Best China Micro-caps on the Market

[kuwlness]

CTXIF - China Linen Textile


New addition to my crew. Needed to finish buying it before I recommended it to the board because it trades thinly and I didnt want to have to pay-up ... sorry.

Must add at $1.30 (doubt it gets that cheap again). $1.50 is reasonable. Dont see why this wont be $3+ in 2010. Leaving a tentative $3 price target for now, but I think there's a good change it sees $4+. Will keep the board updated. Calculations below:


FY2009 $0.28/share earnings
FY2010 $0.41/share earnings (est.)

With very reasonable P/E of 5 for 2010, $2.05/share. PE of 5 for 2009 gets $1.40. Very undervalued at the moment.

Even with dilution of up to 30% of outstanding stock, the EPS should be at least $0.30 for 2010. Now applying a discounted PE for this stock of say 7.5-10, this stock should double fairly quickly IMO.

 

[ANOTHERDAY]

NEWN: Has had a good run from $6.50 when I started telling folks to load up. Hope everyone flipped some in the high $8s / low $9s. I anticipate some sideways trading and/or consolidation. $7.50 would be the big-buy level, but I'll continue to buy incrementally on the way down as I dont expect it to get back to $7.50. Just dont get caught without shares if this closes above $9.30 as a full-blown break-out would be on-tap.

CCME: ticking time-bomb. Close above $11 signals a start to a new up-trend and $15 will come quick.

CKGT: $2.60 is your big buy-in price. I truly hope this tests this level as I need more shares.

BSPM: Could test $4, MMs have been liquidating shares and I dont think they have the ability to force it down to $4 anymore ... it wouldve happened Friday but buyers kept stepping in. BSPM is my biggest holding after buying significantly into Friday's weakness. Still looking for $10+ here in 2010.

CGDI: Hope/try to buy under .40. Rocketship set for launch any day now.

CCGY: nice news last week, and a 50% positive reaction to the news ... cant complain. Still think this hits $2 in 2010

CSGH: Huge rally on no news over the last month. I wonder if a contract is about to be announced. Battery sector is hot, but I took all my trading shares off the table late last week.

CWS: $7.50 coming soon. Probably take some off the table there, but looking for $9 over the next month or so.

SGZH: It's starting...$10.50+ coming soon ... $30 in 2011 unless earnings disappoint.

SKBI: expect sideways trading and possibly a quick dip back to $10.50. Dont think this will have much weakness though, no reason to sell or take profits here. $13.50 is where I'll be selling my trading shares.

XODG: Energizer bunny. Chart is beautiful. Goes up, consolidates, goes up again. Cant ask for a better trading stock than this. $5 price target in 2010 unless earnings are weak or they dillute more.




XODG having a very bad morninghno:, made a mistake because I forgot I had a stop limit (sell) at $1.70 that I had put in. Bought it back, but had to pay $1.85 - My fault~~:<<

 

[kuwlness]

XODG having a very bad morninghno:, made a mistake because I forgot I had a stop limit (sell) at $1.70 that I had put in. Bought it back, but had to pay $1.85 - My fault~~:<<

Dont read into it much, XODG trades very thin because it doesnt have a lot of eyes on it. Today was strictly MMs shaking the tree. They took it down on 5k in volume. That's only $10k. Nothing to fret over. I had a bid at 1.70 and never got filled. Tells me MMs are fishing for weak-hands to sell.

 

[kuwlness]

BSPM

Probably last chance to buy on this dip. Looking for a quick pop back to $4.50 and beyond.

 

[kuwlness]

BSPM

Probably last chance to buy on this dip. Looking for a quick pop back to $4.50 and beyond.

