Your sense is right

Something is wrong with this company:
1. Accounting. Last qtr's gross margin was boosted by an inventory clearance sale. That sale turned out to be a huge chunk of the net income.

2. High short ratio. Some very informed money doesn't like it.

3. It looks dirt cheap. PE=10 and half of its market cap is net cash. But the PE can quickly turn negative if E drops due to competition and disruptive new technology.


Xiong is in the opinion that this stock might make fake moves before the end of this year.