Wednesday, October 22, 2008

Robert Hsu and VISN

Original post date: August 12th 2008
Removed copyright content and reposted

Another May/June 2008 ridiculous advice from Mr. Robert Hsu arrived in his $3.000/year paying subscribers of Asia Pacific Edge on May 14th 2008.

Here it is:

New Buy: VisionChina Media Inc.


Strong Financials
(as usual)

. I want you to buy VISN under $23. I'm targeting $30 by early August, which would give us a nice 30% short-term gain.

You already know that when you read Mr. Hsu "I'm targeting" something will happen.
On May 14th VISN closed at $19.88. Chart please:

From January to May 2008 VISN tripled from $6 to $18 before Mr. Hsu decided to take his position (and his subscribers'). The trend was over, so here is what Mr. Hsu wrote his $3.000/year paying readers in the following weeks:

May 21st 2008: Buy under $23

May 28th 2008: Buy under $23

June 4th: not a single word

June 11th

[REMOVED]. Because of this, I recommend that you sell your shares of VISN.

Price was $15.91.

Loss was 20%.

This time even Nature (earthquake) was against Mr. Hsu. The Sichuan earthquake dropped his VISN price. That's jinx...

Interesting to notice is that buying at $16 (when Mr. Hsu was selling) and selling 6 weeks after at $24 would have generated a 50% gain. Be Hsu-contrarian!!!

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