Best China Micro-caps on the Market

[tiznow]

yeah when i saw that i was like oh shit dilution

but terms seem decent and so far stock was up on the announcement

thinking 2.18 (50 DMA) it hit today might be the floor

we'll see what q3 numbers are

that's probably why they gave a earnings preview of sorts this morning...so the dilution didn't freak people out...

 

[bbm]

kuwl, do you know when CHIO reports again... and do you have any idea what it will look like... do you think this is still a solid play.... maybe just have to wait alittle longer than originally thought..???
:think2:

 

[erwinmark]

Anybody like any of the China banks?

Looks like it could be a real long term winner?

Commerical Bank of China
China Construction Bank
Bank of China

These are the 3 largest, any comments?

 

[tiznow]

I still think the main thing to focus on in china is the domestic economy and small businesses that are selling products to the consumer in china

I think the infrastructure area is overextended....and export portion of their economy in deep trouble



In that case on the banking side smaller banks which make loans to small businesses and stuff like that probably the thing to look at

 

[kuwlness]

Anybody like any of the China banks?

Looks like it could be a real long term winner?

Commerical Bank of China
China Construction Bank
Bank of China

These are the 3 largest, any comments?

CHFI is my only play here. And they arent the most shareholder-friendly company around, but it's still the only Chinese financial institution I'm invested in. I'm sure you can find others, just not with the upside potential that CHFI has.

 

[kuwlness]

kuwl, do you know when CHIO reports again... and do you have any idea what it will look like... do you think this is still a solid play.... maybe just have to wait alittle longer than originally thought..???
:think2:

CHIO CHIO CHIO ... I dont know what to say about this one. How it went to $1.50 and back to under $1 blows my mind. It seems to go in spurts.

What I can tell you is there are two huge sellers still lurking and beating the PPS down. I wouldnt recommend adding any more until these big sellers are done. On Level 2, I've been keeping track of 3 big sellers, but lately it has only been two so I'm under the impression one of them has run out of shares (maybe the big 150k sell order that dropped it from $1.20 to $1 a week or so ago).

So, the two big sellers on L2 have appx 60k shares left (maybe a little less since I wasnt paying attention EOD today). Once those shares have been eaten up, I still believe it will shoot back to the $1.60 level in a few days. Then, $2 will be shortly thereafter. My only guess as to why these sellers are still lurking is because of the whole de-listing of CHIO from the China Halter Index due to it's market cap being under the required amount.

I'm holding and will add as soon as I see these big sellers relinquish their shares. I will try to post immediately on the board when I see this happen.

 

[kuwlness]

Always nice to see one of the most popular China investors mention two of my favorites:


Stocks With Unbelievable Expansion
By Glen Bradford 11/03/09 - 12:38 PM EST

"I must be crazy. I buy for only one reason. When asked what that reason is, I say, "Because it doesn't make sense not to." I've got three companies trading at ridiculously low multiples of my calculated future earnings a couple years down the road. These low prices indicate that investors find the opportunity unbelievable.

China Clean Energy (CCGY.OB) just finished the completion of its Jiangyin plant, which can be used to produce biodiesel and specialty chemicals. This should expand capacity at triple-digit percentage rates. It's also my opinion that this company is making money that disappears off the income statement due to warrant liabilities. I can't find any reason not to own, and so I do.

A Chinese pharmaceutical company, Biostar Pharmaceuticals (BSPM.OB), is looking to expand its supply network from 1,320 sales outlets to 10,000 sales outlets in the next two years and has recently received several approvals from the local government to move forward with their business. I'm expecting upside surprise going into the next quarter.

One thing I will point out on these last two is that the ChiNext, China's new Nasdaq-style stock market, just opened up with P/E ratios 50+. In those instances, you are paying for the growth. In the companies I've mentioned, the prices that the companies are trading at suggest that growth would be a surprise. In this way, you can make uncertainty work for you and get growth for free.

So there you have it. Buy when it doesn't make sense not to. Bells and whistles should be going off when you can get crazy expansion on the cheap, but sadly, most people who play the market get afraid to buy shares of ownership at lower prices and would rather pay "top dollar," as Mike from Hawaii would put it."


(The other company he mentioned in his article is Hear USA (ticker: EAR). I've been looking at taking a position in this stock for a month, but havent gotten the price I want $1.20. Just so you dont read this article and wonder "where the hell is the third stock he mentioned." I just took it out since it isnt relevant to the China micro-caps.)

 

[kuwlness]

bbm: Sorry, CHIO reports their 1st Q 2010 earnings in like 2-3 weeks. They rarely give a specific date, but I'll let the board know about when we should expect it and you can keep your eye out on EDGAR for the filing:

http://www.sec.gov/edgar/searchedgar/companysearch.html

 

[bbm]

Thanks so much Kuwl...

 

[kuwlness]

CYXN

Time to reload. .50 seems to be the bottom. TA says buy buy buy. I'm looking to add significantly to my position tomorrow. Hopefully it doesnt take-off before I can buy.


PUDA

I added more in the low $6s the other day and added significantly to my position again today as the market seems tired of selling itself off. Coal stocks in the US starting to move, PUDA will follow IMO.

