Chinese Fraud Equities

I suppose this trend in Chinese fraud companies is similar to a lot of the Internet Bubble stocks that popped up and fetched obscene multiples because they had a ".com" affixed to their corporate name, it didn't matter if you couldn't figure out what their business model was because there often was none, they were simply fraud companies.

I've pointed out several of these companies in the past and have warned to be careful investing in Chinese stocks, but until yesterday, I didn't realize how lucrative shorting them has been. So, "Run a Scan for Chinese Stocks" is on my to do list. Luckily today one was just handed over, YONG International.

 While the channel may be volatile and wide, it's still tracking a 6 month downtrend perfectly.

3C shows nothing even remotely positive about this company's recent past, NOTHNG!

So this was an easy one, I'll be looking for more. The stop can be tightened up a bit

I wouldn't go much tighter then this 50 day moving average in case of a short squeeze and while the stop is a fairly wide 20%, the potential for this stock s possibly close to ZERO when/if the fraud is exposed.