Mr. Hsu bought ASIA on July 30th 2008 and convinced his $3.000/year paying subscribers to do the same with the following words:
I want you to buy ASIA under $15. I'm targeting $20 in the next six to eight months, which would give us a nice 33% gain.
Price was $13.48.
In the following weeks ASIA prepared to drop and Mr. Hsu was writing:
- Continue to buy ASIA under $15.
- Buy AsiaInfo under $15.
- Buy under $15
- I want you to continue to buy ASIA under $15. (saying please woud have been more polite...)
- [...] a coming rally in Chinese stocks and strength in the country's economy should boost our shares of [REMOVED] and AsiaInfo (NYSE: ASIA). I know that these holdings have been battling some severe market conditions, but they have all held their ground relatively well. These companies have solid fundamentals in strong sectors, and I look for shares to improve especially as we reach year-end and Chinese stocks move up. So continue to buy [REMOVED], and AsiaInfo under $15. (that was September 3rd and I am sure you witnessed the rally...)
- Buy under $15
- AsiaInfo Holdings (NASDAQ: ASIA) shares have traded slightly downward lately. [REMOVED - Septembe 17th - at this time he was slightly down 30.1% on ASIA]. Buy ASIA under $15.
- Buy under $15
- Buy under $15
- On October 8th, down 45.6%, Mr. Hsu started to say Hold ASIA
- Hold for the next 3 weeks and...
Finally, yesterday Mr. Hsu wrote:
AsiaInfo Holdings (NASDAQ: ASIA) announced its third-quarter results last Thursday. The company's income was $6.1 million or 13 cents per share, slightly below last year's $6.3 million. ASIA's revenues clocked in at $44.8 million, up from $32.36 million last year. Although top-line growth is healthy, the decline in the company's profit margin is a problem.The stock has bounced nicely with the broad market, and we will wait to sell it above $12.50 with a limit order. Hold and sell above $12.50
Now ASIA is at $11.23 and it should gain 11% before reaching its sell above price of $12.50. We have only 2 options now:
- ASIA will go down. The sell above limit will not be reached and Mr. Hsu will lower it, losing more money.
- ASIA will go up (but then you should buy now and keep it until it goes up)
Mr. Hsu's sell above strategy would work only if:
- ASIA will jump over $12.50 for a while and
- then decline
I do not see this as a very lickely event...
In any case, selling at the sell above price would bring a loss of 7%.
1 comment:
Well, its nearing end of march 09 now and I just checked the price for ASIA. Its at 16.83.
Post a Comment