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Very Bullish Signs
We have a company here trading at a 7 p/e , Growing like gangbusters in the sweetest spot.
The average stock trading in China has a P/E of 29.The news just keeps getting better.With the yuan increasing in value this is very bullish for Chinese stocks.This stock could triple in a year and still be undervalued.
http://www.bloomberg.com/apps/news?pid=20601080&sid=a.hOEdOelEMU
‘Very Bullish’
" A resumption in the appreciation of the yuan will be “very bullish” for China’s stock market, he said. Yuan forwards rose yesterday, trading near the highest level in more than two weeks, on speculation the central bank will allow the currency to gain. "
April 1 (Bloomberg) -- China’s stocks are likely to rebound from their worst quarterly drop since last year’s bear market as inflation stabilizes and the yuan gains against major currencies, according to Baring Asset Management (Asia) Ltd.
“China is not expensive,” said Khiem Do, Hong Kong-based head of multi-asset strategy at Baring Asset Management (Asia) Ltd., which oversees $11 billion. Investors will “feel a lot more comfortable” if inflation peaks at “3 to 4 percent” as that may signal the end of “policy normalization” by the central bank, he said.
A 5.1 percent plunge for the Shanghai Composite Index last quarter cut valuations to 29.1 times reported earnings, down 23 percent from last year’s high of 37.7 times in August, according to weekly data compiled by Bloomberg. Chinese stocks fell after the central bank twice ordered banks to set aside more money as reserves to rein in record new lending and slow the world’s third-biggest economy.
The nation’s inflation rate accelerated to 2.7 percent in February, the fastest in 16 months, after food prices climbed and industrial production rebounded. Premier Wen Jiabao last month set a target to control consumer prices at about 3 percent.
Do added Chinese property stocks as housing prices “haven’t fallen and volumes are picking up” while banks have reported “spectacular” earnings. His Asia Balanced Fund has gained 11 percent over the past five years, beating 97 percent of its peers, according to data compiled by Bloomberg. Among his holdings at the end of last year was Industrial & Commercial Bank of China Ltd., the world’s largest bank by market value.
‘Very Bullish’
A resumption in the appreciation of the yuan will be “very bullish” for China’s stock market, he said. Yuan forwards rose yesterday, trading near the highest level in more than two weeks, on speculation the central bank will allow the currency to gain.
China’s manufacturing expanded at a faster pace in March, a report today showed, putting pressure on Premier Wen Jiabao’s government to consider raising interest rates and allow gains in the yuan for the first time since mid-2008.
The government is considering widening the yuan’s trading band next month, the Chinese-language finance magazine Caijing reported, without saying where it got the information.
China is facing renewed pressure to loosen controls on the currency to help offset global imbalances in trade, most notably from the U.S., which says an undervalued yuan gives Chinese exporters an unfair advantage
Werent they able to just raise prices ? I think that would more than off set that.
Nice bounce back
I am playing the CHME bounce like i played LPIH and FUQI.
I sold both of them a little earlier than i should have.
I guess the 10K was better than most who
jumped ship thought it would be.
The stock sold off in a worst case scenario.
Well see.I am hoping to see if she can approach 4 again ?
What bothered me today is that i was hoping for the volume to decrease more than it did and then they would start to cover.I think we saw that in the last hour today.I think the volume was about what it was yesterday so they forced more people off the plank today.I think yesterdays volume was driven more by short selling than todays.I am guessing today retail guy was selling and why cover until it stops going down.Mondays volume will be telling.I would like to see sub 400000 and several days between 13.30 and 13.75 on decreasing volume.We could see mid 12s but they money wagons will be loading up that will be a short period.
Personally i don't think its that the shorts don't believe in the numbers the 10K will be out any day.I believe that there are complex computer trading programs and very savvy technical traders that screen for exactly the type of situations we had this week.A huge jump in share price in a single day with a massive influx of retail investment dollars.With just a few % points of decline they begin to shake the tree and most impulsive retail buyers of the week start to get nervious and sell.All it takes is a few % points move to shake the average joe.We had a massive gap up and hence the reason the technicians are so often right Gravity.Maybe i am a conspiracy theorist but this happens over and over.
Just my opinion
Well it means that someone borrowed shares and sold them and failed to deliver them when the stock was sold.It is ( never enforced )illegal except for marker makers for a very short time period.It is a common strategy among large stock manipulators such as hedge funds.It can work both ways though.When a stock is aggressively pushed one way without any paper it can spring the other way rapidly.Almost the reverse of a stock falling and investors getting margin calls.Naked shorts can depress a stock beyond reasonable selling expectations.It doesn't make sense for CCME to fall so much after great earnings but after seeing them on this list it makes perfect sense.They will continue on hammering her next week.They will pay bashers to post on yahoo and they will see how far they can push it.We need Jackie to slap them with a sterling 10K ,a mention of an up list and some more contracts or an accretive acquisition and they will cover faster than ever.
Thanks a million
Great report.What an undervalued gem still
Seems like they r done for now.Huge dump the ist hour.Now shes just walking in the park
300000 shares on a Friday in 1 hour.Got to be a fund .I think the avg daily is 400000.Hope he doesnt have much more in inventory liquidation.
Still lots of sellers.
For a friday i dont like it!
So Far your call is on the money !
Ryan
I just did the same thing.It cant hurt. This is the email i have
jackylam@mediaexpress.com.hk <jackylam@mediaexpress.com.hk>
Did you have a different one ?
Thx
Thanks I got it
I still think a Naz uplisting would add investors liquidity and coverage.Maybe they dont want to shoot all thier bullets at once.I hope Jackie suprises us on this one.CCME seems to follow this predictable pattern.Moonshot with high volume,slow methodical sell off with a back and fill,sideways and then the next moonshot.I guess a lot of traders are printing money on this one.
