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CCLWF -- Ask is now $1.4, which is an implied $5.6 on the equity (1:4) since the conversion period for the warrants was extended until the 30th. The bid on the stock is at $6.08, btw
Maybe trading the Russell addition? G&McB are a bit quant focused aren't they? I'd like to hear what Cap Guardian and Ardsley have to say, though, since they've been building their positions over a couple of quarters and are definitely both solid shops.
ROFL, I think I just wet my pants!
Isn't it about time for another quarterly top stock pick rundown?
add CGPI to that list
Thanks for this, Adam.
My feeling is that a capital raise is most likely both to improve liquidity and fund capex.
The terms of the warrants concern me a bit, though.
From the F-4:
"However, the warrants will not be adjusted for issuances of common stock, preferred stock or other securities at a price below their respective exercise prices. "
I think that this makes it likely that the raise will be <$7.5 ... which is insanely cheap, imo.
At the end of the day, I'm trying to figure out how many warrants are worth holding on to. What's your plan for the conversion?
Well, technically speaking, the stock is up ~40% since the SPAC deal completed versus 5% on the S&P over the same period.
Do you go by 'Steve' or 'Stephen'?
CCME -- I'm pretty sure that this risk is not as grave as you paint it. The company does have a license from the central government to be the sole provider of these services on inter city bus routes until 2012. The company also believes that this license will be easily renewed. That, in itself, works in their favor with respect to contract renegotiations. Jacky even addresses this issue directly on the Q2 cc when he mentions that pricing and terms of new bus operator contracts that they have recently signed are not materially different from their existing older contracts' pricing and terms. I agree that it is most likely that there will be some nominal increase to pricing when the contracts are renewed, but I think that it will be worth it for renewing another 5-8 year lockup and doubt that it will have too onerous an effect on gross margins.
Thanks for this, Fernando. Just driving myself nuts
I'm going to meet with Jacky when he gets back to HK at the end of this month and, hopefully, also attend their investor weekend at the end of next month. If you, or anyone else for that matter, have any specific or general questions that you'd like me to ask him, then please feel free to send me a PM.
That's good to know.
I've been racking my brain trying to figure out what's holding CCME back and the only thing I can come up with is the possibility that the bus operators might be in a strong position to ask for much higher prices in the future when their contracts are up for renewal, similar to what happened to AMCN. It's clear that CCME is operating in a very profitable segment and I wonder how much their government agreement protects them from competitors bidding up concession fees in the future. Obviously, this would all be detrimental to gross margins.
Do you have any insight into this or had any conversations with Jacky about it?
Hi Adam,
Hope all is well!
What did you think of CCLTF's Q2 numbers? Everything looks on track as far as can tell, although, I think we're probably going to get a financing here at some point in the near future just to keep the capex on track.
What are the most likely outcomes you see happening here and how do you see that affecting earning for 2010 and 2011?
CCLTF -- Read their earnings PR.
"The company has determined not to have a Q&A session at the end of the call, in light of its ongoing previously announced tender offer."
I think your mistakes are:
1) CPM rate too low (see VISN)
2) Ad time/content time ratio probably isn't the same for airport express bus routes versus long haul inter city routes. Would be a good question for Jacky.
Anyone else think that this S3 explains the short interest? Ex-TMI execs selling their shares prior to their registration?
CCLTF - Q2 CC at 9am this morning
JINJIANG, Fujian, China, Aug. 9 /PRNewswire-Asia-FirstCall/ -- China Ceramics Co., Ltd. (OTC Bulletin Board: CCLTF, CCLWF, CCLUF) ("China Ceramics" or the "Company"), a leading manufacturer of ceramic tiles, which are used for exterior siding, interior flooring, and design in residential and commercial buildings, today announced that it will conduct a conference call at 9:00 a.m. eastern time on Monday, August 16, 2010 to discuss the second quarter 2010 financial results.
To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: +1 (866) 672-3985. International callers should dial +1 (706) 902-4207. When prompted by the operator, mention conference pass code 91538461.
If you are unable to participate in the call at this time, a replay will be available for 14 days starting on Monday, August 16, 2010, at 10:00 a.m. eastern time. To access the replay, please dial +1 (800) 642-1687, international callers dial +1 (706) 645-9291, and enter the pass code 91538461.
