JADE – Update

By: ispeculatornew
Date posted: 05.17.2007 (12:00 am) | Write a Comment  (0 Comments)

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JADE – LJ International (Nasdaq) (Closing Price – $12.23)

This stock has been a conundrum and is typical of the market right now.

LJ International did not report fourth quarter results and they have not issued a press release giving a reason why. They have also passed the day they reported Q1 results last year (May 15) so who knows if they are going to report Q1 results or provide an update?

Despite the fact that a publicly traded company has stopped reporting results, without an explanation, the stock is somehow going up. It defies rational thinking.

One of the reasons I didn’t recommended covering my short recommendation is the fourth quarter and first quarter are slower periods for LJ International. I didn’t think the stock price would hold up when they reported Q4 results and gave much lower guidance for Q1. However, they didn’t report Q4 results so this scenario didn’t happen. Curiously, the fact that they didn’t report Q4 results and haven’t reported Q1 results doesn’t bother investors in this company.

I still think this stock has the potential for a dramatic drop in share price so I don’t want to recommend to cover quite yet. However, if this stock continues behave irrationally it in the next few weeks I am going to recommend to cover my short recommendation at a loss.

Disclosure: I am not shorting shares of JADE.

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