Best China Micro-caps on the Market

[kuwlness]

CNOA

She's gonna keep busting a move, IMO, all the way to $1 - $1.50. This is now my 4th largest holding. Right now my mixture is 1) PUDA, 2) CHIO, 3) CSGH, 4) CNOA 5) CKGT -- but I move my money with the news and try to take advantage of finding the news before it hits mainstream outlets. But CNOA is just flat-out underpriced and I'd have it as my biggest or 2nd biggest, but I'm loading up on the cheap CHIOs as well and they're both gonna be popping along with PUDA.


Now lets see how much of a move CNOA busts this week :niceass:

 

[kuwlness]

ACLO: (sorry, a bit messy, but plenty of info)

Worldwide shortage of flash memory:

Take a look at this news ... ACLOs main customer is Samsung of course.

http://www.intomobile.com/2009/09/14/apple-eats-up-worlds-nand-flash-memory-supplies-again.html


ACLO.OB, Apple Iphone and the 3G China launch:

I put up a few links here.

Basically, it comes down to this.

ACL Semiconductor has 2500+ employees and is the main supplier of flash memory chips and other related chips to Samsung, one of the biggest electronics makers in the world.

ACLO.OB is supplying chips for Apple IPhone and other devices to operate on the new 3G (full mobile internet) networks.

Right now the demand for memory chips is huge. Prices are up 33% in July and August and margins, which were very thin, look to be expanding nicely.

How can it get better for ACLO.OB? A main memory chip rival did not survive the recent down turn and went out of business.

So, putting this all together its not hard to see why ACLO.OB is being scooped up right now.

Here are some good DD links.

ACLO.OB closed just below 1.00. Imho, It makes perfect sense for thsi one to head much higher.

NOTE: I follow China closely and have never heard of this company until a few weeks ago. Based on the stock price its clear I wasnt alone........lol



China Unicom 3G launch. They have close to or more more customers then every phone company in the USA has put together

http://seekingalpha.com/article/164174-china-unicom-to-launch-3g-service




From the recent earnings report concerning their rival, Qimonda AG, going out of business:

"After the insolvency of Qimonda AG, the Company has recorded increasing demand for Graphic RAM products due to limited supplies. The Company also recorded increasing demand for consumer electronics products in the PRC market such products require the usage of FLASH products. In addition to strong demand in Southern China, demand by Apple for FLASH products for its newly launched iPhone 3G S was also strong."


Link to Samsung and Apple article:
http://news.cnet.com/8301-13924_3-103568...


Apple to launch in China Oct. 1, 2009:
http://www.fonearena.com/blog/2009/09/29...



I added ACLO today after watching it rise the last week. Easy ride to $1.50 IMO, maybe more.

 

[SpreadDestroyerr]

SHZ looks good here.

 

[kuwlness]

SHZ looks good here.

Making a note to look into SHZ.

 

[kuwlness]

PUDA


PUDA is going after approval to build a power plant also, on top of the mine consolidation win. Since we're talking about the same province, it seems reasonable to believe that PUDA will get this approval also.


"According to the letter of intent, the County will apply for project approval from the Shanxi provincial government for consolidation of the coal mines. Upon receiving provincial approval, Puda Coal will work with the County to consolidate and restructure the six coal mines. Pursuant to the letter of intent, after the County has obtained all supporting documents related to the gangue power plant, Puda Coal will work with the County to construct a 2x135 MW coal gangue power plant. Both the consolidation of the coal mines and construction of the power plant will comply with the Shanxi provincial government’s mandate to accelerate the pace of consolidation and restructuring of coal mining enterprises."

http://www.pudacoalinc.com/images/02-03-2009_PUDC_LOI__for_Consolidation_and_Power_Plant%20v4%20final.pdf



PUDA's PPS will be in the double digits soon. I know that there is at least one PUDA article being written on SeekingAlpha.com, and that will likely be released in coming weeks. Keep an eye out for it, those always help move the PPS. Should see $10 soon.

 

[tiznow]

too much debt on SHZ for my tastes with my deflationary tendencies

29 million debt with 36 mil market cap

probably will be fine as a near term play if gold and the other metals rev it up a little more going forward

but think it'll flounder once/if the deflation i think is coming hits

 

[kuwlness]

PUDA


Gotta love the institutional buying happening today. HUGE Blocks going off at the ask, one was almost 50k shares. To Da Moon!!

 

[kuwlness]

CKGT -- get ready for the next double!!


