Best China Micro-caps on the Market

[kuwlness]

How is CCME doing?
Should I be a little more patient??

Thank you~

Also, It seems like TSTC has a little more left in its tank than i thought. haha

TSTC is a monster, lol. It's now back in the IBD's (Investor's Business Daily) top #10 must-own stocks, so that's why all the volume keeps coming in. Ahh well, might just keep running into earnings. Should easily test $30 after earnings.


CCME will test everyone's patience, that's a given. It'll break-out when no one expects it to, unless of course we have to wait until earnings, then I'm fully expecting the break-out. Another poster on i-hub summarized what most already know, but here you go:

1) Doesn't hit value investors screens because of the difficulty to find the necessary financial information.

2) Doesn't hit the technical traders screens because it's been essentially flat for a few weeks now.

3) Doesn't hit the momentum traders screens because nothing is causing it to have any momentum.


But, what will matter to Wall St when they finally do report (middle of March) is that the company grew at 100% (organically) in 2009 ... they forecast continued growth in 2010, they're sitting on $100 million cash, they'll possibly make an accretive acquisition in 2010, they have significant U.S. investor backing (Starr), and they have a top accounting firm standing behind their financial reporting (Deloitte).


So yeah, CCME is still Tick Tock. I fully expect one last shake-out. We havent gotten it yet, but I'm fairly confident one more is coming. I expect a quick drop to $11.40 (maybe less), and that will be nothing more than a huge buying opportunity as big money tries to shake the tree one last time and gobble up the stop-loss orders and/or panicked, uninformed trader's/investor's shares.

In another month CCME will be like TSTC ... People will be scratching their head saying, "I could've bought that at what!?" This is part of the problem being early to the party. But, I've seen it happen time and time again ... early bird gets the worm. It's just the patience part that has many throwing in the towel thinking they made a bad investment decision. I can easily wait another month for what's likely going to be 100% ROI within a few weeks after they report earnings.

@)

 

[DeathEatsaCracker]

Went on a buying spree today.

CCME 210 shares @ $11.78
CGDI.OB 6400 @ .385
CKGT.OB 1040 @ $2.40
LPIH.OB 1045 @ $2.38

Waiting for BSPM to drop.

 

[kuwlness]

Went on a buying spree today.

CCME 210 shares @ $11.78
CGDI.OB 6400 @ .385
CKGT.OB 1040 @ $2.40
LPIH.OB 1045 @ $2.38

Waiting for BSPM to drop.

All great buys. CGDI is the only one you might want to bid-sit on as there are probably some folks that bought sub-.20 and are locking in gains while speculators are calling for a China Housing Bubble ... Blah, BS. These guys that called the US housing bubble dont know chit about China's housing market.

Most dont realize how hard it is to get a mortgage in China. In China, you are normally required to pay down 20% of the purchase price out of your own savings, but sometimes as much as 33%. The reason the US housing bubble popped was because banks were giving away houses with practically nothing down and very loose lending practices. China is not in a housing bubble regardless of what the talking heads on TV want you to believe.


As for BSPM. I have a moderate buy order at $3.71 set, 1500 shares. I also have a $3.61 order for 2500 shares. I doubt it goes much lower than $3.60 anymore.

Keep some extra cash laying around for CCME in case you can grab some $11.50s on the final shake-out.

Cant go wrong with CKGT's growth and management's nearly 50% ownership.

Keep your net out there for some more LPIH cheapies. Guess some folks decided to sell the news, which is a mistake imo. I have a moderate order at $2.23 (3k shares). I dont see it going much lower than this. Wont be selling any of these until we're over $3 again.

 

[kuwlness]

CGDI ... lets test out these technical analysis skills I've been trying to hone:

SAR Triggered today and I didnt even notice ... Looks like this one has just about bottomed out. No sellers under .30 ... Next stop .45

New up-trend about to start in the very near-term:

Also, using this link you can see the major short-term indicators most day-traders use for making decisions:

http://stockcharts.com/c-sc/sc?char...0!uv8!lk9!ll5!lc15!up5,5][j20444984,y]&r=3555

(replace CGDI with any ticker you want.)

 

[kuwlness]

CCME is still Tick Tock. I fully expect one last shake-out. We havent gotten it yet, but I'm fairly confident one more is coming. I expect a quick drop to $11.40 (maybe less), and that will be nothing more than a huge buying opportunity as big money tries to shake the tree one last time and gobble up the stop-loss orders and/or panicked, uninformed trader's/investor's shares.

CCME:

Looks like we got the shake-out I was waiting for. Unfortunately, I was only able to grab a few $11.40s before it bounced back. Have a large buy order in at $11.30 now ... come on cheapies!!

 

[DeathEatsaCracker]

You haven't mentioned CSGH lately. Any updates? I'm currently sitting on a 39% gain.

 

[kuwlness]

You haven't mentioned CSGH lately. Any updates? I'm currently sitting on a 39% gain.

CSGH

I mentioned it a few posts back when suggesting how one might want to allocate his/her portfolio. It's taken a little bit of a beating due to the market correction. It's tough to put a price target on this one until they put out some news about the battery testing and any subsequent contracts.

I, however, still very much like the stock largely due to its balance sheet and future outlook. I'm trying to buy sub-$1.45, but that's tough.

As soon as the testing results come out along with any contract news, this will shoot to $2.50-$3 in a hurry.

 

[kuwlness]

CCME News Out After the Bell:

FUJIAN, China, Feb 23, 2010 (BUSINESS WIRE) -- China MediaExpress Holdings, Inc. (NYSE Amex: CCME) ("CME" or "Company") today announced that it has signed a contract with the Organizing Committee of the 16th Asian Games which run from November 12 to November 27, 2010 in Guangzhou. The agreement provides for CME to display a 30 second advertisement promoting the games on its current network of buses from February 1, 2010 until November 30, 2010.

Guangzhou is China's third largest city, after Beijing and Shanghai, and is the second host city in China after Beijing in 1990. A total of 42 sports are scheduled to be contested in 53 different venues, making it the largest Asian Games ever. Tens of millions of travelers are expected to travel to Guangzhou and other surrounding cities to view the games.

Zheng Cheng, CME's Founder and CEO, noted, "We are pleased to have been selected by the Guangzhou Asian Games Organizing Committee as one of its media advertisers. Our association with the Asian Games should enhance our reputation among our clients, both leading advertising agencies and corporations, as well solidify our position as a major media player in this market. We are working on signing on additional bus operators and advertising clients to take advantage of the exceptionally large number of travelers in the Guangzhou area during the Asian Games."

 

[sheaven77]

kuwl I got 100 shares of ccme at 11.77 too much you think?

 

[finekos]

CCME UP WE GO!!!
Let us all get RICH!!
:cripwalk:

 

[sheaven77]

CCME UP WE GO!!!
Let us all get RICH!!
:cripwalk:

brother at this posting its up 3% unless you got 3M tied up in this one, were along way from rich, im up $30 dollars though.

 

[kuwlness]

kuwl I got 100 shares of ccme at 11.77 too much you think?

CCME

Anything under $15 is a steal ... even under $20 it's still a good deal. So, getting in under $12 secures an easy 100% ROI and sets you up for 200% ROI later this year if you can be patient and hold it for that long.

Yesterday's shake-out was just what the stock needed ... it got out the frustrated traders that felt their money was better off somewhere else until closer to earnings. Now, hopefully they'll have to chase it higher.

 

[kuwlness]

CNAM - China Armco

Up-listing to the NYSE AmEx tomorrow. Buy it today and sell it tomorrow or Thursday for a 15-25% gain ... think CWS on 12/22. You can play these up-listing pops for upwards of 50% in some cases.

Flipped out my trading shares of CNAM -- still keeping a core position from sub-$3. Been a nice run after up-listing ... got the 25% I expected ... thank the market for being slow to react as usual.

 

[DeathEatsaCracker]

Got my order for BSPM filled. 680 @ $3.71.

 

[kuwlness]

Got my order for BSPM filled. 680 @ $3.71.

OMG you lucky dog!! I was at $3.68. I decided to pay up, just slapped $3.95 a few mins ago for another 3k. This sucker is ready for the $4 break and it'll shoot to $4.20+ real quick. I'm recommeding folks not wait this one out and get in now. Not worth it over a few pennies when we're talking dollars in the near-term with the up-listing coming very soon.

go BSPM go!

 

[kuwlness]

CKGT

$2.26 x $2.31 ... under my buy recommendation target ($2.35). If it gets much cheaper, I'll have to throw it in the table-pounder category.

 

[kuwlness]

**DJSP** -- New Recommendation

DJSP -- Table-Pounder ... don't wait long on this one.


So, DJSP is actually another SPAC (Special Purpose Acquisition Company) like CCME is. Please realize this company just went public, so shares were not trading until the middle of January -- this is why the stock isnt closer to fair value already. Here's the run-down -- I bolded the important information, and upper-cased some of the extra important things:


"DJSP is one of the largest providers of processing services for the mortgage and real estate industries in Florida and one of the largest in the United States.

The Company provides a wide range of processing services in connection with Mortgages, MORTGAGE DEFAULTS, title searches and abstracts, REO (BANK-OWNED) PROPERTIES, LOAN MODIFICATIONS, title insurance, LOSS MITIGATION, BANKRUPTCY, RELATED LITIGATION, and other services.

The Company's principal customer is the Law Offices of David J. Stern, P.A. whose clients include ALL OF THE TOP 10, and 17 OF THE TOP 20, mortgage servicers in the United States, many of which have been customers for more than 10 years. [although he actually says 15 in the Con Call]

The Company has approximately 1,000 employees and contractors and is headquartered in Plantation, Florida, with additional operations in Louisville, Kentucky, and San Juan, Puerto Rico. The Company's U.S. operations are supported by a scalable, low-cost back office operation in Manila, the Philippines that provides data entry and document preparation support for the U.S. operation."


They just reported financials about two weeks ago:

$10.4 million in the third quarter. For the nine month period, adjusted net income was $32.4 million or $1.65 per share (EPS)


They still have one more Q to report for 2009 and have already made $1.65 EPS.


They'll be reporting their 10K (which is the filing for their Earnings/Revenues for the entire year, 2009) towards the end of March or early April.



DJSP is also projecting EPS of at least $1.80 for 2010 -- However, I'm projecting revenus to grow at least by 25%, so I think it's very possibly they could bring in as much as $2.20 EPS for 2010.

They are already listed on the Nasdaq, so they'll get a "real" PE. Comparables trade at PEs of 12-18. So, you do the math \\// $1.80 x 12 = $21.60 (low-end) \\// --\\// $2.20 x 18 = $39.60 (high-end) \\// and keep in mind they have to hit their projected earnings for this to hold true. However, their are "earn-outs" which encourage management to beat their earnings projections. Management will receive bonus shares in the company as compensation for meeting their "earn-out" numbers.



more info to follow...

 

[kuwlness]

**DJSP** -- New Recommendation Pt 2

DJSP Con Call Notes:

Previously a private company. Chardan China Acquisition Company Merged with DJSP on 1/15/2010 … details of the transaction: $59M Cash, $39M Equity, $87M Notes


Company Share Structure:

13.6M O/S
+
11.4M Warrants w/ $5 Strike Price – Expire 8/20/12 (ticker:DJSPW)
+
1.67M Series A Preferred (1:1 Conversion Rate)
=
26.67M fully diluted O/S
+
3.9M Earn-Out Bonus Series B Preferred (in the money at SP of $10-$20) (1:1 Conversion Rate)
=
30.6M total O/S with Earn-Out Shares



Q3 2009 Highlights:

• 53% Decrease in Operating Costs
• 29.7% Increase in Revenues
• Expecting $259M Revenue for 2009
• REO (Bank-Owned) Property Revenues increased 208% to total 5% of total revenues.

Q4 2009 should bring in $69M in Revenue -- EBITDA revenue.


The 10Q for Q4 '09 and the 10K for '09 will be released by the end of March or early April, then they will begin a regular reporting cycle.



MARGINS:

Default Services: 88%
Title Services: 66%
Foreclosures, Died-in-Lieu, Loss Mitigation: 46%



Cash Flow Machine:

Over the last few Quarters, their Cash Flow position has increased substantially and is about to turn positive.

( 40,565,461 ) ( 18,575,992 ) ( 5,498,411 )

Imagine the Cash-Flow they'll have in another year if this trend continues ... insane.



It looks like the real fireworks are just about to begin here. There were a few large buys today (a 25k and a 15k) and Level 2 looked very healthy -- towards the end of the day there were several large (3-5k) bidders in the $9.1x range.


OBV on the charts says institutions started buying, so I am recommending DJSP and instantly upgrading it Table-Pounder status.


Please try to get in under $9.25, but anything under $12 is a steal, and anything under $15 is a great deal, anything under $18 is a good deal.

 

[UltF]

^^ Thanks for the table-pounder recommendation. Looking forward to another fun ride.

 

[BigDon]

ccgy

kuwls, is CCGY still in your porfolio ? :toast: