Anbio Biotechnology - NNNN

Another COVID panic may help revenues, but an orchestrated stock squeeze is even better

Back in early April, on the tail of Trump’s glorious “Liberation Day” proclamation, I opted to briefly change my focus. Everything I was watching at the time was in the process of completely falling apart (as was the entire market), and not wishing to follow everything down I decided to pivot to a couple of Chinese companies whose stocks were holding up rather marvelously amongst the carnage, DGNX and SKBL, and tell their tales instead.

Of those 2 companies, the folks over at SKBL appeared to be doing something for their insiders that I considered to be incredibly deceptive, and which would allow a handful of insiders to cash out their shares much earlier than most investors believed possible.

Well, wouldn’t you know it? Yesterday SKBL fell completely apart, falling almost 90% during the session (not quite matching last week’s OST disintegration, but I’ll take it), and the selling continues today with shares down a further 30%.

(I shouted out the decline to my paid subscribers in a chat session yesterday when shares were down only 50%, providing them the opportunity to participate should they so choose to do so.)

It’s never a ton of volume with these names that gets the ball rolling to the downside either. Maybe 500k shares knocked SKBL down 50% from $12 to $6 before they tried to rally it a bit, but then maybe 1M shares knocked it down to $2, at which point it became evident that the volume was not going to let up and the stock continued its grind lower. The daytraders waiting for that bounce were none too pleased.

According to the charts the company had easily handled 3M share trading days before without incident. The 90-day lock-up on some select insider shares had come and gone, but the 180-day lock-up had yet to arrive. So where did all those shares suddenly come from?