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Maybe the entire market was overextended, but ONP no more so than any other. It's not unusual to see a sell-off when the entire market sells off.
In fact, with 14.6M OS and 8M float there will be plenty of upward pressure if anyone wants the stock.
It looks like the US is putting Paul Volcker type leadership in place too.
You should consider that the stock market historically does better during Democratic administrations than Republican. Whether you wish to attribute it to coincidence or policies, the trend goes back a hundred years or more.
In nearly all indicators, both the stock market and economy in general do better during Democratic administrations.
OUCH
I can't find a quote. So many people waiting to buy, it hurts.
China's foreign reserves rise to $2.4 trillion, up 24 percent over 2008 despite global crisis
Friday January 15, 2010, 7:07 am
BEIJING (AP) -- China's foreign reserves, already the world's biggest, surged 24 percent last year to $2.4 trillion despite the global financial crisis, the central bank reported Friday.
China's reserves are closely watched in the United States, which is looking to Beijing to help finance its stimulus spending by continuing to recycle its trade surpluses into buying Treasury securities and other government debt.
The reserves grew by $453 billion in 2009, an even faster growth rate than the previous year, the central bank said. The reserves added $10.4 billion in December alone.
China's reserve growth is driven by its currency controls, which requires Beijing to buy dollars and other foreign currency that flows into the country in order to control the state-set exchange rate of China's yuan.
China, which overtook Germany last year as the biggest exporter, reported a $196 billion trade surplus for 2009.
Regulators also say foreign "hot money" is flowing into China for speculative investments in real estate and stocks, which the government is trying to stop.
China had $798.9 billion of its reserves invested in U.S. Treasury securities as of October, according to the U.S. government.
-----------------------
The pace of activity there is fantastic.
I agree with Fogel's analysis that China may be the most capitalist country on earth right now, especially with the government policies aimed at promoting domestic consumption. And (in stark contrast to Chanos) he believes "Chinese statisticians are severely underestimating economic progress," what with most small businesses rarely reporting to the government.
Plus, in this drive to increase consumption, some tend to forget that the rural population of China is still 700 million.
I think the hesitancy of Google or anyone to boycott China is because they don't want to be left out of what will be the world's dominant economy, which is a very important consideration.
The encouragement of private investment in publishing bodes well for a company like ONP which expects to quadruple production in two-three years.
The continued massive investment in alternative energy is incredible. Although initially still a good bit more expensive than fossil fuels, the Chinese may almost single handedly bring alternative energy into mainstream competitiveness (and even make it cheaper overall) than conventional fuels. Solar power systems in half of Beijing's schools by 2012? Large scale investments of every facet of alternative energy including more efficient lighting and power systems.
I didn't quite understand heating the inflight meals of airline passengers. Are they going to put PV panels on top of their airplanes? :)
China, one of the dirtiest energy producers, will become the leader in renewable, clean energies, not just because clean energies are needed, but because conventional fuels cannot satisfy the demand. This will likely be a worldwide phenomenon but China will probably be the leader, unless the US really gets it in gear. However, it's unlikely other countries can compete with the government aid given to the private sector in China.
China may see the example of Brazil which is self-sufficient in energy which means, in general terms, when you pay for energy it goes to in-country companies and the money circulates in the country, unlike, say the US, in which 57% of oil is imported and much of that money goes out of the country. So, despite higher initial cost of, say, solarizing their schools, long term it is cheaper and more beneficial for the economy and society (pollution which does not have to be dealt with or cleaned up).
(Disclosure: I own ONP, and several other China stocks:}
BDY shows as a US ADR: BYDDY.PK. You can also buy it on the Hong Kong exchange.
$87 a share. Sounds like Warren Buffett pricing? He bought 10% of the company in 2008. It went up 5 times in price and he bought more earlier last year...but the owner won't let Buffett buy more than 10%.
BYD is a battery maker. They "spent more than 10 years developing its own iron-phosphate-based lithium-ion technology without infringing on others' intellectual property." They bought a car company in 2003 and have manufactured conventional cars for a few years. As one of China's largest rechargeable battery makers they are combining the two areas to make electric cars.