About China Ceramics Co., LTD
China Ceramics Co., Ltd., formerly China Holdings Acquisition Corp., is a leading manufacturer of ceramic tiles in China. The company's ceramic tiles are used for exterior siding, interior flooring, and design in residential and commercial buildings. China Ceramics' products, sold under the Hengda or "HD" brand, are available in over 2000 styles, colors and sizes combinations and are distributed through a network of exclusive distributors or directly to large property developers. For more information, please visit http://www.cceramics.com .
For more information, please contact:
China Ceramics Co., Ltd.
Edmund Hen, Chief Financial Officer
Email: info@cceramics.com
CCG Investor Relations Inc.
Mr. Ed Job, CFA - Account Manager
Phone: +1-646-213-1914
Email: ed.job@ccgir.com
Mr. Bryan Blake, Sr. MI Executive
Phone: +1-646-833-3416
Email: bryan.blake@ccgir.com
Web: http://www.ccgirasia.com
Has anyone been able to successfully convert their warrants yet? I'm being told by IB that my conversion will not go through until the end of the election period ... not much room for error =S
I really like plan 2, but I don't think they need to explicitly mention a price under which they will be buying. It would be nice to have the threat of continued company buying to be hanging over the shorts regardless of where the share price is.
CCME -- I know that this was in the Q1 10Q as well but it blows my mind:
"The Company announced the redemption of all the public warrants on December 29, 2009 and extinguished all the outstanding Public Warrants at a price of $0.01 per warrants on or about January 29, 2010.
During the first quarter of 2010:
i)
8,050,577 Public Warrants were exercised and converted into common shares of the Company
ii)
27,718 Public Warrants were redeemed by the Company at $0.01 on or about January 29, 2010"
Some poor saps flushed about $139k down the toilet!
It's in the PR
CCME - They definitely need to undertake some sort of corporate action here, since the street obviously isn't taking these numbers seriously on their own right.
The larger question is why the hell is the company trading at this valuation after what was a mind-blowing quarter?? Seriously.
To be honest, I'm getting less impressed with Jacky. His answers to a few questions were just not good.
Q) How much of your cash is currently in offshore bank accounts?
A) I'm not sure ... I don't have a concrete number, maybe around 10-15%.
"I'm not sure ... I don't have a concrete number"?? Can you please then direct me to the person who answers financial questions at the company please?
He also dropped the ball when a caller asked about the lock up on the CEO's shares after the Starr deal ... it sounded like he had no idea what the caller was talking about. This then segued into a question about Starr's intentions with their shares ... he really shouldn't be commenting on Starr's intentions at all.
After listening to the call, I'm fairly certain that Jacky is a big reason for the CCME discount.
Look, I love the business and own a ton of stock, but I think it's important for us as shareholders to let Jackie and the CEO know that, to date, they have done a terrible job of communicating this story clearly to institutional investors ... if they cant already tell based upon the pps action after announcing what was truly a phenomenal quarter.
CCME - I definitely think that a stock buyback would be unwise since it would hurt the float, but a dividend is clearly something for them to consider.
Can't understand how the caller wanted to discourage them ... they're making more cash than most African countries =S
Not necessarily English skills, but communication skills. He should be making even more of an effort to improve, tbh.
I love this company and am here to stay, but they definitely need to get a spokesperson who can communicate effectively in English. Listening to the CC now and Jacky's English is poor enough to the point of distraction ... it's not like they can't afford an internal IR person at this point.
LIWA numbers out.
55% sales growth, 48% net income growth, ~$3/share in cash
DANYANG, China, Aug. 12 /PRNewswire-Asia-FirstCall/ -- Lihua International, Inc. (Nasdaq:LIWA - News) ("Lihua" or the "Company"), a leading Chinese developer, designer, and manufacturer of low cost, high quality alternatives to pure copper products, including refined copper products and superfine and magnet wire, as well as copper clad aluminum ("CCA") wire, today announced financial results for the second quarter ended June 30, 2010.
Second Quarter 2010 Financial Highlights
-- Sales increased 55% year-over-year to $75.5 million.
