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Filed April 19th? Wow they sure were eager to jump on the ever-so-slightly late filing. Since they have already caught up my guess is this amounts to nothing at all.
Do your own DD of course, but my take is that VLOV is actually trying to reduce risk to shareholders by simplifying the structure. Essentially I think they have cut out the intermediate entity that was 50% controlled by the founder, so that all business is now done directly by a company 100% owned by VLOV.
If someone has a differing viewpoint, I'd love to discuss further.
Frankly the bar for China small caps is so low that the fact they filed a 10K soon after getting the extension is positive news by itself, but I am liking the report.
As to the uplisting question, I found this snippet in the 10K that seems to make it clear that they want to uplist:
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We will continue to incur increased costs as a result of being a public company.
As a public company, we incur significant legal, accounting and other expenses that we did not incur as a private company prior to the Share Exchange. We will incur costs associated with our public company reporting requirements. We will incur costs associated with corporate governance requirements, as well as rules implemented upon our auditors by the Public Company Accounting Oversight Board for reverse-merger Chinese companies, the SEC and the FINRA. We expect these rules and regulations to significantly increase directly and/or indirectly our legal and financial compliance costs and to make some activities more time-consuming and costly. If we are able to upgrade to a senior exchange such as the NASDAQ Capital Market, we will incur listing fees as well as other costs to comply with the exchange requirements
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I thought the accounts receivable was handled very well. At year-end 2012 there was a new category of 121+ days outstanding, likely due to more of their distributors hitting the 3-year milestone and qualifying for paying later. The 10K points out that as of April 10, all the 121+ receivables had been collected.
I like it tbirdman. Obviously in a gnarly bear market like US-listed China stocks have been in the baby gets thrown out with the bathwater, but I would have expected some insider buying to creep in by now. If we saw insider buying that would reduce the risk quite a bit.
Thanks, I am looking forward to reading whatever information you could dig up. When I contacted the company it almost seemed like Bennet was denying plans for NASDAQ listing. Then again, at the time the stock was under $4.
VLOV the company seems to be doing pretty well for itself. VLOV the stock may see some resistance at $5 for a little while here, but I think that the company is legit and has something to lose if they abandon the stock, and as such selling for $5 makes no sense. Maybe some real sellers will appear near $9?
I've been thinking about the possibility of uplisting. If the stock hangs out above $4 they could do it, but the stock was above $4 in the past so why didn't they uplist then?
Rames, the way I read the NASDAQ rules, at least 1 year must pass since being delinquent with filings. This is from memory though so could be wrong.
VLOV - Bennet got back to me about management share % - they own 1.3mm of the 2.6mm shares outstanding. Looks like VLOV would have to trade above $4 for a while before being eligible for NASDAQ in order to qualify with $5mm in public float.
I took a small position in VLOV (I don't think it's possible to take a large position anyways!) and will see what happens. It's clear that VLOV exists and is a legitimate business and getting going in the US seems like great news for VLOV shareholders. My only concern would be if VLOV decides they don't want to share the company with shareholders anymore, but that seems like it would be a costly move for an image-focused (and real) company like VLOV.
As for listing on NASDAQ, if I read the initial listing requirements correctly, since their market cap is only $8mm their only shot is qualifying under the net-income standard for the NASDAQ Capital Market. For that they need $5mm in value in publicly held shares, as I'm pretty sure they have met every other requirement. Do you happen to know the % of VLOV shares that would qualify as publicly held?
I was referring to the weakness here in the beginning of January, when even a lot of China small caps are doing OK.
Starting DD on VLOV myself. Can you explain the weakness in VLOV knocking it down to its current price? I read that some warrants related to the original reverse merger expired in Q4 2012, so perhaps there are some price-insensitive sellers getting out?
Do you know who handled the VLOV reverse merger? Was it any of the usual fraudulent gang?
There were a bunch of warrants from the 2009 reverse merger that were set to expire in Q4 2012. I wonder if whoever owned those warrants was hoping to pump up the price a bit in order to get out. The timing strongly suggests it IMHO.
Disclosure: no position, doing DD
The US market is doing relatively well because US companies are making gobs and gobs of money, with earnings approaching 2007 levels (but with much better corporate balance sheets). US economic news is also much better than in just about any other country.
If you look at European, Japanese, Chinese, or most other stock markets, you'll see that they are down more like what you are expecting.
This looks different than previous gold corrections in the 2009-2011 timeframe, IMHO. From my perspective, a bull market is characterized by how overbought it can get while a bear market is characterized by how oversold it can get. That extra-low RSI looks like a clue in two ways: 1) the level of oversold means we should be due for a bounce any time and 2) the behavior seems to have changed in that buying has not stepped in to bid gold back up at the levels it was previously.
Of course, previous 2009-2011 corrections ended at the 150, not the 325, so maybe the above paragraph just indicates we'll spend another few months correcting until we get back to the 325 and can resume the bull market from there.
Hello,
Nice charts. I too am looking for gold and silver to work lower into the 1500s and low 20s respectively. However, I have a growing concern that there seem to be an awful lot of people expecting the same thing. Do you get that sense too?
zab, I just saw an article that through November, only about 1/5 of fund managers were beating the S&P 500 for the year. Not a forgiving market for sure.
