I want to get a larger position before the short squeeze happens, so I am buying with a sense of urgency. Keep in mind that right when the Muddy Waters report was released, the stock had been driven down to $8 (presumably by shorts). So the largest short positions may have begun $9 and are not yet feeling true pain.
With the stock at over $7, many people have asked if it is too late to buy ONP. I am still buying because I think it is highly likely that there is 40%-50% upside in the very near term from the current price of only $7.11.
A few things to keep in mind regarding the price:
Other high profile situations which currently have litigation pending include Fuqi International (FUQI), China Northeast Petroleum (NEP), China Green Agriculture (CGA), China Natural Gas (CHNG), China Biotics (CHBT) as well as accounting questions on China Agritech (CAGC). Once I get the chance, I expect to do some follow-up on them as well.Disclosure: The author holds a long position in ONP. The author can be reached at firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV