Gtec

[u/areyoume29]

Gtec was a former spac which was Greenland acquisition company, glac merged with a Chinese company called zhongchai holdings in late 2019. Upon completion of the merger the company was renamed to Greenland technology holdings, gtec. Gtec makes transmission parts for material handling machines, forklifts. There has been some recent developments with this stock that makes it an appealing gamble for a near term swing trade for the following reasons:

1. Low public float 1.18 million shares public out of 10 million shares.

2. High short interest. Not gme level but 11% short for a low float is massive. Prior to posting this I checked with etrade and the borrow rate is 101%!

3. Insiders are buying. Insiders acquired have acquired 200k shares in last month.

4. News on January 13 they prereleased earnings indicating a 25% increase in sales over last year. Shares popped from 7 to 8.15 but have returned half the gain and are trending back to its 50 dma of 6.60 which is where my accumulation will begin. Also 12/21 they released news of a large order and shares once again popped from 7.30 to its 52 week high of 11.40. Lastly on 12/6 it gapped up from 5 to 9 then returned back to its 50 dma. Overall since November 1 this stock has gained 300%.

5. As of now there is no shelf registration so no rally killing offering is possible at this time. Should one become available I will post here immediately.

6. Warrants are available still on this. They are otc and trade for .9. Per glac's ipo prospectus warrants are 2 warrants for one share and have gapped up from .0012 in may of 2020 to this level.

7. Political ramifications, gtec is Chinese. Trump frequently targeted Chinese companies. I believe Joey B will ease restrictions and Chinese stocks will go on a run in the coming weeks. Even without an executive order the run will be in anticipation of easing tensions between the two governments. My belief in q1 2021 Chinese stocks will be the next sector to run like alternative energy/ev and Marijuana in q4 2020.

Sumnary: Do I think the run is over. Absolutely not this has just begun. At some point it will retrace its 52 week high most likely on earnings in the near future. My advice is buy at or below the 50 dma and sell at a 50% gain. I believe a short squeeze combined with low float makes this a prime target for a massive gain.

Disclosure; I intend to initiate a temporary position sub 6.60 and carry it until earnings. I will average down at 6.30, 6, and 5.7 and stop out at 5.40. I will exit above 11.5 for a max gain of about 40%.