Thursday, April 24, 2008

Profit Update

Congratulations to our supporters who bought shares of China Life Insurance (LFC) at $55.87 on our recommendation only one week ago, April 16th, and now have realized profits of 20%. We recommend taking profits today at $66.50 as the move in many Chinese stocks has been overly optimistic of late. POTC sees too many moves being unrelated to company specific (micro) matters, and therefore a 20% gain in one week had the element of luck attached. We urge our supporters to have patience in the JRJC short position and strongly recommend taking the proceeds from the LFC winning trade and swapping into shorting JRJC. We thank you for your Thursday attention, and please tell your friends the Psychology of the Call team helped you beat the market once again ~

6 comments:

Anonymous said...

will hold until $67, but a 20% profit in one week is rare and had luck involved, you yourselves admit! congrats nonetheless
JRJC is the stock you continue to say "short", that will tell more about your forecasting abilities.

Anonymous said...

i completely disagree with your opnion on the jrjc short..... they have a 96 eps and a 93 rs.. and they now ve 500 phone salesman selling the service... i believe we continue too a much higher level b4 we come down again

Anonymous said...

BIDU just reported and is up after hours, still think JRJC is a short?

Anonymous said...

Its past 15% loss since your recommendation to short JRJC - time to cover and cut loss?

The Call Team said...

End Of Day.. if JRJC closes above $19.55 we will take the loss.

The Call Team said...

JRJC has had a blip up with every other Chinese stock since the new tax policy. We see the new tax policy as an effort to calm investors nerves and fears ahead of the largest stage for the China, the Beijing Summer Olympics. This is exactly the time to go back and listen to the last CC, or read the notes, when JRJC's CFO admitted they have "very aggressive" goals. Then ask yourself what the Shanghai has done since that statement, and whether you believe the Chinese people choose to jump into Shanghai when food prices are a real fundamental problem, you decide. We believe JRJC is the perfect short set up going into their earnings report & CC. The average trader doesn't think trades through on a macro level, sometimes just closes his eyes and piles on in the blip up, hoping reality doesn't matter, it does.
Again, after JRJC reports, watch what happens to its price; then you'll come back to this post realize how synthetic JRJC's recent move up was. We hope that helped explain our side, as we respect yours, Commandment #8. It's a shame investors don't have that freedom/luxury on the Shanghai ~