Best China Micro-caps on the Market

[kuwlness]

TSTC

If anyone would like the power point presentation TSTC used at the Brean Murray China Growth Conference (which was 11/19-11/20), please PM me with your email address and I will send you a copy.

TSTC went BOOM today. Chart wasnt toppy (as I suggested) ... folks realized the true potential here. Main reason for today's buying spree was that Investor's Business Daily -- a very accredited and highly followed organization -- put TSTC towards the top of their list. I flipped almost all my shares today and I may regret it because this now has legs to run to $18 ... I hope I get a pull-back before that to buy more.


This is how IBD rated it:

TELESTONE TECHNOLOGIES RANK WITHIN THE TELECOM-WIRELESS EQUIP GROUP (61 STOCKS)

Composite Rating(99) Rank within Group: 1st

EPS Rating(92) Rank within Group: 4th

Relative Strength Rating(99) Rank within Group: 1st

SMR Rating(A) Rank within Group: 4th

Acc/Dist. Rating(A-) Rank within Group: 5th

Composite - Group Leaders TSTC TELESTONE TECHNOLOGIES STAR STARENT NETWORKS CORP LORL LORAL SPACE & COMMUNICAT 5CDV COM DEV INTL LTD QXM QIAO XING MOBILE COMM CO
EPS - Group Leaders IDCC Interdigital Inc RIMM Research In Motion Ltd ANEN Anaren Inc TSTC Telestone Technologies ELMG E M S Technologies Inc
Relative Strength - Group Leaders CAMP Calamp Corp DRWI Dragonwave Inc TSTC Telestone Technologies WAVE Nextwave Wireless Inc LORL Loral Space & Communicat
SMR - Group Leaders RIMM Research In Motion Ltd STAR Starent Networks Corp IDCC Interdigital Inc TSTC Telestone Technologies NSATF Norsat International Inc
Acc/Dist - Group Leaders
REMC Remec Inc 5CDV Com Dev Intl Ltd DRWI Dragonwave Inc STAR Starent Networks Corp TSTC Telestone Technologies ..

 

[kuwlness]

TSTC: Too far too fast, Sold all mine yesterday.

YONG: Finally rebounding. Dec $10 calls took off yesterday, yippy.

YUII: About to take off

PUDA: Found it's bottom, took off.


Seemed like yesterday we were finding a bunch of China small caps that took off on no news at all. Race performance is what a lot are led to believe. Could be, not sure ...


S&P 1112 is the number the big boys are watching. S&P futures already at 1113.9, so we're over the big hurdle -- will it catch gold in the near-term?? Doubtful, but gold isnt running on fundamentals anymore and I wouldnt be surprised to see a sharp drop in gold in the near-term.

If S&P can hold and close above 1112, we rally to 1150 -- which has been my prediction since August/Sept. Shorts are gonna try to drop us first thing in the morning, but if the financials rally today (which it looks like they will on the BofA repayment plan), then I think we have the fuel to close above 1112, and we rally to 1150 by year-end.


No other updates. XODG has been hot, should hit $2 soon. GRVY just starting to get noticed. GLTA

 

[DRINKMOREBEER]

Kuwl, are you still holding CHIO until it comes back? Or is it something to sell and take losses?

Thanks

 

[FoxCountry]

kuwl, have an important question concerning one of your plays. can i email you? if so, what is your email

 

[kuwlness]

Kuwl, are you still holding CHIO until it comes back? Or is it something to sell and take losses?

Thanks

Yes, CHIO is pathetic and painful, but it's worth a lot more than what it's selling for. I'm accumulating under .75 from time to time. If you're only concerned about the short-term, then this stock may not be right to hold ... however, cheaper taxes on long-term holdings.

There's still a registered seller and that's been beating CHIO down every time it starts to move. Could go on for months or could stop tomorrow, just depends on how much he's got left and how much he's deterred interest in the stock for the short-term.

