CHGY: When government is on your back, even PIIGS can fly (:-. Quotas are PERMITTED by government. It is matter of time for CHGY to get a good target to acquire now. With current share price, debt finance is the only way to go. When government is in, it won't be hard to get loan from bank.

Recent Significant Changes

Through Coal Group, we produced and sold 352,230 and 806,439 tons of coal in the three and nine month periods ended August 31, 2011 respectively at our Laiyegou coal mine, representing a 64% and 35% increase, respectively, over the same periods in 2010. For the three and nine month periods ended August 31, 2011 we increased our coal trading volume by selling 603,981 tons and 985,824 tons of coal, representing a 319% and 98% increase, respectively, over the same periods in 2010. The significant increase in volume of coal produced and sold by Coal Group was mainly due to the permitted increase in the coal which can be produced and sold by the Company. Coal Group was selected by the Inner Mongolia Autonomous Region Coal Industry Bureau as one of the forty-four major coal enterprises in the Inner Mongolia region to be promoted by the Inner Mongolia government. The Company believes that this is why it was permitted to produce and sell more coal than previously allowed. Our operating assets are expected to rise in line with the increase in our coal production expanding business (see below discussion in “Cash Flows”). If the current trend continues to enable to allow the Company to produce and sell more coal than originally planned, the number of expected years of coal production will corresponding decline. We plan to leverage on the rich coal reserve in Inner Mongolia and acquire coal mine(s) if we can locate acceptable targets at reasonable prices, while continuing to increase our trading volume. We expect Coal Group to continue to be the key growth factor of the Company.

CHGY: NT-10Q. something good is brewing..

The Company’s revenues for the three and nine month periods ended August 31, 2011 increased to approximately $47M and $101M, respectively, from approximately $21M and $62M in the three and nine month periods ended August 31, 2010, respectively. In addition, net income for the three and nine month periods ended August 31, 2011 increased to approximately $8.2M and $16.3M from approximately $4.3M and $12.7M in the three and nine month periods ended August 31, 2010, respectively.

SVM: more details

The best defense I have ever seen from any in CGS. http://finance.yahoo.com/news/Silvercorp-Notes-Large-Short-iw-1745542873.html?x=0

They not only provides SAIC, SAT match. They also provides they bank acount statement. In addition to what they just bought 2 million shares at $8.1

http://finance.yahoo.com/news/Silvercorp-Repurchases-Excess-iw-3665904110.html?x=0

Does it matter?

People still scared and sell in this down market.

VALV.
http://www.vocfund.com/main/wp-content/uploads/2011/07/VOC-Proposed-Change-of-Investment-Policy-and-Cash-Return-210711.pdf

VOC has 7m warranty strike at 3.5. 4.8m shares remaining. Their policy is liquidating in "orderly manner". VALV's float is only 8m. It will put a lid on VALV share appreciation.

CSOL:

A virtual company which CSOL is working with.

http://gzfx2011.b2b.hc360.com/shop/show.html

Same name as in the chinese version of the same news.
http://delienergy.com/news/delixinwen/jiaoliuhezuo/581.html

Steve, I was intrigured by GURE's announced investment to Daying project, recent announcements, coupled with folks buying at this level. I am aware of many red flags and just start to make sense if they are real. After all, it is tremendously undervalued ... on numbers.

GURE, Just to show how CCM didn't do good reserach in Bromine Producer in China. How can Kerrisdale's hit piece relying on shaky research data ?

1)Haiwang's website shows it has 18000MT Bromine Capacity. Its S1 filng confirms that.
http://en.sdhwchem.com/products_detail/&productId=40466a21-c92b-43c9-a656-d3e97245017b&comp_stats=comp-FrontProducts_list01-1282098372783.html

GURE 10k did not even list them as competitor.
CCM's top 30 list does not have Haiwang

2)GURE's competitor Dadi salt Company claims 15000MT in its website
http://user.sm160.com/Company/Profile/1-000-0098-277.html

CCM's top 30 list does not have Haiwang.

