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CCME - Short interest -
http://www.shortsqueeze.com/?symbol=ccme&submit=Short+Quote%99
CCME - Yep, everyone knows that China stocks only get a max. PE of 5. When everyone finds out that they are REAL companies that will change.
CCME -
Wasn't the next possibility to do outdoor advertising on the highway syatem. That is also likely under the perview of the Transportation Ministry which with which they have the five year lock on the bus business.
CCME -
Let's redo the Amigos list and just leave off CCME this time. Maybe that will work.
From the I-Box, note that 90% of the shares are held by insiders and under the initial reverse merger they can't be sold until MaY 2010. Note, it's already May 2010. I suspect that they are in the process of selling off the whole company. Any comments?
Some Comments by reading between the lines:
1. The prior long list of potential customers has not gone away. Those were mostly for cobalt products and they eat up all they can produce.
2. Don't worry about Zack. His blog, or a summary, will soon be on thestreet.com.
3. Did a calculation on the numbers from the COO. He is only including the product production numbers. Does not include the revenues or profit from the subsidary. But the growth can easily be seen.
4. The LIP product mostly goes to a 'state owned' battery producer:
"Lithium iron phosphate (LIP) anode materials made by China Sun have
been used in the manufacture of LIP power batteries manufactured by
Beijing Shuangsheng Technology Company."
http://www.bjsskj.com.cn/en_index.php
I suspect the deal to get the recent grant for production increase came with a deal to provide LIP product for some time in the future. Therefore, China Sun material used for their own battery products are downstream. It's a tradeoff. Free money (no dilution) for production increase now versus low production volume and LIP battery products now. Note this government policy statemente and grant (free money):
"One of the key projects selected is the industrialization of lithium iron phosphate (LIP) used as an anode material for Li batteries manufactured by Dalian Xinyang High-Tech Development Co., Ltd. ("DLX") a 100% owned subsidiary of China Sun Group. This project will benefit from the support of the Committee and the Dalian government through the award of subsidies which will help insure a successful and timely ramp up of LIP production.
DLX forecasts that during the period from 2009 to 2012, it will have invested a total of $17.6 million (120 million RMB) in the R&D and industrialization of LIP. DLX invested $6.6 million (45 million RMB) in 2009 and expects to invest an additional $2.5 million (17 million RMB) during 2010. By the end of 2012, DLX expects to achieve a manufacturing capacity of 2,000 tons. This requires investment in 12 production lines in addition to state of the art equipment. Currently DLX is capable of producing up to 50 tons of LIP per month used in 100Ah's automobile power batteries, which have been certified by the National Automobile New Product Quality Supervision and Test Center."
5. I think the 5-10 year for China Sun batteries is based on 'free' money deal with the government. Suspect nothing constrains them from 'other' sources for financing (cash from operations, stock sales, or outside financing) to go beyond the 12 production lines and produce LIP material for their own battery products.
Interview with CSGH COO -
www.uncoveringalpha.com
Quick Summary -
Q1 essentially the same as Q4 dispite the slowdown of the Spring Festival. Q-4 was Rev. $33.9M / Net Profit $10.1/ Q1 $33.5 / $10.1. Q1 revenues were 34.8% higher than Q1 of 2009.
"On May 26 and 27, 2010, the Company purchased 996,051 of its public warrants from four warrant holders at a price of $1.00 per warrant in privately negotiated transactions."
"The Company's backlog of orders for delivery in the second quarter was at approximately RMB 285.94 million (US$ 41.8 million), representing a year-over-year revenue growth rate of 29.1% compared to the second quarter of 2009. The expected sales volume in the second quarter 2010 is approximately 10.6 million square meters representing a 21.9% increase from 8.7 million square meters sold in the first quarter of 2010."
"Despite recent efforts by the Chinese government to tighten monetary policy and contain excessive real estate prices in the so-called Tier-1 cities such as Beijing, Shanghai, Shenzhen, and Guangzhou, the outlook for our business remains stable. Our exposure to the Tier-1 cities was approximately 9.7% of our revenue in the first quarter of 2010 and we expect any weakness in the Tier-1 cities to be offset by continued demand growth in the Tier-2 and Tier-3 cities, driven by secular urbanization trends as well as by the government's commitment to low-income housing," said Mr. Huang. "We remain committed to the expansion of our Gaoan plant and expect to expand its capacity by 14 million squared meters by the end of 2010 at a cost of approximately $20 million."
