Best China Micro-caps on the Market

[kuwlness]

XNYH


Overlooked and Undervalued ...

One of the few China microcaps that's up only a modest 22% YTD. Xinyinhai Technology is in the printing business and has been adversely impacted by the economic downturn as well as a move to a larger factory early this year which temporarily disrupted operations. If demand picks up in the 2nd half, the stock is sure to rally from these depressed levels.

EPS of $0.04 for the 1st half of 2009, despite the slowdown, for an annualized PE of just over 3.

Tangible book value of $0.65+.

Minimal current debt and no long term debt.

Stock has been on the OTCBB for several years and traded as high as $1.88 during the last China microcap boom 2 years ago.


per the 8K -

On December 5, 2008 Harbin Golden Sea Technology Printing Co., Ltd., the operating subsidiary of Xinyinhai Technology, Ltd., began the process of relocating its production facilities to the new plant that it purchased in December 2007. The new plant is located at No. 4 Yantai Road, Centralized Park, Haping Road, Harbin Development Zone, Harbin, China. Whereas its current plant provided a production area of 6,000 square meters, the new plant has a production space of over 20,000 square meters. The relocation to new facilities is expected to increase our production capacity by 30% to 40%. After the transfer of our operations is complete, the Company will consider options regarding the prior plant, including a possible sale of the realty.

 

[kuwlness]

BSPM


Go for it ... she's gonna be the next runner. Might as well get in before the storm that's brewing on the horizon. I hear $4 is just around the corner. Potential multi-bagger. Will share DD when I can.


*EDIT* had a few mins, here's the DD you need to know:

7 reasons Why it's a lock from here

1. Q1 and Q2 of this year had > 40% revenue growth over the corresponding quarter of 2008.

2. eps .24 vs .15 for 1st 6 months 2009 vs. 2008

3. Growth rate should accelerate going forward- and show in the q to be reported in November with new products launched in July that the company estimates will bring an additional $1M in net income for 2nd half (additional .06/share annualized).

4. EASY comp for the coming quarter: Q3 2008 was only .03/share. With the 40%+ growth they've been experiencing, plus additional sales outlets in rural counties (see July pr below), and the 3 new products added to the mix, I think .15-.20/share is in the bag. (They made .17/share in q2- and growth- according to all the guidance, will continue.)

http://ih.advfn.com/p.php?pid=nmona&cb=1255639867&article=38661222&symbol=NB^BSPM

5. Healthy current ratio of 3.3 and bv of $1.25.

6. BSPM is thinking big Their ambition is "to build the largest regional pharmaceutical supply network in rural areas of the PRC". If you've been following China's pharmaceutical industry you know that the central government is putting billions of yuan into increasing afcess to healt care and medicines in rural areas- it's a primary focus of their health care reform. So it appears that BSPM's goals and the government's agenda are closely aligned.

7. Extensive pipeline for future growth- BSPM just received a patent for a Hepatitus B medication last week, (with gross margins of 70%) and also stated: "We expect to receive additional patents for multiple indications over the coming year which will further strengthen our branded product base."
http://ih.advfn.com/p.php?pid=nmona&cb=1255641545&article=39732075&symbol=NB^BSPM

This is an over-the-counter medicine that 10% of China's population (who are Hep.B positive) can use- with 70% gross margins- HUGE potential on this one drug alone.

 

[kuwlness]

CHIO


L2 thinning out. Big wall has been breached. She's thin on up $2. This might be the platform for the next leg-up. Come on CHIO ... gimme $2 this week, need those profits for my other plays, lol

 

[bbm]

hey kuwl, did u see the good volume and pps move today in pfgy...??

 

[kuwlness]

hey kuwl, did u see the good volume and pps move today in pfgy...??

Yep, starting to get some new attention finally. Should keep moving IMO.

 

[kuwlness]

SGZH


One of the cheapest $30 stocks on the market. Only a triple, so not one of my top plays, but worth having money in it either way for the long-haul.

 

[bbm]

kuwl, whats the strategy for chio, is $2 the exit point..??

 

[kuwlness]

kuwl, whats the strategy for chio, is $2 the exit point..??

Yessir, that's where she'll be close to fairly valued, but next 10K comes out in like 4-5 weeks, so I'll give more estimates then. It'd be worth it to keep a position in the stock either way, just not as much until we get more news from the company.

 

[kuwlness]

CHFI -- to put it all into perspective for those of you who may think the run is over:


Date Open High Low Close Volume
05-Sep-2008 4.5000 4.9500 3.9500 4.7000 111,260
04-Sep-2008 4.0500 4.7000 3.7500 4.5000 73,533
03-Sep-2008 3.7000 4.2000 3.5500 4.0000 54,376
02-Sep-2008 3.7000 3.7000 3.4500 3.7000 950
29-Aug-2008 3.9000 3.9000 3.2000 3.6900 20,277
28-Aug-2008 3.8000 4.2600 3.5000 3.7500 116,369
27-Aug-2008 2.4500 3.8000 2.0500 3.8000 134,560
26-Aug-2008 1.7000 3.1000 1.7000 3.1000 160,479
25-Aug-2008 .7200 1.8500 .7200 1.7000 66,810


And, it as over $6 last year in November.