BIG NEWS! China Kangtai Cactus Biotech Signs Cooperative Production Agreement for Patented Cactus-based Low and Zero Nicotine Cigarettes

HARBIN, China, Oct. 6 /PRNewswire-FirstCall/ -- China Kangtai Cactus Biotech Inc. (OTC:CKGT) (BULLETIN BOARD: CKGT) , a vertically integrated grower, developer, manufacturer and marketer of a variety of cactus-based products in China, announced today that the company has signed a five-year cooperative production agreement with Jiangsu Nanhuanghai Industry & Commerce Co., Ltd. to produce cactus-based cigarettes. The new patented cactus cigarettes are expected to increase sales by approximately $220,000 in the fourth quarter.

Nanhuanghai, based in Rudong County, Jiangsu Province, is an approved cigarette manufacturer by China's State Administration for Industry & Commerce and China's State Tobacco Monopoly Bureau. Under the agreement, China Kangtai provides patented technology, raw materials, quality control guidelines and technical support. Nanhuanghai, as the processor, provides processing facilities and production labor. China Kangtai pays production fees to Nanhaunghai.

The production agreement covers two products: (i) low nicotine and (ii) zero nicotine cigarettes. The low nicotine cigarette is made from cactus, honeysuckle, ginkgo biloba leaves and a small amount of tobacco. This cactus-derived cigarette lowers tar and nicotine content by 70%. The zero nicotine cigarette is made without any tobacco. It offers taste and enjoyment equivalent to regular cigarettes, but eliminates nicotine. It also greatly reduces harm related to secondhand smoke.

China Kangtai CEO Jinjiang Wang said, "China has about 390 million smokers, accounting for 30% of global smokers. Our cactus health-preserving cigarette market represents a huge growth opportunity in China. Our strategic alliance with a cooperative cigarette manufacturer enables us to fill orders quickly with short production runs and to reduce requirements for fixed asset investment."

About China Kangtai Cactus Biotech, Inc.

China Kangtai Cactus Biotech, Inc. is a leading grower, developer, producer, and marketer of cactus-derived products, including nutraceuticals, nutritious food, health and energy drinks, beer, wine and liquor, extracts and powders, and animal feed. China Kangtai controls over 387 acres of plants and maintains an active R&D group that holds 18 product patents and is seeking another 12. China Kangtai's high-quality "green" products are sold throughout China via a distribution network that covers 12 of China's 23 provinces and two of China's four municipalities. More information may be found at http://www.biocactus.com/ or via e-mail: .

An investment profile on China Kangtai Cactus Biotech Inc. is available at http://www.hawkassociates.com/profile/ckgt.cfm. For an online investor relations kit, visit http://www.hawkassociates.com/.. For more investor-related questions, contact Susan Zhou, Hawk Associates, at 305-451-1888 305-451-1888, e-mail: . To subscribe to future releases via e-mail alert, visit http://www.hawkassociates.com/about/alert/.

 

[kuwlness]

CNOA -- exactly what she needed to keep the run going.


China Organic Agriculture’s Green Future
6 October 2009 Rick Telfur
China Organic Agriculture, Inc. (CNOA) is growing like a weed after entering the lucrative Chinese agricultural trading industry in a big way. The stock has already rallied some 250% from its 52-week low, but many investors see the trend continuing amid accelerating earnings and positive signs of a global economic recovery.

Solid Industry Outlook

China Organic actively sells and distributes agricultural products in China’s burgeoning economy and expanding middle class. The company has developed an extensive distribution network throughout several major cities within the country, while focusing on premium foods and organic products that are growing in demand among increasingly-wealthy consumers.

With a quarter of the world’s population and the largest middle class on Earth, China remains one of the most promising markets in the world. Meanwhile, retail sales of organic foods within this segment now exceed $1 billion in Asia, and the trend is gaining traction in China, which has the largest area of organic certified land of any Asian country.

Healthy Financial Condition

During the second quarter, China Organic reported an 800% increase in sales to $30 million attributed to its acquisition of Dalian Huiming in October 2008. Net income came in at $2.5 million, or $0.03 per share, compared to a net loss of $121,000 during the comparable period a year ago, thanks to higher sales and a 16% reduction in SG&A expenses.

China Organic also remains very stable with $9 million in cash, current assets of $110.6 million and current liabilities of $58.6 million, which yields a healthy current ratio of 189%. However, cash flows from operations came in at negative $9.2 million, thanks to an increase in accounts receivables due to dramatically higher revenue levels from the acquisition.

Looking Forward to 2010…

China continues to see strong growth in spite of a global economic recession, as the government works to encourage domestic consumer spending. Improvement in diet and nutrition by switching to premium foods could come as a result of these efforts, and greatly improve the outlook for companies like China Organic operating in the sector.

