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Correction Harley, CJJD recently "upgraded" to Frazer Frost lol, which caused me to immediately sell my position and I advised my retiree who follows me on many of these plays to immediately do the same. CJJD has been steadily losing value since that move, and repeated emails by me regarding this move fell on deaf ears.
I no longer have any position in CJJD and we can scrap that dog if no one else is holding. Tack another loss down in the books. I predicted that CJJD would go down the tubes with that really stupid move and it has. I think my original post regarding that auditor change went something like "CJJD just hired Frazer Frost.. WTF are they thinking..."
Otherwise, the addition of China auditors in the Ibox is a great idea, and I will double check the others to see if any changes need to be made when I have some more time. Off to the jobsite for now, and man is it tough keeping up in this volitile time on an Iphone....
malc
I added to my position in EMDY today at .96 when I saw that show up briefly on the ask.
Not that anyone is excited about this space at the moment, just saying. From following EMDY for about 2 years now I think this is one of the most artifically depressed stocks around. Time will tell.
malc.
CBEH. For anyone interested here is the link to mgmt response to the hit piece put out last week. Well thought and expressed. Included in the first page of the response is a link to the hit piece article in case anyone missed it. Back up in afterhours, and I hope it will really pop tommorrow because I thought they defended against the short attack quite tactfully.
http://content.stockpr.com/chinaintegratedenergyinc/media/86d3ac41ef560dbee711de68b3bb816b.pdf
WKBT. Arrgh. Bought in at 1.75 yesterday, again, and got back out at 1.85 today when it appeared that no momentum would be sustained on great numbers, again.... No sense pissing in the wind, and one must be extra viligent in these times of confusion.
It was a good day to have to be home with the kids on spring break. If I had my droughters I'd be doing this every day for a living instead of construction, although both are equally frustrating in the current moment.
malc
While I think there is a legitimate place for short sellers in the market, those who publish hit pieces that alledge fraud and such based upon fabricated conclusions without doing proper DD about the company should be held with their heels to the fire.
I've had 16 hours of prelaw classes so I'm not expert by any means but I see a tort occuring a cause de the short sellers hit piece and I'd really love to see a lawsuit filed by CBEH against this anonymous author if grounds exist.
Anyone know for sure if a company can sue an author who used false information to blatantly profit in a short sell position? If all allegations turn out to be false, which I have always assumed is the case here, then that seems to be a necessary course of action and especially necessary to snuff out these types of very irresponsible and unscrupulous actions IMO.
malc.
I'm with you Josh S. Staying long and added shares. I can't understand how the stock is tanking after the response by mgmt, but then again I can't understand anything regarding China sentiment and I do fully realize that the herd mentality controls the day to day PPS. I expect to profit nicely by buying in the midst of the cannonfire on this one, I am prepared to wait it out, especially after reading the well thought and presented response by mgmt to the hit piece by unknown author.
When the market values the word of someone hiding in anonymity like a spineless internet poster over a Nasdaq listed company with its books signed off on by KPMG (not resigning as in the case of other stocks berated with allegations of fraud) there really isn't any logical justification for that that I can come up with.
malc
WKBT. I re-established a position today in WKBT after quickly reading the 10K over... Got back in at 1.75 in the first ten minutes of trading or so and expected to see more of a pop on the strong numbers but hey, thought that as well about XIN when I got in at 2.50 only to sell at 2.75 because the market had obviously topped it out there. Today XIN is selling below 2.50 once again. Any brief momentum from earnings cannot be sustained it seems.
So suffice to say for me that strong numbers still aren't moving these depressed stocks like they should. The black cloud obviously still looms large over most of the space. Nothing can change that at the current moment. The fall of the "posterboy" China stock, CCME, has really made matters complicated.
I'm really hoping that CBEH can defend the hit piece properly when their retort comes out tommorrow, I hope KPMG pipes in to defend their signing off on the 10-K as well. I have a good feeling about this one but that is akin to saying one believes in leprechauns... And I will continue to hold WKBT for now being as its still trading under a trailing 2x P/E. Priced as if inflated drastically or plain out fraud. But Goldman Parks is a good auditor with an unblemished record so far, unless someone knows something I don't, and so I will continue to hold and count blades of grass in the meantime...
malc
WKBT. It will be totally interesting to see how the market reacts to this 10-K. Very strong GAAP numbers of .87 for the year, so the trailing P/E is under 2, and WKBT auditor is Goldman Parks Kurland Mohidin - Not a Top 4 auditor but also not associated with any suspicions of fraud that I am aware of, like Sherb or Frazer Frost.
