China Agritech: An Internet Study
China Agritech (CAGC) is one of the small cap Chinese reverse merger companies recently to come under attack by short sellers and in particular bloggers and very small "research" firms. As a result of the pressure and timing of the pressure, the company's stock has dropped by over 60% recently.
This short post is not to persuade anybody about what to do with CAGC as an investment. I disclose I went long just before the stock was halted.
This post is simply open wonderment at the state of influence the internet has on small investors. Investors who by and large have little or no emotional control and no clue how to research something for themselves. These "investors" (I use that term very lightly) resort to applying rumor and innuendo repeatedly to their investment decisions, then complain and whine when things don't go their way. Through it all they fail repeatedly to apply even a minimum of mathematical reasoning to their considerations.
Adding to my amazement, and really what stirred me to post, was a new development with China Agritech. Yesterday, or the day before, the very reputable firm Glickenhaus located in New York apparently started posting on the Yahoo message board for CAGC about the recent research they had done on the company, which is posted on their website.
I am amazed because a legitimate established investment house decided to take the war to the investment guerrilla's turf. Battling them on the internet. I wonder if this is the shot across the bow that could clean up some of the pump and dump, and short and burn, scams that are so rampant. One can hope.
Kirk Spano, aka, kirkydu
Bluemound Asset Management, LLC