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In January, CPQQ reached up into the mid-$4 level. Of course, that was January, when smallcaps and china stocks were still in favor, before the concerted, indiscriminate attack on "Chinese equities" by the notorious Jim Chanos and his minions.... Ouch. Now here we are struggling to get out of the low $2s. Markets can be crazy sometimes....
thanks Bob, perhaps $3.00 is a good price target if patient, it has been higher than that
sam
cpqq.ob is a nice position. They are one of the leading domestic manufacturers of a product that has been mandated by the government to replace existing transformers and be used in all new power lines.
Today the price popped but that was mostly due to low shares available. The caution is that cpqq had to dilute to finance their growth and year over year comps are going to be tough. This big increase in production capacity will overwhelm the extra shares eventually but for instance in Q1 fully diluted eps was .05 vs .08 last year.
If you are careful, you should be ok with cpqq. I wouldn't madly chase it up because of the danger that the new plant isn't fully productive and cost efficient yet. They are currently trading at a fwd p/e ratio over 10. Right now, that's not cheap for a China stock.
If you're looking for a long term China position, this is fine. But the China stocks have done poorly this year so don't go wild with cpqq. Bobwins
Bobwins,
With the news out today on Cpqq do you like the company at this price?
sam
should see a nice run, could this be the run to $6
where are they located? I appear to be in several Chinese cities in late August...
Fredbearsail,
I corrosponded with Chen only 2 days for a response. Other than the normal sec speech, he said he'll discuss my comments regarding the previous post and he was nice to briefly address it. He will let the board know. Who know, maybe they'll listen?
CPQQ,
I just put a strong message together for Chen Yuanyuan at YChen@christensenir.com regarding US listed Chinese traded stock and the fact that they are in control of the companines future.
I feel now is the time to let them know what they have to do to survive the downtard in the china danger zone.
Please do the same.
Here is what I sent
Dear Mr. Chen Yuanyuan,
I have been invested in China Power Equipment since January 2010. I purchased stock in your company based http://investorshub.advfn.com/boards/board.aspx?board_id=15931 and uplist to AMEX. Exchange. Unfortunately, there were some unexpected drops in share price, dilution and no further action on up list. I would like to thank your team for an outstanding job achieving your most recent results and contracts this year. I wanted to pass along some feedback regarding the sentiment of US listed Chinese companies. Currently any Chinese stock is in a crossroad due to some rencent Chinese fraud and lack of shareholder transparency. I would like to put you on notice that your shareprice could significantly drop, regardless of you performance as a solid growing business. The current setiment is that most Chinese companies distort their accounting numbers, dilute shares, hide revenues for internal gain, have no regard to share price and so on. I will tell you that CPQQ Investors are have turned negative. I caution you to consider this to be taken seriously if CPQQ is every to be valued by shareholders. In my opinion going forward 85% of the US traded Chinese stocks will never recover due to shareholder trust and all Chinese stocks are in the danger zone! Here are inverstors complaints:
- China is a bubble
- Every other U.S.-listed China company is a possible fraud
- Don't trust any of the reported SEC numbers, most companies report vastly different numbers in China
- Don't trust any of the auditors unless they are top-notch and U.S. based
- Don't trust any China company that went public via reverse merger
Here are some serious things to consider to increase shareholder trust and share price.
1) High insider ownership and stock purchased http://investorshub.advfn.com/boards/read_msg.aspx?message_id=52020699
2) Strick pay incentives attached to True EPS and Growth
3) Acquire 2 or more analyst to cover your stock
4) Acquire meaningful investments from private equity investment firms
5) Reporting on time without addendums to correct changed accounting and share holder count.
6) Do not pump the stock with countless IR updates, but provide good balance of new significant changes or contracts.
7) Update your website, It needs refining and photos of the new facility. I'd suspect some investors question the truefullness and see no value in it. There should be a photo gallery of the new facilities, people working, management names and photos. Get some well deserved respect on what your business can and does achieve. Really does make a difference.
8) Get serious on your accounting and do not distort true EPS. Get it accurate, shareholders appreciate this.
9) Get a a Big4 auditor
10) company share buyback *****
11) Past actions of management.
I last communicated with Chen Yuanyuan at YChen@christensenir.com on 5/13/10 regarding earnings and stock dilution. He was very helpful.