Still, I'm sure some will find a reason(s) to pick this 10-K apart. If the stock rebounds today in spite of the black cloud hovering over the micro cap China space then it could bode well for our other micros who have yet to report.
But I'm not about to go holding my breath....
malc
Paige, earnings should be out March 30th according to Yahoo earnings calendar. Usually if they have any info at all regarding release dates it is fairly accurate. However, you cannot count out a filing for a late extension with any of these China small caps, but so far BEST has been very good about not filing late.
malc
I hope they PR that letter when it's out officially being as this is a very big deal to us shareholders.
I can understand it taking a few days to get a proper response together in this case.
What I really hope is to hear KPMG stand up and defend their client as well in this shareholder letter.
If KPMG is found to have been inept or even worse in the unraveling of the truth in this whole matter it bodes very very bad for them and for investor confidence in all China companies, even those who have hired Top 4 auditors to improve public perception.
malc
Here's a link to JP's latest article in Seeking Alpha that came out Friday in case any of you missed it.
http://seekingalpha.com/article/258951-epic-changes-coming-for-electric-power-transportation-and-energy-storage
Thanks John for all of your efforts to get eyes and minds wrapped around the importance and value that this sector brings to the overall larger picture of the rapidly changing world of energy demand and storage.
malc
CBEH. This is a repost of what I just said on the CBEH board. I stand behind it, and if it turns out I am wrong I will eat my crow and move on. Short sellers just cover when exposed and laugh all the way to the bank with their ill gotten gains.
****
I read the article and I read the 10K. Nice bold disclaimer in the hit piece about the author taking short positions and standing to profit if share price falls.
As we have seen way too often in the recent past, fear is a stronger motivator than any of the other myriad of human emotions.
When discrepencies about CCME financial activities and reporting were discovered, Deliotte resigned and trading halted. Just yesterday CBEH puts out a great 10-K that KPMG signed off on. Until I hear of KPMG resigning due to misrepresentations by mgmt or fraud by mgmt, which is alleged in the hit piece I will hold my shares.
Does no one see that this is likely just a last ditch bear attempt to profit on the backs of anothers pain? God, I hate short sellers who employ these tactics. If all this turns out to be an unwarranted malicious attack I hope CBEH sues the hell out of them.
After the 10-K came out yesterday signed off on by KPMG it appeared that the market was ready to shoot this directly back up, so what happens this morning? News about lawyers "investigating" filing a class action fraud suit against CBEH. It shouldn't take a genius to figure out what very well may be happening here - No class action suit has been filed and probably never will be - To file such a lawsuit would be akin to saying that KPMG is either very inept in their accounting reviews or is in cahoots with mgmt to cover up fraud.
Its more like the POS lawyers who put out that news this morning are in cahoots with the POS hit piece author who won't even reveal his name. Hell, I post my opinions on this blog space daily and I'm not afraid to reveal my name... What gives?
When the smoke from all this clears I will be shocked if it does turn out true that fraud has been committed and KPMG either missed it or condoned it. I suspect the exact opposite is true.
God Bless those of us still holding. I exited my entire position in ENHD at the sound of cannonfire because in that case I could see the cannonball behind the shot. In this case all I see is a bunch of short sellers smoke..... Spineless bastards.
malc
I read the article and I read the 10K. Nice bold disclaimer in the hit piece about the author taking short positions and standing to profit if share price falls.
As we have seen way too often in the recent past, fear is a stronger motivator than any of the other myriad of human emotions.
When discrepencies about CCME financial activities and reporting were discovered, Deliotte resigned and trading halted. Just yesterday CBEH puts out a great 10-K that KPMG signed off on. Until I hear of KPMG resigning due to misrepresentations by mgmt or fraud by mgmt, which is alleged in the hit piece I will hold my shares.
Does no one see that this is likely just a last ditch bear attempt to profit on the backs of anothers pain? God, I hate short sellers who employ these tactics. If all this turns out to be an unwarranted malicious attack I hope CBEH sues the hell out of them.