-- Gross profit increased 49% year-over-year to $14.5 million.
-- Net income increased 48% to $9.9 million, or $0.34 per diluted share,
compared with $6.7 million, or $0.31 per diluted share in the second
quarter of 2009.
-- Non-GAAP net income(1) was $9.4 million, a 35% increase compared with
$6.9 million in the second quarter of 2009. Non-GAAP net income for the
second quarter of 2010 excludes the benefit of $0.9 million from the
change in fair value of warrants and one-time expenses of $0.3 million
associated with the Company's follow-on public offering completed in
April 2010, and non-GAAP net income for the second quarter of 2009
excludes $0.2 million from the change in fair value of warrants.
-- EBITDA increased 45% year-over-year to $13.0 million.(2)
-- Strong balance sheet with $87.6 million in cash and cash equivalents as
of June 30, 2010.
(1) Lihua defines non-GAAP net income as net income excluding the change
in fair value of warrants and other one-time or non-recurring items
that are evaluated on an individual basis. Lihua uses non-GAAP net
income and other non-GAAP metrics to provide information about its
operating trends.
(2) EBITDA is a non-GAAP measurement. Lihua defines EBITDA as net income
before depreciation and amortization, interest income/expense, income
taxes, change in fair value of warrants and non-cash share-based
compensation expenses.
Second Quarter 2010 and Recent Business Highlights
-- Doubled annual refined copper capacity to 50,000 tons with launch of
second smelter to accelerate growth.
-- Expanded product portfolio with the addition of copper anode products
to address broad refined copper market applications.
-- Completed follow-on public offering for net proceeds of $32.5 million
to support growth strategy including planned land purchase for the
construction of a new smelting facility.
-- Appointed new auditing firm ranked among the top 10 US auditors,
effective July 16, 2010.
"We achieved another record quarter of sequential and year-over-year growth across all of our key financial metrics. Our accelerating production and sales of our pure copper and CCA wire products accounted for 90% of our total revenue for the quarter as we successfully increased our wire drawing capacity," said Jianhua Zhu, Chairman and Chief Executive Officer of Lihua.
"To better address the growing market demand for our refined pure copper products, in July we launched our second smelter and introduced a new copper anode product line. The new smelter effectively doubles our refined copper production capabilities and we expect to be operating at full capacity in September following the conclusion of the seasonal constraints of our business during the hot summer months. Utilizing our new smelter, we are actively producing our new copper anode product, which is the fundamental building block for almost all pure copper products. We expect this portfolio addition to be a strong contributor to our anticipated top- and bottom-line growth, with initial product contributions in the third quarter.
"Our growth outlook is strong and we are confident that we will continue to accelerate our business and achieve healthy growth for the remainder of the year. Accordingly, we have raised our full year 2010 guidance and now expect our net profit to increase by 46-53% compared with last year to $52.9 to $55.7 million, and non-GAAP net income to grow by 48-57% to $38.1 million to $40.3 million.
"With our significantly improved cash position of $87.6 million, we believe we are well equipped to execute our strategic expansion initiatives, which are designed to considerably increase our capacity. China is one of the few countries where smelting capacities are growing. During the first half of the year, China raised imports of copper scrap and concentrates, which require additional processing and refining. Our proprietary copper recycling technology allows us to address the pure copper market with our cost effective products. As a result, we believe we are well positioned to benefit and gain additional share in this increasingly supply constrained large pure copper market," Mr. Zhu concluded.
Second Quarter 2010 Financial Results
Sales for the second quarter of 2010 increased by 55% to $75.5 million, compared with sales of $48.8 million in the second quarter of 2009. The increase in sales was primarily driven by strong market demand for Lihua's copper rod and wire products from the Company's scrap copper refinery business as well as its CCA wire products.
Gross profit for the second quarter of 2010 was $14.5 million, or 19.2% of sales. This compares with gross profit of $9.7 million, or 19.9% of sales, for the second quarter of 2009. The year-over-year increase in gross profit was primarily due to a significant increase in the sale of copper and CCA wire. While these products carry higher gross profit per ton than the Company's refined copper rod products, gross margins were impacted by the sharp increase in copper price during the period. For the second quarter of 2010, gross profit dollars per ton increased 33.7% over the second quarter of 2009 to $1,553 per ton, from $1,161 per ton in the second quarter of 2009.
