Chaoda Modern Agriculture (OTC: CMGHF) closed up on Friday, although the past year has been quit bad for the company.
Is this he proverbial “dead cat bounce?”
Although the stock is gained on Friday, a one year chart shows just what a disaster the the past twelve months have been. Quoting from a Seeking Alpha article on October, 11, 2011:
But Chaoda’s shares have been in freefall after a Hong Kong magazine, Next Media, leveled sweeping fraud allegations (translation here, original Chinese language document) against the company earlier this year. Several weeks ago, Hong Kong financial regulators launched proceedings against Chaoda in the country’s Market Misconduct Tribunal, and trading of the company’s Hong Kong shares (HK:682) was halted. In addition, a new research report from Anonymous Analytics laid out more allegations against Chaoda. The stock has fallen 80% in 2011 year-to-date. (end of quote – read the full story here)
This is not one that we recommend. We are noting the gain, only.
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