On 7/14/2014 we stated

“CREG has entered into an equity line of credit with an entity (Ya Global) where it could potentially sell $50 million worth of shares over a 2 year period of time at prices yet to be determined.  We see this equity line of credit arrangement as pumpish in nature.  We believe this tactic has been used by other U.S. listed Chinese companies in the past, LTUS among them, which now trades at $0.01.”

Equity Line of Credit Cancelled

Today, in just an 8k filing, CREG announced that the equity line of credit has been cancelled. As we expected, the stock pumped on the original release on massive volume. The stock rose to high of $2.44 up 55% the day of the announcement.  We will look to re-short CREG if shares go higher.