Selling, general and administrative ("SG&A") expenses for the second quarter of 2010 were $2.1 million, compared with $1.7 million for the same period in 2009. The increase in SG&A for the period was primarily attributable to $0.3 million in one-time expenses associated with Lihua's follow-on public offering in April to further expand the Company's scale of operations to meet strong demand.
Interest income for the second quarter of 2010 was $61,000, compared with $47,000 for the second quarter of 2009. Interest expense for the second quarter of 2010 was $40,000, compared with $0.1 million for the same period in the prior year. The decrease in interest expense was mainly due to the repayment of short-term bank loans, which were used for working capital purposes.
For the three months ended June 30, 2010, the provision for income tax expense was $3.4 million, compared with $1.6 million for the three months ended June 30, 2009. The effective tax rate ("EIT") for the second quarter of 2010 was 25.5%, compared to 19.0% for the year ago period. The increase in EIT was the result of an increase in the enterprise income tax rate for the Company's Lihua Electron subsidiary.
For the second quarter of 2010, Lihua's other comprehensive income for foreign currency translation adjustment gains was $0.7 million, compared with a gain of $28,000 in the second quarter of 2009. The foreign currency translation adjustment is based on the average exchange rate of the RMB, compared with the US dollar at the close of each respective reporting period.
Net income for the second quarter of 2010 was $9.9 million, or $0.34 per share based on 29.3 million weighted average diluted shares outstanding. This compares with net income of $6.7 million, or $0.31 per share based on 21.8 million weighted average diluted shares outstanding during the same period in 2009.
Non-GAAP net income for the second quarter of 2010 was $9.4 million, which excludes a $0.9 million benefit for the change in fair valuation of warrants and $0.3 million in one-time expenses associated with Lihua's follow-on public offering completed in April 2010. This compares with non-GAAP net income of $6.9 million for the second quarter of 2009, which excludes a $0.2 million expense for the change in fair valuation of warrants.
EBITDA for the three months ended June 30, 2010 increased by 45% to $13.0 million, compared with the same period in the prior year.
Balance Sheet
As of June 30, 2010, Lihua had $87.6 million in cash and cash equivalents, compared with $46.3 million as of March 31, 2010 and $34.6 million as of December 31, 2009. The increase in cash balance is primarily due to Lihua's follow-on public offering completed on April 14, 2010 for net proceeds of $32.5 million, as well as from $9.1 million of cash from operations in the quarter.
As of June 30, 2010, Lihua had total debt of $2.2 million, which relates to short-term bank loans used for working capital purposes.
Outlook
Lihua is raising 2010 gross profit and non-GAAP net income guidance. The Company now expects 2010 gross profit of $52.9 million to $55.7 million, or 46-53% year-over-year growth, and 2010 non-GAAP net income of $38.1 million to $40.3 million, or 48-57% year-over-year growth. The Company expects that 2010 growth will be largely the result of continued strong demand in China for recycled copper and copper alternative products in the household appliance, consumer white goods, automobiles and infrastructure markets.
Lihua previously expected 2010 gross profit of $48.9 million to $50.7 million and 2010 non-GAAP net income of $35.1 million to $36.3 million.
"We are operating near full capacity while trying to keep pace with demand and continuing to expand our business," said Mr. Zhu. "We remain on track to initiate construction on our planned new copper recycling facility in the fourth quarter of 2010, which we expect to come online in the second half of 2011. This new plant and additional smelting capacity will increase our annual refined copper output to 100,000 tons from our current capacity of 50,000 tons per annum. We also plan to expand our copper and CCA wire drawing capacity by the end of this year through the addition of new high-speed production lines. We believe these key initiatives will enable us to better address the growing customer demand for pure copper replacement products."
Conference Call and Webcast
Management of Lihua International will host a conference call today, Thursday, August 12, 2010 at 8:00 a.m. Eastern time to discuss second quarter 2010 financial results.
