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The good thing about RSS is that you get the news as quickly as anyone. I read Sharesleuth's new article about China Fire and Security Group (CFSG) before the market open and thought about shorting the stock at the open. I held off because it was already down 20%. As of right now it is down 50%. Oops.

As to the actual article, it does not even accuse CFSG of any operating problems (besides having unsustainably high operating margins, twice the industry average). All the problems that they find with the company are how it went public (via reverse merger) and some problems with the shareholders honestly filiing with the SEC. That is still enough to make me become one of the few to short the stock in CAPS.

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I'm sure you're right, at least in terms of short-term price movement. It will be interesting to see whether the shenanigans were only in ownership reporting, or whether they extend to operations (about $5000 worth of interesting, in my case). 

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I'm not the best at predicting short term price movements, which is why I did not get involved in this. I prefer to bet against companies that are more obviously overvalued and then I hope that others realize that.

Good luck. 

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I was wondering why CFSG was down so much.

Thank you...
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