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 email@example.com.
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