3) Shouguang Bromine Association 2009 data list Haoyuan as #1 as local producer with over 20000MT in 2009 and over 30000MT in 2010. In the same list #2 is Dadi with only 5600MT. Dadi grew by 10000MT since 2009 in the same pace as Haoyuan grew.

http://www.sgxsxh.com/newshow.asp?id=547

Many should be in top 30 list if data is up to date but not.

GURE, Just to show how CCM didn't do good reserach in Bromine Producer in China. How can Kerrisdale's hit piece relying on shaky research data ?

1)Haiwang's website shows it has 18000MT Bromine Capacity. Its S1 filng confirms that.
http://en.sdhwchem.com/products_detail/&productId=40466a21-c92b-43c9-a656-d3e97245017b&comp_stats=comp-FrontProducts_list01-1282098372783.html

GURE 10k did not even list them as competitor.
CCM's top 30 list does not have Haiwang

2)GURE's competitor Dadi salt Company claims 15000MT in its website
http://user.sm160.com/Company/Profile/1-000-0098-277.html

CCM's top 30 list does not have Haiwang.

3) Shouguang Bromine Association 2009 data list Haoyuan as #1 as local producer with over 20000MT in 2009 and over 30000MT in 2010. In the same list #2 is Dadi with only 5600MT. Dadi grew by 10000MT since 2009 in the same pace of Haoyuan.

http://www.sgxsxh.com/newshow.asp?id=547

Many should be in top 30 list if data is up to date but not.

Latest presentation 7/8/2011

http://www.gulfresourcesinc.cn/images/pdf/7_8_11_gfre_ppt.pdf

Questions
1) Slide 12 section "Customer"
"Just In Time shipping and production", Does it mean they produce and immediately shipped to customer so that there is almost no inventory ? Does it explain their low inventory and high turnover rate, which is the reason Bronte shorts?

2) Slide 10 about "One of few bromine exploration license"
It has been claimed to be one of 6 licenses. Apparently according to Haiwang's S1 here
http://www.sec.gov/Archives/edgar/data/1511046/000114420411023076/v218968_s1a.htm
The PRC laws require the licensing of bromine producers to produce bromine. Currently, approximately 75 bromine producers have been licensed in Shandong Province.
So there is difference between exploration and production licenses. Does exploration license add any value to the business ? Acquisition of factory 5-9 are significant in their growth.

3) Crude Salt (Slide 15)
According S1, Haiwang is No 1 Crude Salt producer in China with over 1.2million MT production capacity and they have named brand and selling average $29/MT for 2010. GURE, through recent aquisitions, increased their crude salt production to 620,000 but 10k says, GURE's average selling price is $40/MT. This really puzzles me. BTW Selling price for Bromine is consistent comparing both.

Anyone ?

CHGY,

Jessie's consulting arrangement is to ultimately help CHGY to be uplisted to big board. 1.8mil shares is first installment. another 1.8m shares will be due either afer listing or 2 years.

http://www.sec.gov/Archives/edgar/data/1335137/000114420411039886/v227262_ex10-7.htm

CHGY will not go private or go dark based on this agreement. Jessie should have more actions to promote the company. Just don't know the background of Jessie enough. Hopefully it will team up with some well-known name like HCI.

Another details from Q. They did asset-transfer-and-lease of Heat plant to gain 9m cash. New short term 20m loan from well-known bank. These capital infusion makes their working capital positive. These are very positive signs that company is no-fraud, vibrant and in right direction.

CHGY is one of hidden jewels and epitome of honest but misunderstood, mistreated, undervalued china microcap name.

Not significant. http://www.sec.gov/Archives/edgar/data/1345433/000091957411003473/d1194722_13f-hr.txt

I put in a limited sell order 1.78 to test. It executed around 15:40pm. Quotes do not experience any issue either. Last time when everyone says quote was 0.01 . Fidelity had same problem for a day.

