CCM Joins NISN and RGC as a Low Float Runner With TOP or HKD Potential

We recently wrote up two stocks - Nisun International Enterprise Development Group Co., Ltd (NISN) and Regencell Bioscience Holdings Limited (RGC) - while also calling NISN the most undervalued stock in the world. These stocks exhibit traits that make them potential TOP Financial Group Limited (TOP) and AMTD Digital Inc. (HKD) type of runners. RGC has increased 5% since the July 25th write up while NISN has increased 25%. We remain bullish on both. But another small float Asian-based stock is starting to run, which could create more problems for people who tend to short these stocks while trying to blanket the sector as a scam. Concord Medical Services Holdings Limited (CCM) shot up 27% yesterday on 213,000 shares traded, making it the perfect play to bet on a massive rise.  If you like our picks you can follow this blog by clicking the follow button on the top of the left hand panel. We have 1016 followers on here as well as 120 followers on our Canadian blog. You can also follow us on Twitter @StockTradePicks which has over 5,000 followers.

CCM just undertook an ADS ratio change, equating to a 1 for 10 reverse split. With this change, it now has less than 3 million shares outstanding and just like NISN and RGC trades like a stock with a very low float. Two months ago it spiked from $7.90 to $21 in one day, and looked like it was about to do it again yesterday as the stock briefly spiked over $10.

NISN is a value play while RGC is a trading vehicle. CCM is a value play but in a different way from NISN. In an SEC filing yesterday, CCM mentioned its subsidiary Concord Healthcare Group which is publicly listed on the Hong Kong Exchange under the symbol 2453.HK. In the subsequent events section at the very end of CCM's 20-F filing, it mentioned how 2453.HK went public on January 9th. This is the result since then:

Concord Healthcare Group has been on fire, rising from its HKD $14.28 IPO price to over HKD $48 today. This is CCM's YTD chart:

How much sense does it make that CCM's subsidiary is up over 3x but other than quick spikes, CCM's price is flat YTD? It makes absolutely no sense. We think CCM was starting to break out in late June as we see it start to track 2453.HK when it made 52-week highs over $50. The news of the ADS ratio change scared some traders, but now that the change is behind us, CCM looks like a low float value play. Especially as 2453.HK has broken its mini-pullback downtrend and looks set to create new 52-week highs shortly. 

Disclosure: We are long NISN, RGC, CCM