Enough already… let’s put those Nine Dragons out of their misery!

Posted July 23, 2008

It’s time to sell our Nine Dragons (Holdings) Ltd. (NDGPF) position!

by J. Christoph Amberger

Baltimore — (TFN): I told her so.

Back on February 21, 2008, Laura Cadden recommended a buy on Nine Dragons (Holdings) Ltd. (NDGPF) “below $1.90″ (See “Green Stocks: This Chinese paper recycler could see 50% gains by August“.)

Of course, I know better than to argue with her… after all, Laura has a knack for picking profitable stocks—and for a disciplined approach to profit taking. But reactionary curmudgeon that I am, I simply don’t buy into “green stocks”… especially not at the beginning of an economic downturn.

As the Nine Dragons hit one snag after the other, the stock’s chances of gaining the expected 50% have vaporized. At today’s close of 73 cents, we finally decided to throw in the towel.

Now, it’s a long-standing principle we carried over from our Taipan days that we recommend you establish and observe a 25-30% trailing stop. Since we didn’t expressly state that in our recommendation, we’re entering the whole, unpleasant -62% loss into our books.

(Luckily, our gains in un-green Canadian miner Avalon — yet untaken — would make up for that.)

***If your stop loss hasn’t kicked in by now, sell your Nine Dragons stock for what it’s worth now.

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This recession-busting stock has a deadlock on a crucial technology reaching deep into China – tapping into its rural market and creating wealth on a scale like never before.

The company has been earning between $80-$100 million a year on total revenues of $450-$550 million… you still can buy it for less than $5! Analysts give it a 1,000% upside! Find out more in our FREE report 3 Recession-Busting Stocks You Need To Buy Now.