I know the feeling, but you dont want to be overly concentrated. Two stocks isn't enough, I recommend at least five, but usually hold 25-35 stocks at any given time. Although, in recent days I've been forced to liquidate stocks I didnt want to sell in order to buy more of my favorites at cheaper prices, but it's all about opportunity cost and you need to put bigger money where even bigger money is going to come (CCME and TSTC will be first). I'll re-buy most of the other stocks with the profits from these ones.
You always have to be wary of dillution or any other downfalls that could be devastating if you hold all your eggs in one or two baskets. CCME, BSPM, CKGT, TSTC, and SKBI are the stocks that most of money has been pouring into ... also NEWN, been grabbing that with both fists. In the end, the market will sort itself out.
1) FOMC keeps benchmark funds rate in Zero to 0.25% range for extended period of time -- confirmed now.
2) Bernanke confirmation, and little Timmy not getting canned will be positives (or negatives if they turn out to be the opposite).
3) State of the Union tonight. Lots of fuel for the fire, just need the right things to fall into place.
BSPM news
From PR Newswire
Biostar Pharmaceuticals, Inc. Announces Change of Auditor
"effective January 22, 2010"
...
"not the result of any disagreement between the Company and Acquavella, Chiarelli, Shuster, Berkower & Co., LLP on any matter of accounting principals or practices, financial statement disclosure, or auditing scope or procedure."
...
"About Mazars Hong Kong
Mazars Hong Kong is part of the Mazars Group, an international, integrated and independent partnership, and as such is a member of the Praxity alliance, which ranks among the top 10 of international accounting firms in size and global billings. Mazars Hong Kong currently provides auditing services for a number of China based US listed companies and Hong Kong listed companies."
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CSGH news
http://money.cnn.com/news/newsfeeds/articles/globenewswire/182620.htm
Liberty Analytics Co. Initiates Independent Research Coverage On China Sun Group High-Tech Co.
January 26, 2010: 09:00 AM ET
From PR Newswire
Biostar Pharmaceuticals, Inc. Announces Change of Auditor
"effective January 22, 2010"
...
"not the result of any disagreement between the Company and Acquavella, Chiarelli, Shuster, Berkower & Co., LLP on any matter of accounting principals or practices, financial statement disclosure, or auditing scope or procedure."
...
"About Mazars Hong Kong
Mazars Hong Kong is part of the Mazars Group, an international, integrated and independent partnership, and as such is a member of the Praxity alliance, which ranks among the top 10 of international accounting firms in size and global billings. Mazars Hong Kong currently provides auditing services for a number of China based US listed companies and Hong Kong listed companies."
-------------------------------------------------------------------------------------
CSGH news
http://money.cnn.com/news/newsfeeds/articles/globenewswire/182620.htm
Liberty Analytics Co. Initiates Independent Research Coverage On China Sun Group High-Tech Co.
January 26, 2010: 09:00 AM ET
Reading the book "The Snakehead" which is about the darkside of China, makes me quite skeptical of everything you hear about how great China is.
I have never bought any of the China stocks, but read your post on a regular basis and when I hear about changing auditors that scares the shit out of me.
I have never bought any of the China stocks, but read your post on a regular basis and when I hear about changing auditors that scares the shit out of me.
BSPM changed auditors as part of their agreement from back in November. They were to have a Big 10 Auditing firm sometime in January, I think it was supposed to be earlier this month, but there wasnt a penalty for not having it by the date. If anything, it's actually a good thing because they're working with a very reputable auditor and ditched the little guys.
Yep, I just keep averaging down ... hard to watch it fall every day. Short interest is now 12% of the float I believe. Unreal the moxy these shorts have, guess the big boys are playing with fire now.
They havent calculated the EPS possibilities with the Revenue projections that TSTC has given. Folks want to see it to believe, so it could get cheaper between now and when they report. But after they report, it's another story and sub-$20 will be a thing of the past.
Hang in there, why sell at a loss unless you need the money ... in which case it shouldnt be in the market anyway. 6 months from now none of this will matter, even two months from now none of this will matter. Just gotta ride out the storm.
Hearing S&P 1065 is must-hold or the dreaded 1010 will be coming back, although we could bounce off of 1072. Eventually, sellers will get tired. Im noticing China stocks holding up well the last few days, although they've already been punished.
Just gotta know that you're sitting on a gold mine. Be there early, start digging in, and wait for folks to want what you have. My spurs are deeply entrenched in all these stocks and they'll have to pry them from my hands to get them at these evaluations.