 

[bbm]

kuwl, got into both xnyh and bspm could you give me the price targets.... and maybe exit points if you have them, thanks

 

[kuwlness]

kuwl, got into both xnyh and bspm could you give me the price targets.... and maybe exit points if you have them, thanks

Dont have one for XNYH yet. Looking for at least .65 short-term. Just found this gem today from the advice of another China trader -- looks like quite a few others caught this one as well as the PPS started to increase dramatically and volume picked up shortly after hearing about this one. I dont plan on selling at .65 though, looking for at least $1+ ... might take a a few months to get there though. We should be in the high .40s tomorrow as more people digest what's at-hand here. It was $1.35 in 2007 and things have improved dramatically since then. It's been under the radar for so long, I cant come up with a fair value target yet. Will keep the board updated as I do more DD.

BSPM, you can sell at $4 if you want. That's where it was in July/August. This is a longer-term play for me. It'll probably be over $6 in a few months if their earnings forecast is accurate. Take your pick, $4 or $6, lol. Maybe sell half around $4 and hold the rest for $6. Your choice, I wont be selling any until $5+

 

[kuwlness]

FadeMeToWin says hi to the RX crew ... still banned here apparently:

<TABLE border=0 width="100%"><TBODY><TR class=text2><TD vAlign=top width="45%">Sent By: FadeMeToWin</TD><TD vAlign=top width="20%">To: kuwlness</TD><TD width="35%">Date:10/19/2009 5:23:16 PM</TD></TR></TBODY></TABLE>
<TABLE border=0 width="100%"><TBODY><TR><TD class=text2 vAlign=top width="90%">
Just a few of my holdings:

ABWTQ Up 67%
CCGY Up 42%
CHIO Up 62%
CKGT Up 25%
CPQQ Up 33%
CSGH Up 44%
CSGJ Up 6% in 1 week
CYXN Sold ealier for 22% gain just bought back in today
LLFH Up 34%
PUDA Up 64%
RBY Up 51%
WAMUQ Up 10%

I hold stock in 5 different Lehman categories; 4 of those are preferred; Ups/Downs mean nothing on these now. For the most part i am Break Even on them.


I have added another China small cap this week (SIAF) and looking at a couple of others.

Please post to the RX boys and tell them i said hello.

Thanks for your help and information. The drinks and lobsters are on me when WAMU hits.</TD></TR></TBODY></TABLE>

 

[kuwlness]

CNOA


Great dip buying opportunity

 

[tiznow]

chfi going completely apeshit...insane...5 bagger in like 8 trading days wow....

 

[kuwlness]

chfi going completely apeshit...insane...5 bagger in like 8 trading days wow....

No kidding. A few lines up I posted the history from last year around this time when it went from .70 --> $5 in like a month. Might be possible it happens again, I'm holding onto my shares, lol. Only had 8k from .20, but added another 5k on the run-up and will add on any major dips. JADA having a stunning 2-day run as well. Grabbed a bunch of that in the .30s yesterday, looks like all the low PE China plays are running hard.

$200M new dollars coming into China companies according to a recent article. I'll PM you with it when I find it again.

 

[tanner12oz]

Keep an eye on the Stocks associated with CHFI...this past quarter...

CNOA up 180%
GRUS up 255%
JADA up 76% (after yesterdays move)
HSYT up 130%
BFAR up 40%

 

[tiznow]

comeon now dude

first time you mention CHFI is after it pops to around 60 cents the other day and now saying you had from 20 cents...

anyway....congrats if you really do....

 

[tiznow]

all i know is i really wish you woulda never mentioned any of this shit LOL

the ones i liked after doing some research really starting to piss me off

ckgt still running

 

[UltF]

all i know is i really wish you woulda never mentioned any of this shit LOL

the ones i liked after doing some research really starting to piss me off

ckgt still running

Kuwlness, Please keep mentioning this shit!
My attempt to get in on CNOA during the dip didn't fill. Do I have time to wait for more drops on this stock? Thanks for sharing all your hard work!

Tiz, maybe its your bear karma? j/k Go CKGT go!

 

[tiznow]

well i was joking thus the LOL

good prospects in a few of these

we'll see what happens longer term with these guys

think some of these will come back to me eventually once the bear gets rolling again

maybe not...

the reason i'd be scared regardless of valuation is seeing how depressed these guy were in march last year...i think by end of 2010 that type of fear will return to the overall equity markets...will these little chinese guys not get blasted again? maybe not....but i don't want to be in them to find out either

cnoa like i said is potentially a special situation though since they had the litigation overhanging them for a while and are extremely undervalued on paper.....