The CEO says he wants BYD to become the world's biggest car company.
How about ONP, LPIH, XODG? No sell-off on those.
With a float of 8 million and 14.58M OS there are not many shares available so I don't see much reason for it to stagnate or backtrack, especially as the actual value of the company is rising.
Plus, if any institutions or mutual funds might want to buy..
The paper price bit might have been better explained but I still think it likely ONP could double or triple.
I like the facts that:
1)They have just gone to 100% recycled
2)close to major printing hubs
3)just beginning to get into digital photo paper (with 60% margins)
and that the production in 2008 was 170,000 tons, in 2009 250,000 tons and production is planned to be 1,000,000 tons by 2012.
Possibly more than quadrupling business in 3 years.
Howdy Bobwins,
I like the idea of paper batteries for hybrids and electrics.
http://physicsworld.com/cws/article/news/41267
I agree there's a lot of upside but I challenge the figures he gave on the money they make from paper. They sell paper products for double the cost of the raw used product but there are a lot of costs involved in recycling including the process, the machinery. employees, buildings, sales network, transportation, etc.
They are not taking $200/ton of used paper, just turning it around and selling it for $400/ton with no work, no processing, no machines, no chemicals, no employees, no buildings, no overhead, and no expenses.
Any idea where AKRK gets its cork?
China May Overheat With 16% Growth, Government Researchers Say
(which doesn't sound all that bad to me :)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aKubmz5QQxuw&pos=7
Hey MAN, you'll be SRRY if you don't put some GRVY on that. You will LUV it and have some CRZY FUN, otherwise you'll take a HIT and need MRFIX.
As mentioned in the article, in agreement with Dow, the economy's rapid growth may keep anything untoward from happening. There is a bubble, particularly in the larger cities, but what seem to me are key differences are cited in the article:
"..the total credit for the property sector in China has grown to 40 percent of gross domestic product; in the United States, it hit 80 percent in 2007. For Chinese banks, exposure to real estate is less than 20 percent of assets, much smaller than in the United States. That should reduce the chances of a banking crisis.
In addition, while property prices are soaring in such areas as Beijing and Shanghai, price increases are more modest elsewhere. Government statistics say housing prices nationwide rose only 5.7 percent last year.
Moreover, China's homeowners carry less debt than homeowners abroad and the economy's rapid growth can probably keep incomes rising fast enough to cover mortgage costs. Kroeber said that mortgages issued from 2002 to 2008 equaled only 40 percent of the value of housing sold nationwide."
Still, the breaking of even a minor bubble could have economic repercussions and cause market corrections.
Who's SRRY now?
In China, fear of a real estate bubble
Note: This article discusses both sides of the issue, reasons there might be a bubble and why the Chinese government is acting, and why it might be a minor bubble not comparable to real estate problems in the US and Japan:
http://www.washingtonpost.com/wp-dyn/content/article/2010/01/10/AR2010011002767.html
China amends renewables law to increase clean energy use
BEIJING, China 1/6/10 (PennWell) --
China has amended its renewable energy law, requiring utilities to buy all the power produced by renewable energy sources such as hydropower and wind.
The new measures were passed by the standing committee of China’s legislative body as an amendment to the 2006 renewable energy law, state-run media reports indicate.
The amendment forces state-run electric grid companies, responsible for distributing electricity from power plants, to buy electricity generated from renewable sources even when it is more expensive.
Power enterprises that do not comply will face fines based upon the loss of revenue caused to the renewable energy companies, state-run media reported.
China relied on coal for about 70 percent of its total energy last year, with renewable energy sources accounting for about nine percent. China’s goal is for renewable energy to account for 15 percent of its total energy consumption by 2020.
Under the amended law, the Chinese government is required to set aside a fund earmarked for renewable energy research. In addition, the government will finance energy projects in rural and remote areas.
http://news.xinhuanet.com/english/2009-12/26/content_12706612.htm
China amends renewables law to increase clean energy use
BEIJING, China 1/6/10 (PennWell) --
China has amended its renewable energy law, requiring utilities to buy all the power produced by renewable energy sources such as hydropower and wind.