Food For Thought
General China News:
McDonald's to invest 25% more capital in China
http://www.chinadaily.com.cn/bizchina/2010-01/29/content_9399368.htm
Recovery to strengthen despite inflation pressures
http://www.chinadaily.com.cn/bizchina/2010-01/30/content_9401700.htm
CCME: Ad spending rises 13.5% in 2009
http://www.chinadaily.com.cn/bizchina/2010-01/30/content_9401660.htm
--AND--
Optimism high as CCTV ad slots are snapped up
http://www.chinadaily.com.cn/cndy/2009-11/19/content_8998987.htm
China Small Caps and Chart:
Given the strength of this chart in the face of the 99% trader bearishness (as observed on sites I follow), I'd say this is the best setup since November 1st.
China Earnings Season starts towards the middle of February and continues thru the end of March. I'll try to update the board ahead of earnings so you can make your final moves before they report.
General China News:
McDonald's to invest 25% more capital in China
http://www.chinadaily.com.cn/bizchina/2010-01/29/content_9399368.htm
Recovery to strengthen despite inflation pressures
http://www.chinadaily.com.cn/bizchina/2010-01/30/content_9401700.htm
CCME: Ad spending rises 13.5% in 2009
http://www.chinadaily.com.cn/bizchina/2010-01/30/content_9401660.htm
--AND--
Optimism high as CCTV ad slots are snapped up
http://www.chinadaily.com.cn/cndy/2009-11/19/content_8998987.htm
China Small Caps and Chart:
Given the strength of this chart in the face of the 99% trader bearishness (as observed on sites I follow), I'd say this is the best setup since November 1st.
China Earnings Season starts towards the middle of February and continues thru the end of March. I'll try to update the board ahead of earnings so you can make your final moves before they report.
A lot of rebounds today, BSPM, CCME, CKGT, and TSTC all rallying big off their lows. CCME low-volume late-day take down, should've closed $12.50+ ... ahh well, not selling until I see my $20 minimum.
Grabbed some more LPIH at $2.25, grabbed some more NEWN at $6.65, bought more LTUS at $1.38. I think those were my only buys today.
Today should be a great example for why I tell folks to scale in and scale out of positions. Folks trying to time a bottom will never hit the exact bottom, and if you missed the bottom, then you're stuck paying up 8-10% higher than where you could've gotten it a day or two ago.
Grabbed some more LPIH at $2.25, grabbed some more NEWN at $6.65, bought more LTUS at $1.38. I think those were my only buys today.
Today should be a great example for why I tell folks to scale in and scale out of positions. Folks trying to time a bottom will never hit the exact bottom, and if you missed the bottom, then you're stuck paying up 8-10% higher than where you could've gotten it a day or two ago.
I really wish I had the money available to avg down on BSPM and CCME etc. I should have taken from my Wamu money and flipped on the rebound since that case will take forever to settle anyhow. Now the people on these boards have me thinking about this whole Fibonacci gap voodoo.
I'm curious, to what extent does the pps of some of these Chinese companies hinge upon a happy US market? Can there be a plummeting dow and a stable BSPM and CCME?
I'm curious, to what extent does the pps of some of these Chinese companies hinge upon a happy US market? Can there be a plummeting dow and a stable BSPM and CCME?
CCME
Float is slowly being accumulated by the registered sector and the MMs. I'm waiting for one final shake-out, although that may never come. I'm keeping a buy order at $11.95 for another 500 shares even though I'm fully loaded already.
Now that the warrant over-hang is gone, those that are just now getting their shares after converting the warrants will likely be selling right away for a nice gain.
All I can say is: tick-tock, tick-tock ... BOOM!! It's coming, hope you got your tickets ... if so, grab your popcorn, cuz it's gonna be fun to watch.
@)
Float is slowly being accumulated by the registered sector and the MMs. I'm waiting for one final shake-out, although that may never come. I'm keeping a buy order at $11.95 for another 500 shares even though I'm fully loaded already.
Now that the warrant over-hang is gone, those that are just now getting their shares after converting the warrants will likely be selling right away for a nice gain.
All I can say is: tick-tock, tick-tock ... BOOM!! It's coming, hope you got your tickets ... if so, grab your popcorn, cuz it's gonna be fun to watch.
@)
Bursting the China Bubble Talk
http://blog.redchip.com/index.php/2010/headline/bursting-the-china-bubble-talk/
http://blog.redchip.com/index.php/2010/headline/bursting-the-china-bubble-talk/
CHHL is one of my very speculative stocks. It's a long-term hold for me, but I've liquidated a lot of speculative stocks do to the correction. I'd dump it and go with something less speculative like BSPM, CCME, or CKGT. These are my favorite three and these are the ones I've been dumping the most cash into on pull-backs.