After the 10-K came out yesterday signed off on by KPMG it appeared that the market was ready to shoot this directly back up, so what happens this morning? News about lawyers "investigating" filing a class action fraud suit against CBEH. It shouldn't take a genius to figure out what very well may be happening here - No class action suit has been filed and probably never will be - To file such a lawsuit would be akin to saying that KPMG is either very inept in their accounting reviews or is in cahoots with mgmt to cover up fraud.
Its more like the POS lawyers who put out that news this morning are in cahoots with the POS hit piece author who won't even reveal his name. Hell, I post my opinions on this blog space daily and I'm not afraid to reveal my name... What gives?
When the smoke from all this clears I will be shocked if it does turn out true that fraud has been committed and KPMG either missed it or condoned it. I suspect the exact opposite is true.
God Bless those of us still holding. I exited my entire position in ENHD at the sound of cannonfire because in that case I could see the cannonball behind the shot. In this case all I see is a bunch of short sellers smoke..... Spineless bastards.
malc
Hit piece, imagine that, followed by a great 10-K. This could be another exciting day around here tommorrow.
malc
CBEH. 10-K read pretty damn good to me, and KPMG signed off, instead of resigning lol.
I see the hullaballoo was all over a hit piece. How original.
But this time it seems very unwarranted, we will see how the market continues to react tommorrow now that the 10-K is out and people have time to judge for themselves.
malc
I have no idea what happened today but I do know that I happened to come home today for lunch, turned on the streaming, and things started getting ugly real fast. I don't think I could have kept up on my Iphone lol.... Not much good for real fast realtime moves...
10x volume today on nothing that I've seen. I'd like to know what happend to justify this dumpage but I'm also rather hoping it was just market mentality.
I took a new position in a trading account today at 4.50 on the falling knife side of the action, thinking that was bottom for a second lol.
Then I doubled down my IRA five minutes later at 4.25 and have my average shares now at 5.02. Quite happy about that actually, although if I had waited longer I could have obviously gotten all shares much cheaper, but catching falling knives is not really my game, laugh at myself....
Nonetheless, I'm pretty happy about those moves and I think this will be another case of those with the stones prevail. Off to do some reading up to see if there is anything of weight behind this sell-off today. I suspect just a side product of the overall market "black cloud" sentiment at this time.
malc
You a funny man Terry. Glad the explorations turned out good, yur ole lady text me that the auditors didnt find anything too nasty hidden in the books lol...
While you were in la-la land ole CBEH sure was getting slammed, and I have no idea why, just got home from a ruff day. But luckily I did swing by the house for lunch today and pulled up the streamer and BAM - CBEH started tanking in a hurry.
The falling knife staggered a bit at 4.50 and I took a position in a trading account. Then, it started tanking again and staggered at 4.25 and I doubled down my position in my IRA, and I just figured out that I am now average 5.02
Of course I coulda got all of them alot cheeper if I had waited a few minutes longer but this action was fast and furious like some pinksheet play, and all I knew was that it was primetime to make a move. I hope I'm not missing something crucial that precipiced this very mischevious and puzzling action from today but close at 5 and afterhours at 5.34 makes me hope that the panic is over. Ok, gotta go see what happened now, I'm hoping nothing, just a rash of panic sells and stop losses getting triggered and market stampede dumping.
malc
It was a good day to have powder available to load. While I sit and watch all our China BB stocks, now PK's mostly, wither like Jonah's shade plant, I cuss but sell them not. Not all beaten down like this in the midst of overblown panic IMO, to where all stocks are taken with such utmost doubt - Guilty until proven innocent is the modus operandi at the moment.
And yet I have a very strong buy sentiment towards the China big board stocks with Top 4 auditors. Especially at these growth levels and P/E's. While personally I never trusted CCME's numbers because it is an industry where numbers are so easy to fudge, it says alot to the market IMO that Deloitte resigned, it lends tremendous creditability to the Top 4, not that they needed it but everything else might continue tasting the axe, who knows...
I'm also seriously entertaining taking a starter position in CGYV at 1.06 - Yeah, its a pink, for now, but they got PWC on the books now and I don't think PWC would take them on in this market sentiment if they weren't more of a "for real" company than meets the eye on first glance.
Anyone else in/like CGVY? Just curious...
malc
Added more GU today at 4.35, added more CBEH at 5.30, added more MY today at 9.15. I'm keeping the faith, buying while the cannons are still firing all around us. All these guys are audited by the top 4 and that's where I think values will return to first but then again after CCME halt who knows?