Correct on the buy/sell data on IHub -
The 'trades' and 'chart' data is often misleading. Only way to access the actual action is to watch the trades and make your own decisions on if it was a buy or sell. This isn't easy either with small spreads.
More info on EV subsidy -
China to boost electric car purchases with trial subsidy scheme
2010-05-26 11:30:27.734 GMT
May 26 (Bloomberg New Energy Finance) -- The Chinese government has picked five cities for a trial subsidy scheme aimed at boosting purchases of electric and hybrid cars, according to a news report posted on the Ministry of Commerce website.
Buyers in Beijing, Shanghai, Shenzhen, Chongqing and Wuhan will enjoy a subsidy of up to CNY 60,000 (USD 8,789) for all-electric vehicles under a new measure proposed by the Ministry of Industry and Information Technology.
The scheme, scheduled to be launched by end of the month, has been approved by China's top economic planner, the National Development and Reform Commission and the Ministry of Finance. It is awaiting final approval from the cabinet, or State Council, local newspaper Shanghai Securities reported.
The government will also provide CNY 3,000 to buyers of energy efficient cars with engines with capacities of less than
1.6 litres and as much as CNY 50,000 for plug-in hybrids, the report said.
Calls to Zhen Zijian, deputy director of 863 major projects for energy-saving and new energy vehicles in the Ministry of Science and Technology, at his Beijing office were not answered.
Chinese automaker BYD (1211 HK) announced plans earlier to expand private sales of its F3DM electric car to other new energy car trial cities besides Shenzhen, that include Beijing and Shanghai. The F3DM is priced at CNY 169,800 (USD 24,800) for individual buyers.
In February 2009, the Ministry of Finance and the Ministry of Science and Technology revealed the subsidy levels for the purchases of hybrid, electric and fuel cell vehicles that were used for public transportation, municipal sanitation and other public services in 13 cities. Subsidies of up to CNY 500,000 (USD
73,000) and CNY 600,000 (USD 88,000) are being provided for all-electric and fuel cell buses respectively.
-0- May/26/2010 11:30 GMT
Think nothing brewing -
At this time in the overall market it is not the time for a PR. Also we are waiting a long time until a mid-August 10K. But the China EV policy is due out before 1 June (but they might be late). They are HOT for LiFePo4 batteries and the local government has supplied money to expand production. Nothing but good things are ahead but when. I have some shares just in case they issue a PR. It will go up so fast at the open you need to be already in.
Slowly but surely -
China sun is increasing capacity by four, receiving free money for that from the government, and working toward battery production rather than just anode material which will result in higher margins (although their current margins are already high).
Am looking forward to their new IR firm to begin to PR the company. Here are the backup data from the latest press release.
"One of the key projects selected is the industrialization of lithium iron phosphate (LIP) used as an anode material for Li batteries manufactured by Dalian Xinyang High-Tech Development Co., Ltd. ("DLX") a 100% owned subsidiary of China Sun Group. This project will benefit from the support of the Committee and the Dalian government through the award of subsidies which will
help insure a successful and timely ramp up of LIP production.
DLX forecasts that during the period from 2009 to 2012, it will have invested a total of $17.6 million (120 million RMB) in the R&D and industrialization of LIP. DLX invested $6.6 million (45 million RMB) in 2009 and expects to invest an additional $2.5 million (17 million RMB) during 2010.
By the end of 2012, DLX expects to achieve a manufacturing capacity of 2,000 tons. This requires investment "
"China Sun Group High-Tech Co., ("China Sun Group") produces anode
materials used in lithium ion batteries. Through its wholly-owned operating subsidiary, Dalian Xinyang High-Tech Development Co. Ltd ("DLX"), the Company primarily produces cobaltosic oxide and lithium cobalt oxide. According to the China Battery Industry Association, DLX has the second largest cobalt series production capacity in the People's Republic of China. Through its research
and development division, DLX owns a proprietary series of nanometer technologies that supply state-of-the-art components for advanced lithium ion batteries. Leveraging its state-of-the-art technology, high-quality product line and scalable production capacity, the Company plans to create a fully integrated supply chain from the primary manufacturing of cobalt ore to finished products, including lithium ion batteries."
Questions for experts -
The recent 20F filing was for 2009. Can I assume another filing will not occur until May 2011?
