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No facts. Just the statement that they would be in the battery business in five years. That certainly is not what you would have found as a date last year. Also, just a suspicion that with a 'grant' to increase production by a factor of five (think that is correct) you might expect some 'payback'. And of course the other factor is that you need all of the suppositions possible since that tell us nothing. Even after getting a PR agency the site has no Corporate Video or Slideshow Presentation listed.
http://www.ccgirasia.com/
Never been sure what type of acqusition JADA might make. They speak for years about vertical integration. But the next level down, or up however you see it, is cutters and sales distributors to carving factories. Prior they sold to about five distributors and those would be likely candidates. From that you have thousands of carving factories, unlikely acqusitions.
"The counterparties to these contracts (distributors) are sub-distributors and processors who in turn sell jade to the artisans responsible for crafting the final products. There are approximately 150,000 jade-carving factories in China. The province in which our customer, QuanZhou City TianXiaHuiCui Jade Company Ltd. (?QZTX?), operates is home to over 1,000 large jade carving and processing factories, generating over $1.5 billion in annual production. PuTian City, home to our customer, QYSB, contains 1,000 jade and jewelry companies with annual production of $2 billion."
And then their are retail outlets. The idea that you could grab a portion of the market all the way to retail sales seems unlikely.
But regardless, if they just keep on doing what they are doing and China remains prospurous we should be happy.
The first news we will se is a NT-10Q.
Some comment on what is really happening. I say really, because I believe that some information that should be reported is not being reported. One, as has been mentioned is the Congo mine situation. An 8K might have been required by SEC rules.
Also, I think the government grants to increase their production capacity was associated with a 'deal' to sell all of their material to the state owned battery company for some period of time. Therfore, what we all saw as a vertically integrated company that would soon be in finished product battery production for higher margins has evaporated. All they sell is raw material. This is indicated by a recent interview where the CFO said they would produce batteries in 'about five years'. Such a sales 'deal' to the associated state owned battery company surely should have been reported in an 8K.
Any of you have any comments?
Pardon my investment stupidity -
Yes, China, China, China on the tube. But until we see an hour or two a day on TV on CNBC, Bloomberg, and Fox Business, dedicated to China, US investors won't get serious. Yes, yes, I know. All the information is out there now or we wouldn't being investing in them now. And that's good for us, but it is the overall perception that Chinese companies are not real and investors need to see people talking about selected ones as to what they do and how they are growing. I hate to suggest it, but something like Mad Money for China stocks, but of course not with Cramer. I'm sure that many don't even know that many Chinese companies are registered on US exchanges. And I'm also sure investors are anxious to invest in China because they realize where the growth lies. And also sure you would have a hard time finding an investment advisor that could or would recommend a China stock. Warren got the message but that is not enough.
Mr. Lu Li and Berkshire -
Since Warren believes that this century belongs to China, this is the way for Berkshire to gain a Chian advantage. You can bet that Chian companies and stocks will no longer be overlooked by at least Berkshire.
KNDI postal vehicle -
The modified version is all storage except for the driver seat. Yes it is small. But they have their foot in the door and also have an electric panel truck.
KNDI - up 12.35% today on 721,702 shares
Average shares 181,000/d. Also a 191,000 (T)purchase at 16:01. Know not many watch this as it only has a -1 score by Rames. But it might be ready for a run. Mr. Hu, CEO, made presentations a few weeks ago in NY. Could be new investors or a short squeeze due to a large short status. KNDI revenues now are mostly from electric dune buggies sold in the US, but their future is in lower speed (40 mph) small electric cars in China. They are beginning to provide these vehicles to the postal service which currently has 300,000 of these:
http://upload.wikimedia.org/wikipedia/commons/thumb/7/7e/VM_5485_China_Post_Office_car_at_Zhengzhou_Train_Station.jpg/800px-VM_5485_China_Post_Office_car_at_Zhengzhou_Train_Station.jpg
To be replaced by this at ~ $9,000+ each:
http://www.zjjjxww.com/uploadfile/200911/4/1641488853.jpg
Likely without the bow. Now I don't expect them to get all of the orders, but with current revenues of only $40.5M and earnings of $4.9M, this is a great start.