Also added more TDGI in my daughters account and my trading account at .04
malc
I totally understand pappy. I myself have a different strategy because I see this fear as a bottoms up opportunity. Wish I could add a lol but it's a little past that at this point.
I utilized this strategy quite successfully in fall of 08 targeting beaten down stocks and it worked out quite well for me.
I'm not sure if this is sage or insane but I doubled down my entire position in CSGJ today at .27
I have some substantial funds that are clearing either Monday or Tuesday and I will be adding to GU, HEAT and MY for sure. My mind is made up there. When big board listings with serious auditors, growth, and all the other good things suffer just at the sake of the space, well... I don't care what the market fools think as a collective for the most part and I'm going contrarian.
Considering re-establishing a position in WKBT - I sold a few weeks ago and saved some serious losses. That or establish a position in AJGH for the future. They seem legit and serious enough for me at this point.
The other half of my money will be going into more AXPW and AXDS. Must diversify and I'm confident in the long term value of all these stocks. And of course I'll save some powder on the side for opportunities that might show up on the doorstep, lol, but they'd have a hard time finding an open spot at the current moment -
malc
MY. CBEH. Ok guys, I hate to say it but China is officially the most untrusted sector in the world at the moment, even the beyond doubt high quality blue chips with top 4 auditors are receiving zero love.
MY just put out full year 2010 eps of 1.00, trades on the NYSE, and still has a trailing P/E of around 9. That's crazy for a sexy stock like wind energy and MY has every unit that they can possibly build presold already for 2011 and 2012.
CBEH puts out a 4Q that beats all estimates and a full year 2010 eps of 1.28 - Issues 2011 eps guidance of 1.80. So we have a trailing P/E of 4.88 and a forward P/E of 3.47. NasdaqCM listed and upgraded to a top 4 auditor in KPMG.
I don't know what this market is thinking but I'm thinking I should be getting some Uncle Sam refund tommorrow and next week I'm loading more of both. If the market wants to be this stupid regarding both high quality plays I'm happy to buy more at these incredibly depressed prices. The cool head prevails in the end.
malc
AJGH.
Looking pretty much like a "for real" company to me.
American Jianye Greentech Holdings Receives Construction Application Approval for 200,000 Metric Ton Waste-to-Fuel Conversion Pl
American Jianye Greentech Holdings, Ltd. (OTCBB:AJGH), a leading developer, manufacturer and distributor of alcohol-based automobile fuel and civil-use fuel in China, today announced that AJGH has received approval from the XiangZhou government for its application to construct a waste-to-fuel plant to convert municipal solid waste, sewage sludge and construction waste to produce an estimated 200,000 metric tons of environmentally friendly, alcohol-based ethanol fuel per year. In conjunction with the approval, AJGH was allocated 183,333 square meters of industrial land for construction of the plant. AJGH will joint venture with USA-based GeneSyst International, Inc. to construct the waste-to-fuel plant.
AJGH notes that the waste-to-fuel plant is expected to be completed by the end of 2012 and commence commercial operations in early 2013 with estimated annual revenue of US$120 million and net income of US$30 million when operating at full capacity.
Mr. Haipeng Wang, Chairman and President, commented, "We are very excited to partner with GeneSyst International in constructing this state-of-the-art waste-to-fuel plant in XiangZhou. This follows our recent announcement to construct a similar facility in Harbin. This XiangZhou facility will be able to produce nearly twice the ethanol fuel as our Harbin facility and will help to further establish our leadership in this growing market. Moreover, by producing our own ethanol, we can lower the input costs for our blended fuels, which combine ethanol and petroleum fuel, along with our proprietary fuel catalyst. Our blended fuels are gaining widespread acceptance across China, and these waste-to-fuel plants will allow us to meet the growing demand. With the partial completion of our XiangZhou renewable fuel plant in early 2012, we expect to generate additional annual revenue of US$100 million and net income of US$10 million in 2012 alone."
About GeneSyst
GeneSyst is organized to take commercial advantage of a new proprietary technology to convert organic, toxic, hazardous and carcinogenic wastes of modern society into environmentally harmless substances or products. The company has secured exclusive rights to license a series of US and foreign patents authored or co-authored by its co-founder and chairman, James A. Titmas, an engineering professional with 52 years experience in engineering design and supervision, including water processing and wastes treatment across the US and the world.
