3S Bio Inc. (SSRX) was up more than 15% on volume 1,500% larger than the 50-day average. The volume was 15 times greater than the average after a large volume boost yesterday as noted by Trading Goddess.
China Finance Online Co. Inc. (JRJC) has blasted higher by 320% over the past month on tremendous volume. No, I didn’t own it!
I wouldn’t have noticed SSRX either except for a quick highlight on a few blogs I read and a modified research screen I ran this afternoon. The overall daily volume in SSRX is slightly lower than the parameters I typically search.
In any event, I know about it now and have a decision to make: would I like to join this dangerous party. A run to $30 is not out of the question based on the recent infatuation with Chinese stocks (similar to our tech stocks of the late 1990’s).
I will look to grab a small position in the AM tomorrow (keep my exposure low due to a lack of an ideal risk/reward setup).
Chris,
what is your take on JRJC going over the roof within one month??? Do you think its justified?? P/E is around 400. Company had a net loss of 600,000 in 2006. It was trading flat for almost two years and all of a sudden such a big jump. I just can’t see any reasons why.
I have one reason for you: It’s from China.
The same reason dog shit “.com” stocks went from $20 to $200 in 1998 and 1999.
Human nature will NEVER change!
Hi Chris,
Thank you for the link. It is appreciated! 🙂
What is your take for the future of the China stocks, if you don’t mind me asking. I have been long them until the Olympics. I talked with someone recently who said he thinks China will be strong for the next five years! wow! What say you?
Trading Goddess,
I just uploaded some charts that may tell you what I think coul happen. For right now, I am bullish until the trend changes. No guess work here!