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sebastoro (25.50)

ACCUMULATION PHASE ON RINO

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November 11, 2010 – Comments (3) | RELATED TICKERS: RINO.DL2

By: Sebastian Toro

 Sometimes the market give us some opportunities that at first sight are very dificult to see, but when you look back you ask yourself: why i didnt take advantage!!!

The opportunity today is RINO.

Yesterday a web page that nobody knows by the name of muddy waters, web page that only has something like 6 months in the market and has published only 1 report in a company called ONP has issued a bearish report on RINO.

Well that shaddy web page make some allegations on ONP some months ago, allegations that all happen to be false and attacking that company in short to make a profit....but today ONP recover from the hit and prove that Muddy waters only was making this misleading reports to make some money in short and to fool the market.

 Even knowing that  Muddy water is a nobody company, with only something like one or 2 employees and only 6 months in the web and only one report that happen to be false....and the scared investors are selling their shares because of that??

Today RINO is trading at 11 usd, two weeks ago this company was trading at 19usd, so thats a big discount to take just because a nobody company without any history or good reputation make a false report to make a profit in their shorts positions.

At this prices RINO is trading at only 4.8 times earnings!!!  a company in a sector who has all the opportunuties and government support to growth over time and only trading at this PE is a very good opportunity to take.

Some weeks ago ZACKS.com make an interesting report on RINO with a BUY reccomendation....well everyone knows who is ZACKS.....thats a very important and serious company with a good reputation....not like muddy waters that nobody knows who they are...no contacts..no numbers....no certification.......nobody know who is muddy waters....

Here you can see the ZACKs recomendation to buy RINO:

http://finance.yahoo.com/news/RINO-International-Limited-zacks-517380971.html?x=0&.v=1

Here are the bullish commentaries on RINO:

"Its five year average return on equity (ROE) is a stellar 39.4%. Even if you look at just the last year, the ROE holds u pat 34.5%, compared to its peers at just 12.8%.

RINO is a Zacks #1 Rank (strong buy) stock."

 That BUY recomendation on RINO was made when the stock price was at 15usd....so today at 11usd the stock is even cheaper and is even a better opportunity to make a profit a good profit.

In this 2 days since the malicious short attack, the company has trade more than 9 millions shares and thats a lot for this company! this is a big change of hands, the little scared investors that sell because a report with no support made by a unknown company, and who is buying this quantity of shares??? you can  be sure, that little investor are afraid to buy......this kind of buying is made by profesionals and institutional holders.....that kind of volume is an interesting accumulation phase.

The big holders of RINO are institutions like deustche bank,  Dreman, UBS and bank of america....this drop in price, and that volume is just the paradise for them to take positions at bargain prices.

In the years that i have in the market i have learn that this kind of manipulation is usual, but in the long term when you look back you find the best buying opportunities in this kind of events.....the company is trading lower just because somebody that is short want to make a profit taking advantage of the scared investors, but the company keeps their strong fundamentals, keep growing and is trading with a big discount.

2 months ago the story was the same with another chinese stock by the name of UTA.....you can see my other post recommending BUY at UTA at 3.3.....and the stock is now trading at 6.2...the story was the same.....a nobody shaddy charactert attack the stocks...price drops the first day, and then when the big players buy everything they could it goes up and up-----this is the same history and the same modus operandi.

http://caps.fool.com/Blogs/a-quotrealquot-visit-to/447974

Well in a few days, weeks or months i will be tracing the stock and we will see if it was a good or bad opportunity....

best regards

 

 

 

3 Comments – Post Your Own

#1) On November 15, 2010 at 1:48 PM, guiron (20.36) wrote:

Bears own it for now. Short % of float is over 53% as of 11/15, and it's now trading at around $8.30. Should get a squeeze soon, but it's still being raided at the moment.

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#2) On November 16, 2010 at 1:51 PM, Utekai (< 20) wrote:

What a difference a few days make. A lot cheaper now than when you wrote this article. Who knows where it will be in another week, maybe higher, maybe lower. One thing for sure is the company's utter silence isn't helping. Likely there are many things ANY company operating in China does NOT want American investors to know. Many things to hide to get ahead. Some of those will come out and scare away some investors. Long term the company may be a good investment if its primary story is accurate. However, short-term there's rocky road for it to recover. My prognosis is don't buy at this time.

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#3) On November 16, 2010 at 8:33 PM, tomasovich (< 20) wrote:

Sebastoro

 After todays events, including the postponed conference call do you still stand by RINO as a buy?

Thanks

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