They have teamed with partners in a program for 'battery changing stations'. The concept is you buy your EV and lease the batteries. Chinese Ministries will soon release standards for EVs. According to recent China news releases the changing concept, in addition to charging post, will both be approved and government sponsored. Changing versus charging, result in longer battery life due to slow charge being used versus fast charge. True for both lead and Li-Fe-Po4 batteries. Therefore, your old car never has worthless batteries in it.
Their facility to produce 100,000 cars per year is paid for.
A group of investors, lead by 'corstrat' on the Yahoo board, search the China internet and Google translate articles that provide the majority of the current status on China EV progress.
While I love my short list of times two China stocks, I like this for a possible higher multiple.
And the logic behind that - NONE
Trading China - I agree -
http://www.fixyou.co.uk/index.php
While it is not a subscription site, it should or could be. And I agree with burp that most would contribute just out of appreciation. When doing DD on a new stock I also go there first. Rames, you should make some dimes of off all that great work either through voluntary contributions or subscription. Some subscription scheme where you get a free week and then must pay. Heck, we pay just to chat with the Ihubbers in (no offence meant) 'random postings of data and opinions which require months and weeks of knowledge accumulations in which to render a judgement on a stock'. But with your site, there it is. Only thing lacking is the friendly chit chat which we can get here.
Need a lot more of this:
http://news.xinhuanet.com/english2010/indepth/2010-07/23/c_13411124.htm
TORONTO, July 22 (iXinhua) -- Canadians regard China and Brazil as the greatest investment opportunities in the next decade, a new survey says.
Sixty-one percent of the 1,002 Canadians surveyed said emerging international markets such as Brazil and China present the best investment opportunities over the next 10 years.
The survey, released Thursday at the Investment Outlook and Opportunities Forum, was conducted by Franklin Templeton Investments Corp.
"Canadians agree: it's time to invest and increase global exposure," said Don Reed, president of Franklin Templeton. "Among Canadians, the bulls outnumber the bears almost three to one -- and more than twice as many investors see opportunity in markets outside Canada."
The global sentiment reflects the bias of Canada's major institutional investors. For example, publicly listed global equities make up 78 percent of the Canada Pension Plan's equity portfolio.
Yet many Canadian investors have a significant home-country bias in their investment portfolios. The net value of Canadian equity mutual fund assets outweighs global and international equity mutual funds by a two-to-one margin, according to the survey.
Waiting for the day -
when the investing public, still with plenty of money, realizes that the US market is going nowhere and is stalled in a trading range. Maybe then they will do more than note that that China is growing by ~ 10%. Humm, there must be ways to make money there? With all of the financial TV shows, we need at least a one show dedicated to emerging market investments. Have I missed it? Foreign equitiy value must be at least 25% of worldwide value and growing.
CCME - Barrons had an article on CME ?
Cramers problem - too much US only experience -
"1000 stocks in my head" This starts every show. Been in the US stock businees all his life and feels safe there. To offer off the top of his head, comments on China stocks would be embarassing. It will take a lot of time, if ever, that he will even take the time to bring his DD up on even a small number of China stocks. Also likely he will ever research China BB stocks. 'These old shoes are comfortable and I think I'll just wear them for the rest of my life.'
CCME and other China stocks -
If this were a US company it would follow the pattern you describe. To me, it appears that US invest or need to get hit in the head with a ball bat to get their attention on US listed China stocks, ever those wit PEs of under five. There seems to be a fear of them. Accounting standards, lack of knowledge (like Cramer), fear of the DD data ? Don't know what it is but there needs to be a new mindset before they perform like a comparable US company stock.
CCME - Easy to push this down with this volume -
KNDI - "INITIAL ORDER" -
The postal system has 300,000 of these lovely pollution belching vehicles:
http://upload.wikimedia.org/wikipedia/commons/thumb/7/7e/VM_5485_China_Post_Office_car_at_Zhengzhou_Train_Station.jpg/800px-VM_5485_China_Post_Office_car_at_Zhengzhou_Train_Station.jpg
Here is their replacement (modified COCO for postal) of which they have a capability of 100,000 per year:
http://www.zjjjxww.com/uploadfile/200911/4/1641488853.jpg
With current revenues at $40M annual, and if these orders continue, this could be a game changer for KNDI and help put them in the 'drivers seat' for small EVs in China. The government subsidy pays for approx. half of the $8,000 private version of the KNDI COCO.
