We rarely play sub $5 stocks at OptionMillionaires. Quite honestly, it makes more sense to buy a stock outright, then spend money on options when it is trading under $5. But there are exceptions to every rule, and Origin Agritech Ltd.(SEED) is one of them. Why? Because this is a stock waiting to explode on positive news. It seems like everyone and his brother has let this stock to rot, then kicked it to the curb and ran it over with their car.
CEO leaves the company for personal reasons? Sell! China stocks getting a bad rep from RINO and other scams? SELL! Company lowers revenue guidance?? SELL SELL SELL!!
Only problem with the selling, is noone stopped to take a look at what they were selling. As of the close on friday,Origin Agritech Ltd.(SEED) has a market cap of $57 million. Last Quarter they reported $49.2 million in revenues and an EPS of .20. When AGS were as hot as they are now, Origin Agritech Ltd.(SEED) was trading at over $12 per share. Now do your research, then ask yourself... "What has changed in the past 2 years that has caused Origin Agritech Ltd.(SEED) to lose 75% of it's value"?
Below is 2 charts, Monthly and Daily. We fully expect Origin Agritech Ltd.(SEED) to breakout near term over $3. We alerted our chat to the $3 calls @ .10 on friday. We have a funny feeling Origin Agritech Ltd.(SEED) will be sprouting nicely this coming week.