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.

 

What is The StockGuru Spotlight?

Many companies covered in The StockGuru Spotlight have positive increases in both volume and share price. While this is not true in all cases, StockGuru strives to cover companies in The StockGuru Spotlight that are worthy of our readers attention.

StockGuru looks for potential break-out candidates in The StockGuru Spotlight.  Many of these companies have had recent news and appear to be getting the attention of investors. StockGuru does not typically feature companies in The StockGuru Spotlight that are compensating StockGuru for this coverage.  There are times when StockGuru covers a stock in The StockGuru Spotlight that had previously compensated StockGuru. Where that is the case, a proper disclosure is included below.   StockGuru and its partners, employees and writers never hold shares, short positions, warrants or any other current position in a stock featured in The StockGuru Spotlight.

To feature a company in The StockGuru Spotlight please contact the Publisher at [email protected].  If our reader is a key person for a publicly traded company, StockGuru can consider that company for either a StockGuru Spotlight or a StockGuru Profile.  Please contact the StockGuru Publisher John Pentony at this email address:  [email protected].

Stockguru.com (“SG”) provides its members with the latest news, press releases, and trade alerts for all the companies highlighted on the site StockGuru.com. SG utilizes information believed to be reliable herein prepared all material. The information contained herein is not guaranteed by SG to be accurate, and should not be considered to be all-inclusive. The owner, publisher, editor and their associates are not responsible for errors and omissions.  SG encourages readers and investors to supplement the information in these reports with independent research and other professional advice. The companies that are discussed in this opinion have not approved the statements made in this release or blog post. This release or blog post contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. SG is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on http://www.Stockguru.com or mentioned herein.