Individuals interested in participating in the conference parties may do so by dialing 1-877-941-4775 begin_of_the_skype_highlighting 1-877-941-4775 end_of_the_skype_highlighting begin_of_the_skype_highlighting 1-877-941-4775 end_of_the_skype_highlighting toll free in the U.S. and Canada, or 1-480-629-9761 begin_of_the_skype_highlighting 1-480-629-9761 end_of_the_skype_highlighting from outside the U.S.
Those interested in listening to the conference call live via the Internet may do so by visiting the Investor Relations section of the Company's Web site at: http://www.lihuaintl.com/Investor_Relations/Events_Presentations.html .
For those unable to participate, an audio replay of the call will be available beginning approximately one hour after the conclusion of the live call through August 19, 2010. The audio replay can be accessed by dialing 1-800-406-7325 begin_of_the_skype_highlighting 1-800-406-7325 end_of_the_skype_highlighting from the U.S. or Canada, or 1-303-590-3030 begin_of_the_skype_highlighting 1-303-590-3030 end_of_the_skype_highlighting internationally, and entering access ID No. 4344011. Following the live webcast, an online archive will be available for 90 days.
About Non-GAAP Financial Measures
The Company uses non-GAAP net income and other non-GAAP metrics such as EBITDA to provide information about its operating trends. Investors are cautioned that non-GAAP net income and EBITDA are not measures of liquidity or of financial performance under Generally Accepted Accounting Principles ("GAAP").
The Company defines non-GAAP net income as net income excluding the change in fair value of warrants and other one-time or non-recurring items that are evaluated on an individual basis. The Company defines EBITDA as net income before depreciation and amortization, interest income/expense, income taxes, change in fair value of warrants and non-cash share-based compensation expenses. The non-GAAP net income and EBITDA numbers presented may not be comparable to similarly titled measures reported by other companies. Non-GAAP net income and EBITDA, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP. Consistent with Regulation G under the U.S. federal securities laws, the non-GAAP measures in this press release have been reconciled to the nearest GAAP measure, and this reconciliation is located under the headings "Non-GAAP Net Income Calculation" and "EBITDA Calculation" below.
Non-GAAP Net Income Calculation
For Three Months Ended June 30,
2010 2009
Net Income $ 9,898,292 $ 6,705,029
Change in fair value of warrants (888,975) 215,952
One Time Expenses Incurred for Follow-on
Offering 341,878 --
Non-GAAP Net Income 9,351,195 6,922,990
EBITDA Calculation
For Three Months Ended June 30,
2010 2009
Net income $ 9,898,292 $ 6,705,029
Depreciation and amortization 515,421 342,976
Share-based compensation expense 101,336 63,562
Change in fair value of warrants (888,975) 215,952
Interest income (61,065) (47,182)
Interest expenses 40,288 105,667
Provision for income tax 3,388,056 1,572,190
EBITDA 12,993,353 8,958,194
About Lihua International, Inc.
Lihua, through its two wholly-owned subsidiaries, Lihua Electron and Lihua Copper, is a leading value-added manufacturer of copper replacement products for China's rapidly growing copper wire and copper replacement product market. Lihua is one of the first vertically integrated companies in China to develop, design and manufacture lower cost, high quality alternatives to pure copper magnet wire and pure copper alternative products. Lihua's products include CCA and pure copper products. Current product offerings include CCA and copper wire, copper rod and copper anode. Except for CCA wire, all other products are produced from recycled scrap copper. Lihua's products are sold in China either directly to manufacturers or through distributors in the wire and cable industries and manufacturers in a wide variety of industries including the consumer electronics, white goods, automotive, utility, telecommunications and specialty cable industries. Lihua's corporate and manufacturing headquarters are located in the heart of China's copper industry in Danyang, Jiangsu Province. For more information, visit: http://www.lihuaintl.com .
To be added to the Company's email distribution for future news releases, please send your request to lihua@tpg-ir.com.
Safe Harbor Statement
This press release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, statements about its business or growth strategy, general industry conditions including availability of copper or recycled scrap copper, future operating results of the Company, capital expenditures, expansion and growth opportunities, bank borrowings, financing activities and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this press release are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements.