Fred
Has anyone succesfully made contact via email with Cpqq I>R.
The website doesn't show the new factory and If someone knows the email( website does have 2) could you please post who you corresponded with.
thanks in advance, Uneasy with yet another china small cap and what I really own?
Just added at 2.23. Today's PPS sunk to the lowest point in 7 months. And. the last earnings report was terrific. Everybody should be buying at this price.
I have been taking advantage of the current weakness to increase my position in cpqq.
I like many others am getting tired of being whipsawed by the volitility in the markets.
So when I get a chance to buy low I will & when I get a chance to sell after a strong rise even though fair value may still be lacking I also will.
Going into this latest big drop in the market I was 80% cash. Currently I am 40% cash & holding.
No one can pick the bottom but as far as stocks with good growth going forward China or whatever the bottom is close enough to start building some positions.imo
I f I see some unwarranted drops from here I will decrease my cash position further but I would really like to see the market base a bit before buying anymore.
Im back,,,got a partial fill of 300 shares @$2.42 & not willing to chase for more at this time.
I can't imagine that the 1st qtr numbers will be that great so maybe I can get some more then.
Its the longterm that still looks good to me so thanks for the cheap shares.
2010/2011 earnings estimates:
Over the weekend I went over some # and tried to come up with a more conservative down-to-earth eps projection for 2010 and 2011 based on the current status of things. I must confess that some of the previous expectations be it from me or Pappy or other posters here and elsewhere were more wishful out-of-the-blue thinking than based on a more realistic basis. We know now the share count for 2010 will be massively higher than that of 2009 (about 64%) and will dilute the eps going forward. We also know that the new 5000 Ton plant will only start producing beginning May 1 and thus contribute additional revenues only starting from the second half of 2Q10. Also, it will take much time and new orders before we can realistically see a ramp up to full 6000 Ton capacity. So CPQQ looks more and more like an end-of-2010 and 2011 story barring guidance from company.
The Nov 30 PP financing with Barrons set a make good target for Net Income from Operation (NfO) for 2010 of 7M compared to 4.5M in 2009, or a 55% increase that Mgmt knows they can beat. If they miss that target by more than 10%, they have to issue another 2.08M escrow shares on top of the 4.167 preferred convertibles and 1M warrants already issued to the financier.
For now I am assuming a fully diluted share count of 23.5M for 2010 (excluding 1M warrants which may well be converted this year but have a 3-year conversion period) and 24.5M shares for 2011. The make good target corresponds to a net income of = 4.22M x 1.45 = 6.54M for 2010 and give us a floor to the 2010 eps of 0.28E (diluted and adjusted) which is exactly equal to the non-GAAP eps of 2009. So that's the minimum we can expect for 2010. My current projection for 2010 is based simply of 2009 quarterly revenues multiplied by 1.3x for 1Q10 (knowing that 1Q09 was still full recession), 1.5x for 2Q10, 1.75x for 3Q10 and 2.0x for 4Q10. Here are the numbers:
For 2010:
Q10 Rev(M) NI(M) eps yoy%
01 3.514 0.633 0.03 22
02 8.832 1.590 0.07 -23
03 13.81 2.486 0.11 12
04 14.76 2.658 0.11 43
FY 40.9 8.185 0.35 23%
For 2011 let's assume revenue will double that of 2010 and net income based on a 20% net margin (compared to 18% in both 2009 and 2008). The OS is assumed to be 24.5M as mentioned above.
Rev(M) NI(M) eps yoy%
81.84 16.37 0.66 91%
I realize that the above projection may be overly conservative but feel we may be better off with a lower projection than a higher one. If company can surprise us to the upside, then that's even better.
CPQQ rebounded nicely on Wednesday, but it still hasn't broken out of its downtrend. Maybe soon. Here's a write-up at China OTC Player:
http://chinaotcplayer.blogspot.com/
CPQQ: China Power Equiptment. Uplist and Expansion.
The latest news is truly impressive.
Looks like it fell through the cracks.
I added over the last few days and am surprised others have not as well.
This is a major play.