Dalian Huiming, in which China Organic acquired a 60% interest and derives most of its revenues, also helped to greatly expand and enhance the company’s product lines. The segment focuses on soybeans, corn and cereal crops, and has become one of the top-tier agricultural trading companies in the Northeast provinces of China.

Conclusion

In the end, China Organic represents a compelling value given its growth rates and low 2.22x trailing price-earnings multiple. While growth rates may begin to slow this year, investors should still keep a close eye on this under-the-radar Chinese company.

Free Swing Trading E-Course, Click Here! · Contact: Simon Monger, <?XML:NAMESPACE PREFIX = SKYPE /><SKYPE:SPAN id=softomate_v3_highlight_0 class=skype_v3_tb_injection title=Call this phone number in United States of America with Skype: +18775865658 mode=".modern" context="877-586-5658" durex="%DADDYWIDTH%" durex2="%DADDYHEIGHT%" path="file://C:/Users/kuwlness/AppData/Local/Temp/Low/__SkypeIEToolbar_Cache/e70d95847a8f5723cfca6b3fd9946506/static/" type=".flex" fwidth="" freecall="" isfax="" nof="" skypeaction="call" skypeid="0"><SKYPE:SPAN id=skype_v3_tb_nop0 class=skype_v3_tb_nop> </SKYPE:SPAN><쨤˔> <SKYPE:SPAN style="BACKGROUND-IMAGE: url(file://C:/Users/kuwlness/AppData/Local/Temp/Low/__SkypeIEToolbar_Cache/e70d95847a8f5723cfca6b3fd9946506/static/famfamfam/US.gif)" id=skype_v3_tb_img_f0 class=skype_v3_tb_imgFlag> </SKYPE:SPAN> <SKYPE:SPAN class=skype_v3_tb_nop> </SKYPE:SPAN> </쨤˔><쨤˔><SKYPE:SPAN id=skype_v3_tb_innerText0 class=skype_v3_tb_innerText> 877-586-5658 </SKYPE:SPAN> <SKYPE:SPAN class=skype_v3_tb_nop> </SKYPE:SPAN></쨤˔></SKYPE:SPAN> <SKYPE:SPAN id=softomate_v3_print_0 class=skype_v3_tb_injection_print context="">877-586-5658</SKYPE:SPAN>

 

[kuwlness]

CKGT -- more love

China Kangtai: A Reservoir in the Desert for Investors

China Kangai Cactus Bio-Tech Inc. (CKGT) may derive its products from cacti, but this stock could represent a reservoir in the desert for investors. The nutraceutical and nutritional food manufacturer has seen its shares rocket more than 500% from its 2009 lows, but remains a compelling value trading at just 4.7x last year’s earnings with a healthy balance sheet.

A Brief Introduction…

China Kangtai manufactures and markets products derived from cacti, including nutraceuticals, nutritional foods, and raw materials. The company owns more than 387 acres of cactus farming bases, and grows three primary species of cacti. The cacti fruits are processed into a healthy fruit juice, while the harvested edible cacti are processed into dry powders for nutraceuticals.

China Kangtai’s latest product, however, has drawn a lot of international interest. The company’s new cacti-based cigarettes could significantly reduce the risk to the smokers themselves and those around them. The patented cigarettes purportedly lower the harmful part of nicotine by 70% by constructing them out of mostly cactus, honeysuckle, and ginkgo biloba leaves.

Strong Financial Performance

Last quarter, China Kangtai saw its revenues jumped 30% to approximately $1.5 million due to expansion of its production and distribution networks and improved acceptance by Chinese consumers. In addition, the company successfully launched two new products, cactus feed and cattle feed, in July 2008, which also contributed to the increase in sales.

Gross profit increased 79.6% to approximately $2.7 million due to a decrease in the cost of sales per unit as a result of increased production and the effect of foreign currency translation adjustments. However, operating expenses rose by nearly 240% to about $900,000 as a result of an increase in general and administrative expenses for legal and accounting professionals.

China Kangtai’s balance sheet also remains healthy with a cash position of approximately $2.8 million and no long-term debt. Meanwhile, the company’s $11.1 million in current assets far outpaces its $1.6 million in current liabilities, which equates to a current ratio of 6.8. Finally, the number of shares outstanding has shown any signs of significant dilution.

Looking Ahead…

China Kangtai’s new cigarette product addresses a huge market in China, where approximately 30% of the world’s smokers reside. As a leading producer of cactus-derived products and a key patent for the technology in China, many investors are betting that this product could help drive substantial long-term top and bottom line growth going forward.

http://sumfolio.com/china-kangtai-a-reservoir-in-the-desert-for-investors-093/

 

[kuwlness]

PUDA decided to continue busting a move today. Sold some yesterday and sold some more today. I will always keep a core position in this stock as I believe it's heading to well over $10; however, this has been a big move in two days and I believe it's time to take some profits and look for a pull-back.


