Halted since May 19, Longtop Financial Technologies Ltd (PINK: LGFTY) has plummeted through the ground as if it was digging back to China. It has fallen over 98% off its yearly high of $42.86 and closed yesterday at a dastardly $.60 for another 25% loss! This stock could have a mammoth bounce as investors find their way over to this ambiguous ticker…

The NYSE said the American Depository Shares (ADS) of the Chinese software company has been officially delisted. Longtop now trades on the pink sheets under the symbol LGFTY, thanks to the resignation of the company’s auditor paired with a U.S. regulator inquiry, deepening the concern about possible accounting irregularities at the Chinese company. (Read more)

A Chinese company being invested for accounting fraud, what else is new? However, this stock went from $42.86 to under a dollar… I think that could be a smidge excessive!

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The Bottom Line

Obviously, this company doesn’t have a looming buyout offer to sweeten the pot like our huge winner PUDA, but it is nearly 100% off its yearly high – that has got to count for something here! There could definitely be an opportunity on LGFTY in the near future; it’s too bad the ticker isn’t very catchy.

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Good Luck,

Ian Decker

Disclosure: No Positions

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