Fidelity trades CCME without any problem!

The commission is same as it was before.

This DTCC thing will cause mini upwards pressure.

Looks like this is just first step.

Expecting Starr will use DTT findings as the fact to support their case (since they can't use MW,Citron's), CCME hired DLA Piper for that purpose. Of course CCME will not throw in new facts until Starr makes its move. Two possibilities can be in CCME long's favor even without formal PR or SEC filings.

1. If Starr uses DTT finding as evidence, CCME has to refute with positive DLA piper's finding, which must validate bank statement including cash balance via KPMG.
2. If Starr uses other facts such as SAIC or SAT, which Chiming Song acquired via Qingdao-direct, likely CCME will have to defend with "true" financial report.

Either way it depends on Starr's facts to support its case.

Gene, Give us some concrete reasoning on your target. just like MW does. I thought target $0.1 is even better for you. One prominent short has target of $0. so your target is somewhat higher.

Did you guyes all see Starr's office in Shanghai signed into the agreement ? I think HK's arbitration result is forcable into PRC when Starr's local office start to file lawsuit in China. Yes CCME can be fraud to certain degree. CCME/Cheng, Lin brothers can not escape easily like RINO if Starr pursue it.

Starr Investments Cayman II, Inc.
c/o Beijing C.V. Starr Investment Advisors Limited Shanghai Branch
Suite 4609-4611A, Tower II, Plaza 66,
1266 Nanjing West Road,
Shanghai 200040 People’s Republic of China
Attention: John Lin / Dorothy Dong
Facsimile: +8621.6288.9773

Details for Starr agreement is not in 10k. it is here

http://www.sec.gov/Archives/edgar/data/1236615/000134100410000246/exhibit_e.htm

I made mistake yesterday to think Starr would gain full control of CCME. Instead if founding members can not pay penalty, Starr will liquidate CCME at 7x earning. so the whole agreement is hinged on an auditted financial report to SEC. Cheng as well as Lin brothers can't ignore that. Of course Cheng can hide but Lin brothers can't.

10k does lay out the result in plain English about what will happen for Starr's victory in arbitration. quoted below

If CME Does Not Meet Performance Targets Specified in its Financing Documents, it Could be Required to Pay Significant Cash Penalties and/or a Change of Control May Take Place

Pursuant to the terms of an investor rights agreement, the Company is required to pay certain performance adjustment amounts to Starr in the event the Company’s audited consolidated net profits (“ANCP”) for 2009, 2010 or 2011 are less than US$42,000,000, US$55,000,000 and US$70,000,000, respectively (each, a “Profits Target”). The Performance Adjustment Amount payable in any of 2009, 2010 or 2011 will be a fraction of US$343,462,957 proportionate to the amount by which the Company’s ANCP in such year falls short of the then applicable Profits Target. The Performance Adjustment Amounts will be payable in cash or stock, but only to the extent such stock, together with the shares of Common Stock acquired or acquirable as a result of Starr’s ownership of the Purchased Shares, the Purchased Warrants and the Transferred Shares, will not exceed 19.9% of the total number of shares of Common Stock issued and outstanding as of the date of the Purchase Agreement.

In addition, as long as Starr owns at least 3% of the issued and outstanding shares of CME’s common stock, on a fully diluted, as-if-converted basis, it will also have the right (the “Put Right”) to require the founding stockholders of HKMDF to purchase all the securities held by it if any of the following occurs: (1) the Company’s ACNP for 2012 is less than its ACNP for 2011; (2) the Company fails to achieve 50% of any Profits Target for any of 2009, 2010 or 2011; or (3) the Company or certain of such founding stockholder materially breaches certain provisions of the investment documents.