Major expansion in two weeks:
http://markets.on.nytimes.com/research/stocks/news/press_release.asp?docKey=600-201004120630PR_NEWS_USPR_____CNM014-1&provider=PR%20Newswire&docDate=April%2012,%202010&press_symbol=18453623
Directors in place for uplist:
CPQQ NEW YORK, March 16 /PRNewswire-Asia-FirstCall/ -- China Power Equipment, Inc. ("China Power Equipment", OTC Bulletin Board: CPQQ), the manufacturer of a new generation of energy saving electric transformer cores and transformers in the People's Republic of China, today announced the appointments of Mr. Junyi Li ("Mr. Li") and Mr. Siu Kuen Leung ("Mr. Leung") as independent directors to the Company's Board of Directors. Together with the Company's current three board members, the company's board now consists of five members. Three of the five board members each qualify as "independent" directors as defined by the rules of the NASDAQ Stock Market.
NOTE: Very low volume. Inject some volume and its over 3.60 quick.
Pappy: I went back to the yahoo board and found this older projection from you re. 2009, 2010 and 2011 eps that still looks in the ballpark. Your 2009 eps estimate of 0.24 (non GAAP) came damn close to the 0.28 they just reported but the future projection is based on a "20% only" dilution. Well, taking all outstanding warrants (4.46M), and the 4.2M convertible preferreds of the recent financing, total FD looks more like = 24.6M shares now, so dilution will be sth like 65%. But that will be partially offset by higher margins going forward due to less outsourcing, second supply source of amorphous alloy and economy of scale....
Anyway, here are Pappy's original eps estimates:
2009E= 0.24 vs. reported 0.28
2010E= 0.72 (160% yoy)
2011E= 1.44 (100% yoy)
yoy based on reported 2009 eps.
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_C/threadview?m=tm&bn=95477&tid=353&mid=353&tof=168&frt=2
CPQQ 233% capacity expansion on line by April 30!
_______________________________________________________________
China Power Equipment Updates Progress in its New Plant and Second Alloy Source
CPQQ.OB 2.95 0.00
Press Release Source: China Power Equipment, Inc. On Monday April 12, 2010, 6:30 am
XI'AN, China, April 12 /PRNewswire-Asia-FirstCall/ -- China Power Equipment, Inc. ("China Power Equipment" or "China Power" or the "Company") (OTC Bulletin Board:CPQQ.ob - News), the manufacturer of a new generation of energy saving electric transformers and transformer cores in the People's Republic of China, today updated its progress in its new plant and in a possible second source for amorphous alloy.
Mr. Yongxing Song, Chairman and Chief Executive Officer of China Power Equipment, Inc., in his prepared remarks at an investment conference hosted by Roth Capital Partners, LLC., in Beijing, China on April 10, 2010 said, "We expect to complete the installation of all the production equipment in our new plant for manufacturing amorphous alloy transformer cores by April 30.
"That milestone is important because it will help to qualify us further as a reliable supplier of high-quality cores at high production volumes, which can influence the government and our customers in granting orders for our products. The new plant will add 5,000 metric tons of annual capacity for amorphous alloys cores, bringing our total capacity to 6,500 metric tons per year.
"Assuming we win the new orders that we believe can be achieved, we could start delivering amorphous alloy cores for some of those new orders from the new plant as early as May 2010. Until then, we will shake down the production line by running pre-production volumes to qualify the line. Once qualified, we will begin producing amorphous alloy cores in this new second plant for our current customers in partnership with our first core plant.
"I also will give you an update on the tests of amorphous alloy cores we have manufactured using test amorphous alloy strip created by Beijing Advanced Technology & Science Materials Co., Ltd. ("AT&M").
"Based on the tests run by electric grid companies and by our customers, one electric grid company, so far, in the Henan province, has signed the first order with us for an initial production of 52 metric tons of transformer cores, assuming that AT&M will produce this alloy. We have not disclosed the pricing in the order, but it is competitive with the pricing for our cores made with alloy from Hitachi Metals Co., Ltd. ("Hitachi"), our primary supplier.
"So far, the AT&M alloy appears to perform well for certain transformer applications, based on the initial results in the tests currently being conducted. If AT&M becomes a qualified high-volume supplier, it would add a second major supplier to the global market for amorphous alloy. AT&M's entry would not cause us to reduce our orders or affect our good relationship with Hitachi."
China Power Equipment was one of the first transformer core makers to produce an operating core, using the AT&M test alloy, that met China's national standard for electricity consumed under operating load.
