China Jo-Jo Drugstores, Inc. (NASDAQ:CJJD)

CAPS Rating: 1 out of 5


Player Avatar TSIF (99.96) Submitted: 3/29/2014 6:34:24 PM : Underperform Start Price: $2.67 CJJD Score: +21.85

China Jo-Jo Drugstores, Inc caught some CAPS attention back in 2011 when China RTO's were HOT and then NOT. A few are spiking hard again, either in a play me now, I'm a low float, forgotten about stub that can wow the retail investor with some really nice earning numbers, if spun properly, because my growth from year to year is!!! Out of this world....

Of course if you start out by losing money or making a penny, just for numbers, and the next year you made two pennies, you have a 50% YOY increase! WOW!

Jo-Jo went from $0.50 to $2.50 in six months. With a sub 8 Million Float and low volume, shorts have had to cover and reupp several times.

Sales through December report. Revenue up to $2.7M, (up 199.4% (couldn't get that last tenth...)??

Which apparently masks the rest of the report.
•Gross margin decreased quarter over quarter from 19.2% to 1.0%
•Quarterly net loss was $8.7 million, and diluted EPS losses of $0.64

YES 1% gross margin, (blamed on sales promotions), membership rewards for 10 year anniversaries, etc. and yes, EPS LOSS for a quarter of $0.64 on a $2 stock.
2 stores opened, 2 stores closed, net growth there....

"As of December 31, 2013, the Company had $3.1 million of cash, $67.5 million in total assets and $37.6 million in total liabilities." (Lost over $5 Million in the last three quarters).

Seriously from $0.50 to $ trading, low float hyper nonsensical, bagholder leaving run-up.

Target $1.50 (worth about $.50, but will probably close and watch for another senseless spike.. these usually come in multiples....

Solution: Hire more staff, open more clinics next to drugstores.

Member Avatar TSIF (99.96) Submitted: 4/3/2014 10:40:00 AM
Recs: 0

Should go considerably lower than the $2.15 I'm closing this. LOW float, low volume China equities are dangerous to play with. It takes very little to get the attention of speculators, retail investors, and day traders. Once one has their attention, it often spikes multiple times in a short period. Not quite consistant enough to trade up, but often enough not to get greedy on CAPS.

Featured Broker Partners