) was bought in last August at a little over $9. Just count how many months I have held it. It has never touched that price again after I bought. You will have to be real quick trader to play these stocks and have to set up very tight stops. I had enough of those, I won't touch it unless it drops back to <$5. |