China Power Equipment received the test amorphous alloy in September 2009. After five months, China Power had analyzed the performance characteristics of AT&M's test alloy, modified China Power's processing technology, including annealing, to optimize the alloy's attributes, and successfully produced amorphous alloy cores with operating capacities of 315 kilovolt-amperes, 400 kilovolt-amperes, 500 kilovolt-amperes, and 630 kilovolt-amperes, all stepping down 10,000 volts to 220 volts.
In February 2010, a China Power Equipment transformer core, model SBH15-M-315KVA, using the AT&M alloy, running at a volume of 315 kilovolt-amperes, consumed 163 watts of electricity, which is 4 percent better than the Chinese national standard for transformer electricity consumption. All the other operating parameters of the test core were also good. Units of this model were provided to transformer makers and electric grid organizations for test. This transformer size is the most frequently used unit in rural China.
Mr. Song continued, "I think it is remarkable that we were able to go from the research and development stage for cores using this test alloy all the way through to market testing in only five months. Our R&D and production teams, working closely together, have achieved a major milestone that should give China additional ability to benefit from amorphous transformers and should give customers and electric grid organizations an additional choice in specifying step-down cores and transformers."
Yup, spoke to the US representive, some sort of director, about when they thought it might be open.
Since they previously, from memory, had said something like first half of year. He wouldn't give an inkling of when it would be opened <shrug>
rich
I haven't kept up to date on the status of the new plant.
Back when I had a position in cpqq they mentioned that they planned to have the new plant operational by the 1st half of 2010.
I don't understand why a update hasn't been given since then,,,but its obvious the pps is suffering because of the lack of a update.
This only makes investors think the plant opening will be delayed.
Pappy, what do you reckon about the lack of talk on the new plant? I just don't understand why they don't mention it since that's where the revenues will be coming from?
rich
It may soon enter my buy range once again. $2.50-$2.70
Lack of information about the new factory. If they supply this information it will rocket. However, I suspect, that since they haven't said anything we'll have to wait a little longer.
rich
China Power Equipment to Present at Rodman & Renshaw Conference in Beijing on March 8, 2010
Last update: 3/2/2010 6:29:00 AM
XI'AN, China, March 2, 2010 /PRNewswire via COMTEX/ -- China Power Equipment, Inc. (CPQQ), the manufacturer of a new generation of energy saving electric transformer cores and transformers in the People's Republic of China, today announced that it will participate in the Rodman & Renshaw investment conference on March 8, 2010 in Beijing.
Conference: Rodman & Renshaw Annual China Investment Conference Event: Company presentation, answers to questions, and smaller meetings Date: Monday, March 8, 2010 Presentation time: 4:05 p.m. to 4:25 p.m. Location: Diamond Room 3 in The Regent Hotel, 99 Jinbao Street, Beijing, China Participants: Mr. Yongxing (Henry) Song, Chairman, President, and CEO Ms. Yarong (Lillian) Feng, Director and Vice General Manager Ms. Elaine Zhao, Chief Financial Officer
China Power Equipment will present the company's strategy, products, market, and financial results during the presentation. Mr. Song, Ms. Feng, and Ms. Zhao will answer questions during the presentation and at smaller meetings. Investors interested in attending the Rodman & Renshaw event should contact their Rodman & Renshaw sales representative. For more about the conference, please visit .
About China Power Equipment, Inc.
China Power Equipment, Inc., through its wholly-owned subsidiary, Xi'an Amorphous Zhongxi Co., Ltd., has developed a proprietary patented technology to produce a new generation of energy saving electricity transformers and transformer cores. The company currently manufactures 59 models of transformers in four product series that are sold throughout China. The company was formed in 2006 as a U.S. corporation, and in November 2006, created a Chinese subsidiary that was granted a license as a privately held wholly owned foreign enterprise by the Chinese government.
Safe harbor
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements.
The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts, and legal restrictions on raising capital or acquiring companies outside China.
Additional risks that could affect our future operating results are more fully described in our filings with United States Securities and Exchange Commission. These filings are available at .
We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf except as required by law.
For more information on China Power Equipment please visit our website at .