In the event such founding stockholders do not comply with their obligation to purchase Starr’s shares under the foregoing provisions, Starr will have the right to require the founding stockholders to sell up to all of the Company’s capital stock directly or indirectly held by them to a third party pursuant to a managed sale process. In the event such sales take place or of any of the foregoing penalties are imposed, there could be a material adverse effect on our business, results of operation and financial condition.

The logic that Starr may help share price as side effect

Besides Starr's preferred shareholder status, they have penalty clause on make good revenue and income#. So ccme/cheng must prove that they do get make good number# (or close) to avoid severe penalty. If they want to win, they must present their financial# publicly. If they can't, cheng's share will be wiped out. (together with us retail). So Cheng must fight this for his own right. He can't just go dark unless he has a deal with Starr first. He needs lawyer and PWC to win or settle the case.

Apparently market thinks CCME is fraud by large margin, lose the arbitration and face the penalty by big boys. Of course the fact that retail lost all their hopes (in MOASS or news update) and institution can't hold pink shares drive down current share price. However along the process of CCME vs Starr, information will be published and hope may be rekindled so CCME bounce is inevitable regardless lawsuit outcome. After all CCME business existence in certain scale is proven by MW, GEoinvesting's BOB on the ground, ping luo, the question has always been how much is fraud.

Another less likely possiblity is that Starr may have hedged all along. If they can take control of CCME and ouster Cheng and replace whole management team after arbitration victory. It would be a dark victory. Retail may benefit from the restructure. After all from several advertisement business man's perspective, ccme's business model is not bad at all. It is the management who has problem.

ENHD is hiring a lot of people (100). Most interesting observations are
1) They hire close to 25 people in Beijing compare 29 in Daliang (their head quarter). Are they expanding into Beijing ?

http://www.jobui.com/jobs?nowPage=1&sortType=match&releaseTime=30&jobKw=company%3A%E5%A4%A7%E8%BF%9E%E7%A1%80%E6%98%8E%E9%9B%86%E5%9B%A2%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8&cityKw=%E5%85%A8%E5%9B%BD

2) They do have a CFO openning position. Unlike Nov. 2010's CFO requirement, there is no requirement of English or capital market experience. Apparently it is mostly internally faced CFO.

http://www.jobui.com/job/55052476/

Therefore their business is still ok (can be explained alternatively as high turnover rate). but there is no immediate plan to list anywhere (hong kong or china), current US shareholder will continue being stuck.

Called Redchip Paul Kuniz. He said there was miscomumunication (time difference) with the company so WKBT couldn't make the presentation and DD that redchip liked to do before the coverage. Redchip is still preparing the research paper for WKBT once they got more confirmation from the company after holidays. Redchip has on-the-ground team in China visited WKBT's headquarter in Heilongjiang but didn't visit the other site in Guizhou.

Very solid quarter, bolds well for 2011. 10cents EPS.
1) Even with loss of 3 weeks of production from coal group, Coal trading made up lost revenue. Gross margin are impoving in both groups. Heat is expanding in reasonable pace.
2) Notes receivable of 11m is returned. no worry there
3) More bank loans 11m+ are obtained.
4) Aquisition is still in strategic play.
5) "red" disclosure of tax amount 3+m and interest on loans.
6) Some efforts to improve internal control.

"During Q1 2011, our management had internal training on corporate governance and U.S. GAAP reporting to our accounting department. We were also actively recruiting qualified personnel to strengthen our accounting team. "

RATO, focusing on POS seem to be counter-productive unless you focus on shorting, which is not the main purpose for this board IMO. What's your GOLD list among 90% POS ?

CBPO is it the next target ?

Nasdaq answered. T12 code should be changed to T3 first, then T2. T3 code would give date and time when it will resume trading. So it is not going to trade yet. so another 60 days halt maybe right. CCME may have to issue 8k to state hearing date. It is good to halt in current situation.

Do you have confirmation from Nasdaq or just speculation based on PR ?

if optionable, imbalanced put volumes should be considered.

