Update

Despite the recent phenomenal runup, there is still a whole lot of value left in many Chinese smallcaps. We’re following a few, and will expand these efforts. And some comments on InterOil and DineEquity..

eFuture (EFUT), as we argued before, had to consolidate. We told you yesterday we would like to see it below 10 before we would advice to pick a few shares up again. That has now happened. Buy on dips. It won’t immediately explode (and in fact, we might go a little lower still), but for the longer-term, this is still excellent value. In a bad market this could go down to a little above 7 even, so don’t go all in yet.

InterOil (IOC) has some trouble down the well, they reported this morning, although there were also some good bits in the PR, more especially the higher liquids count. They still have to drill deeper to test the oilzone in this second side track, so we’re just awaiting that. They’re going to case the side track to exclude the gas on top interfering with the testing. The stock is holding up pretty well.

DineEquity (DIN), our short trading idea, is behaving as expected, down further today, and well off the levels of last Monday when we adviced to sell calls. Those May 35 calls are nearly worthless, on Monday they could be sold for $1.6-$1.75, now they can be closed for 30 cents or even lower, or you can just wait a week for them to expire worthless, in all likelihood.