For more information, please contact: Christensen Mr. Yuanyuan Chen (English and Chinese) Mobile: +86-139-2337-7882 in Beijing Email: ychen@christensenir.com Mr. Tom Myers (English) Mobile: +86-139-1141-3520 in Beijing Email: tmyers@christensenir.com Ms. Kathy Li (English and Chinese) Phone: +1-212-618-1978 in the USA Email: kli@christensenir.com
SOURCE China Power Equipment, Inc.
Monday, 1 March
CHINESE stocks are likely to rise this week as the market expects new stimulus measures during the top legislative and advisory sessions, analysts said.
The Shanghai Composite Index ended February with a gain of 2.1 percent and closed at 3,051.94, shored up by actively traded small chips. Analysts said the chips will continue to boost the index as they may benefit from new economic policies rolled out during the annual session of the Chinese People's Political Consultative Conference and the National People's Congress.
"Innovative and green industries such as smart grid, Internet, new energy, carbon recycling are most likely to get supporting policies at the session," said Chai Yongning, a S&E Securities Brokerage Co analyst.
http://www.shanghaidaily.com/article/?id...
What are you looking for on this?
China Stocks Rise for First Time in Three Days; Utilities Gain
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By Bloomberg News
Feb. 24 (Bloomberg) -- China’s stocks rose for the first time in three days, led by power producers and health-care companies, as investors sought industries that would be most shielded against a slowdown in the economy.
GD Power Development Co. and Huadian Power International Corp. advanced at least 1.6 percent after Ping An Securities Co. increased its prediction for the country’s power output in 2010. Yunnan Baiyao Group Co., a manufacturer of traditional Chinese medicines, added 3.6 percent. China Railway Erju Co. climbed 8.7 percent after winning construction contracts.
The Shanghai Composite Index rose 17.43, or 0.6 percent, to 3,000 at the 11:30 a.m. break, reversing a 0.9 percent loss. The gauge has slumped 8.5 percent this year on concern the government will raise interest rates and curb lending to cool the economy and avert asset bubbles. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, gained 0.8 percent to 3,223.22.
“The market is turning to defensive stocks with solid earnings prospects,” said Dai Ming, a fund manager at Shanghai Kingsun Investment Management & Consulting Co. “The market is likely to be rangebound given the government tightening.”
A decline in U.S. consumer confidence to a 10-month low raised concern that the global economic rebound may falter. In addition, the Ifo institute in Munich said its survey of German business confidence unexpectedly fell for the first time in 11 months in February as the coldest winter in 14 years damped retail sales and construction.
Power Producers
GD Power, the largest electricity producer in northeastern China, advanced 5.5 percent to 7.29 yuan, set for the biggest gain since Nov. 13. Huadian Power, the listed unit of China’s fourth-largest power producer, added 1.6 percent to 5.07 yuan. Guangdong Electric Power Development Co., the biggest operator of power plant in the southern Chinese province bordering Hong Kong, gained 1.6 percent to 7.59 yuan.
China’s power output is expected to rise 15 percent in 2010 from last year, Ping An Securities said in a report today, higher than an earlier prediction of 9 percent growth.
Power consumption jumped 40.1 percent from a year earlier in January, the National Energy Administration said on Feb. 12.
Yunnan Baiyao added 3.6 percent to 60.11 yuan. Yabao Pharmaceutical Group Co. rose 4.3 percent to 19.97 yuan. An index tracking health-care companies on the CSI 300 climbed 2.2 percent, set for its highest close in a month. The drugmaker gauge is the second-best performer among the 10 industry groups this year.
http://www.bloomberg.com/apps/news?pid=20601089&sid=a.pKKQWZ0Wcc
China stocks tend to follow the broader China markets and US Stocks tend to follow the broader US markets (like the S&P 500).
China is possibly caught up in a massive housing bubble -+ right now (my opinion)weighing heavy on china stocks see ETF: FXI
ALSO:
USA S&P 500 index has been breaking support areas (in the process of but not finished breaking support area). Many markets don't look good.
Long positions are tough right now. I am 100% short.
I also follow the 10 Amigos and look to see how these once high flyers are reacting to market forces. The better ones show their colors during bad times.
Lurking once more as it gets closer to my buy range.
im sorry nick, im new to stock buying; I bought cpqq, lpih, and ccgy early in december. I noticed you said china stocks aren't doing so good, why? and what do you think will happen to cpqq? Whats current with cpqq? We havent heard any news from them lately?
