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Tommy,
I do know better and you're right ... I apologize. My frustration was aimed more at the Chinese microcap situation and those that seemed to be motivated to either provide "false hope" or to create an opportunity for themselves to sell high(er).
I sincerely hope that you ended up relatively okay and that your future investments are all that you hope and dream. Cheers.
It's like I said weeks ago ... embarrassed institutions, recently resigned insiders, and disgruntled longs would sell at any price ... and, then the panic selling would start.
I enjoyed the little fairytale about how the "shorts being forced to cover by their brokers" would keep the share price up above $7 ... guess we all really know now, eh
Good luck.
"Your being silly comparing being forced-cover to foreclosing a home. I mean, come on. Have you never been forced by your broker to cover a short position when you don't want to? I have. Haven't you ever been forced to sell a security because of margin issues? I have (When I first started and was using too much margin anyhow)."
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Fair enough, I'm being silly too. No ... I have never been forced to cover a short position of a practically delisted Chinese microcap stock at $7.00 when everything looked like the share price was headed under $1.00 ... most short squeezes that I've witnessed have been in a situation where unexpected good news was driving the share price higher along with a large naked short position. And, No, I have never faced a margin call because I have never bought on margin. And, my points remain:
1) The intitial volume most likely will be there at below $4.00 because of disgruntled longs, embarrassed institutions, and recently resigned insiders. Panic selling most likely will provide all the shares the shorts need to cover "mandatory positions" immediately anyway.
2) If the naked shorts that signed an agreement with their broker do not cover on the "first trading day" because lower prices do not materialize, wouldn't they only face a fine. A fine that would most likely be much less than being forced into a position of paying "$7 to $8" per CCME share. What were the ramifications in your instance ... what would have happened if you did not cover?
"I have been told by each of those that they will be forcing all those nakeds to cover the first day. They only allowed them to establish the naked positions because they had puts that would have expired due to the halt -- A few brokers even required people to sign documentation to the effect that they would be forced to cover in the first day before letting them exercise their puts."
Doc,
Please just stop ... you are being naive. So, you mean brokers made them "sign" something. Wow! Is that just like the documents we sign when we agree to make payments when we buy a house. And, these investors with short positions will be "forced" to lose money on a Chinese microcap stock of a soon to be delisted company accused of fraud. Wow, tough break for them ... and, a lucky break for any shareholders that are still holding a position. I'm skeptical.
"You mean aside from the over 3.5M naked shorts who will be forced to buy the first trading day by their brokers, right?"
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Ha! That's a good one. Love the theories you guys come up with. And, what happens if they do not "buy" on the first trading day ... do they get a scary letter? In this world where people live in homes for 18+ months without making a mortgage payment before a bank can give them another six months to leave the house, do you really think anyone will be "forced" to buy CCME on the "first trading day" ... not a chance. But, maybe this theory will give some quick thinkers time to get out of their position ... good luck.
Frustrated and disgruntled longs ... embarrassed institutions ... recently resigned insiders ... do you think the intial volume cannot be met ... not everyone has the insight and determination that you would hope ... after the intial volume surge, starts the selling panic ... I wish you all the best ... I hope that it does not turn out this way ... I wish you all to be rich beyond your wildest dreams ... but, I am skeptical ... I wasn't always this way ... the Chinese microcap sector did it to me ... Cheers
"I'd be surprised if you don't get a chance to sell somewhere around $7-$8 sometime during the first trading day. Its going to be one wild volatile ride given the insane short interest, thats for sure."
Doc,
Okay, you buy first. Everyone else that wants to buy shares for $7-$8 fall in behind Fernando. I'm absolutely certain that there is not a single person with a short position that will be covering at $7 to $8. So, it is up to you convicted longs. Let's start with Fernando, Michael Anderson, and Glen Bradford. Everyone else can start buying after they get all they want first.
Just got back from my local Costco here in Louisville, KY ... I was excited to see several models of Jenn Air grills that clearly say within the manuals "manufactured by NexGrill in China. I know that the internet has some mixed reviews of these grills ... but, they look nice and sell well. I also saw some storage rack systems called "Whalen" which are made in China ... do you know if HSTY makes those? If they do, that's a great product!