The new measures were passed by the standing committee of China’s legislative body as an amendment to the 2006 renewable energy law, state-run media reports indicate.
The amendment forces state-run electric grid companies, responsible for distributing electricity from power plants, to buy electricity generated from renewable sources even when it is more expensive.
Power enterprises that do not comply will face fines based upon the loss of revenue caused to the renewable energy companies, state-run media reported.
China relied on coal for about 70 percent of its total energy last year, with renewable energy sources accounting for about nine percent. China’s goal is for renewable energy to account for 15 percent of its total energy consumption by 2020.
Under the amended law, the Chinese government is required to set aside a fund earmarked for renewable energy research. In addition, the government will finance energy projects in rural and remote areas.
http://news.xinhuanet.com/english/2009-12/26/content_12706612.htm
China Has Overtaken Germany as World's Biggest Exporter
China's exports continue to soar in 2009 overtaking Germany as the world's top exporter. The world's third largest economy next to Japan and the United States, China registered a GDP growth of 9.8% in 2008.
http://www.digitaljournal.com/article/285388
The 21st century belongs to China
http://www.nationalpost.com/opinion/columnists/story.html?id=c805a304-11f4-44fe-ac7c-e20229a1cac9
I was researching Chinese companies associated with the project but they appear to be state-owned. It's worthwhile to research to see if there is an investment angle, as China is a huge solar producer and market and there are hundreds of companies.
Although both CSP, this is a different system from eSolar. Andasol uses a parabolic trough system with a pipe running down the middle of the trough that is heated. It also has a molten salt storage facility.
eSolar uses the "solar power tower" concept which uses sun-tracking mirrors to focus sunlight on a central tower. The focused heat boils water and turns it into steam which runs a turbine. As the steam cools, it turns back to water which is reused.
It's not all high tech. eSolar is using a refurbished 1947 GE steam turbine generator.
Here's the US company with the China deals. They are backed by Google. The CEO is claiming he can make solar as cheap as coal. They've signed a number of deals for future plants and presently have one operating:
http://www.esolar.com/
Nice pictures on the site.
Weekend reading:
China's lobbying efforts yield new influence, openness on Capitol Hill
http://www.washingtonpost.com/wp-dyn/content/article/2010/01/08/AR2010010803710.html?hpid=topnews
Excerpt:
Ten years ago, U.S. lawmakers publicly accused the China Ocean Shipping Co. of being a front for espionage and blocked plans to expand its Long Beach, Calif., port terminal over fears that Chinese spies would use it to snoop on the United States.
By last year, Congress was seeing the state-owned Chinese behemoth in a far kinder light. Sen. John F. Kerry (D-Mass.) authored a resolution applauding the company for employing thousands of Americans and helping keep the waters of Alaska clean. Rep. Stephen F. Lynch (D-Mass.) hailed the firm on the House floor, calling its chief executive "a people's ambassador" to the United States after it rescued Boston's port -- and thousands of jobs -- when a European shipping line moved out.
The congressional about-face illustrates a dramatic increase in China's influence on Capitol Hill, where for years its lobbying muscle never matched its ballooning importance in world affairs. Members of Congress, lobbyists and other observers said China's new prominence is largely the result of Beijing's increasingly sophisticated efforts to influence events at the center of U.S. power -- and a growing realization among U.S. lawmakers that China has become a critical economic player across America.
It's a fascinating technology.
It might have some trouble getting big in China because of the circumstances described in the article, but the need for clean energy is so great the Chinese may go ahead anyway. They know building only coal plants will choke them to death.
Here are the companies not mentioned in the article cited in your post:
http://www.rechargenews.com/energy/solar/article203092.ece
http://www.latimes.com/business/la-fi-solar9-2010jan09,0,5577310.story
They appear to be private as far as I can tell.
Here's a list of China solar companies. It's an old article, and unlike what it says, nearly all the stocks listed have boomed since it was written:
http://chinesepubliccompanies.com/chinas-solar-dominance-actually-hurts-chinese-solar-companies-912/
Move the bee to the flower. Then bring the bee back to the hive to drop it off.
http://customflashgames.com/
"Update (1/6/2009): A majority interest in our site, platform, and in-production projects has been acquired this week. I cannot disclose the buyer yet but look for a press release this week."