Correction on my last post:
ETF: FXP: (trending up since November 16, 2009) effectively shorts 25 Hong Kong china stocks (not the entire china market)
Sold my 20,000 shares of CPQQ today (Initially bought CPQQ Nov. 3rd 2009).
Also totally liquidated 3 other of my China Small Cap stocks.
Until my outlook on the China markets changes I will be short China.
I bought ETF: Symbol: FXP today which effectively shorts China.
FXP bottomed out 2 months ago. if it holds I don't want to be long 20K shares of CPQQ. Not to mention that CPQQ broke Fibonacci support
today.
I'll be back when things look better!
Best to you!! I'm taking the money and running.
OUT HERE....
After the first 15 minutes of trading this morning all my china stocks were down except CPQQ
I was out exercising this morning and missed the open Today..... nice break on the open and now at 11:05 EST showing strength above $4.00 again.... :)
$4.00 not much resistance I guess.... see how it plays out.
FORM D Notice of Exempt Offering of Securities? Is this new or was it expected (filed yesterday 14:57 hours). I was wondering if this had anything to do with yesterdays price action??
$4.00 ?? I Think today we saw the first time that price level $4.00 (overhead resistance) come into play. We'll see how long and how many attempts it will take to break through this barrier??? Wasn't too long ago we were talking about $3.00 as overhead resistance.
Technicals (GMMA analysis): I am still holding my full position and will do so until the fundamentals degrade (I hope this may not happen for a long time :) or the technicals for the longer term fall apart.
GMMA (Guppy multiple moving averages) analisys: >>I can't figure out how to cut and paste a snapshot of my GMMA chart?<<
Because of my longer time horizon I may looking at a daily chart for my GMMA analysis instead of lets say a 30 or 60 minute chart.
The short term moving average group (Represents Shorter term investors/Traders) shows weakness when looking at the latest base that formed since the beginning of December as opposed to the prior base that formed from November 17th to the end of November. This confirms the actions of some on this board (and others obviously) that bailed out in the last two weeks. I also saw this weakness in the 30 minute charts, however I am in it for a longer time horizon and held my position during this weakness.
The Longer term moving average group (represents Longer term investors) this moving average group is continuing to spread apart nicely from each other which shows a longer term investor consensus that all is progressing well.
I note that the distance of the short term group in relation to the long term group is getting wider which is also a bullish indication.
I wish that I could have posted my chart which would have surly made this a lot easier to visualize ..... :)
To summarize in easy terms:
1. The short term weakness shook out some traders out there.
2. The long term picture continues to look good.
>>>>
The hard thing about what we do; the market is a bundle of contradictions. we as traders/investors have to decide which piece of contradictory information we will base our trades on (thats what makes it so hard). I have chosen GMMA to best represent CPPQ's near to medium term picture.
I hope I am right .... I have a vested interest :)
Hope you have a great day and nice to see CPQQ making a new high today and closing above the last 52 week high (all bullish).
Drexion2004:
I will chase a stock I've exited prematurely. So far, I've had more successes than failures doing this, but they have not been China stocks, which can trade all over the place.
I really went out on a limb this week, repurchasing MED at the 52-week high. Originally I entered at $6.
Whether it is wise to reenter depends on the quality of the company and your trading strategy. I tend to hold a stock 3-6 months on average, though I'll sell within days of purchase it is goes ape!
If thru sheer momo strength cpqq doesn't get back to what I consider a more rational entry point.
And a lot of things could keep the pps from dropping to around $2.50,,,Finishing the new capacity without unnecessary delays or the abilty to gain listing standards by mid=2010,,,,meeting their earnings make good numbers,,,No more dilution needed just ahead.
I would like to depart this board by saying good luck to those that stayed past a fast triple as i didn't.
regards,pappytom
You forget the growth rate. A company growing at 100 % deserves a p/e og 100. CPQQ is likely to uplist next year and then get a realistic p/e ratio.
You forget the growth rate. A company growing at 100 % deserves a p/e og 100. CPQQ is likely to uplist next year and then get a realistic p/e ratio.
You forget the growth rate. A company growing at 100 % deserves a p/e og 100. CPQQ is likely to uplist next year and then get a realistic p/e ratio.
