Friday, August 23, 2013

The Stock that was Up One Thousand Percent Today

Today's high rise stock was up only a measly 1,000% today, not even close to the one I wrote about last week that was up 11,000%. The stock that was up today is called China Linen Textile Industry, Ltd. (CTXIF). What is it about these China companies?

The company produces and markets various linen products throughout China. It supposedly has a P/E ratio of only 0.02 (that might be some sort of record if it is accurate). What is even weirder is that the stock supposedly has a book value of $8.01. The market cap is only $233,840 (yes, less than a million). The stock went from $0.0035 a share yesterday to $0.04 today, an increase of 1,042.86%.

What is amazing is that back in October 2009, the stock was trading at $49 a share on a slit adjusted basis, according to Yahoo! Finance Historical Prices and the Basic Chart. Could you imagine shorting it back then?

As always, I never recommend buying or shorting these types of stocks. They are extremely speculative due to the very low capitalization, the strange financial data, and the weird trading activity. Just watch, don't touch.

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