The police didn't have the tail number? Lucky for you that thousands of fans, football players, officials, workers, security personnel, and police all had bad eyesight ;)
Strange and Wonderful Things:
Celestial Delights Signs Letter of Intent to Develop 300 MW Wind Farm in China
PHOENIX, AZ -- (Marketwire) -- 01/06/10 --
Celestial Delights USA Corp. (OTCBB: CLDS) (the "Company") is pleased to announce that it has entered into a Letter of Intent ("LOI") with Han Wind Energy Corporation ("HWE") in order to promote and develop wind energy parks in the area of Huitengliang, Inner Mongolia, China
The initial project consists of a development property encompassing an area of 188 square kilometers in size with a recorded average annual wind speed in excess of 8 m/s. The property is 62 kilometers from a large and growing urban centre which includes a mix of both residential and industrial consumers. Plans for the project include a phase 1 stage to install up to 48 MW of wind turbines, and phase 2 plans are projected to increase the installation upwards to 300 MW or higher based on future demand considerations
Recent legislation by the Government of China has mandated that all renewable energy projects are to be connected to the national electrical grid distribution network. This legal requirement provides a significant boost to alternative energy developers in general and specifically to the rapidly growing wind power sector. China has embraced a commanding role in the expansion of infrastructure and deployment of wind power solutions and as a result, the entire sector, from designers and manufacturers to all levels of government are working closely with wind farm proponents in order to expedite installations in regions identified for development of this natural resource
HWE brought the project to a certain point of development from 2005 through to 2008. Additional financing will permit the conclusion of wind studies, licensing and approvals to develop the proposed wind farm over which HWE had been originally granted wind farm development rights by the appropriate regulatory agency in China
Details of this agreement will be found as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission's ("SEC") EDGAR database
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended
Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies
These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission
ON BEHALF OF THE BOARD
Celestial Delights USA Corp
----------------------------- John J. Lennon, President
Chinese banks find their credit in high demand
By Ariana Eunjung Cha
Washington Post Foreign Service
Saturday, January 2, 2010
Excerpts from an interesting article. Chinese banks continue lending while Western banks have not done so. Another reason to invest in China:
BEIJING -- China's state-owned banks have become a main engine of the global recovery, financing the construction of copper mines, purchase of airplanes, expansion of retail stores and other projects even as their U.S. and European counterparts scale back lending.
The surge in Chinese lending, triple the 2008 rate, has provided a lifeline to international corporations during the worst recession in decades, and it reflects a diversification in China's global economic role beyond its holdings of vast amounts of U.S. government debt.
Over the first nine months of 2009, new lending by Chinese banks has injected $1.3 trillion into the world economy, according to statistics from the People's Bank of China, which functions as China's central bank. The beneficiaries have included U.S.-based Southwest Airlines, the Netherlands' Aercap airplane leasing company, Civil Aviation Authority in Dubai, and Foster's brewery and Woolworths supermarket chain in Australia.
China's banks have been signing so many new loan contracts so quickly that the country's banking regulatory commission recently warned them to avoid the "blind" pursuit of size lest they run into the same troubles as their Western counterparts.
The bulk of loans from Chinese banks are staying in the country, and the central bank has not released an official breakdown between foreign and domestic loans. But bank analysts who have reviewed the public data estimate that the amount going to overseas companies has doubled in the past year to represent roughly 11 percent of all new loans, a shift that would appear to reflect an effort by China to diversify its holdings beyond U.S. Treasurys.
As recently as five years ago, China's big state-owned banks were seen as old-fashioned, bureaucratic behemoths that could barely handle personal checking accounts, much less the complexities of international financing. But by the time the financial crisis hit in 2008, they were in a strong position, thanks to management shake-ups and an injection of capital from the Chinese government that helped them get rid of their nonperforming loans.
The biggest of the state-owned banks, the Industrial and Commercial Bank of China, is now the world's largest by market capitalization (although that status changes day to day) and the most profitable.
