China Green Agriculture Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: China Green Agriculture (NYSE: CGA  ) shares fell 10% in trading today.

So what: This follows a similar drop yesterday after there was a lawsuit filed against the company and allegations of securities fraud appeared. The stock hit a fresh 52-week low in trading this morning and has bounced slightly since then.

Now what: We warned yesterday that the lawsuit and allegations of securities fraud spelled trouble with a capital T. Traders agreed to push shares lower from the start this morning. I see no reason to own this stock with a cloud hanging over it right now.

Interested in more info on China Green Agriculture? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

China Green Agriculture is a Motley Fool Global Gains selection. The Fool owns shares of China Green Agriculture. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (9) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 26, 2010, at 3:48 PM, Swede46 wrote:

    Not much usefull in this article. The author couldn't even get the company name right in the title. China Green Energy?

  • Report this Comment On October 27, 2010, at 3:17 AM, tototruffa62 wrote:

    Is that all??

    Is this the MF official position for a pluri-recommended Stock with a bright future, visited again this summer and deserving a report not only for GG subscribers but for all the MF investor universe ??

    (That's where it happened in my portfolio..)

    This stock had been plainly under short attack, and just after a brief recover such con-artists organized a new plot.

    It's not a certainty that any class action will ever start, but the lawyers (and their regisseurs) already obtained their money (a lot of)

    What hurts most is that no officers, IR, nobody at the Company's side showed up to clear the matter and clean such clouds.

    I believe TMF have the links and influence to contact CGA and help.

    Besides, all these background manoeuvres, should be reported to the SEC

  • Report this Comment On October 27, 2010, at 12:35 PM, refugee07 wrote:

    MF- please back up your recent research and recs with a quality assessment of the allegations. I went in with my eyes open, but I couldn't afford to fly to China so I trusted your reports. I'm on the fence at this point, but this is a test of MF research as much as it is on CGA.

  • Report this Comment On October 28, 2010, at 7:06 AM, MAURIZIO400 wrote:

    so what the GG team got to say here?

    please speak up or yer silence will be plenty eloquent

  • Report this Comment On October 28, 2010, at 10:39 AM, Dawesome wrote:

    Sorry this is a short sighted, not very informative article. And I bet if quizzed, Travis could not even answer questions about CGA. Simply a not too thought out or useful opinionated article with no substance.

  • Report this Comment On October 28, 2010, at 12:45 PM, TMFBrich wrote:

    Hi Fools,

    Tim Hanson and the Global Gains team have different thoughts on CGA. If you are a subscriber you can access the full thread on the CGA discussion board here: http://boards.fool.com/1106/ggs-china-green-ag-cga-119150.as....

    Best regards,

    Brian Richards

  • Report this Comment On October 29, 2010, at 9:29 PM, robbylit wrote:

    "the Global Gains team have different thoughts on CGA".... yeah, just like they did for cmfo and cfsg... just dont expect to get the sell rec from them for a few months...

  • Report this Comment On November 08, 2010, at 10:34 AM, miamiheidi wrote:

    i'm new to the fool...purchased cga back in july....am not sure what to do right now....any thoughts? thx

  • Report this Comment On December 21, 2010, at 3:33 AM, wordtothewise wrote:

    This is one of two Chinese stocks I bought after GG recommendations. Lost money on both and didn't resubscribe to GG.

    This article did not live up to its title. We need to know more than that.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1345233, ~/Articles/ArticleHandler.aspx, 10/31/2014 1:23:14 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement