Best China Micro-caps on the Market

[kuwlness]

10-K Earnings Out for several stocks ... some beats, some misses, and some delays:


CCME 10-K -- http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6865099 -- we already knew this was golden.

TSTC: Q4 2009 EPS increased by 56.3% to $0.50 -- this is very weak for my expectations. And to think they just reaffirmed guidance not too long ago, WTF? Guiding for 1.81 2010 EPS, so it's still cheap.

PUDA 10-K -- http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6865097 -- weak, but was not expected to be very good.

BSPM 10-K:
http://ih.advfn.com/p.php?pid=nmona&cb=1270069185&article=42216659&symbol=NB^BSPM
In line with what they pre-announced. Revenues up 4Q v. 3Q, Gross Profit Up 4Q v. 3Q, Operating Income down 4Q v. 3Q due to increased SGA expenses associated with advertisement for the new product. Should rally on this, especially with up-listing looming.

LTUS 10-K: Strong, .37 vs. .30 (basic), .33 vs. .27 (Fully Diluted) ... should rally.

RINO 10-K -- looks weak, but i dont really follow the financials on this one much. Market doesnt seem to like it.



SGZH files NT-10K

CGDI files NT-10K

 

[kuwlness]

BSPM 2010 Guidance

Management is raising its 2010 guidance and now expects to report revenues of $80.0 to $82.0 million with net income of $18 million to $20 million. This represents between 50.1% to 53.8% revenue growth and between 71.4% to 90.5% net income growth year over year. The improved outlook is based on new market development of Biostar's flagship Xin Aoxing Capsule, including the launch in four new markets including Jiangxi, Jiangsu, Hebei and Guangxi provinces planned for early April 2010. Management anticipates approximately $9.3 million in incremental revenues during 2010 from these new markets, and for Xin Aoxing to comprise approximately 66% to 70% of total 2010 revenues. In addition, the addition of Meipude will open up a medical equipment distribution opportunity for Biostar and is expected to contribute approximately $3 million in incremental revenue during 2010. Net income guidance excludes non-cash expenses associated with stock-based compensation and/or future interest expense. The Company's guidance does not include any contribution from future acquisitions previously announced by the Company or otherwise. Management will continue to evaluate its business outlook as necessary and communicate any changes on a quarterly basis or when appropriate.

That's roughly EPS $0.75. With an uplisting the stock should get lots of love.



Lots of news out with guidance and whatnot ... too much to post, but will revisit these stocks over the long weekend once i've had more time to disect the 10-Ks and the new guidances. GLTA

 

[Stonesquare]

LTUS - getting hit hard, I think the drop in revenue is driving it - even though their profit margin increased. Been watching this one for a while, fundamentals look okay, you still like this one Kuwl - and what would be a good entry point for this? (For right now I'm all about the price being driven down. Let's see $1!!)
~~:<<

 

[erwinmark]

EAR didn't make it to tablepounder status, I take it?

From what I've been reading about CKGT, I'm thinking I want to put anything extra that I have into it.

Those Cactus cigs could be huge for this, based on 400,000,000 smokers!

:smoker2:

 

[brownman]

what an awful day, took it on the chin with TSTC down almost 10%, what happened to ccme today kewl, all signs pointed to a positive day with the solid 10k filing. Should i wait for a further pullback to get in for more or do you think this was a one day thing? Do you see TSTC rebounding anytime soon, it is very attractive at these levels for a short hold.

 

[k2climber]

What's going on with CHGY. I mentioned it in early January at .82 and its at 3.15 now? How high is the thing going to go?

 

[finekos]

What is going on with ccme??

 

[irishcapper]

Ccgy!

 

[brownman]

market had 2 good days, ccme had 2 terrible days . . . doesnt make sense after the positive 10k

 

[snoop]

All chinese stocks have gone South rather fast eh.

 

[DeathEatsaCracker]

Chinese stocks in general getting pounded, but I'm concerned about the institutions that seem to be bailing on CCME. Any idea why anyone?

http://www.nasdaq.com/asp/holdings.asp?FormType=Institutional&symbol=CCME&selected=CCME

 

[kuwlness]

Sorry all, was taking a bit of a hiatus from the craziness of China Small Caps. Everything is still in-play although I have reduced some positions anticipating market weakness ahead and an opportunity to reload cheaper.


CCME got punished by the institutional shorts that wanted to crush it back to the pre-earnings level and likely fill the gap it left. Cant believe this was actually on the Naked Short list after Monster earnings.

There's no reason to give in to Big Money's games, it's simply their way of saying we love this stock, but we're not gonna pay the 20% premium because we were stupid to not have found it sooner. Take advantage of the shorting.

Trendline is at $11.95, but we hit $12.16 and bottomed the last two days forming a Tweezer Bottom. So, we'll likely start moving back up from here.