Do you know who the transfer agent for HSYT is? And, have you called them recently to confirm the current share count? Thanks for all your great work here.
You need to look to look at BFAR ... I am absolutely convinced there is a connection there ... most likely Giant Fortune ... they were the parent company of China Finance (CHFI.pk) which sold off with no real bottom and then went dark .... very similar to the trading action in both BFAR and HSYT in the past months ... yes, HSYT is often late ... HSYT went to the pinks along with hundreds of other OTC stocks not because of "not trading for four days" but because market makers are migrating to the pink sheets for efficiency and cost savings ... I agree with your Chinese microcap analysis (sector weakness) and the attractiveness of HSTY's product at large U.S. retailers ... however, that will not save us if there is fraudulant related party transactions, financial statements, or massive dilution ... I at one point was a believer in the Chinese microcap sector and the entire China Rising story ... now, HSYT.pk is the very last position I have in the sector ... mostly because it has no real value and I'm too lazy to sell it off (so, I'll wait) ... good luck
Please consider the additional capital costs that go along with the added production ... your estimated net seems high ... but, it's anyone's guess until we see a report
Do you have an opinion as to why BFAR.pk and HSYT.pk seem to have followed the same trading pattern? Both have ended up on the pink sheets despite reporting on time. Both have since delayed reporting. Both are now trading below .20ish.
Pursuant to the terms of the Jinxinglong Exchange Agreement:
The remaining $12,000,000 of purchase price will be paid in installments over the next 15 months in accordance with the terms of the Exchange Agreement, a copy of which was included as an exhibit to the Company's Current Report on Form 8-K filed with the SEC on July 20, 2010 (File Number 10960377).
Pursuant to the terms of the Sanfan Exchange Agreement:
The remaining purchase price of $9,600,000 will be paid in installments over the next 15 months in accordance with the terms of the Sanfan Exchange Agreement, a copy of which was included as an exhibit to the Company's Current Report on Form 8-K filed with the SEC on June 4, 2010 (File Number 10878661).
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So, you have two major acquisitions in a very short time period by a thinly-traded, mostly silent, Chinese microcap. These acquisitions exceed current market cap. The funds required for installment payment over the coming months exceed cash flow. The Chinese microcap sector has been under scrutiny for transactions just like this that are fraudulant and designed to funnel monies to insiders. I do not know any answers and I am currently holding a small position (10,000 shares) but I am mostly considering that money gone. I think the answer to the riddle will one day be found related to these transactions ... either because they were fraudulant or because of dilution to make the installment payments. Good luck.
Fair enough ... I'm in Cologne where it is 0300AM so I'm going to bed ... let me know on the CCCL board what your legal team determines ... best of luck and take care
Well, $100,000 of CCCL has certainly been bought well below the underwriter's price ... in fact, it has happened over and over and over again ... however, I can not confirm or deny that I have purchased over $100,000 of CCCL ... perhaps we could arbitrate the settlement ... hope all is well ... as I posted on Yahoo's CCME board, I think today's 8K makes it very clear that the money is not there ... as someone who lost over $100,000 on Satyam Computer Services when the CEO Ramaling Raju lied about having $1 billion in cash and PWC did not catch it ... I've seen the signals before ... the money is gone and you lost the bet ... now, Man UP!!!!!!!!!
Hey Doc,
I'm glad you hedged ... and, I'm sure you got a great deal on a condo in FL ... now, it's time for you to "man up" and settle this bet on CCCL ... you know you lost, now pay up!!!!
Well, if you are asking the question "when should I get out" here then your "on-the-job" training is not yet complete ...
The world will know when CCME will trade again ... and, it will most likely be on the pinksheets ... if the longs pause because either shock or hope that the "selloff will not be dramatic" and the "shorts have to cover", then SELL, SELL, SELL!!!!! If however, CCME is motivated lower by either the shorts or longs in a complete panic then just hold your shares ... it will come back to above the $4.00 level on a bounce from either short covering or another positive rumor/article from the cult ... all imho and good luck
Steel,
Could you post a copy of the Roth presentation if it becomes available ... my online time is severely limited over the next two weeks ... I am on a trip (Colonge, Rome, Helsinki, Stockholm, etc ...) ... it is only a matter of time before this is one of our best performers imho ... Cheers.
WowJoint applies for Nasdaq Listing.
BEIJING, Mar. 2 /PRNewswire-Asia/ - China Fundamental Acquisition Corporation (OTC Bulletin Board: CFQCF, CFQWF, CFQUF) ("China Fundamental" or the "Company") announces that it has filed an application to list its common stock, warrants and units on the NASDAQ Global Market subsequent to the acquisition of Beijing Wowjoint Machinery Co., Ltd. and its associated companies (collectively, "Wowjoint"). The Company is also in the process of changing its name to Wowjoint Holdings Limited. During the application review process, the Company's stock will continue to trade on the Over-the-Counter Bulletin Board pending NASDAQ's approval.
"Achieving a NASDAQ Global Market listing is another important step in Wowjoint becoming a publicly traded company. We believe a NASDAQ listing will enhance our visibility and the liquidity of our stock as a public company as we execute our business plan and expand our operations throughout the world," said Mr. Ya Bin Liu, CEO of the Company. "As a result of the recent acquisition, our Company now qualifies for the NASDAQ Global Market. This will greatly assist us as we seek to take advantage of new opportunities in China's growing infrastructure sector as well as worldwide customized equipment markets," added Mr. Liu.
http://finance.yahoo.com/news/China-Fundamental-Acquisition-prnews-1129249548.html?x=0&.v=78
Steel,
Nice job with the IBox ... and, pointing out the GS interest. I've taken a "relatively" small position and will continue to watch as things move along. Thanks for your hard work. Cheers.
Steel,
Actually very predictable behavior. What is important from here is the flow of information and action from the new WowJoint. If they put out a press release clearly defining outstanding shares and warrants remaining along with an 8K describing operational performance of WowJoint in the past quarter (with an updated forecast) then we will do just fine. Keep in mind, this is not a required report by China Fundamental. If the new WowJoint would like/need the money from the warrants and the large shareholders really believe in the company, then they will drive the pps toward $10 quickly. Some of the resistance today was caused by the overall markets behavior and investors that have watched approved SPAC deals stumble out of the gate ... as the company gets its pace and earnings/forecasts are published, the dynamics change ... with a small float and large stable insider positions and motivation by earn-out targets (critical element), the share price can move higher quickly ... especially is there is a large short position that was motivated by arbitragers ... China Ceramics is looking at this situation in the near future in my opinion ... in any case, WowJoint warrants have a bright future as earn-out targets are met ... Cheers.
China Fundamental Acquisition Corporation Announces Shareholder Approval for Acquisition of Beijing Wowjoint
http://finance.yahoo.com/news/China-Fundamental-Acquisition-prnews-1093691428.html?x=0&.v=46
Yes, everything is moving fast. They have only given themselves three days before the "record date" to identify the voters ... and a month to accomplish all the required filings, mail/collect proxies, and set up the meeting ...
Also a positive, there was no mention of any change in warrant terms ...
Unclear of the motivation for the low volume selloff in the warrants following the press release ... profit taking perhaps ... Cheers.
HONG KONG, Jan. 12 /PRNewswire-Asia/ -- China Fundamental Acquisition Corporation, earlier announced that it had entered into definitive agreements to acquire Beijing Wowjoint Machinery Co., Ltd. and its associated companies (collectively "Wowjoint"), today announced that it has set January 15, 2010, as the record date for the special meeting at which China Fundamental's shareholders will vote to approve the acquisition and related proposals. Only shareholders of record as of the close of business on January 15, 2010 will be entitled to vote at the meeting.