Here's a slick chart. See the channel? Pretty obvious when/where to buy/sell IMO:

http://stockcharts.com/h-sc/ui?s=BSPM&p=D&yr=0&mn=6&dy=0&id=p56317893115&a=185054497http://stockcharts.com/h-sc/ui?s=BSPM&p=D&yr=0&mn=6&dy=0&id=p56317893115&a=185054497

 

[UltF]

What should I be doing with all this CHFI? Explosion today. Thanks for all advice =)

 

[kuwlness]

What should I be doing with all this CHFI? Explosion today. Thanks for all advice =)

I'd be selling it, lol. I have a core position from March and I dont want to sell it for the higher capital gains taxes as it's up almost 200% from those prices. I just think your money is better off in other stocks I've mentioned here more recently. CHFI is ultra-speculative and until they start filing their financials and updating shareholders, it's just too speculative to leave much more than gambling money in IMO.

Though, upside is tremendous, so if you've only got a moderate position, you might want to let it ride. Your decision, just be cautious and if you see it start to tank, sell and walk away.

 

[kuwlness]

Been buying JADA between .60-.62 today. Unfortunately I started buying on Friday (a bit too soon) at .70 ... ahh well, didnt expect it to sell-off this much. Just letting the board know it's probably a good buying opportunity at these prices.

 

[UltF]

I'd be selling it, lol. I have a core position from March and I dont want to sell it for the higher capital gains taxes as it's up almost 200% from those prices. I just think your money is better off in other stocks I've mentioned here more recently. CHFI is ultra-speculative and until they start filing their financials and updating shareholders, it's just too speculative to leave much more than gambling money in IMO.

Though, upside is tremendous, so if you've only got a moderate position, you might want to let it ride. Your decision, just be cautious and if you see it start to tank, sell and walk away.

Thanks again for you advice. I sold CHFI at today's top. Using that and other money I added CCME, CGDI, and SGZH to my portfolio.

 

[kuwlness]

12/30/09
ZSTN $8.40 ... I'm out. .10 off, not bad.

OMG, what a terrible decision. ZSTN is now $11.78. Fack, never thought it'd run this far on the China Momentum Wave. And to think I had loaded up at $6.50-$6.80. Ouch.

Same with YUII, took off too much too soon. YUII now practically $11 and I sold just about all of my shares over $9. Ahh well, these all ran way further than I thought they would in such a short timeframe.

There will be more opportunities, but the opportunity to buy stocks at 1/4 - 1/3 of their value has closed rather abruptly and we're going to have to dig deep to find true gems. Most of those will only be doubles/triples, but we'll trade around 'em to maximize profits.

:toast:

 

[kuwlness]

CKGT

Forgot to bring up the news from earlier today, hence the big move north. This stock is still way too cheap and is among the few that have the potential to triple in 2010.

The window will be closed once this hits $4+ over the next month or so, but probably sooner. This will be like NEWN at $7 when I told the board to buy any pull-back of .15 or more. See how that worked out? NEWN hit $9.20 the other day before it entered into its consolidation phase.

Buy any pull-back in CKGT of .10 or more. Cant make that any clearer. Other than LTUS and BSPM, this is the cheapest of the China pharma stocks.


News from earlier:

"China Kangtai Cactus Biotech Says Q4 New Product Sales Exceeded Expectations"


Hog feed sounds like a huge success, Cacti-cigarettes sound like they're off to a good start. So many hygiene products in the pipeline, the earnings potential is ridiculous.

"... maintains an active R&D group that holds 18 product patents and is seeking another 12."

 

[DeathEatsaCracker]

Nice pop for SIAF.PK today also.

 

[kuwlness]

Alcoa results are hurting the market today. Take advantage of buying your favorite stocks at a discount as Alcoa actually had decent revenue, it was just their gross margins were horrible compared to what the market was expecintg (17% vs 10%). Not to mention this should only have a more detrimental affect on the DOW and not the Naz or S&P -- although I'm sure they'll all take a hit at least to start the day. I have no idea how we close today, big money may use this opportunity to force the market lower.

I've been buying CMFO pre-market at $7.11. This stock has sold off heavily after yesterday's article about the FDA banning/heavily-regulating China Food imports.

Well, CMFO doesnt export to the US, so this does not affect the company at all. Take advantage of this, and buy this stock for almost half off fair value. Should be an easy move back to $8.50-$9 over the next few days. Trade or keep it, up to you. Fair value is about $13 by my calculations, but could easily over-shoot while riding the China Momentum Wave.