 

[kuwlness]

TSTC:

Starting to accumulate under $15. Hope it trades down to $14.30 because that's where I'll be a big buyer and I think others will be too.


PUDA:

Great movement lately. They will be announcing more details about recent mine acquisitions and might need to raise some money. I'd take some money off the table in hopes of buying it under $5.50 again. If it breaks above $7, then we'll just have to add more there.


CKGT:

Consolidating after a big run from earnings. Still under-valued, worth at least $5 and I wont sell except into big runs.


CCGY:

Still like it. Bought a bunch in the low .40s ... it was about to break back towards .50s at EOD. IR might be putting out more information I believe, or at least that's what someone posted on the forum.


JADA:

Bought a bunch at .35, this was $1 a few weeks ago. Crazy market. Gap is getting filled back to .80+ and probably well over $1 if they can get some more contracts.


GRVY:

Holding, angrily. Has $2 in cash yet it trades at $1.40 ... unreal.


BSPM:

Gravitating towards $2.40 again. Resistance there, not sure if it can break and hold considering the recent weakness in the markets and short-term strength in the US dollar. Up-listing around end of 1st Q next year, worth a lot more.


YUII:

Kicking ass and taking names. You'll have to follow my posts on i-hub if you want to keep up on the YUII story. We have institutional buyers (finally) and they've been buying. So far, only 150k, but I think they'll be buying around 1MM. If you look at TSTC and YONG, you'll see 2MM and 1MM accumulated respectfully. YUII is worth $10 just based off last Q's earnings. 30% organic growth, clean balance sheet ... too many good things to mention, this is my biggest holding after seeing the registered sector buying.


Anyway, I still like and own just about everything I've mentioned on here (CYXN being the only exception that I can re-call for sure ... and CHFI, there's a reason that one got such a low star rating, POS, lol).


Top stocks for now are:

YUII
XODG
CCGY
CKGT



Been buying a lot of CGDI under .40 ... crazy cheap back at these prices after their recent 10Q. CSGJ is a POS, but I've been buying sporadically ... woud really like to load up at .50. This one totally fell apart. Not sure what else I'm missing.


SGZH, that ones gonna be heading a lot higher in the near-term.



Sorry, no time to sort it all out.

 

[kuwlness]

Bought a bunch of SKBID in pre-market ... lol, cant believe its off this much on good news and news that was already known.

This is a $20 stock and you can buy it under $10 ... Weeeeeeeeee



I'll try to catch up on PMs this afternoon, sorry all been busy with holiday and year-end stuff

 

[kuwlness]

XODG


dont sell much ... you should have close to a double by now if you got in when I recommended it at $1 ... this is worth at least $3, but will probably be worth $5 later next year ... I love this stock!!

 

[ANOTHERDAY]

XODG


dont sell much ... you should have close to a double by now if you got in when I recommended it at $1 ... this is worth at least $3, but will probably be worth $5 later next year ... I love this stock!!

@)
Should I put a stop limit or just let it ride?

 

[tiznow]

bspm starting to pick up again...

above 3.50 its a hold IMO

4.50+ start think about selling

 

[kuwlness]

@)
Should I put a stop limit or just let it ride?

XODG

Trade how you feel necessary ... this is a long-term hold for me.

I just don't recommend selling much until higher prices. Trades very thin and it seems to go up 4/5 days, lol

Long-term target is $5 ... i'm gonna sell some as we get closer to $3, but not much as I feel it's heading to my long-term target next year

 

[kuwlness]

bspm starting to pick up again...

above 3.50 its a hold IMO

4.50+ start think about selling

BSPM

Yep, nice break-out today on convincing volume. Should test $4 tomorrow, but I dont think we break and hold. Looking to re-add around $3.50 on the pull-back

 

[stankers]

Any thoughts on CNOA or AVMD. Is now a good time to take a position? They both have been getting hammered the last few weeks. Thanks

 

[PBMULE]

KUWLNESS bought TSTC..

Bought TSTC on Friday at $14.75 Got up to 16.93 today. I bought 500 shares... You a hold or would buy & sell on dips???