 

[UltF]

CYXN

Time to reload. .50 seems to be the bottom. TA says buy buy buy. I'm looking to add significantly to my position tomorrow. Hopefully it doesnt take-off before I can buy.

I sat on an order to buy a ton at .47 for half of the day yesterday. Orders at .46 filled but mine didn't :think2:.

CSOL is pissing me off, too, haha. I feel like I'm going to keep adding all the way to zero.

 

[tiznow]

Also looking at that bspm deal again it requires they uplist in the next 145 days so good news assuming they meet the uplisting deadline

 

[kuwlness]

Boosh:

China's economic gowth to exceed 10 pct in Q4
Thursday, November 05, 2009

China's economic growth would exceed 10 percent in the fourth quarter due to climbing export orders and increasing domestic consumption, according to a report issued by China Construction Bank (CCB) Tuesday.

The report said China's full year economic growth would reach 8.3 percent, compared with Asian Bank's forecast of 8.2 percent in September and HSBC's 8.1 percent this week.

As the economy rebounded, both investor and consumer confidence would rise in the fourth quarter, which would further strengthen the economic recovery.

The National Bureau of Statistic said last week China's purchase management index rose to 55.2 percent in October, an increase of 0.9 percentage points from the previous month, indicating the economy was on an upward trend.

As developed countries showed more signs of economic recovery, China's exports would pick up with trade surplus expected to reach 250 billion U.S. dollars this year, said the report.

Automobile sales in the world's third-biggest economy broke 5 million mark in the first nine months due to tax cuts and stimulus measures, indicating China's domestic demand was expanding fast.

Though China's economic growth accelerated to 8.9 percent year on year in the third quarter, the fastest pace within a year, the economic recovery was not solid yet and there were still many uncertainties ahead.

The government should keep monetary policies relatively loose and avoid withdrawing stimulus measures too early, said the report.

http://en.sxcoal.com/DataDetail.aspx?cateID=173&id=25869

 

[kuwlness]

I sat on an order to buy a ton at .47 for half of the day yesterday. Orders at .46 filled but mine didn't :think2:.

CSOL is pissing me off, too, haha. I feel like I'm going to keep adding all the way to zero.

CSOL bounced back nicely today. My avg is in the mid-.40s, even after I grabbed a bunch in the low .30s yesterday. Crazy ... this is trading well below book value.

If they turn a profit again this Q, this will be well on its to and beyond Book Value (appx $1.40).

 

[kuwlness]

Also looking at that bspm deal again it requires they uplist in the next 145 days so good news assuming they meet the uplisting deadline

BSPM ... haha, you caught that too, nice! Yep, that would be ideal. You can tag a higher PE on this bad boy then too. Lets see if earnings crush as I'm expecting. Looking for appx .20 EPS

 

[kuwlness]

CNOA mentioned at StockPreacher.com today

Excerpt:
"The Company has experienced significant growth since its inception. CNOA's expanding portfolio of premium and natural food products is not only including green and organically grown rice, but also California wine, organic soybeans, kidney beans, mushrooms and other premium products. The Company has developed an extensive distribution network throughout many of China's major cities, including Beijing, Shanghai and Nanjing.

"CNOA targets multibillion-dollar expanding Chinese markets for premium and natural foods and wines. In 2007, food and beverage sales accounted for RMB 793.1 billion (USD 104.4 billion) of the total retail sales, a 30% increase over 2006, as China's economy continued on an upward path. In 2007 alone, sales of organic foods by the country's 800 government-certified producers reached $4 billion last year, of which about $140 million comprised exports, both up 20% from a year earlier."

To read the entire report visit: http://www.stockpreacher.com/n/CNOA

 

[kuwlness]

TA says these Stocks should move up significantly over the next several trading days:

BSPM
CCGY
CKGT
PUDA

Keep your eye on 'em and buy any dips. Always best to sit on the bid especially if you already have shares. If the bid is $2.30, bid $2.303. Anything to give you an edge.


Of course, news always trumps TA ... so, fingers crossed unemployment is not over 10% tomorrow. Although, sometimes I wonder what percentage of unemployment is already priced into the market. And you have a lot that say high unemployment is actually a good thing for the market because the Fed is forced to leave the Interest Rates at record lows. We'll see the market's reaction tomorrow.

 

[UltF]

TA says these Stocks should move up significantly over the next several trading days:

BSPM
CCGY
CKGT
PUDA

Keep your eye on 'em and buy any dips. Always best to sit on the bid especially if you already have shares. If the bid is $2.30, bid $2.303. Anything to give you an edge.


Of course, news always trumps TA ... so, fingers crossed unemployment is not over 10% tomorrow. Although, sometimes I wonder what percentage of unemployment is already priced into the market. And you have a lot that say high unemployment is actually a good thing for the market because the Fed is forced to leave the Interest Rates at record lows. We'll see the market's reaction tomorrow.

Thanks for sharing!! Following these picks has been fun.

I want to flip back the ccgy i bought at .50 for around .70 while I ride the original position. I'm liking the potential there a lot. Same with CNOA.