Has it been stated that they intend to uplist from their current foreign reporting status to a straight forward OTCBB filer or a higher exchange?
Yes, China construction might decline because the government is turning the screws (although they might not be totlly in charge), but with a current PE of <4, both the stock and warrants look good. But with no periodic reporting, no uplisting, and no volume, it all seem theory only. Comment?
Last time I was confident in JADA -
Was when I bought it last year at 0.11.
Traderfan correct -
Three times a charm. I'm sure that they don't know. Of course we could tell them if, one, we could contact them, and two, if we could speak Chinese. Oh well!
Another correlation that shouldn't exist -
DOW down, JADAE down. NOT !
I like China GDP going up 10% annually, China buying expensive housing, lots of rich Chinese, money will going into luxury goods, JADAE goes up.
Is that like -
What happens in Vegas stays in Vegas?
Someone knows more -
Balderdash - No one knows anything about this company other than SEC filings. Lots of people have looked for China internet data, tried calling them, and no one has ever visited them. This is the closest thing to an earthly 'black hole' as I have seen.
Yep, as I said earlier -
Short term players versus long term players. Problem is that most long term players are out of cash to pick up the good deals. I expended my last little bit at 0.49. Over time, the facts are the facts and the price will be right.
And an after thought. No more CHFI to contend with.
What I like the most -
They actually posted a PR on the filing. They no longer treat the world outside of Inner Mongolia as irrelevent but as actual stockholders.
Should be a massive day -
All those that bought in the 0.30s for the short term selling to all those that are now believers in the long term. All in all, stock wonn't go up big today but will creep higher later and maybe after the 10Q is released.
From the 10Q and corstat on Yahoo -
corstat is on top of everthing done by KNDI and seems to be the resident expert. I hope he does not mind that I post his Yahoo summary of the 10Q:
"KNDI reported their Q1 earnings last night and once again, Mr. Hu did not disappoint. Top line did exceed my upper level of my $6-$8 Million by coming in at $8,254,624. And as I suspected, due to non-cash charges for stock based compensation, a small loss of less than a penny a share was reported. But had this non-cash charge not happened, they would have earned .04 a share. And if you add back other non-cash charges such as D&A, the earnings would have come in close to a dime a share.
It is noteworthy that again, all of this business came for their traditional markets outside of China. Proving that we have a solid underpinning to the bright future that should now be starting in China.
What I find interesting was this comment which accounts for a majority of the GAAP earnings reduction:
“Selling and distribution expenses in the first quarter of 2010 increased to $852,326 compared to $86,184 in the prior year period, primarily as the result of a $780,902 option related expense for consultants hired by the Company to help develop the domestic Chinese market for its products.”
I find this of particular interest in that these consultants would rather take stock options in the Company then cash. Speaks very well, IMO, for what they see is in the future for KNDI’s stock.
Other than this statement:
"Additionally, it was announced that progress was being made on the development and construction of battery stations every five square kilometers in Jinhua -- another key element of the plan -- and that further announcements relating to this planned 300 square kilometer saturation would be forthcoming."
And this one:
"The outlook for our Company is brighter than ever," stated Mr. Hu, "with solid progress being made by our Alliance and, with the governmental approval we have obtained, our ability to also begin selling our COCO to domestic consumers. Plans in this regard are being formulated, with a particular focus on fleet sales to government agencies such as the Post Office, which we believe has had a satisfactory experience with the vehicles they were able to purchase from us several months ago."
Most of the other info is pretty much a recap of what exciting things the Company has already announced.
Just a reminder. Today is the last day of the ten day period for the PP recalculation of the conversion price. After today, all questions should be removed as to any negative influence the funding may or may not have had on the stock, and be replaced with the positive feature that the funds will now have the same goal as all shareholders and that is a much higher price. "
Another KNDI secret -
While recreational sales were down in the winter, no suprise, KNDI has another product in China that has not been announced yet. It was found by Yahoo posters that scan the China internet and then use Google translation. It is a 4WD electric panel truck for delivery and rural farmers.
What if they sold maximum ? -
As in my prior post, if they could sell the government maximum of 40,000 tons/yr, at the current sell price of ~ $2,000/ton, all other metrics being similar to today, they could make ~ $50M/yr. (0.60/share and at a PE of 5 = 3.00 stock). But you can't find customers for all of that jade (3.5 times last years volume). So acquiring a carving and retail sale company is the way to growth and even higher margins, as if current margins of 60% aren't high enough.