CEO, Mr. Hu, will be in NYC this week to speak to institutional investors. 58% of KNDI is owned by insiders.
Seeking alpha blog article on KNDI.
http://seekingalpha.com/user/556893-corstrat/instablog
China Foreign Market Exchange -
http://www.nytimes.com/2010/04/16/business/global/16exchange.html
Know they have been talking about this for some time, but if it ever happens, WOW. We all know they won't be buying GE, but what they know, the Chinese foreign listed companies.
CCME - true -
I'm sure lots of things go on in private meetings. But, I meant that they wouldn't dare put next Q earnings, or estimates, in the public Global Hunter presentation.
Also, I assume there are no webcast of these presentations. Anyone seen anything other?
CCME and earning estimates -
Seems like the appropriate time would be prior to their Global Hunter presentation. It would be illegal to say anything about next quarters earnings at the conference and not to have released it in an offical PR.
CSGH - Lots not known about their opeartions -
I'm confident they will rise from the ashes. But all of those prior big name potential customers I think are only in the cobalt product which they still keep several lines in production.
The LIP product mostly goes to a 'state owned' battery producer:
"Lithium iron phosphate (LIP) anode materials made by China Sun have been used in the manufacture of LIP power batteries manufactured by Beijing Shuangsheng Technology Company."
http://www.bjsskj.com.cn/en_index.php
I suspect the deal to get the recent grant for production increase came with a deal to provide LIP product for some time in the future to the state owned company. Therefore, China Sun material used for their own battery products are downstream. It's a tradeoff. Free money (no dilution) for production increase now versus low production volume and LIP battery products now. From the PR:
"One of the key projects selected is the industrialization of lithium iron phosphate (LIP) used as an anode material for Li batteries manufactured by Dalian Xinyang High-Tech Development Co., Ltd. ("DLX") a 100% owned subsidiary of China Sun Group. This project will benefit from the support of the Committee and the Dalian government through the award of subsidies which will help insure a successful and timely ramp up of LIP production.
DLX forecasts that during the period from 2009 to 2012, it will have invested a total of $17.6 million (120 million RMB) in the R&D and industrialization of LIP. DLX invested $6.6 million (45 million RMB) in 2009 and expects to invest an additional $2.5 million (17 million RMB) during 2010. By the end of 2012, DLX expects to achieve a manufacturing capacity of 2,000 tons. This requires investment in 12 production lines in addition to state of the art equipment. Currently DLX is capable of producing up to 50 tons of LIP per month used in 100Ah's automobile power batteries, which have been certified by the National Automobile New Product Quality Supervision and Test Center."
In Zack's blog, the China Sun rep. said they won't be producing their own batteries for "5- 10 years". Of course the batteries, rather than the raw materiakl is where the big bucks lie. Although there is plenty of bucks in 2,000 tons a year of presious LIP without having to pay for the increase in production capacity or lilute to get it. I think the 5-10 year statement for China Sun batteries is based on the 'free' money deal with the government. Suspect nothing constrains them from 'other' sources for financing (cash from operations, stock sales, or outside financing) to go beyond the 12 production lines and produce LIP material for their own battery products.
So there is a lot unknown about their strategy in my opinion. Maybe the Global Hunter Conference will shed some light. Certainly CCG Investors relations has provided nothing new.
CCME - Hazy memory -
Was it not mentioned somewhere that outdoor highway advertising was a possible new business for all of that cash. Also, since the Ministry of Transportation likely controls that, and they already have long term agreements with them, it seems logical.
Overall Market - When they speak of S&P 950 coming, no one wants to buy now. Sell and buy later. Think I should turn CNBC off.
KNDI - Some photos from China internet -
An expected contract is with China Postal. 30 prototype vehicles were provided. Come investors scan the China internet for KNDI info. This recent on shows the small postal EV and the CEO, Mr. Hu. Insiders hold 59%.
http://blog.sina.com.cn/s/blog_4bc83a7b0100j7ix.html
Here is a comparison of KNDI and TESLA, both founded in 2003.
TSLA - Total Revenues from inception-- $108 million.
KNDI - Total Revenues from inception-- $155 million
TSLA - Total Losses from inception-- $290 million.