 

[kuwlness]

CKGT

Buy any pull-back in CKGT of .10 or more. Cant make that any clearer. Other than LTUS and BSPM, this is the cheapest of the China pharma stocks.

Yes, I take my own advice:

<TABLE style="BORDER-RIGHT-WIDTH: 0px; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px" border=0 cellSpacing=3 cellPadding=3><TBODY><TR class=dataGray><TD>CKGT</TD><TD>BOUGHT</TD><TD align=right>915</TD><TD>MARGIN</TD><TD align=right>$2.86</TD><TD align=right>$2,623.90</TD></TR></TBODY></TABLE>

Too bad they Up-ticked the ask on me before I could finish buying. Still bidding for a lot more, as I dont see it going below $2.80ish. GL


Same with BSPM:
BSPM BOUGHT 700 MARGIN $4.28 $3,003.00
BSPM BOUGHT 800 MARGIN $4.28 $3,431.00
BSPM BOUGHT 300 MARGIN $4.19 $1,264.00

 

[kuwlness]

Yes, I take my own advice:

<TABLE style="BORDER-RIGHT-WIDTH: 0px; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px" border=0 cellSpacing=3 cellPadding=3><TBODY><TR class=dataGray><TD>CKGT</TD><TD>BOUGHT</TD><TD align=right>915</TD><TD>MARGIN</TD><TD align=right>$2.86</TD><TD align=right>$2,623.90</TD></TR></TBODY></TABLE>

Too bad they Up-ticked the ask on me before I could finish buying. Still bidding for a lot more, as I dont see it going below $2.80ish. GL

They put that $2.85 up there again and I'll keep eating up those shares:

<TABLE style="BORDER-RIGHT-WIDTH: 0px; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px" border=0 cellSpacing=3 cellPadding=3><TBODY><TR class=dataGray><TD>CKGT</TD><TD>BOUGHT</TD><TD align=right>200</TD><TD>MARGIN</TD><TD align=right>$2.85</TD><TD align=right>$577.00</TD></TR><TR class=dataGray><TD>CKGT</TD><TD>BOUGHT</TD><TD align=right>1385</TD><TD>MARGIN</TD><TD align=right>$2.85</TD><TD align=right>$3,947.25</TD></TR></TBODY></TABLE>

Would love some $2.81s too @)


Biggest holdings:

BSPM
CCME
CKGT
SKBI
CGDI

Keep in mind these change as the PPS changes, but unless these all spike up significantly, they will likely remain my biggest holdings into February and beyond

 

[kuwlness]

Even though I'm already heavily invested, I just added another 500 SKBI at $11.23. Not sure why, sell-off seems unjustified in this one and it seemed like a good point to add.

 

[Shadytree408]

Any news on the TSTC nose dive?

 

[kuwlness]

Any news on the TSTC nose dive?

TSTC crashed around the same time as the Naz. Check ZSTN and CHTL. They all crashed about the same time. I wouldnt be concerned, but then again, I have no money invested in TSTC anymore so I have no reason to be, lol.

TSTC could easily shoot to mid-$30s after earnings, but if they disappoint, it'll hit $15 with conviction.

I look for stocks with the most defined upside, and TSTC is a little cloudy at this time, better places for my money.

 

[DeathEatsaCracker]

Kewl-

In addition to CCME, I'm holding CAEI, CHIO, PUDA, and YONG in my 401k. Can you provide any updates? I was thinking about adding shares.

 

[kuwlness]

Kewl-

In addition to CCME, I'm holding CAEI, CHIO, PUDA, and YONG in my 401k. Can you provide any updates? I was thinking about adding shares.

I'd dump CAIE, that company really fell apart and management just cant be trustsed. They had an immense back-log that has apparently vanished for the most part. Definitely not in my favorites book anymore.

CHIO is also questionable as the company seems to be heading in another direction from Insurance and is now doing computer software or something. Still not sure what to make of this one, but if they can keep making good earnings, it'll be worth holding. Tough to say here, might just want to let this one sit for now.

You'll do exceptional with the others.