Good observation. 8k address change happened at 4/6.

http://www.sec.gov/Archives/edgar/data/1399067/000114420411020379/0001144204-11-020379-index.htm

Former address is Room 2805, Central Plaza, Wanchai Hong Kong.
New Address: 22/F Wuyi Building, 33 Dongjie Street Fuzhou, China 350009

Both are listed as contact address
http://www.ccme.tv/eng/global/contact.php

My guess is for many legal communication from SEC/NASDAQ must be via written documents. Going through Hong Kong hinders communication at this juncture when decision makers are in Fujian, China. IMO this address change is just a small positive sign that they are taking steps to work efficiently.

Why haven't they received any buyout offers from competing companies selling at much higher p/e ratios.

Unless they know each other as fraud, or they can use shareholder's money to buy a legit target.

I am also deeply troubled about the fact very few has done real share buyback, dividends with their "cash". Another big red flag about their cash and book value.

Very helpful. Looking at Rino again, I found trading price vs halt price for first day is like 1/3 at open, 80% at top, 1/2 at close for Rino. However the trading volumes are less than before halt. CCME's volatility will certainly be magnified several times due to short level. Based on RINO patten, there is certainly a chance to exit about half of halt level, ie 6.

Couple more questions:
Wonder which site to monitor level 2 for trading. otcmarket.com does not work well.

I remember you have 7%(?) trapped as well. how much are you willing to trade (risk) in this extreme situation on top of what you have ?

CCME is heading to the worst case senario now. how are you planning to play the first opening day or days ?

CFO job is nolonger posted, is it filled or they don't need CFO position ?

CHGY, I am suspect the catalyst is that they are executing buybacks.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=61132464

Or someone anticipates Q1 to be good.
or uplisting is approved.

CEO buyback is one of the key questions for tomorrow's conference call.

Other questions will be asked during CC are
1. With more than 3 months into 2011. They should be in a position to provide some guidance.
2. Their development in US and non-big 3 telecom revenuw, which are supposed to help relieving AR/DSO issues.

I got some to trade on earning pop. If their answers to above questions are better than expected. TSTC will pop for sure.

Unlike BSPM, TSTC's CC is more important than 10k alone. Of course I can always be wrong.

short coving ? if CCME had 10k signed, it would have been same.

Rames, It is such an honorable act for you to inform that you have sold or hedged your favorite stock. It contrasts sharply how many CCME vocal leaders do not do the same.

Job search for CCME (including CFO).

http://www.jobyun.com/c_110000180060

Apparently CFO position is repeated twice: Fuzhou, Beijing.

CCME business is there. however SEC 8-k filing with full disclosuere of what DTT says in their finding is more important for us investors.

See http://ccme-info.xanga.com/

SAS 99 is an extra steps DTT has to take for audit so delay is expected. This dovetails Luo Ping's comment very well.

I would rather agree HCI's assessment

High-quality, low-valuation stocks that got the green light from a tier one auditor should see significant price appreciation this spring. This is where the big opportunity lies now.

http://content.stockpr.com/hcinternational/files/ConstantContact/HCI_China_Newsletter_February_2011.pdf

Rames,

I look at several portfolio in your site often to get ideas what works in this space. Besides the obvious winner "under attack" as you pointed out in your SA article, the most interesting one is low PB, which seems to buck the downtrend in CGS space and up 55%. Certainly low share price, small market cap helps. to make it more investable option, would it possible to use a rule for better liquidity, ie market cap > $50m, daily volume > 100000 and rotate them quarterly ?

Actually rotating them quarterly seems should be the rule for all these portfolio to compare against market movement in general. 9/21 starting was too good of market timing.

Excellent information in your site.

YOKU: Chimin will lose his short as well.

http://seekingalpha.com/article/246299-youku-com-a-dive-into-the-company-s-operating-metrics?source=qp_article

My wishful thinking, what if Goldman initiates CCME....