For additional information, please visit: http://www.genesyst.com
About American Jianye Greentech Holdings
American Jianye Greentech Holdings, headquartered in Harbin, China, is a leading developer, manufacturer and distributor of alcohol-based fuel. The company's alcohol-based fuels burn with higher efficiency and significantly lower toxic waste emissions than unleaded gasoline. The unique combination of catalysts in the fuel enhance fuel octane rating and engine power, inhibit the premature oxidation of the fuel, help remove sediment in the carburetor, and prevent the erosion of the engine cylinder surface.
Additional information about the company is available at: www.americanjianyegroup.com.
AXPW. I have been in and out of this stock for years. Only out when it was evident that it was peaked out and the market was driving it back down, very similar to how I have played CKGT since fall 09. Anyway, I got back a core position @ .70 a few weeks ago and added more @ .80 also last weeks.
At the risk of sounding cheesy, which I certainly am, I will just say that I think that the planets are aligning up on this one again and for very good reason. There are a bunch of old insiders and heavyweights on the Ihub board here and I think any time spent doing DD would not be time wasted.
malc
It is, and it is because the MM's are moving to the OTCQB and OTCQX. Nothing of much material effect really, personally, I like the OTC exchanges and the ease of navigating the system.
malc
HYST. I liked it after you brought it here last week, and I checked it out but didnt have any free powder to initialize a position. That's a downside of being an investor and not a trader primarily. I always tell myself to keep some cash positions available but it never works out for me, I just keep on adding and often averaging down on positions that are taking a beating for no good reason, or adding a new bottom feeder position, like HYST was last week. Can't win em all....
I feel that patience will reward me in the end, and this is the backbone of value/contrarian investing. Except for keeping cash around for yet another bottomed out new opportunity lol... That would be wise.....
I'm assuming you have given a look into CSGJ and think there is another potential downside of 20-30% before it bottoms out.
On one hand thats a bit of a downer for me since I own a bunch but then again Uncle Sam should be sending me a little over 2K next week by Friday at the latest, so says the accountant, I will try to leave a little of it cash. I know for a fact my first move is to load more GU, and maybe CBEH, lets see what the next Q looks like. Added some more at 5.81 last week.
malc
That's what I'm talking about Harley. I think our non-China picks are as good as any out there and they deserve their own space. People can follow if interested without cluttering this board with too much non-China action.
I'm still very confident that China will recover and rebound in a big way. The question is when. It's a no-brainer for me to load up these cheap valuations while possible.
malc
Thank you for your TA wavexrider, it is very much welcome here. And you were spot on with your recent calls of HYST being at rock bottom. How about CSGJ? I'm no chartist but this bad boy has got to be close to bottoming out eh?
We also had some nice gainers today, XNYH finally seeing some love but still drastically undervalued. Up 38% today and will be interesting to see if it can hold this time and begin the long creep back to a fair valuation.
TDGI gained 26% today on some hidden news in a filing released around 3PM. The EOD was quite frantic in volume and pps appreciation, if the company PR's the news on Monday it could be another big one. Here's the link to the filing.
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=45463
Now I have no earthly idea if TDGI can pull this one off, but Eric Parkinson certainly has the credentials and moxie to get it done. And I also don't know how much potential value this could add to the bottom line, I'm no good with calculating anything about a company in BK. Being as I know and converse with Eric, I can only tell you that they feel that this would be a big positive for TDGI and Hannover House.
I got a googol of shares guys, at least for me. And I don't flip them either because, as today showed, there is no telling when they will drop the next bomb. I'm not a flipper unless I see an obvious trading opportunity and have no long term faith in the company. With TDGI it is different, from the beginning they have clearly stated their goal to grow into a 500M market cap company, and with the share structure that equates to over a dollar per share.
I can wait on that. So far, so good, and many major catalysts to pps growth remain, mainly independent valuation audits being completed and uplist on the short term radar.
malc
Oh well... I sold my remaining position at .16 but I fully intended to get it back after they announced they were expecting a crappy Q4 hidden in the 10-Q for Q3. I thought I could buy em back around .10 or even less and had no idea Johnson controls was considering merging them in.
Congrats to all holders for a nice gain. However, I think that ECNG had way greater potential than .22 but hey, too late now...
malc
This is how we do it.
Adding to a bunch of current holdings just as soon as mister uncle sam pays me back bizness taxes paid in. I follow my accountants advise on that one lol... Estimated arrival about next Friday.
