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It turns out our short calls on CAGC and HUSA

April 14th, 2010 · 1 Comment

Were pretty good…

We told you on March 2nd of this year China Agritech was due for a pullback. The stock was over $25 and even went over $30 for a brief period of time, but this morning it’s quite another story…

Houston Energy (HUSA) is a more recent affair but the fall has been even more dramatic. We told you they were overpriced on April 5th, and the stock was near $20. What a difference a week makes…

If you are risk averse you should close your short position on both (if you had any to start off with). China Agritech has reverted to more normal valuations, we don’t see any reason to squeeze more out of a short position. Houston Energy remains quite speculative though, but speculation is difficult to price.

Tags: CAGC · HUSA

1 response so far ↓

  • 1 Brent // Apr 15, 2010 at 3:45 am

    Nice call on those two!