I think the key to maintaining the price enthusiasm is the uplisting. If the market sees that CPQQ.ob is applying to uplist and has their ducks in a row, the stock price will move beyond the modest p/e's of otc China stocks.
I also think that CPQQ's story is easy to understand and that it is already gotten more support than many Chinese microcaps.
A government mandated program to use CPQQ products throughout China due to the energy savings is huge! The scope of just the replacement program is huge and knowing that China has to electrify all those villages in the center of China adds years of work for Cpqq.ob.
There is still a lot of work ahead for Cpqq.ob. They have to finish the new plant, get it working properly, win enough extra bids to use the extra capacity efficiently, increase revs and eps while preparing to uplist. Hire a new CPA and attorney to help them uplist. They have to make enough profits to satisfy the make good provisions and generate good enough numbers to keep investors interested, even with their higher share count.
Somehow I feel better about cpqq and their products than many of the "chinese biotechs". ckgt may be a good company but I can't get past cactus cigarettes. Most are selling traditional chinese medicines that are a mystery to me.
It should be an exciting time for cpqq.ob as they get their factory closer to completion and work on all the goals they have to hit. The price can't keep skyrocketing as it has recently but I still think there's upside from the uplist and the new factory. This could be a nice medium term story.
I never thought it would go down to $1.2, I did (and still do) think it will go below $3 sooner or later.
I'll look to buy back into it around $2.5, if it goes up without me thats ok too. I don't chase stocks with graphs like this =).
Its definitely a very nice company though, great prospects.
-Fernando
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Welcome to the China Power Equipment board.
http://www.chinapower-equipment.com/read2.asp?ids=79,69
China Power Equipment, Inc.(OTCBB:CPQQ), through its subsidiary, Xi'an Amorphous Zhongxi Co., Ltd., utilizes proprietary, patented technology to produce 10kV and 35 kV traditional transformers, amorphous alloy cores and 10kv amorphous alloy transformers, which are a new generation of energy saving transformers. The Company produces 55 different models of transformers in four product series which are sold throughout China.
The Company was formed in 2005 as a U.S. corporation, and in February 2006, was granted a license as a privately held, Wholly-Owned Foreign Enterprise, or "WOFE", by the Chinese government.
The Company currently has two patents for the production technology of amorphous alloy transformers and one patent for equipment for the production of amorphous alloy cores in China. Leveraging the properties of amorphous alloy materials and its advanced manufacturing process, China Power's transformers reduce up to 80% of the no-load loss generated by transformers with a silicon steel core.
As China continues its rapid transition from an agricultural to an industrial economy the drain on the nation's existing power grid is substantial. In response to this and the PRC's increasing attempt to reduce its impact on the environment, the Chinese government has issued a series of measures demanding improved efficiency and decreased emissions from its corporations, thus making it a priority to use energy-saving products and equipment. These regulations specify new energy codes for the manufacturers and sale of transformers and require enterprises which utilize transformers required to give priority to energy-saving transformers, such as those produced by the Company.
Meanwhile, the Company is the only enterprise that can manufacture amorphous products in the western region on a large-scale.
NEW YORK, Aug 18, 2009 /PRNewswire-Asia-FirstCall via COMTEX/ -- China Power Equipment, Inc. ("China Power") (OTC Bulletin Board: CPQQ) today reported its operating results for the second quarter of 2009.
Net revenues for the six months were $8,590,671, an 88% increase over the first six months of 2008. Net income for the period nearly doubled to $1,634,383, or $0.11 per share, as compared to $822,141, or $0.06 per share for the first six months of 2008. These improvements were largely due to the Company's strong performance in the second quarter. Revenue for the period was $5,888,375, more than double the $2,236,584 earned in the second quarter of 2008. Net income for the second quarter of 2009 was $1.3 million, or $0.09 per share, as compared to $310,746, or $0.02 per share, for the same period in 2008.
The increases to net income as a percent of sales reflect a decrease in the selling, general and administrative expenses, which were 4% of revenues in the second quarter of 2009 as compared to 8% of revenues for the same period in 2008.
Yong Xing Song, Chairman of the Board of the Company, stated, "We are quite pleased with the Company's performance during the second quarter. The improved results reflect the investment we have made in our product line and sales effort. We expect these trends will continue as China's economy continues to expand, and with it, the demand for efficient, clean transfer of energy. We look forward to building on the strong foundation we have built with many of the regional utilities and government agencies as they continue to increase and improve China's power grid."