 

[PBMULE]

WOW TSTC through the roof..

Kuwless: Sold my shares at $17 a share & that SOB is still rocketing.. now $18.25. I bought on Friday for 14.75 just wish I would have gone all in.. Any chance of getting back in for sub 16. Or is it gone.. Thanks

 

[kuwlness]

Kuwless: Sold my shares at $17 a share & that SOB is still rocketing.. now $18.25. I bought on Friday for 14.75 just wish I would have gone all in.. Any chance of getting back in for sub 16. Or is it gone.. Thanks

I think we might get a chance to buy TSTC sub-$16 tomorrow ... it started to roll over today with the market. I'm hoping to get in sub-$16 as I flipped all my shares around $18 today (again).

Some new investor's business daily information came out, which is why it rallied yesterday and again today before breaking down.

Like I said, this is worth $20+ and if their earnings come in with my expectations, it'll probably be over $30 by this time next year. This is my favorite stock ... it has .50 - $1 swings every day and a true trader will take full advantage of this volatility.


What I'd recommend is keeping a core position (whatever you're comfortable holding long-term) and have shares you can trade and still participate on the big rallies when you sell too soon. Buy back your trading shares on the big dips (7-10% dips) and you'll be rewarded.

 

[kuwlness]

Any thoughts on CNOA or AVMD. Is now a good time to take a position? They both have been getting hammered the last few weeks. Thanks

CNOA could rally to .80 in the next few days. Found support in the high-.60s ... Im downgrading this stock to a 2-star considering management is a little flakey.

AVMD is under-valued, but stocks can stay that way for a while. I've been adding incrementally under .10, but hoping this thing gets noticed eventually ... I'm guessing their next 10Q should do the trick. We shall see.

 

[kuwlness]

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....

HQS is a horror story ... Case in point: they sell at roughly $7/share ($100M cap), and have roughly $3.50/share ($50M) in cash alone. Yet they just registered another $50M offering!!! It's nutz. They have absolutely no need for cash right now, but they keep raising cash "just in case" a need arises in the future. It's as if they are a company with an anxiety disorder. Cash OCD--never enough to quell the fears.

If you dilute like they have in the past three years, the earnings will get bigger, but the EPS won't. Not a good company ... I wouldn't touch it with a ten foot pole.

 

[kuwlness]

New holding .... NFEC

... bought today at $3.79 (only 1k shares). Not a huge holding, but I think the future is very bright here. Will add more as more details emerge.

The OTC Journal follows NFEC and has a range of 47 to 60 cents EPS for 2009, and about 50% higher for 2010. Q4 results for 2009 could surprise nicely to the upside, thus the large range.

4th qtr numbers per guidance will be excellent .. over 100% rev growth 9.6 v/s 4.1 and net inc of 3.1 v/s .98..eps estimate .19-.22 v/s .09..need some cash but overall pretty nice.. Sequential looks great too -- 20-25% both top and bottom line.



SHENYANG, China, Dec. 15 /PRNewswire-Asia/ -- NF Energy Saving Corporation (OTC Bulletin Board: NFEC; "NF Energy"), a Chinese leader in providing integrated energy conservation solutions, today announced it has expanded its cooperation agreement with GE to include four energy saving (Build Operate Transfer) BOT projects based on the Strategic Cooperation Agreement signed in July 2009. Upon completion, the four energy saving BOT projects are expected to generate annual US GAAP revenue in excess of $10 million.


SHENYANG, China, Sept. 23 /PRNewswire-Asia/ -- NF Energy Saving Corporation (OTC Bulletin Board: NFEC; "NF Energy"), a Chinese leader in energy efficient flow control systems, today announced that based on customer orders received and anticipated project completion schedule for the remainder of 2009, the Company expects revenue for the fiscal year ending December 31, 2009 to reach $24 million, a 52% increase over revenue of $15.8 million for the fiscal year ended December 31, 2008.