PS
AH looks good so far
Thanks Kuwlness.
I thought today was the day to let the gunpowder fire.I loaded up with both barrels and had to sadly sell some dear friends for now ( FUQI LPIH CCLWF AMRR )I will buy back soon though .I have been known to be early at most things though.
Is the trading float still around 750000 shares ?
I thought superman posted that recently.Correct me if im wrong but the bus has all new passengers for the most part.I would also be curious to see the new short interest ratio.
Well we had a bunch of new buyers at 3.7 million shares then 1.2 million and today at 780000 thousand.Tomorrow being friday i think most of the institutions that wanted out got out yesterday and today.My guess is we will see less volume and a trend up with a bunch of new stake holders.So this rotation may cushion the stock until much higher prices.
So you think it will go to 13.5 ? I am thinking the volume will start to dry up and then the 10K comes out and we see some fresh buyers.
Thanks
This is the one stock that has 20% 1 week and 100% 3 months written all over it barring a market crash.I sold all my other Chinese stocks today and put it all into CCME.This goes againist my long term strategy but i now know the numbers and CCME feels like the safest thing out there.It could go south some more but NORTH!!!! is its eventual destination.
Gotta be just some huge profit taking !
She,s trading wilder than a hooker at the hotel Del Rey in San Jose CR
Someone is just dumping !
Im buying as much as i can. We already know the numbers
( What kills me is that wall street is running from buying chinese stocks )
What Hong Kong Tells Us About China
HONG KONG (TheStreet) - I've spent the last couple of days in Hong Kong, the gateway to the Orient. Starting Thursday, I will embark on a 10-day trip in China meeting with different management teams from existing portfolio companies and prospective investments.
The companies include Universal Travel(UTA), Orient Paper(ONP), China Agritech(CAGC), Puda Coal(PUDA), Shengkai Innovations(SHE), China-Biotics(CHBT), China Wind Systems(CWS), and Fuqi International(FUQI). The time in Hong Kong has opened my eyes to some of the dynamics going on in this city's economy and its relationship to mainland China, which are useful for any investor to keep in mind.
Hong Kong is booming at the moment. Recession? What recession? Any American looking to board a time machine and travel back to the glory days on 2006 should take the next flight to this city.
If you've grown weary about hearing the latest Case-Shiller data on housing and how foreclosures are about to start increasing again, you might find it jarring to walk around Hong Kong and read posters on real estate agency windows advertising dark and dirty 1,600 square- foot apartments going for $3 million to $4 million.
Everywhere you go, you see advertisements for some new extravagant condo building being built. People here like to demonstrate their prosperity, often by wearing high-end brands proudly. On a stroll last night through a prosperous section of Kowloon, I was startled to see a line to get into the biggest Louis Vuitton shop I've ever seen. Yes, there was a line of people waiting to get into a store so they could spend $10,000 to buy a bag.
I now understand why Vancouver and Toronto are experiencing mini-housing bubbles at the moment: People from Hong Kong are going up there to scoop up investment properties at a fraction of the price they would pay here.
This real estate boom is driven by the constricted supply of housing on the small island, the low marginal tax rate of 15% (how's that for a mortgage tax deduction?), and most importantly, newly wealthy mainland Chinese teeming over the border every day eager to spend their money in Hong Kong.
http://www.thestreet.com/_yahoo/story/10709391/1/what-hong-kong-tells-us-about-china.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
China MediaExpress Soon to Be a Must-Own for All China Investors
China MediaExpress (CCME) announced its FY2009 results Tuesday, and it is very clear from market action that investors are liking what they see. The earnings highlights are as follows:
Revenue increased 52.3% to $95.9 million
Gross margin was 65.7% for the year and an excellent 68.9% for Q4
Net income increased by 58.2% to $41.7 million
Cash position at the end of 2009 was $57.2 million
In addition, the company is expecting a very strong FY2010. Net Income is expected to come in between $71 million and $75 million, and this excludes the impact of "any possible acquisitions, addition of new buses and new investments in other media projects in 2010".
If this projection holds, we're talking about a 2010 fully-diluted EPS of $1.75 to $1.85, representing a net income growth of 70%-80% YOY. My previous estimates of CCME's 2010 EPS was $1.73, so this is very much in line with my expectations. Still, bearing in mind possible accretive acquisitions, this estimate could well be on the low end.
And yet, we haven't even factored in the most interesting aspect of this. While its year-end cash position was $57.2 million, the company currently has more than $100 million in the bank, given an investment earlier this year by Starr International, exercise of all its outstanding warrants, and settlement of a promissory note. If one adjusts the company's market capitalization for this cash amount, and divides it by the conservative end of the net income estimate ($71 million), we get a 2010 P/E of only 6.9x. That's pretty low.
I think the stock is now pretty much unstoppable, barring any negativity in overall market sentiments. CCME was up by more than 18% Tuesday, and judging by the momentum, there should be enough steam left for further gains.
The closing price Tuesday was $14.54, and while this may not have been the all-time high (the intraday high of $14.82 from 1/19 still holds), this is the first time the stock has closed above $14.00. In any case, its day high of $14.57 is a mere whisker from the all-time high, so this is a matter of splitting hairs.
I think a target price of $20 for CCME is now very much in sight. If the company uses its cash wisely, and does not dilute its shares too much going forward, this stock will become a must-own stock for all China investors going forward.
http://seekingalpha.com/article/195259-china-mediaexpress-soon-to-be-a-must-own-for-all-china-investors?source=yahoo