KNDI - Total PROFITS from inception-- $11 million
TSLA - Total EV’s Sold from inception-- 1063
KNDI - Total EV’s Sold from inception-- 4000
TSLA - Estimated EV Manufacturing Capacity 2012 --20,000 vehicles
KNDI - Current EV Manufacturing Capacity ----------100,000 vehicles
TSLA - Expected % Gov Subsidies or Tax Credits to cost of vehicles – 15%
KNDI - Expected % Gov Subsidies or Tax Credits to cost of vehicles – 50-90%
TSLA - Government Loans-- $450 million (has to be paid back)
KNDI - Government Loans-- $0
TSLA - Current Diluted Market Cap of Shares-- $2.7 Billion
KNDI - Current Diluted Market Cap of Shares-- $63 MILLION
CCME - Hope the shorts are watching -
Good news from China - Same everyday -
Shanghai index PEs 40-50. CSG Amigos PE 4-8 and growth of 30%. We need an article by some respected source to tell the world that there are China stocks traded on US exchanges with SEC reporting that have the chacteristics above. Get us out of this rut of being the slave to DOW, S&P, Shanghai, Europe, etc. Will never happen.
Market - Portfolio polishing -
Last minute selling their S&P loosers. Don't think I own anything on the S&P?
Comment on the Shanghai Composite Index’s 26 percent plunge this year. When the PE average is well above 40 it doesn't take much to create such a plunge there. The Chinese are constrained in investing only in their in-country exchanges except for the really wealthy with outside connections. Their 40% saving rate drives those stocks to redicilious levels. A 26% drop should have zero impact on our CGS stocks with PEs of 4 or 5 but it does. Maybe some day, maybe, investors will wake up and protect the pps when these 'other factors'(Europe, S&P 500, Shanghai, oil spills, etc.) occur. But I'm not holding my breath. Crowd phsycoligy rules unfortunately.
CCME - only good thing about today -
I have a much lower average in a stock that no one seems to have any confidence in. Is that good or bad?
Overall CGS Stocks - Constantly amazed at the correlaton between totally unrelated things.
The China May new Leading Economic Indicators (which is likely based on poor inputs) was rezised from 1.8% up to 1.2% up.
The highly levered Shanghi index (PEs of 40-50 which Chinese who save 40% of income and can only invest in China because they can't take maney out of China) drops 4%. US markets drop on fears of worldwide growth. Heck China may grow only 9%. Too bad. So our CSG stocks (PEs of uner 5 and 30% growth)get hit without any correlation of those events.
Oh well, I'm used to it even though I can't understand it.
CCME and everything - Most days like this -
provide a big collapse at the end of the day.
CCME - S&P below 1040 -
CCME - Joe says -
If the S&P bust through 1040, then 8.50 possible.
CCME - Totally agree rato, but -
I'm just suggesting that while the basics are solid, it may be too early for them to take hold in this trader controlled enviornment. Q2 due out mid-Aug, and except for a PR on an acqusition, this whiplashing may continue. So, hold a lot of cash and buy on the dips.
CCME - ratobranco it's far too early for logic -
PE of 3.6. No one seems to be impressed with that economic and technical stuff. This is a traders stock until we get close to Q2 release.
CCME being played like a fiddle -
There is one, or a few, using this as a trading cash cow even with this low volume. And the rest of us are just watching. ccme-bagholder and ccme-chump on Yahoo are likely the same guy and we all suspect who that might be. With the Russell rebalance this a good day to daytrade. Hope he or they have their fun.
CCLTF - New web site and updated presentation -
Same story, growing like mad and at an assumed pps of $10.00 and estimated 2010 earnings, a PE of 4.1. For best view on warrants see redman's updated calculation at:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=51292600
CCME - Acording to the pattern, already at high of the day.
CGDI - Seems to have fallen off the planet -
One possibility might be associated with the availability for insider sale of stock/company. From the I-Box on CGDI:
Outstanding Shares: 34,970,007
Insider Shares: 31,121,327
All insider shares are locked/unavailabe for sale until May 2010 per terms of the reverse merger.
Approximate Float: 3,848,680
CCME Short NASDQ -
Well this can't be right either. It says none:
http://www.nasdaq.com/aspxcontent/shortinterests.aspx?symbol=CCME&selected=CCME