As of October 2009, Chinese banks held $5.8 trillion in outstanding loans, outpacing Japan, according to the International Monetary Fund. That figure reflected a 22 percent increase over the first 10 months of the year, a period in which outstanding loans held by U.S. banks shrank by 7 percent, to $6.7 trillion, and loans held by European banks stayed flat, with little in the way of new lending.
Loans as stimulus
The bank loans are a key part of China's $586 billion stimulus package, often nicknamed the country's "New Deal." While the stimulus is largely directed at domestic infrastructure projects like highways and bridges, it is also helping inject large amounts of liquidity in other countries around the world. According to an analysis by Bloomberg, seven Chinese banks made syndicated loans overseas in the first 10 months of 2009 as compared with three in the first 10 months of 2008.
"China's banking industry is operating well, without being affected by the crisis. In contrast, the banks in the West lost a lot, and therefore their capacity to make loans was influenced and became lower," said Guo Tianyong, director of the Chinese Banking Research Center at the Central University of Finance and Economics in Beijing.
With Citibank, HSBC and other traditional lending institutions sidelined by their own internal problems, Chinese banks jumped in and took their place in a number of important transactions.
"In the past year, Chinese banks made many top headline deals. In good times, such deals would not have fallen into the hands of Chinese banks," said Fan Bing, chief China representative of South Africa's Standard Bank Group, which signed a $1 billion loan deal with four Chinese banks in September.
http://www.washingtonpost.com/wp-dyn/content/article/2010/01/01/AR2010010101994.html?hpid=topnews
This is not a hard cutoff for picking stocks. This is just one of several lists that might be made. I am personally interested in finding the best potential under $1 stocks.
I also buy stocks over $1.
Nearly all the stocks mentioned so far have been discussed to some point on the board. I don't think anyone has pretended they are anything but risky.
As I mentioned, a lot of the stocks we now discuss over $1 were under $1 just six months ago or more. I bought a number of them under $1.00.
I don't think the Chinese economic expansion has ended and I think there will still be some gems under $1.00.
I do not own any of the stocks currently nominated but I know some people, like jo teng :) do.
In fact, at this moment, I own no Chinese stocks under $1.
Yes, that's true, but many of the higher priced stocks now discussed on the board were under $1 last year.
I bought LPIH, ONP, CKGT, and several others under $1.00 last year. I bought LPIH originally at .395, CKGT at .66, OPN at .38 pre-split, PUDA at .88 pre-split,
They are all risky, but that's part of the point: high risk/high reward. The fun is seeing which companies might follow the same path as the successful ones.
You think GHII is a top ten pick for small caps under $1?
From my experience I'm not inclined to list it as a top ten candidate. But if enough posters want, we'll put it on the list before a vote.
ECSC Top 10 Under $1.00 Nominations so far:
-- PPS -- OS
CHCG .50 54.8M
JADA .68 80.0M
XNYH .27 19.5M*
PFGY .35 29.6M*
SNBP .215 80.0M
CHHE .65 62.2M
CSGJ .69 27.0M*
SCLX .51 101.3M
CSOL .34 16.2M*
CHBU .41 13.0M*
CGDI .38 35.5M*
SGAS .75 26.8M*
CHGY .82 45.0M*
SRRY .33 23.0M*
FEEC .46 173.8M
CCGY .51 31.5M
ECSC Under $1.00 top 10 Nominations so far:
CHCG
JADA
XNYH
PFGY
SNBP
CHHE
CSGJ
SCLX
CSOL
CHBU
CGDI
SGAS
CHGY
SRRY
FEEC
When offering candidates for the ECSC Top Ten under $1.00 it would be helpful to give the current price and OS and float if possible.
If they drop maybe we will consider them.
I'm focused on the ECSC under $1 top ten right now, but I think we might also do separate lists $1-$2, $2-$5, and above $5.
That's an interesting plan, but don't overcommit yourself. lol
Why not just pick your top 3 of the ten?
Done.
I know there are a bunch of them. I think SCLX had some fans at one point as well. There are zillions of solar companies in China now so picking one small one that might be successful is difficult.
Anyway, we're looking for a top ten. If there is not enough consensus we might go with a top five.