I still see $20+ by June.
_______________________

CHGY i dont own any longer. I was in sub-$1 and sold all mine over $3 over the last few days. Not sure about up-side, but it's definitely not a value stock anymore.
_______________________

TSTC is still cheap, but may have weakness as management showed some reasons not to trust 'em as much since they said ARs would go down when they actually increased. Margins took a hit, so that's why we only saw the low-end EPS that I was looking for. Probably see $28-$32 before year's end, maybe more.
_______________________

CCGY has been hot after solid earnings and a good outlook from management. I havent sold a share even after the recent run-up as I think we'll finally be heading to dollar land soon.
_______________________

CKGT cactus cigarettes should be a winner over the long-term. CKGT is one of my top holdings along with CCME and DJSP. Anything under $2.50 is a good deal.
_______________________

BSPM took a hit because the CEO (or CFO?) said on the Con Call they'd be diluting. Well, this is a non-issue for me because they've done it on favorable terms in the past. The market is so short-sighted. Might be able to get some $3.50s over the next few days, so leave your net out there. Up-listing shouldnt be too far off, so a hefty price increase is to be expected.
_______________________

SIAF has been dealing with some of the original shell holders cashing out. It looks like it's ready to rebound, but I honestly dont have too large of a position, mostly because of it's pink status and it already gave me a 300% profit, so I'm always cautious as to not give much of that back.
_________________________

JADA, sold a lot of mine in the .80-$1 range ... still holding about 33% of my initial holdings ... might still be cheap, but i'll wait for the 10-K to determine if I want to add more or sell the rest.
_________________________

NEWN, still cheap but would rather wait until after the 10-K to add more. Add on any weakness, this will likely hit $15-$18 after the up-listing.
_________________________

SGZH finally started to get noticed. Sold some over $10, but still holding 80% of my position as this could easily be a $25-$30 stock before year's end.
_________________________

PUDA nice pop after upgrade today ... not necessarily a value stock anymore, but i still own a decent chunk.
_________________________

SKBI nice earnings, sh!tty reaction. Still cheap, but not getting much love. Reduced my position here and will re-add under $10 if given the opportunity.
_________________________

YUII, i like it under $9 ... i'll continue to re-add large under $9 as this is easily a $14-18 stock.
_________________________


Ummm, i'm probably missing a few, but i'll be updating the board more regularly again going forward.


Stocks I'm watching:

APBS -- ticker might change to CGPI tomorrow. Looks cheap.
CHNC -- cheap, but not liquid
CNBI -- cheap, not known.
ENHD -- cheap, but waiting to see if they do a secondary, i'll buy then.
SOKF -- was cheap, starting to get noticed. Upside probably $7-8
YHGG -- cheap if they're legit

 

[brownman]

welcome back, gobbled up some tstc yesterday to average out with some shares i bought at 17. how did this thing every get down to 15?? I see the market pushing higher before we head lower, I know it would be wise to take some profit but would hate to miss another 10% move.

 

[8ate]

anyone following JIN.TO.. had been to 6.30/sh two days ago..now down to 5.50/sh..

these chinese stocks can drive you wild.. i wonder what options on these things would do???..=-+200% per day??

gl

 

[kuwlness]

welcome back, gobbled up some tstc yesterday to average out with some shares i bought at 17. how did this thing every get down to 15?? I see the market pushing higher before we head lower, I know it would be wise to take some profit but would hate to miss another 10% move.

What's nice about the China sector is most have been taking a hit for no real reason other than Wall St giving 'em a cold shoulder.

So, when the market corrects, these wont go down much, and some will likely go up -- like CCME today. The market is irrational and short-sighted. Most Wall St guys have a 2-day attention span, they will quickly move their money elsewhere, they always follow the money and do little research.

In the end, good research will always make you come out ahead in the long run, you just have to deal with the slowness of being the early bird. Money will come, it's just a matter of when. And when it does, it usually doesnt stop buying -- CNAM, LLEN, and PUDA are all perfect examples of what happens when big money finds something it likes.

 

[kuwlness]

03-04-2010, pps $1.96

If you're looking for a quick trade, I recommend you check out RHGP ...

I suggest the traders hop in immediately tomorrow for a quick ride to $3-$3.50.

Sold most of my RHGP today ... havent gotten to the $3.50 point, but it will. I just needed to take some profits to get ready to pay the tax-man. Was easy money though, just took longer than i expected.

 

[DeathEatsaCracker]

PUDA nice pop after upgrade today ... not necessarily a value stock anymore, but i still own a decent chunk.

I'm up 52% on this one. Do you recommend selling or holding?

Ummm, i'm probably missing a few, but i'll be updating the board more regularly again going forward.

Can you please give updates on:

YONG
CSGH
DNNC
CGDI
LPIH
CHIO
DJSP

These are stocks I'm still holding.



Any table pounders on the horizon?

 

[erwinmark]

Do you think JGBO is a table pounding buy at 7.25? Looks to me like they had some trouble, but have it taken care of. 100+ million in cash, selling at market cap of 75 Million.

 

[8ate]

.you were smart to get out of JADA.OB; down to 0.75/sh.....

gl

 

[tanner12oz]

jada will probably get crushed down to .30-.50 and then we will load again....wash, rinse, repeat....