In the future, banks and fund management companies may also enter this market and offer similar services to customers. Citron quoted from the annual report:Ĭompetitors with larger customer base and greater market visibility, such as Alibaba Group (NYSE: BABA), Tencent Holdings Limited ( OTCPK:TCEHY) and Baidu, Inc. (NASDAQ: BIDU), recently launched their respective internet-based financial platform which provides financial services similar to that of Yinglibao. As Citron Research pointed out on Twitter, however, that is not the only story. And if that's all you read then it would be bullish. (SHA: 600030) ("CITIC"), to seamlessly integrate China Finance Online's state-of-the-art, web-based architecture with CITIC's robust trading and settlement system. Limited ("China Finance Online", or the "Company"), a leading web-based financial services company that provides Chinese retail investors online access to stocks, commodities and wealth management products, today announced that it has launched China's first independent web-based securities trading platform, "Zhengquantong ("Securities Master")", on the leading financial portals it operates, Securities Master is the product of a new strategic partnership China Finance Online has entered into with the largest brokerage firm in China, CITIC Securities Co., Ltd. The press release reads:Ĭhina Finance Online Co. They likely believed that the news that JRJC announced is a game changed. While I don't believe that there are only human traders trading this, there are some. Seeking Alpha contributor "3D Analytics" believes that JRJC is a rapidly growing, undervalued company that is worth $20/ share and will pre-announce record earnings any day now. What will they taste? Well it all comes down to fundamentals. The trading in JRJC is strikingly similar to the trading in PLUG back in March.Įventually someone will bite into the sardine. Since then PLUG shares have fallen by around 40%. The YTD high in PLUG power came just two days later. On March 8th LongShortTrader published a post about "anomalous trading activity" in the shares of PLUG power. The days after this announcement were the second and third highest in dollar volume traded in JRJC's history. On October 1st JRJC announced a partnership.Ĭhina Finance Online ("CFO"), a leading financial information, data and analytics provider in China, today announced it has formed a strategic alliance with China Center for Financial Research of Tsinghua University ("CCFR"), one of the most reputable universities in China, primarily in the area of financial database development. And the pattern was almost exactly the same, eerily similar in fact. The next question is obviously what happened in October 2007 and what the consequence of it? And two, this pattern has emerged in this name before (in October 2007). (The same pattern was present in Plug Power (PLUG)). The first should be that it seems highly unlikely that a company would have the three highest volume trading days in its history occur back to back to back. Looking at the table above one notices two things. The three highest volume days in JRJC's trading history have come in the last week. I have covered just some of the fundamentals in a previous article, so I will not rehash those here, even though there is more to the story. ![]() I suspect that when the traders trading JRJC stop and take a bite of it, as always happens, they will be sorely disappointed. It should be clear to anyone involved in the markets that China Finance Online (NASDAQ: JRJC) is a "trading sardine." If one needs confirmation of that simply type in "$JRJC" on Twitter or StockTwits and see how many people are trading it. These are not eating sardines, they are trading sardines." He immediately became ill and told the seller the sardines were no good. One day a buyer decided to treat himself to an expensive meal and actually opened a can and started eating. The commodity traders bid them up and the price of a can of sardines soared. ![]() There is the old story about the market craze in sardine trading when the sardines disappeared from the traditional waters in Monterey, California. ![]() There is an excellent story in Seth Klarman's book "Margin of Safety" about market crazes. If history is correct, then JRJC would have already pre-announced earnings if they were positive. The stock is trading similar to PLUG in March, and that stock has declined almost 50% since then. In October 2007 the stock traded almost exactly the same, and the stock declined substantially after that. ![]() This is not the first time JRJC has gone up on the news of a partnership.
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