To be honest, once Cramer starts plugging any of our stocks, it will probably be time to sell.
Totally agree with this.
What are the exact issues with moving funds out of the PRC in order to pay dividends, however? Anyone can chime in on this if they have insight. I know that it's not necessarily a straightforward process.
Even if our stocks had dual listings, however, there would be fungibility issues. They would almost certainly trade at some spread, as can already be seen between dual listed A and H shares. However, it would be nice to show our stocks as relatively cheap.
Lihua changes auditors to Crowe Horwath.
http://finance.yahoo.com/news/Lihua-International-Names-prnews-1788417668.html?x=0&.v=97
DANYANG, China, July 21 /PRNewswire-Asia/ -- Lihua International, Inc. (Nasdaq:LIWA - News) ("Lihua" or the "Company"), a leading Chinese developer, designer, and manufacturer of low cost, high quality alternatives to pure copper products, such as refined copper products and superfine and magnet wire, including copper clad aluminum ("CCA") wire, today announced that it has appointed Crowe Horwath (HK) CPA Limited to serve as the Company's independent registered public accountants effective July 16, 2010.
Crowe Horwath replaces AGCA, Inc., as Lihua's independent registered public accountants. The change in accounting firms was approved by the Company's audit committee and was not the result of any dissatisfaction with the level of service provided by AGCA or any disputes relating to matters of accounting principle or practices, auditing procedures or financial statement disclosures.
"Crowe Horwath HK operates under the banner of one of the top 10 public accounting and consulting firms in the world. As we continue to grow our Company we believe that engaging an independent auditor of this caliber is paramount to supporting our future financial growth goals," said Jianhua Zhu, Chairman and CEO of Lihua. "We are confident that, going forward, we will continue to receive the high level of commitment to which we are accustomed, with access to a broader range of services and the support of a larger, global organization."
About Lihua International, Inc.
Lihua, through its two wholly-owned subsidiaries, Lihua Electron and Lihua Copper, is a leading value-added manufacturer of copper replacement products for China's rapidly growing copper wire and copper replacement product market. Lihua is one of the first vertically integrated companies in China to develop, design, manufacture, market and distribute lower cost, high quality alternatives to pure copper magnet wire and pure copper alternative products. Lihua's products include CCA and pure copper products including copper wire and copper rod, which are produced from recycled scrap copper. Lihua's products are sold in China either directly to manufacturers or through distributors in the wire and cable industries and manufacturers in the consumer electronics, white goods, automotive, utility, telecommunications and specialty cable industries. Lihua's corporate and manufacturing headquarters are located in the heart of China's copper industry in Danyang, Jiangsu Province. For more information, visit: http://www.lihuaintl.com .
To be added to the Company's email distribution for future news releases, please send your request to lihua@tpg-ir.com.
Seriously ... get that man a tin foil hat!!
Another good China piece out today from the mad hedge fund trader:
http://www.madhedgefundtrader.com/
I imagine that policy will begin to loosen next month. Just a guess on my part ... and when it starts I think the switch on the 'China trade' will be flipped back on. In fact, I think we're seeing the start of it our space here given the historically large premium on the FXI and bounces in several of the names we follow here.
The thing about the Shanghai is that it's primarily liquidity driven. Given the fact that financial conditions in China have tightened quite a bit since the start of the year (not to mention new issuance), this pullback isn't exactly surprising. However, given that the government has now pulled off a soft landing, expectations will begin to look forward to those financial conditions being eased within the near term. I don't know how to game its exact timing, but the likelihood of it occurring is probably pretty good.
I think Cramer may need medication.
http://www.cnbc.com/id/38203002
Cramer: 'We’ve Seen the Lows for the Year'
Published: Monday, 12 Jul 2010 | 7:07 PM ET
Text Size
By: Tom Brennan
Web Editor, Mad Money
Five out of the six things that absolutely had to happen before this market could sustain a rally have happened, Cramer told viewers on Monday. While the list isn’t yet complete, he thinks “it’s time to get more bullish.”