I'm in most china plays but still haven't jumped on PUDA because the pps makes it harder to profit with the low #shares vs. commision on ~$400. per pick. But on the other hand, its the uplisted pick so maybe less downward volatility.

how does the bid order work? If I am sitting on an order to buy 500 shares at .50, and some orders go through for 1,500 or so at my bid or even below it, am I waiting in a first come, first serve line? Or do some brokers have priority over others? Or just luck of draw? haha I've been wondering

 

[kuwlness]

SIAF

Sino Agro Food, Inc. Announces 3rd Quarter Results, Outpaces Net Profit for Entire Year 2008

Nov 6, 2009 8:52:00 AM
Copyright Business Wire 2009
Email Story Discuss on ZenoBank


Net Income of $.08 for 9 Months Ending Exceeds Entire FY 2008

GUANGZHOU, China--(BUSINESS WIRE)-- Sino Agro Food, Inc. (Pink Sheet:SIAF), an emerging integrated, diversified agriculture technology and organic food company with subsidiaries operating in China, is pleased to announce the unaudited results of 3rd quarter operations.


3rd Quarter Results 9 Months Ending

Revenue $4,853,126 $13,102,465

Gross Profit $3,144,336 $9,173,493

Net Income $1,708,790 $4,262,235

Diluted Earnings per Share $.03 $.08

Net Assets $55,305,630 $55,305,630

Net Assets per Share $1.04 $1.04



For the nine months period ending September 30th, 2009, the company reported revenue of $13.1M, representing 85% of the $15.5M total revenue generated in 2008. Gross profit during the same period was $9.1M, representing an 18% increase over $7.8M in fiscal year 2008. Net Revenue for the nine months ending was $4.2M, representing an 8% current gain over the $3.9M in fiscal year 2008. Earnings per share for the nine months ending were $.08 versus $.07 for entire fiscal year 2008.

Gross margins increased due to reduction of dependency on feed suppliers in 2009 as the company begin utilizing its own in house production of organic feed from its own cropping fields. Surplus feed was then sold further enhancing overall margins. Gross margins were further reduced for 3rd quarter due to the limited requirements for cultivation, fertilizer and seedlings.

Net assets grew 8% to $55.3M or $1.04 per share in the nine month period ending 2009 from $51M, or $.96 per share for fiscal year 2008. The Company's debt to equity ratio was reduced to 32.2% during the nine months ending from 34% in fiscal year 2008.

The Company will post the complete financial report to pinksheets.com in the near future.

Mr. Lee Solomon, Sino Agro Food, Inc. CEO, stated, "Management will focus on two areas that will improve the Company's bottom line moving forward. First, we will continue to develop and cultivate additional land to increase our livestock feed output. Second, we will begin developing a marketing network to launch our dairy products into the retail markets of Beijing City which is only 90 kilometers away from our dairy farm and processing center. By shifting a portion of our bulk sales to retail, we will be able to increase our revenue even further."



--SIAF should be met with some very large buying today IMO. Hopefully the unemployment numbers done kill its rally

 

[kuwlness]

BSPM

This was basically posted already, but now you know the dillution is complete. There are probably still some more shares being sold (NITE is the one holding us down with the dillution), but this should continue its upward climb, possibly up to $3 in anticipation of earnings:


Biostar Pharmaceuticals Announces Closing Of A $3.6 M Equity FinancingLast update: 11/6/2009 8:00:46 AM

XIANYANG, China, Nov. 6 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (OTC Bulletin Board: BSPM) ("Biostar" or "the Company"), a Xianyang-based developer, manufacturer and supplier of pharmaceutical products and medical nutrients addressing a variety of diseases and conditions, today announced that it has closed a private placement of approximately $3.6 million worth of securities with certain accredited investors on Monday, November 2, 2009. Investors received 2,060,000 shares of Series B convertible preferred stock, which convert on a 1 to 1 basis into Biostar common shares with attached warrants to purchase a total of 500,000 shares of the Company's common stock. The warrants are exercisable for a period of five years from the date of issuance at an exercise price of $3.00 and include a call provision. Biostar will use the net proceeds for the completion of the Company's new raw materials processing facility, which will help ensure product quality while reducing production costs for its pharmaceutical and nutrient Products. The Company plans to sell a portion of the processed raw materials to other pharmaceutical companies in the Shaanxi province, and increase its advertising budget in two municipalities, so as to increase its sales there.

After completing this transaction, Biostar has approximately 26.1 million shares outstanding on a diluted basis.

"After evaluating several financing options to complete our raw materials processing facility, we feel confident that this option was best suited for us for the time being," stated Chairman Ronghua Wang. "Upon completion of the raw materials processing facility, we will manage and control a large portion of our production which includes harvesting, raw material processing, pharmaceutical ingredient synthesizing and finally medicine manufacturing in our current facility. We anticipate that increase of the hepatitis product sales market will boost gross margins for our core products while providing incremental net income through new material sales. We are confident our organic growth, complemented by this new facility will enable us to meet the Make Good provisions with our new investors, which call for income from operations of $15.9 million for 2009 and $21.1 million for 2010," Wang concluded.