FUQI - The I'm Getting Fat Winner!

[yoyomama]

Today I bought stock in Fuqi International at 17.33. I will sell it in 4 to 6 weeks at 19.97.

It might be alot sooner than that.

[LemonButt]

Looks like it's going to hit 15% today the way it's going. I'm not sure why this Chinese stock is going up when many others are going down today. FEED for instance just had some press about how they are benefiting from Chinese stimulus dollars and revenues have quadrupled.

[gavinpquinn]

Questions

It seems like they actually do have some debt, $29m, but net current debt they do not have.

The big question here is if you look at their annual report ... oops. They didn't file in time. Seems there is some questionable accounting.

The auditors made a statement at the top that there are material misstatements in the last year, and we have yet to see what those are.

Seems a little sketchy, maybe why they have a 11-13 multiple.

Also, how much of their growth is from their acquisition, and is it repeatable?

[mrmarket]

It seems like they actually do have some debt, $29m, but net current debt they do not have.

The big question here is if you look at their annual report ... oops. They didn't file in time. Seems there is some questionable accounting.

The auditors made a statement at the top that there are material misstatements in the last year, and we have yet to see what those are.

Seems a little sketchy, maybe why they have a 11-13 multiple.

Also, how much of their growth is from their acquisition, and is it repeatable?

What do all these questions have to do with Mr. Fuji?

[skiracer]

all that matters is that you got the money ernie. beautiful play. congrats. regardless of what it does after this you made the right play and got the 16% gain.

[steelman]

What do all these questions have to do with Mr. Fuji?

Right!!! Don't mess with the $$$MM$$$ MOJO. I do remember Mr. Fuji. Was that during the Iron Shiek days?? We will have to make a believer out of this gavin kid. Keep em coming $$$MM$$$.

[IIC]

When the going gets tough...The tough buy jewelry...I was looking at the 1 week and 1 month charts of the Jewelry Group this morn...Whoa!!!

[LemonButt]

The government had a hard time selling bonds I read today and they had to push the interest rate up to 4% to sell $19 billion worth of bonds. This sparks fears of inflation which would devalue the dollar and make tangible valuables, like jewelry, safer places to put your money. All metals were up today, especially foreign metals companies.

[IIC]

The government had a hard time selling bonds I read today and they had to push the interest rate up to 4% to sell $19 billion worth of bonds. This sparks fears of inflation which would devalue the dollar and make tangible valuables, like jewelry, safer places to put your money. All metals were up today, especially foreign metals companies.

However...most jewelry is not investment grade

[mrmarket]

uh oh....where the hell is Beeks!??

[gavinpquinn]

Don't get me wrong, I thought it was an interesting play. Seems to have fallen off today, hopefully people took their gains...

I just thought it was worthwhile to point out the potential downside. Off almost $2 today though...

[LemonButt]

the stock looks a bit overextended to me. has been on a roll of late. i would be looking for a nice pullback before any entry here. in fact i would be looking to short it right here and then re-enter long after the correction. this thing is going to correct real good very shortly. plenty of room for profit taking in this chart.

here is the weekly chart with some annotations. its not that i dont like the stock itself just that at this moment in time i would be looking for a correction of sorts and then consider an entry. lots of room here for profit taking and as is always the case when the profits get larger the rush to take and preserve gains is always foremost. i just dont think this is the best time for an entry. exhibiting some patience here will pay off in getting the stock cheaper and providing oportunity for larger gains. but good luck with it ernie. that should say "overbought" instead of "oversold" at that top arrow on the weekly chart.

Did anyone see the massive selling orgy this morning on FUQI? It opened at 18.50, dropped like a rock to 15.78, and is now back up to 17.60 or so as I write this. It was a 16% pull back over the previous day's close...

[mrmarket]

buyers stepped in to fill the gap...me likeee

[gavinpquinn]

buyers stepped in to fill the gap...me likeee

Does it worry you that it's broken it's uptrend and gapped down on large volume? Or do you think it's okay to take a little breather?

[yoyomama]

Did anyone see the massive selling orgy this morning on FUQI?

See it? I felt it my friend...yow.