Best China Micro-caps on the Market

[kuwlness]

their EPS growth rate isn't that great and CKGT not earning a ton yet...they made 7 cents in q2 vs. 6 cents in q2 2008

i don't see how you can say HQS is pricey yet ckgt is cheap as it gets....we getting that sub 8 dip i figured the MM might do before earnings.....based on historical trends HQS will easily earn over a buck this year....with good growth rates and insane margins....

It's probably a safe buy here around $8, I just don't think there is a whole lot of upside. I've got plenty that have several hundred percent upsides in the next few years, HQS has limited upside IMO. 50% ROI, but who knows if that'll happen if the market keeps getting pummelled. No one is investing long-term right now, which means every rally will be met with selling.


HQS down-fall: Last quarter YOY earnings looked flat ... do they intend to grow? Yahoo says P/E 8 cheap but not if stock doesn't grow.


My secret reason for never wanting to buy this stock was that the warnings said, "we could be washed away by Tyhpoon." So if I bought the stock I would have keep monitoring the weather reports.

 

[kuwlness]

Kuwl, I sold DNDN up when it was in the $29 range for a nice profit. It's looking like a good buy opportunity right now at 25. Isn't the FDA approval coming soon?

DNDN: possible buy-out company. Been rumored since July I think. I wont buy a company based off that alone, and considering the company is still losing money (with no end in sight), I wont invest in it. I'm not really a fan of big pharma, although if the market continues to sell-off, that's probably a safe place to be. $22 would be my buy-in point if I wanted to buy DNDN. Plenty of other opportunities out there. CVM could be the next HGSI/DNDN. Gotta find 'em before the big moves, that's the hard part. DNDN upside is $35-40 at most IMO, so you could still make some cash. Just not one I'd recommend getting into.

 

[yesitsdrew5310]

Perfect, thanks for your input!

 

[kuwlness]

It's a very sad day when solid companies with low PEs operating in one of the only economies with positive GDP growth get sold-off as bad as they are right now.

And yet, you have AIG in the Green. Lol, truly sad. Congrats to all that had lots of cash on the sidelines. There are some blue-light bargain specials out there right now.


Some Technicals Worth Noting:

QQQQ and SPY at 50-day MA

IWM creating a double bottom.

Don't be surprised if there is just ridiculous strength coming in a day or two. A lot of capitulation and panic now taking over ... and shorts are 'all in' sitting on outrageous profits.


Also:

It's amazing how many folks will start saying "What's wrong?" when a stock like YONG and many others pull back. It's an honest question, but those are the folks that will sell to people like me and will ultimately end up chasing the stock on the way back up.

Regarding a correction, YES, with many stocks on the Nasdaq trading with multiples of 30 to 40 when growth's at 10%, they deserve to get clocked ... BUT when you have stocks like YONG that deserve a multiple of 30 to 40 based upon growth of 50% a year and trading at a P/E of less than 10, now's the time to get in position for huge gains because they are coming.



Sorry, had to rant a little. I dont get spooked easily. Just helping point out a few things to those that are still fairly new to the water. I know how easy it is to get scared off.

And please keep in mind, this is Mutual Fund mania. They need to re-arrange their portfolios because November is the start of their new fiscal year. MMs are capitalizing on the Mutual Funds selling and creating panic. This was to be expected, this is why I warned everyone to use Monday as an opportunity to take some off the table and have cash.

The Government's auction of the most debt ever auctioned in one week. This is the main reason the dollar got a bounce, the Fed had to talk it up. Otherwise, who would've bought all that debt!? Dollar down-trend continues soon IMO, probably tomorrow, Friday, or Monday at the latest IMO. Hold strong friends.

 

[bbm]

kuwl, just got in CSOL at .50, whats the price target and time frame you have on this one..?? thanks

 

[tiznow]

It's probably a safe buy here around $8, I just don't think there is a whole lot of upside. I've got plenty that have several hundred percent upsides in the next few years, HQS has limited upside IMO. 50% ROI, but who knows if that'll happen if the market keeps getting pummelled. No one is investing long-term right now, which means every rally will be met with selling.


HQS down-fall: Last quarter YOY earnings looked flat ... do they intend to grow? Yahoo says P/E 8 cheap but not if stock doesn't grow.


My secret reason for never wanting to buy this stock was that the warnings said, "we could be washed away by Tyhpoon." So if I bought the stock I would have keep monitoring the weather reports.

yeah i know about about the typhoon issue (its not typhoon season anymore)...they are insured...but obviously operations will be closed down if a big one hits

as for the earnings

every year prior to this year they lost money in Q1 and Q2

Q1 2008 loss of 4 cents....Q2 of 2009 profit of 9 cents

Q2 2008 loss of 8 cents...Q2 of 2009 profit of 9 cents

than the end of year is where they make their money

Q3 2008 43 cents, and q4 48 cents

for full year profit of 79 cents

vs. 57 cents for 2007

if we assume zero EPS growth yoy in q3 and q4

they will make for full year 2009 of 1.09....the key assuming zero growth yoy in EPS for Q3 and Q4...which i doubt happens....as the first two quarters of their fiscal year has been profitable for the first time in their history

 

[kuwlness]

yeah i know about about the typhoon issue (its not typhoon season anymore)...they are insured...but obviously operations will be closed down if a big one hits

It's a buy above $8.30 for me, that's break-out territory. I've had it on my watch list for quite some time since we talked about it a while back. I like the company, just would like to see more growth in earnings.

This Q should tell the story, and if they hold a Con Call (i'm assuming they will?), then maybe I'll have all I need to know in order for me to buy HQS.