Back on June 2, Cramer said that stocks wouldn’t run unimpeded unless the following key events occurred: Financial reform was finalized, Spanish banks stabilized, unemployment declined, BP’s [BP 36.88 --- UNCH (0) ] plugged its leaking well in the Gulf of Mexico, China pulled off a soft landing for its overheated economy, and the euro stopped falling. Well, all but the unemployment problem are either solved or very close to being so.
President Obama may not have signed the financial-reform bill, but we’ve seen the fine print. Now we know that fears the legislation would cripple American banks’ capacity to make money were overblown, and that means those banks can rally. Check.
Spanish mega-bank Banco Santander [STD 12.80 --- UNCH (0) ] has jumped about 50% since June 2, thanks to some smart diversification away from its home country and to the UK, US and Latin America. The results of the European bank stress tests won’t be out for another two weeks, but Cramer is confident enough in STD’s turnaround that he’s willing to check this one off the list.
BP is close to putting a cap on its leaking well, and a relief well isn’t that far off. Admittedly, the company hasn’t had the best track record so far, but even Boone Pickens told Cramer that he thinks the relief well will work. That gives Cramer enough confidence to check this box off the list as well.
As for China, that problem has already been solved. The country has in fact engineered a successful soft landing, which is why Cramer stopped worrying about this point weeks ago. Now, he said, he’s feeling even more bullish about the country’s moderating but still positive growth.
The euro, meanwhile, has done exactly what Cramer called for: It bottomed at 118 versus the dollar when France and Germany agreed to stop the naked short-selling of all European financial instruments. And it has since rebounded to 125. Check.
The lone holdout is unemployment, but Cramer sees some positive signs here. He thinks the strength in autos, retail and exports will create jobs, especially because the Obama administration seems less intent on hurting American businesses. Plus, the brokers are hiring, particularly the Japanese and European firms, and that usually precedes an expansion on Main Street, Cramer said. And don’t forget about the better unemployment claims we saw last week. We’re on the right track, for sure, but not so much that this box deserves a check, though.
With five out of the six worries now out of the way, Cramer said, “last week’s 5% rally was totally and absolutely justified.” And that means the hyper-negativity that has permeated this market “is no longer in synch with the facts.” So while we can’t yet be totally confident in the market until all six boxes are checked, we can get more bullish and believe in the market’s ability to rally.
“I think we’ve seen the lows for the year,” Cramer said, “and I am a buyer, particularly if we get any pullback of 3% to 5%.”
CGPI - earnings CC tomorrow AM
CHONGQING, China, July 14 /PRNewswire-FirstCall/ -- China Redstone Group, Inc. (OTC Bulletin Board:CGPI.ob - News) ("China Redstone" or the "Company"), the largest private provider of cemetery products and services in Chongqing, today announced that it will release its fiscal year 2010 financial results on Thursday, July 15, 2010 before the market open. In conjunction, the Company will host a conference call to discuss these results.
The conference call will take place at 10:30 a.m. ET on Monday, July 19, 2010. Interested participants should call 1-877-941-4774 when calling within the United States or 1-480-629-9760 when calling internationally (passcode 4330782).
This conference call will be broadcast live over the Internet and can be accessed by all interested parties by clicking on this link: http://viavid.net/dce.aspx?sid=00007828, or visiting http://www.viavid.net, where the webcast can be accessed through July 26, 2010.
A playback will be available through May 25, 2010. To listen, please call 1-800-870-5176 within the United States or 1-858-384-5517 internationally (passcode 4330782).
China Redstone Group, Inc.
China Redstone is a cemetery developer and provider of cemetery products and services in Chongqing, China, through its contractually controlled affiliate Chongqing Foguang Tourism Development (Group) Co., Ltd. Founded in 2002, the Company provides a complete range of funeral merchandise and services, including cemetery property, both at the time of need and on a preneed basis. Its cemeteries are highly regarded in terms of a number of factors such as tradition, reputation, physical size, capacity of business, available supply, name recognition, aesthetics and potential for development or expansion.
Safe Harbor Statement
Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will likely," "should," "could," "would," "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.
Rato - Terrific addition to the moderation team. I've always enjoyed Rato's well reasoned and analytical postings and look forward to many more. Thanks, Rato
You should add HMIN to the list of China stocks that have been hanging in there.
Looks like it closed at $8.77 fwiw