Now, remember, there are clearly Mutual funds buying this stock, just check out the blocks that are being bought on the ASK. This could easily move $1 in a day once it gets an analyst's opinion or someone from SeekingAlpha.com writes an article on it. Looking at re-adding in the low $7s if I get that chance again. GLTA

 

[kuwlness]

CDBT


Been waiting almost a month to tell you guys about this one. Today is the day to buy it. Management change and a brutal sell-off. 10K is due out any day now and this is traditionally the time of year when they have strong earnings. You can get in today at a monster discount (almost 20% off) and see sizeable returns soon. Great cash-flow and earnings should be positive. Wouldnt be surprised to see this over $1 after earnings. Not an all-in play, but I'd say worth a couple thousand $ regardless. GL

 

[DeathEatsaCracker]

kuwlness, do you have any that you're watching that trade on the big boards?

Check your PMs.

 

[tiznow]

cpby mentioned in another thread on the nasdaqgs market gs=global select subset of nasdaq

got my eyes on that one...in a definite growth market....government tech monitoring type stuff in china.....but want cheaper on a nice run now

puda now on the amex...

hqs one i've been in and out of since it was bulletin board....and now on amex as well

generally speaking you'll find that when they are on the bulletin board you'll find that alot of them stay very undervalued...as far as comparing price to earnings to the general equity markets........until they do the transfer like puda...the overall investment community doesn't really take them too seriously.....

 

[DeathEatsaCracker]

Yeah, I forgot about PUDA. I'll give that a look.

 

[tiznow]

i just personally think these china guys have had a nice run since march and me being bearish for 2010 as far as general equities go i'd be very tentative about chasing them...maybe they will keep running and never have a big pullback at some point...but i kinda doubt it....

cnoa, ckgt, cpby, puda the 4 i like the best and looking to nab some at some point down the road of the many kuwl has mentioned on this tread

abat another one on my watch list its on the nasdaq CM (capital markets) another subset of nasdaq

 

[punter]

Little tricky as how to get out at high levels in some of these lightly traded stocks. CGDI has been way up but cashing out is tough, sometimes I feel as though I have been helping chase it down. It is climbing a bit today so maybe I can exit with my booty in tow.

 

[kuwlness]

Little tricky as how to get out at high levels in some of these lightly traded stocks. CGDI has been way up but cashing out is tough, sometimes I feel as though I have been helping chase it down. It is climbing a bit today so maybe I can exit with my booty in tow.

I wouldnt worry about cashing out of CGDI right now, still has another $1 to run just to get to Book Value. If anything, I'd be adding. I added another 5k shares yesterday or Monday when the ask was .43 for no real reason. Ask shouldve been high 40s, low 50s. Someone mustve wanted out, so I sucked up those shares fast. If you can be patient, you'll have a triple on your hands from these levels.

 

[kuwlness]

i just personally think these china guys have had a nice run since march and me being bearish for 2010 as far as general equities go i'd be very tentative about chasing them...maybe they will keep running and never have a big pullback at some point...but i kinda doubt it....

cnoa, ckgt, cpby, puda the 4 i like the best and looking to nab some at some point down the road of the many kuwl has mentioned on this tread

abat another one on my watch list its on the nasdaq CM (capital markets) another subset of nasdaq

Yeah, I've been in and out of CPBY since it was around $2.50. Not one of my favorites anymore since it's closing in on $8 fast and doesnt have too much gas left in the tank. Sure, it could be a $10-12 stock in another 6 months, but the upside isnt there for me.

I know what you mean about the OTCBB stocks not getting a real PE due to the market not taking them seriously, this is definitely the case. However, please keep in mind the majority of these stocks have let shareholders know they plan on uplisting to the AmEx in the next year. If this is the case, then i'd rather be in early. CNOA and CKGT are two of my all-time favs. CCGY is nearing the top of that list as well. Just waiting for confirmation of activation of the new plant from management. When this news hits, she's gonna pop like CKGT did after their earnings report.

Glad I got a few you like, you don't seem like the type that is easily pleased. I dont think you can go wrong with CNOA or CKGT at these prices. CNOA might dance around that .65 level for another few day, but I believe it's simply consolidating after a nice run. Would like to see it's true value come out, and I put that true value around $1.50-$2 just based of previous Q's earnings and future projected growth. GLTA

 

[kuwlness]

Alcoa Earnings

Just watched earnings on CNBC and the conversation with the CEO of Alcoa. Very interesting that he emphasized more than once that China is looking very strong, very solid growth from China, China very stable and so on ... I just love it. Bodes very well for our stocks here.