The Kalobios Pharmaceuticals Inc. (NASDAQ:KBIO) and Efuture Information Technology (NASDAQ:EFUT) hype are causing irrational moves in stocks similarly situated — low float stocks that market participants speculate are potential targets for large investors. To recap briefly, a couple of weeks ago, biotech investor/CEO Martin Shkreli took a significant position in defunct biotech KaloBios at prices near $1 — and on the news of him taking the position, the stock ran as high as over $40. Following that, U.S. listed China company, EFUT announced a major investor taking a large (~50% position) in their company via a 13D filing, sending the stock from about $8 per share to over $20 at one point.
Acorn International Stock Price Explodes
Today, Acorn International Inc (NYSE:ATV) has exploded from the $2 range to over $20 after announcing a reverse split/share restructuring and providing a business update on its conference call. You can listen to the replay of that call here.
On the call, the company supplemented a presentation showing that the company will turn profitable in Q1 2016 and that it plans to sell real estate assets totaling about $40M.
Obviously, Geo isn’t going to comment on the legitimacy of what’s going on, but we are certainly on the lookout for other stocks with similar characteristics that investors could gravitate toward for short term opportunities.
Below is list of 75 U.S. Listed low-float Chinese stocks, screened directly from our internal database, that we believe could be prime candidates for potential breakouts, and we’re starting our analysis by looking at companies with alleged low P/E’s and low P/B’s. As always, do your own diligence, as we certainly will.
Over the coming days, we will most likely be whittling down this list as we become more confident in our findings.