 

[kuwlness]

Started selling YUII ... looks a little toppy and I'd like for it correct back down to the low $7s to reload. But, could easily keep running, it had 7 green days before today's slightly red day. Mutual Funds have been buying this, so I'm hoping they wait for a better entry point rather than just keep pushing this along.


Sold some BSPM in the high $3s ... hoping it pulls-back to $3.45ish and I'll reload.


Waiting on financing details to re-buy YONG. Sold my Dec $10 Calls last week when it was rallying. Hoping to add Jan $10 calls once the financing deal is announced. Although, I'm not certain they're doing an offering, but the PR from the other day sure screams "financing deal coming" so I sold into the strength and glad I did. I'll buy the stock flat-out if it gets under $8, but prefer the leverage the options give.


NEP is one I really like and have had a small 1K position in since $5. I didnt recommend this one because I didnt understand why it was so cheap. This is already a $10 stock based off current earnings and future projections. They did a stock offering yesterday at $6.80 (insanely good deal) and I believe once it levels off, that'll be support going forward. NEP is an up-listed stock and has options as well. I own NEP flat-out, and I own the April $2.50 calls.


CKGT has been hot, and it's been acting like good news is coming. This company is so freakin' conservative they wont even PR record revenue and EPS, not to mention insane YoY growth. Ahh well, this stock is worth at least $5, but will probably be over $6 by this time next year.


LPIH has been rallying nicely as well. Crane (the CFO) is an idiot, but I dont think he can ruin this stock. This is worth at least $5 based off next year's projections, but I wouldnt be surprised to see it around $7 in 18 months.


Bought back into NEWN. NEWN was formerly CMTP, formerly CHID, formerly ??? I dont know ... so many ticker changes. Been in this stock since the original R/S from the .80s. I sold out on it's move to $10, then told the board to re-buy around $6. They just had two large acquisitions that should add a lot of revenue to their bottom line. The recent two high growth acquisitions make EPS of $1.50+ possible for 2010. Which makes NEWN a $10+ stock, not to mention they're in the red-hot battery sector.


CSGH had a nice rally. I sold some into the strength. Support is in the mid-$1.50s, hoping to reload at that level. If it keeps going, all the better, I always keep a core position.


ACLO ... can't believe I've been buying at .50 for the last few days ... maybe people didnt read the PR from 11/24. Lol, ahh well, it'll get noticed eventually and when it does it'll be over $1. Easy double+ from today's price. Not to mention they make a ton of stuff for Samsung which is clearly gonna be hot this Christmas with all the smart-phone craze.


JADA -- I loaded up in the low-.30s ... this was $1 a month ago, lol ... that's where I told everyone to sell and now we're getting about a 60% discount. This might not move big, but it's worth .80 at least. They just did .08 EPS, so definitely worth .80 IMO. I wouldnt put a whole lot into this one because this company sells Raw Jade ... but if the middle class is expanding in China, they love their Jade.


SGZH -- get in before they uplist ... this will shoot from where it is now ($8.50ish) up to $10.50 in the next few weeks. This is an under-owned coal stock and I expect it to rocket very soon. Easily a $30 stock in 18-30 months.


PUDA -- I like it a lot, but Im more invested in SGZH now. I also like LLFH, but I dont want too much coal exposure. SGZH is my biggest holding, PUDA is 2nd, and LLFH is 3rd ... only in the coal sector, not over-all biggest holdings.


XODG: should be seeing revenue forecasts any day now. I really like this stock. Pulled back a little bit from its recent high of $1.90. I'll be buying more under $1.50 if I get the chance.


CGDI -- cheap

CCGY -- levelling off, add under .45 if possible.

CSGJ -- ugly, down-grading to 2-star until I figure out what's wrong with this stock.

XNYH -- cheap, buy under .25




If you got a question, ask it ... I'll be updating the forum more, just been busy lately. My dog had puppies recently and they are occupying a lot of my free time. Otherwise, you can always follow me during the day on i-hub, I post there regularly.

:toast: