EFUT, Poised To Continue Its Ascent!

If you check out some of the other Chinese stocks out there traded here in America, JRJC, CHNR, RCH, CDS, WX, EJ, and KUN you will notice that they are all up on average 300-400% in the last 10 days!!!

EFUT, is only up around 95% over the last few days and is Poised to Sky Rocket in the next few days for a few Key Reasons. All you longs…. Hold on Tight!

-On Oct 2nd there was a buy in alert on the stock of about 219K shares,

http://www.tradingmarkets.com/.site/news/Stock%20News/663201/

this has pushed up the stock price as you have seen. With a float of about 450k and 219k short, the uncovered shorts have to cover their positions at what ever price is available. Basic supply and demand and scarcity theory are being played out before your eyes. This is how the stock can go up $15 in 2 days (66% today alone).

Some other documented cases of explosive stock moves:

- CHNR went from $12-$ 48 in 3 days. This was done on a larger float which is harder to do than EFUT. This is why the upside potential is so great. And CHNR only has $1.7 in cash.

-JRJC has gone from $15 to $45 in the past month! 300% again! This company has a bullish story and has also been lifted by the ADR craze lately. Here is an interesting posting on JRJC where the author outlines its prospects

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_C/threadview?m=tm&bn=25123&tid=4466&mid=4466&tof=13&frt=2

Look at what BIDU did. It went from $50 to $300 in 18 months. Hot Chinese stock with outrageous earnings and gross margins! BIDU didn’t just move because of its prospects but also because of investor’s appetite for foreign exposure, especially anything Chinese.

-In their latest quarterly report they project 59% revenue growth for FY2007. So they are not slowing down any time soon. They just announced a huge deal with the Beijing Tourism group and there is speculation that further announcements will be made. Seeing how the Olympics are around the corner as well as a big fair that takes place in Shanghai annually, more announcements stand to be made like today’s.

-Ohh, I forgot to mention that EFUT has $10 in cash, the highest of all the Chinese ones. That’s a pretty darn good cushion.