Hate to say this, but I hope the market remains this scared for about a week and a half.
I have a plan and I intend to stick to it.
malc.
Good discussion guys. China valuations reflect an almost unbelieveable low level of confidence across the board and nobody who is still sane of mind will deny that. Of course besides HFGB and HYST one must add WKBT to the same group for the same reasons.
Feel free to disagree with me and rebute this with no dilution, but what I see occurring is a classic "throwing out the baby with the bathwater" type situation except in full force and on full scale. No sense in not calling a spade a spade. For this very reason I have been trying to diversify my holdings more into other sectors, utilizing stop losses on many China holdings because to me it makes no sense to piss into the wind. That said I have also been loading up and seriously averaging down other positions that I still feel strongly about regardless of the current market sheep mentality and perhaps I am crazy but this has been my investing strategy since day one. I do not trade nor am I a professional advisor (lol) to make a living but I do invest my own money, my retirement, my mom's estate, kids college accounts, some friends who follow me, and such in stocks that I feel are very unloved and underappreciated and then I try to chill out and wait.
This is a very vexing to the brain of a strategy to have in the face of the current sentiment. Pretty much worse than other bear runs IMO. Yet, a successful investor must implement his or her strategy and then stick to your guns. To flip flop and second guess yourself is the worst reaction IMO. I struggle with it everyday and I say this as a reminder to self primarily.
Pappy, I can totally understand your current status of remaining 60% cash at the time. Implement your strategy and stick to it, I can respect that.
That all said I will throw out to the board a US progressive play that I have been in and out of and following all along for the last 3 years. Ticker is AXPW. I got back in about 3 weeks ago at .70 and have been adding to this position again as possible. Rather than regurgitate a bunch of my meager DD being as I am not a tech head I encourage anyone who wants to check out the AXPW board here. It is nothing short of amazing at the moment as some real pros in the space have chiming in lately. It is very close, in my pure opinion, of making a sustainable break to much higher levels because they are very close to putting the technology into production on a mass scale level, just like ACPW which I also owned back in 08 at .55 and sold about 3 months ago at 2.35 when I felt it was reaching into overbought and overvalued land. Anyway, AXPW is a sleeping giant IMO please do your own DD. Absolutely too much for me to try and spell out simple here.
That said I will also say that these are my other sleeping US giant progressive plays that I would like to share, briefly I admit, to the fine minds that peruse this board.
ADXS. A cutting edge developmental drug company whos founder was a tenured professor at the U of Pennsylvania. In a nutshell, their cancer drugs are not chemotherapy which attempt to attack mutant cells while not killing off too many healthy cells, their drugs target mutant cells by marking them and then allowing our own natural immune systems to attack the mutant cells. Phase 1 resutls were more than impressive and phase 2 results to start coming in summer 2010. I have owned and accumulated since summer 09. Phase one was a voluntary trial with terminal women with cervical cancer with whom all know treatments had failed. The dosages were reduced to only about 50%, or less, maximum effectiveness, because the primary purpose of phase one is to determine drug safety. No extreme side effects were reported, and although the study group was small, only 15 or so from memory, but the median extended lifetime of the group was 53% so that is saying something about the potential of phase 2 results.
Phase 2 is being conducted in India primarily for cost effectiveness and plus they have a much larger patient base waiting for medical care than we do, to be honest. From my DD and understanding, these trials are fully superivsed and will be valid and recognized by the FDA.
Will be visiting myself this summer at the U of Pitt where they are doing research on other cancer specific drugs - My father is a dental surgeon grad of U Pitt and highly regarded in the area - I'm still trying to get him to accompany me and get me in the door so to speak to get some boots on the ground DD. I think I will be successful, we have been at odds over the years but we both like to spend quality honest time together now that we are both older and are developing a new relationship.
malc
CEHD. Thanks for the heads up on this one germoney. I have never researched this company before, but it sounds like it has some serious potential. I will have to do some DD when I have a minute - Let you know what I think later...
malc
Although my memory is by no means infalliable, I am pretty sure WNDEF has been classified as a pink merely because it is primarily listed on a Canadian exchange. It has been this way since I have owned it in late 08, and all of their filings have been in order. They may have missed filings in the past, but none that I am aware of in the last 3 years. Here's some links to their latest quarterly reports.