This could be a monster in the making. Definitely keeping it on my radar and looking forward to their Q earnings & Con Call.

 

[tiznow]

yeah they've been doing con calls since q3 of 2008

should be in a few weeks...was on nov 10th last year...

the one concern i have is they dependent on the US and european economy as far as purchasing their tilipia....so that could potentially hurt them...but tilipia is a huge growth market regardless of the underlying economic weakness...and they also sell neutraceutical type stuff within china so they have that as a buffer of sorts...

 

[tiznow]

i just be careful waiting till results this guy could go bonkers if Q3 turns out like i think it could

this was statement from Q3 of 2008

they could easily earn 1.20 or more this year....IMO

and their cash on hand position only gonna get bigger....currently sitting on 4.60 in cash per share.....

---------------------------

For the quarter ended September 30, 2008, sales increased 42% to $22.5 million, compared to $15.8 million in the third quarter of 2007. On a sequential basis, sales increased 55% from $14.5 million in the second quarter of 2008. The Company's Aquaculture Production and Processing segment accounted for $15.1 million in sales for the three months ended September 30, 2008, up 47% from $10.3 million reported for the same period last year. Sales from the Company's Marine Bio and Healthcare segment were $7.4 million for the third quarter of 2008, up 34% from $5.5 million in the third quarter of 2007.

The gross profit for the third quarter of 2008 increased 23% to $9.5 million, compared to the same period of 2007. On a sequential basis, gross profit increased 92% from $4.9 million in the second quarter of 2008 and the gross profit ratio increased from 34% in the second quarter of 2008 to 42% in the current quarter. While gross profit increased in the third quarter of 2008, the overall gross profit ratio decreased to 42% in the current quarter, compared to 49% for the three month period ended in September 30, 2007. The reduction in the gross profit ratio for the current three months period ended in September 2008 compared to the same period of 2007 was primarily due to increased manufacturing costs in the aquatic product segment combined with a different sales mix in the healthcare products segment.

"I am very pleased with our performance during the third quarter, which represents the best third quarter in the Company's history. Our success is a direct result of the expanded capacity of our aquaculture plant, which has increased from 20,000 metric tons live weight flow through to 30,000 metric tons, and the significant progress we have made in establishing solid relationships in the fast food industry during the quarter. We intend to double our current production capacity by the end of the next calendar year, and are confident that doing so will help us to take advantage of what we see as a strong growth opportunity for the production of ready-to-eat meal products with tilapia as the main protein component," said Norbert Sporns, CEO of HQ Sustainable Maritime Industries, Inc.

 

[tiznow]

plus comparing p/e and growth to bb stocks isn't a good comparison with HQS IMO

as HQS reports timely, holds conference calls, etc...so it is more in tune and trusted by the investment community

 

[kuwlness]

Wow, sounds like you got in very early. Always nice to see those 100% returners. I think OPAI has been the best one for me this year, got in @ .15 and sold most of mine around $1.40, almost a 10-bagger.

If I had more cash right now, I'd probably take a starter position in HQS, especially considering it's one of the few marginable securities I'm looking at or already invested in. Gotta love that extra leverage margin accounts give you, just cant go over-board at a time of uncertainty in the markets like right now. I'm keeping my margins around 10%, dont want to go higher than that until I see things turn back around.

Seems like short interest is minimal, so it's just getting beat down today like everything else. I agree with your belief that Q earnings will be strong again this time of year. Probably a very safe play either way. I'll let you know if I hear anything else about HQS.

 

[bbm]

kuwl, just got in CSOL at .50, whats the price target and time frame you have on this one..?? thanks

 

[kuwlness]

kuwl, just got in CSOL at .50, whats the price target and time frame you have on this one..?? thanks

Book Value about $1.40, no debt. Looking for at least $1.20 near-term. Grabbed a bunch at .48 today, looks like there are still some cheapies out there. Craziness

 

[kuwlness]

Not that Doug Kass is a genius or anything (although he did call the bottom):

Doug Kass on Twitter: "getting oversold"


For anyone who doesn't know him -- Doug's one of the most bearish guys out there.

 

[tiznow]

impressed how well bspm holding up alot of these guys getting blasted today

hqs at 7.50 a joke

low 7's should be support don't see it getting below that before earnings....

 

[ANOTHERDAY]

CNOA took a beating todayhno:

Hopefully it comes back

 

[lax_gunman]

I didn't end too bad considering everything was red today. Somehow chhl and blap closed green for me just b4 close. I have 20 stocks on watch and one was was green, lleg.

 

[tanner12oz]

hey KUWL any clue what the story is with the China Finance Inc. and China U.S. Bridge Capital??? they seem identical or at least EXTREMELY similar...im having trouble figuring how if this is positive/negative or really anything...CHFI is like a damn riddle....so any ideas to throw around on this?

 

[kuwlness]

hey KUWL any clue what the story is with the China Finance Inc. and China U.S. Bridge Capital??? they seem identical or at least EXTREMELY similar...im having trouble figuring how if this is positive/negative or really anything...CHFI is like a damn riddle....so any ideas to throw around on this?

T12Oz: That's news to me if they are one in the same. I'll be doing some more research later today, but after briefly looking on the website, it would appear CHFI might be undergoing a name-change. Those investments are all companies CHFI has been involved with in the past, except a few on that list. This could get very interesting if that's the case. Because they added a few more winners and I like the China US Bridge Capital name better. Will keep you posted.

 

[kuwlness]

YUII

Yuhe International Inc. Approved to List on NASDAQ



I help you find 'em before they announce these things. Stay ahead of the pack ... the view is much nicer from the front.