Well AEM's bad news is the main trigger I think, but JAG and NSU also have terrible news. Bottom line I think is that gold miners are *still* having trouble making all that much money.
Tie breaker: EEM down, too.
Yup, no doubt that some of the big tech guys like AMZN and AAPL are outperforming the market. Underneath it is a different story if you look at $COMP.
Look on the bright side - we can still swim, how many people can say that :)
Seriously, we're going to miss the fall growing season if it doesn't stay under 100 soon!
Careful fois gras, from my perspective SLV has already back-tested its resistance at 32 and that could easily be "it" for the bounce. Not saying it is, just that it could be - and should be taken into account when assessing portfolio risks.
If the Fed is the one buying the debt, and the Fed is really an extension of the government, then there aren't really 'creditors' for that debt in the traditional sense. The Fed could buy all the government 'debt' that the government created, indefinitely. As it is now, do you really think the Fed is going to start dumping all its Treasury debt onto the market -- ever?
The trouble with this on a large scale is that it would expose the currency as a sham, and dollars could become less valuable rather quickly.
fabian, I think the inflation/deflation debate is a critical one to get right. As far as tracking the rate of money-supply growth, if you're not familiar with the Austrian school's definition of money supply I suggest you take a little time to (they call it True Money Supply). Tracking TMS will help in understanding where we are. Notably, TMS growth tracks the price of gold far better than M2.
As to your direct question, I think it would be a straightforward mechanism for the government to disperse whatever money it wants (either directly like some checks they have sent in the past or via spending on projects) and have the Fed buy all the bonds that 'pay' for the largesse. As far as I know this whole mechanism is already in place.
The bottom line is our government, like essentially all governments, maintain a monopoly on money creation *specifically* because it gives them power to do whatever they want with it.
May I ask what your trigger was? We're surely not seeing euphoria at the moment.
My TA focuses on chart patterns (I try to keep it simple) so the H&S breakdown in $SPX in early August is a prime clue for me. I was expecting a full retest around 1250-1260 but there's a strong chance we won't get it.
Do you follow EEM? The emerging markets lead, and EEM is sitting there at new 2011 lows as we speak...
OK, check out the chart for WFM.
NUE - watch out around 36-37, as that level is a test of the H&S breakdown area in my book.
Don't forget that there's also an upper resistance line around 1250 that could easily be tagged before we break though to the downside.
I bought TSL and JKS at the end of day, but probably won't hold them all that long.
Put premiums are really high, so selling puts on TSL/JKS seems like a good option if you think we're near enough to a major low.
You love it because you're shorting solar? Or gearing up to buy?
I was thinking more along the lines of a close near the lows as traders look to cash out before the long weekend.
My current interpretation is that $SPX is in the middle of a triangle consolidation that should break out to the downside. If this interpretation is correct, the market should top out within the next couple of points (i.e., right around $SPX 1200).
Good to hear you got out. Gotta love GEO...best money I've spent in a long time...
When you see a stock that is up big in pre-market, is that an indication that you should usually short it ('fading' the rise) or buy it (following the rise)? Or is it just something for the watch list to see what happens after the open?
I don't know of such a site, but I do have suggestions for you:
1. Have you tried asking for that feature to be added to TOS? They are adding new features pretty regularly.
2. Have you asked the guys here? http://finance.groups.yahoo.com/group/TOS_thinkscript/
I'd also like to ask - do you usually follow or fade big pre-market moves?
fabian, FWIW your roadmap matches mine.
QQQ hit a new intraday and closing high earlier this month. So did IYT. Beyond that, we have plenty of leaders like AAPL, AMZN, CMG, UA, etc., acting well. Time for the senior indices to follow the leaders (again).
DANG
OK, so the CEO setting a target price of $22 for his own stock is a bit kooky:
http://www.businessinsider.com/dangdang-ceo-says-his-firm-is-undervalued-sets-22-target-price-2011-7
...but it sounds like he based it on a PE of 150. At $22/share, that implies earnings of.14/share, which is significantly more than the current 2011 consensus estimate of .04.
Good to see someone else buying today. I bought EJ and added to CNTF. Sold out of most of my China small caps about a week ago, but still have some (like AMCN and DANG).
I haven't heard much discussion about EJ, but it's now selling for less than net cash + CRIC shares, completely discounting their profitable business and then some. CEO is buying shares again, just like he did last time the stock got too cheap.
EJ is also one of just a handful of China stocks with a safety rating over 100% in Rames' risk model:
http://www.fixyou.co.uk/tracker_srm.php?s=EJ
COGO has $134mm in credit from 4 different mainland and Hong Kong banks.
I have been investing in the space for maybe 6 weeks and so far have found it quite profitable. The key for me is to (1) keep a basket of them so you don't get hurt too badly if one crumbles and (2) focus on companies that look and act like real companies (mostly IPOs).
KEYP - take a look at these news releases. If a China small cap that was halted and left for dead by their auditor ends up clean, the prospects for this space suddenly become quite promising.
This looks like a run-of-the-mill consolidation to me, especially because this is opex week. Today finished a retrace down to max-pain levels.
BTW, lots of small-cap China IPOs (as opposed to reverse mergers) are acting well lately. Many were beaten down in all the fraud panic but sure look clean to me. Might be an area worth looking into if you are hoping to find multi-baggers.