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=7528185
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=7528185
Everything looks in order to me and I have been pleased with the company's progress. Shareholder equity is increasing dramatically. Institutional investors are onboard in a big fashion. When the market will catch on to this is the big unknown - It still trades very thin. Not so with my GWMGF, Great Western Minerals, a REE company, which has gotten a TON of attention lately. Technically, GWMGF is listed as on the OTCQX.
I am honestly not completely sure what the difference is in the listing classification, perhaps WNDEF has not applied to be listed on the OTCQX. One thing I do know is that many of the small cap China stocks I own/follow have been moving to OTCQX or OTCQB as the OTCBB, bulletin board, seems to be a thing of the past. I read some about MM's moving to these venues instead of the BB for cost savings and ease of transactions but I'm not that well versed in this area. Technically, the stocks listed on OTCQX or OTCQB recieve a .pk designation regardless of timeliness or completion of filings.
malc
Hmmm. I have to go back out in the field but will look into that later GWMAN.
malc
Hmmm. I have to go back out in the field but will look into that later GWMAN.
malc
It's quite simple really, Western Wind is headquartered in Canada and listed on the TSX, Toronto exchange, symbol WND.
It's US equivalent is WNDEF - and it trades with the .pk symbol because its primary listing is Canadian, not because they are unaudited or shady.
Being a US citizen, I bought WNDEF. Many Canadian stocks have their equivalent listed on the US OTC markets. Its exactly the same company and stock, and the only difference in price is the exchange difference between US and Canadian dollars.
malc
GU has definetly been slipping for no apparent reason but I am honestly not concerned. I'm watching for what appears to be the bottom and then pulling the trigger on a bunch more shares. I promise. My tax money should be returned soon as well, and then I will have a few more grand worth of powder, the wife gets the rest of it lol...
To answer your question stills, I've been watching close and yes, the bottom may have came in today. Hard to nail those bottoms though in this market sentiment.
malc
It appears I did not use to new diluted O/S when calculating 2010 eps - The O/S is now about 44M correct, or is it higher?
Using 44M as the O/S 2010 eps would be about 1.21, not 1.58, either way, its still a buy IMO. I see there is hesitency on the CGS board, some suggest waiting until the 8-K comes out to fully gauge what it going on here. To each their own, I'm still loading up before the EOY report.
malc
germoney, glad you finally found your way over here. Even though english is not your native tongue, I find your posts well thought and expressed. Happy to have you onboard over here.
I will not be relying on XIN or any China stock inparticular to "save" my IRA or other long term portfolios - I have been managing them like a hawk this last year just because if one has not then they have been losing money. 2010 was my worst year ever, I only returned 31%. It would have been much much worse if I was not constantly evaluating positions and reluctantly selling some and waiting on the sidelines for re entry points. XIN is one such stock, it stop loss triggered for me way back in Aug 09 at 5.50 - I had gotten in Dec 08 at ironically, 2.50, when I thought it was prime for a run and it was. I am hoping for the same pattern to repeat itself here.
What do you think will be the trigger for higher share prices.
Hell, thats the million dollar question! Whoever can answer that correctly will win the grand prize!
I have no idea what is the correct answer to that question, the answer is likely a series of catalysts but lets begin with investor confidence returning to the stocks who retain Top 4 auditors and yet are trading at very low P/E - XIN certainly qualifies and any shares accumulated under 3 bucks are carrying a trailing P/E of under 5.
I am not one to sit around wringing my hands going jeez, when will this market wake up and at least give strong China companies better valuations? No sense in that to me, I just accumulate when I feel something is at rock bottom.
And speaking of that I tried to get some of the .40 CSGJ someone was giving away on Friday, when I saw it hit .39 I immediately put a bid in at .40 - someone got more shares, but I did not. If they want to continue giving away those super cheepies next week I will be trying to average down again. Buy the pain.
malc
I have owned WNDEF since December 08. First position established at .50. I have never met the CEO nor do I have any intention of attempting to - I am happy to be quietly accumulating being confident that I own a 7 dollar+ stock down the road.
I am glad that they have hired an independent auditor to access the value of their projects. Hopefully, this will get more eyes on the stock and also establish a solid financial foundation for investors to calculate and judge for themselves what the true value of WNDEF should be. That I have crunched numbers and posted on Ihub is of absolutely no significance - The latest PR is just the first in a series of valuations for Western Wind projects and once investors catch on to the fact that this is so drastically undervalued the pps will appreciate quickly.
