Rocket Ride: China Shen Shoots for the Moon
by Paul Springer
As noted on TraderDaily earlier, mineral explorer China Shen Zhou Mining & Resources was up over 65% Tuesday on no particular news.
As if that wasn’t enough, the stock then went on a tear from its $2.20 close on Oct. 19 to end at $4.13 on Oct. 20. (See three-day chart at left.)
Volume rose from about 1.6 million on Tuesday to over 9.5 million on Wednesday.
The big question is simply why?
Drawing on our extensive knowledge of X-files reruns, we theorized that the pop might have something to with the company’s activity in fluorite mining. While fluorite is not particularly rare or extremely expensive, there was a recent discovery of rare earths in a fluorite operation in Africa. Given the increasing need for rare earths and resultant attention from investors, maybe people are thinking China Shen might strike rare earths in the process of shoveling away at fluorite deposits.
It’s difficult to imagine what would cause a stock like this to more than double in a few days, even when China is talking about a rare earths embargo. It’s listed on the AMEX, not the skull-and-crossbones section of otcMarkets. The pop took place on real volume, not one freak trade.
Maybe it’s an upward flash crash?
For other equally helpful explanations, let’s have a look at Yahoo’s China Shen chatboard, where a wide variety of individuals are gazing into crytal balls, interpreting dreams, and elaborating on labyrinthine delusional frameworks:
See everyone at $9+ a week from now.
Don’t Forget a Salute to Your Hero Mao Tse Tung!
COULD BE STOCK SCAM OF THE YEAR 2010
TARGET .20 AFTER BANKRUPTCY FILING)
OMG…JUST .02 CASH P/S, BOOK VALUE .83
would you pumpers please STFU
please short more!
Where is your bro obammymanny?
BEWARE kvxxx99 POSSIBLE AGENT FOR CHINESE GOVERNMENT IN BEIJING
dme capital, penny stock pimpers
idiots, http://en.wikipedia.org/wiki/Rare_earth_element [response to posters laboring under the misapprehension that fluorite is a rare earth]
There is no institutional buying
total scam garbage here
SHZ PAID PUMPER WORKS FOR COMMUNIST CHINA, NOT YOU
Well, that pretty much clears everything up. Tomorrow: chat board analysis of the latest Federal Open Market Committee notes.
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