461,634 Prepaid expenses and other receivables 320,256 257,700 Total Current Assets 5,841,874 4,575,084 Related party receivables 23,781 97,248 Property, plant and equipment, net 3,693,776 3,116,422 Intangible assets, net 423,388 220,742 Long-term investment 244,245 236,384 Deposit on contract rights 1,314,867 1,313,064 Prepaid capital lease 114,106 116,694 Total Assets $11,656,037 $9,675,638 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $943,584 $710,480 Accrued liabilities and other payables 499,359 409,040 Advance from customers 33,242 142,156 Lease payable - current portion 1,947 1,944 Note payable 58,439 58,358 Value-added tax payable 72,609 64,686 Income taxes payable 348,550 235,262 Related party payable 1,169 1,167 Total Current Liabilities 1,958,899 1,623,093 Long-term Liabilities Lease payable - non current portion 117,489 117,327 Total Long-term Liabilities 117,489 117,327 Stockholders' Equity Preferred stock: par value $0.001 per share, 10,000,000 shares authorized; None issued and outstanding at March 31, 2009 and December 31, 2008 -- -- Common stock: par value $0.001 per share, 100,000,000 shares authorized; 14,908,313 shares issued and outstanding at June 30, 2009 and December 31, 2008 14,908 14,908 Additional paid in capital 7,176,041 7,176,041 Statutory surplus reserve fund 202,665 202,665 Retained earnings/(Accumulated deficit) 1,171,412 -462,971 Accumulated other comprehensive income 1,014,623 1,004,575 Total stockholders' equity 9,579,649 7,935,218 Total Liabilities and Stockholders' Equity $11,656,037 $9,675,638 China Power Equipment, Inc. Consolidated Statements of Operations (Unaudited) Three Months Ended, Six Months Ended, June 30, June 30, 2009 2008 2009 2008 Revenue, net $5,888,375 $2,236,584 $8,590,671 $4,566,249 Cost of goods sold -4,510,872 -1,727,023 -6,663,451 -3,312,075 Gross profit 1,377,503 509,561 1,927,220 1,254,174 Selling, general and administrative expenses 224,650 176,589 425,217 335,793 Net income (loss) from operations 1,152,853 332,972 1,502,003 918,381 Other income (expenses) Gain on investment 21,409 40,045 51,373 62,253 Other income 350,881 -- 350,881 13,936 Interest income 1,441 235 5,815 2,467 Interest expense -- -56,214 -117 -79,516 Foreign exchange loss -- -- -- -2,712 Total other income 373,731 -15,934 407,952 -3,572 Net income before income taxes 1,526,584 317,038 1,909,955 914,809 Income taxes 220,222 6,292 275,572 92,668 Net income after income taxes $1,306,362 $310,746 $1,634,383 $822,141 Earnings per share - basic $0.09 $0.03 $0.11 $0.08 Earnings per share - diluted $0.09 $0.02 $0.11 $0.06 Weighted average common shares outstanding: Basic 14,908,313 10,886,413 14,908,313 10,879,246 Diluted 14,908,313 14,908,313 14,908,313 14,901,146
ABOUT CHINA POWER EQUIPMENT, INC.
China Power Equipment, Inc., through its wholly-owned subsidiary, Xi'an Amorphous Zhongxi Co., Ltd., has developed a proprietary, patented technology to produce a new generation of energy saving transformers and transformer cores. The Company currently manufactures 55 different models of transformers in four product series which are sold throughout China. The Company was formed in 2006 as a U.S. corporation, and in November 2006, formed a Chinese subsidiary which was granted a license as a privately held, Wholly-Owned Foreign Enterprise, or "WOFE", by the Chinese government.
Safe Harbor
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings, including our Prospectus dated November 7, 2008, and 10-K filed on March 31, 2009 and our other recent filings. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf.
For More Information on China Power Equipment, Inc., visit the website at: http://www.chinapower-equipment.com
For more information, please contact: Tel: +1-866-374-1957 (US) Email: xa-fj@xa-fj.com
SOURCE China Power Equipment, Inc.
URL: http://www.chinapower-equipment.com www.prnewswire.com
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