I'm smelling a Seeking Alpha article coming up - This is the kind of concrete numbers established by third party sources that makes a value investor salivate.
malc
Thats very reassuring to me that CBEH IR responded to you - many of my recent Q's emailed to other supposed IR reps of other companies, SRRY and CJJD to name two, have fallen on deaf ears. How in the hell one can be listed on a US exchange and then not respond to honest and poignant questions from US investors is unacceptable to me - I have adopted a policy of simply dropping positions if a company will not respond to repeated attempts to establish clarity. Too many other fish in the sea, and in this time of China suspicion, that is the last thing a company should be doing - Ignoring its own shareholders.
Susan didn't exactly give you any clear answers to your Q's - no pro forma guidance for 2011 or 2012 but perhaps they are not comfortable yet in issuing forward guidance at the point, and I doubt this neither surprises nor concerns either one of us.
However, in standing behind 2010 guidance we are looking at 53.5M in income for 2010 and with 33.8 O/S we come up with 2010 eps of 1.58 and applying a trailing P/E of 5 we CBEH SHOULD BE trading at a minimum of 7.91 right now. The fact that it is hovering around 6 at the moment is not a cause for concern to me but rather a strong buy signal. Hell, many BB stocks commanded a P/E of 5 or better before the rapid decline in China stocks in general beginning in spring 09. Big board stocks with big numbers, excellent growth and margins, and the top shelf auditors will be among the first to return to fair valuations, and by "fair" I mean a P/E of 10-15 for said stocks, not 5. A P/E of 5 is bargain basement valuation for stocks like CBEH and XIN in my opinion. How long it will take for the market to regain confidence is beyond anyones ability to predict, remember, most investors are sheep who go with the herd mentality. And with all the short attacks and hack pieces that the China bears have unleashed with great success proves that fear is a stronger motivator than quiet confidence. That said I am not pursuaded by the bears, I have one word to say in response, ACCUMULATE.
malc
Yeah, and China Jo Jo went and just HIRED Frazer Frost. No one really talking about that one and all I said to myself was WTF are they thinking, and reluctantly sold my position. You don't invite a bear to a fight, just run em over when you get a crowd of bulls.
CBEH may very well be a better long term play than GU because of their non-reliance on traditional raw materials, which has affected GU's bottom line tremendously as well as the sharp reversal in gas prices since 08 boom and the value added taxes that used to apply to GU - but since December 25 2010 have been discountinued and previous taxes paid all the way back thru 2009 will be returned and will show up in the next Q. I wont clutter this board with my thoughts on GU anymore though and move on to CBEH.
I also found the PP strange when doing my DD but it doesnt alarm me as much as it has the market apparently. I can see what the concern was/is - why are they doing a PP at a discount when they supposedly have good earnings, great margins... is there something not to be trusted in the numbers. Why wouldnt they just get a loan to finance expansion instead of diluting at discount? I dont have those answers either and frankly I'm really not that concerned. KPMG is onboard and the numbers forward will eventually return to fair valuation, especially with the companies that are upgrading to top 4 auditors - Personally I have shifted around a ton of positions over the last 6 months based upon strength/weakness of auditor alone.
My best friend for the last 24 years of my life is Chinese. He is my right hand man in our construction business as well and often we dont agree and for sure the thought processes of the western and eastern world are very different in some aspects. The dilution wasnt that damn drastic or at disadvantage IMO and perhaps mgmt was not all that worried about the short term affects on the pps, they wanted to avoid further debt and get the expansion rolling without putting a strain on the cash position. And even fully diluted I am looking at a P/E of 5 or less... Jeez... even on the NasdaqGM with a top 4 auditor? The valuations will return, and I'm a long term value investor. These kind of shares are what my long term accounts are full of. Sanity will return to the sector, but remember eh, "the market can stay irrational longer than you can stay solvent"... Stay patient and ride it out is my philosophy. Dont do anything too dumb.
I will be loading up more shares of CBEH next week before earnings. But dont expect too much of a pop even if they rock the boat - I also loaded up XIN again (returned position after the Chanos BS bears had their way which only applied to Tier 1, actually) but it really didn't pop much - I expected to at least see 3 dollars a share last Friday after reading the premarket Q and year end but.... Its really quite pathetic at this point, even with monster numbers XIN didnt break 3 dollars which would be under a 5x P/E trailing..
So what? Accumulate.
malc