China Fundamental expects to file the final proxy materials on or before January 19, 2010 and to mail the proxy to shareholders as soon as practicable thereafter. Those proxy materials will also confirm the date, time and place of the meeting, which is tentatively scheduled to be held at 8 a.m. EST on February 12, 2010, at the offices of China Fundamental's U.S. legal counsel, Skadden, Arps, Slate, Meagher & Flom LLP, Izumi Garden Tower 21st Floor, 1-6-1 Roppongi, Minato-ku, Tokyo 106-6021, Japan. If China Fundamental's shareholders approve the transaction, China Fundamental anticipates closing the transaction promptly after the meeting.
steeledge,
No, No ... that's still my math ... however, I would point out that this is conservative math ... at this point, they could be repurchasing shares/warrants ... growth could exceed expectations since they are still expandning into new markets and product lines ... thanks for posting it. Cheers.
steeledge,
Well, I'm not really on the edge of my seat with this one at all. With the CEO stating publicly that there are "no selling shareholders" it takes a bit of the edge off. And, as you pointed out, there are some deals that just make too much sense.
As I travel throughout China this is the impression that I take away ... there are apartment buildings sitting empty despite the hundreds of millions moving into urban areas ... the reason is the price of real estate remains out of reach to many ... as a result, this residential development may slow down "briefly" ...
However, with the 'stimulus money' paying for the infrastructure projects across China ... there is absolutely no slowing rail projects down (they are everywhere and they are very impressive!). These projects are right in WowJoint's space ... and their technology is helping the projects move faster and cost less ... and, they have patents ... like I've said before, CFQCF is a lot like RINO in that way ... they have patents which meet the right need at the right time in the fastest growing market in the world (and, CFQCF also has International Sales) ... and they are moving into "maintenance vehicles" ...
No, I have zero doubt about this transaction closing ... and, it won't take long to get to redemption. However, I caution everyone that there could be a low visibility period in which someone may try to short the stock and arbitrage with the warrants ... very much like China Ceramics (CHSQ) right now. But, it will mainly affect the common ... I think most warrantholders will realize the game and not selloff. I like to think that we are a more informed investor group here.
I agree that making conact with management early has many advantages ... but, I have not made contact with CFQCF ... CFQCF remains very low on my radar/concern list ... Cheers.
First of all, thanks to steeledge for introducing me to the additional capabilities of InvestorsHub, including me as a moderator on this board, and allowing me to "kick the tires" on the premium services. It seems like only yesterday, I was just another poster on the Yahoo boards and yet here I am today ... I also want to thank my parents. I hope steeledge doesn't regret this ... I may actually drink to much for this board.
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I thought I would post a link to the American arm of WowJoint just in case anyone missed it. It's called Bright Bridge and was formed in April 2009 by the founder of WowJoint to capture American business in the ongoing U.S. stimulus program.
http://www.bright-bridge.com/about/
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And, here is the latest information regarding the level of Rail Investment in 2010 in China ... which will require bridges ... which will directly benefit WowJoint.
"China to Make Record Rail Investment in 2010"
China will make its highest rail investment ever in 2010, $120.6bn (CNY823.5bn), according to Railways Minister Liu Zhijun.
This is up from $87.88bn (CNY600bn) in 2009, which was a 79% increase from 2008.
Nearly 70 new railway projects are expected to break ground in 2010 and by 2012, the country's total length of railways would exceed 110,000km, including 13,000km of high-speed lines, up from 86,000km at the end of 2009.
Between 2012 and 2020, another 7,000km of conventional lines and 3,000km of high-speed lines are planned to be built and by 2020, over 80% of the network is planned to be electrified.
"The years from 2010 to 2012 are key in the modernisation of China's railway system. The industry's development is entering a new phase and will face tough new challenges," said Liu.
http://www.railway-technology.com/news/news73835.html
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Looking forward to a meeting date ... expecting big things here. Cheers.
The way I read page seven for initial qualifications is that if qualify "only under the Market Value Standard" then you must have a $4 bid price for 90 consecutive days ... if you use another Standard such as "Income Standard" then the time limit (footnote 2) does not apply and your reverse split strategy would work out ... hopefully we can get much higher before any kind of reverse split ... I've seen that Red Chip is fond of the 1-for-2 Reverse Split strategy ...
"Seasoned companies (those companies already listed or quoted on another marketplace) qualifying only under the Market Value Standard must meet the market value of listed securities and the bid price requirements for 90 consecutive trading days prior to applying for listing."