![](https://i.imgur.com/CLvY2jA.png")
18-03-2023, 07:08 PM
When some YouTube tries to explain that something is wrong with the company because its stock price fell for a few weeks. Its probably rubbish. Conversely when the stock rises it does not mean the company's prospect has improved justthat USD has weakened.
Large % of the stock movement is driven by USD/Yuan not its earnings or its company fundamentals.
The size of each move is simply correlated with size of the speculative positions build up in the preceding period. The recent fall is due to speculators chasing up the stock when it rose by 100% so the subsequent selloff was sharp.
Fundamentally the stock is cheap but future prospects uncertain as its growth momentum has stalled. Not much has changed for last 1 yr.
![[Image: 78VVnTb.jpg]](https://i.imgur.com/78VVnTb.jpg)
Large % of the stock movement is driven by USD/Yuan not its earnings or its company fundamentals.
The size of each move is simply correlated with size of the speculative positions build up in the preceding period. The recent fall is due to speculators chasing up the stock when it rose by 100% so the subsequent selloff was sharp.
Fundamentally the stock is cheap but future prospects uncertain as its growth momentum has stalled. Not much has changed for last 1 yr.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