Someone with posting rights -
Post my last one on the China Growth Stock board. I'm changing credit cards and am currently not registered.
Let's see what we have -
- CHFI no longer a shareholder - GOOD
- A solid owner now with 41 of the shares - GOOD
- Cash ~ $11M cash flow with $8.8M in an acqusition deposit - GOOD
- Dropping customers that don't pay - GOOD
- Long term strategy has always been vertical integration to produce final products for even higher margins. Now looking for an acqusition and they have prior experience in carving - GOOD
- Quarterly revenues were reduced over the last quarter but if you can't find new customers now is the time to pursue your long term goals - GOOD
- Reports say Burma jade will be exhausted before China jade - GOOD
- 10Q due soon - ????
I expect Q1 to be a 0.05 quarter but with the move toward vertical integration I'll be happy. This is a $2.00 stock in a few quarters or sooner. After all, they have a $16B mountain. If they only bought jade at their price of $285/ton, sold the government limit of 40,000 tons/yr., and sold it at ~ $2000/ton which is the current rate, and had margins of `60%, they can make $50M/yr. or 0.60/share (if they can find customers). But vertical integration will be better without selling all of that jade to others for the higher margin products.
Not so sure on advance info on JADA -
Close as I can get to it is to view the jade mountain on Google Earth from 100,000 ft.
KNDI potential -
- Approval to sell small electric car in China:
http://finance.yahoo.com/news/Kandi-Technologies-Announces-iw-2989071597.html?x=0&.v=1
- Has provided 30 prototype vehicles to China Postal for evaluation. Replacement of 300,000 needed. At $7,500/vehicle, if a ten year program 30,000/yr is $225M compared to current annual revenues of $40M.
- China electric vehicle policy due out before June.
- While current vehicles are lead-acid battery, they have a joint venture with a LiFePo4 battery producer:
http://www.tianneng.com.hk/html/index.php
Potential hinges on the postal contract in my opinion. If not announced soon after the electric vehicle policy is released, not as confident. With such large contrcts there is too much potential for political influence being more important than other factors.
And More -
KNDI approved for China sales of small electric vehicles. ONLY car on the approved list:
http://www.streetinsider.com/Press+Releases/Kandi+Technologies+Announces+It+Has+Received+Government+Approval+to+Sell+COCO+All+Electric+Vehicles+in+China/5620285.html
Worry here on continued housing construction -
Of course that is a key for the stock and the warrants. But this is China. They can allow continued construction as the government desires. All the housing minister has to do is sit down and draft a 'Rule' that states that for ever expensive apartment you must biuld one inexpensive apartment. Oh, and by the way, the 'Rule' starts today.
Remember that they stoped lending on 15 Jan. until 1 Feb. with a similar 'decree'.
More good news -
Energy-efficient vehicle plan to be out before June
By Lan Lan (China Daily)
Updated: 2010-05-07 07:56
BEIJING - The long-awaited stimulus plan for new energy vehicles is slated to come out by the end of May, which will boost domestic production of energy-efficient vehicles, said analysts.
FROM THE OFFICIAL RELEASE:
Zhen said small electric cars for short-distance travel may have offer good prospects for incentive qualification. Ouyang Minggao, director of the National Laboratory of Automotive Safety and Energy echoed that view.
"Commercialization of eligible mid- and large-sized electric vehicles is not realistic due to battery restrictions and excess costs. However, small, all electric cars weighing less than 1,000 kilos have great growth potential," Ouyang said.
Got it - EOM
Please post a 'path' to the board -
Four favorites five day action -
All great buys now:
CHME down 26%
CKGT down 19%
LTUS down 12%
KNDI down 24%
RHGP down 23%
Glad I was out playing softball when it hit the fan.
Seems everyone just holding -
China small caps., no more panic selling, no buying, little volume. Seems without significant news we are at a safe bottom here. Even Shanghi and Hong Kong drops not impacting us.
Greece vote-
With an election coming, I can't imagine Germany voting for the money after the 'support' is being shown in the street for the assistance. Not a warm 'thank you EU' is it.
Sacrafice Greece - -
They still need a final vote on the $140B. It will be a good lesson for all, including the US.
DOW up 160 - All mine down - EOM