CTDC filed 6-K on April 12, 2007. Here is the summary.

"Beijing Holdings Limited (“Beijing Holdings”), the existing second largest shareholder of the Company, has entered into Shares Sale and Purchase Agreements (the “SPAs”) respectively with China Biotech Holdings Limited (“China Biotech”), ChinaDragon Pacific Limited (“ChinaDragon Pacific”) and China Zhongjing Energy Investment Limited (“Zhongjing Energy”) (the “Purchaser” or collectively the “Purchasers”) in relation to the sale and purchase of 2,009,323 common shares of the Company, of par value US$0.01 each, at US$4.00 per share (“SPA Sale Shares”). "

"ChinaDragon Pacific, a limited liability company established and existing under the laws of the British Virgin Islands, is a wholly owned subsidiary of Guo Kang Pharmaceutical & Medical Supplies Ltd (“Guo Kang”). The sole shareholder of Guo Kang is the Ministry of Health of P. R. China (the “MOH”)."

"In addition, Max Winner will also subscribe for warrants (“Warrants”) to purchase Shares (“Warrant Shares”) in an amount of 1,500,000 Warrant Shares, issuable upon the exercise of the Warrants at an exercise price of US$8.00 per Share from the Company. The subscription premium for the Warrants is US$0.01 per warrant. Upon completion of the transaction, the Company will receive a total cash consideration of US$6,015,000."

I am wondering what's going on. CTDC filed another 6k on Feb 6, 2007 which indicated that "CTDC and Going will enter into an exchangeable note purchase agreement pursuant to which CTDC will subscribe and Going will issue, the Going Note for HK$10 million in cash. CTDC will be entitled to fully convert the Going Note into shares of Huitong Food prior to its proposed initial public offering on the Hong Kong Stock Exchanges. Going and Huitong Food have issued exchangeable notes on similar terms and conditions as the proposed Going Note to CCBI Assets. "

"Founded in 1994, Henan Huitong Meat and Food Company Limited (“Huitong Group”), the predecessor of Huixi, is a major meatpacking manufacturer in China and has become a leading provider of meat products in Hong Kong. Huitong Group ranked No. 27 among top 50 meat producers in China according to a report published by China Meat Industry Association in 2005. Huitong Group’s total amount of sales revenue exceeded US$150 million for the fiscal period ended August 31, 2006. In addition, Huitong Group has established 22 distribution branches and 6 branch offices around China and exported to Russia, Hong Kong and Macau, etc."

Reference:

双汇继续称雄汇通排位上升

构筑资本与实业的完美嫁接

Update(Apr13):

CTDC 200 days Fibonacci:

• 9.45
• 6.34
• 5.38
• 4.42
• 1.31

CTDC is now trading near the lower end of the range:

• 4.42
• 3.23
• 2.87
• 2.50
• 1.31

Tim Knight had a detail description on the process of how he make a option order in On Options.

There're several steps:

1. find a stock via TA
   He use a 17 months "W" reversal chart as a call option candidate.
2. look for a recent lowest price as stop price
3. a strike price that
   • "a little in the money"
   • "two or three months down the road"
   • "beefy volume and open interest"
   • "a bid/ask spread that's not big"

I think it will be more perfect to add rules like this:Find s stock via Morningstar video.

I guess there're many mutual fund managers take a look at this site frequently. It's obvious that sometimes stock prices were moved by the reference video, specially when the stock price were under 50 day  but over 200 day average. The best examples recently were VIMC and JNJ.

Here is the short selling table of HANG SENG INDEX component stock on Mar 2007.

I found 3 days which short sell amount were more than 3000 million according to Nov 2006 till Mar 2007 summary.

• 3/5/2007   $3,028,030,000
• 2/28/2007 $4,247,690,000
• 2/8/2007   $4,218,490,000

They're PARTY signals for the bear. I need to look at more former data before having a strong conclusion.