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Newly trading Chinese co. IPO HTHT $13.94 started Friday:
UPDATE 4-China Lodging surges in stock market debut
Fri Mar 26, 2010 4:17pm EDTStocks
China Lodging Group, Ltd
* Shares rise as much as 27 pct above IPO price
* Company rents budget hotel rooms through three chains (Adds comments from hotel guests, background, details about hotels)
By Farah Master and Clare Baldwin
SHANGHAI/NEW YORK, March 26 (Reuters) - Shares of discount Chinese hotel chain China Lodging Group Ltd (HTHT.O) rose as much as 27 percent above their initial public offering price on Friday as investors bet that rising incomes in China would increase travel.
The shares opened at $13.62 and rose as high as $15.50 in their Nasdaq debut. They closed at $13.92. The company sold 9 million American Depositary Shares at $12.25 each on Thursday, raising $110.25 million.
China Lodging Group rents budget hotel rooms in China through three chains. Its website, ir.htinns.com, sports photos of hotel rooms, including one with bunk beds.
Most of China Lodging's hotels are in big cities in the industrialized eastern part of the country, where business travelers have helped to ratchet up the market for budget hotels, analysts said.
Lily Ng, a senior vice president at Jones Lang LaSalle Hotels in Shanghai, said domestic as well as foreign travel may increase in China.
"Traveling among Chinese is also becoming more frequent as incomes increase. Another factor driving hotel demand is increasing commercial and trading activity, which is spurring the development and expansion of companies in China."
As China's hotel sector expands, analysts have expressed concern that growth could be too rapid, leaving a glut of rooms without sufficient demand.
Media inside China have reported that the Chinese government could take steps to cool the hotel sector.
When China wanted to slow growth of its real estate sector, the government said it would require some large state-owned enterprises whose core business was not in the property sector to withdraw from the business. [ID:nN21134343]
LEGAL QUESTIONS
China Lodging, sharing characteristics with other Chinese IPOs, said in its prospectus that it might not be in compliance with certain Chinese laws.
It wrote in its prospectus that it does not hold land-use rights for any of its properties, and it holds some leases without the permission of the property owners or government authorities. It also wrote that it may be afoul of labor law.
In the run up to China Lodging Group's IPO, IPOfinancial.com President David Menlow said such non-compliance issues were apparently not a major concern, given that Goldman Sachs (GS.N) and Morgan Stanley (MS.N)were proceeding with the offering.
The company's founder and executive chairman, Qi Ji, also has experience in the industry, having co-founded online travel services provider Ctrip.com (CTRP.O) and Chinese discount hotelier Home Inns & Hotels Management Inc (HMIN.O).
"OKAY HOTEL"
China Lodging runs three hotel chains in China: HanTing Express, its main chain; HanTing Seasons, its premium chain; and HanTing Hi Inn, its discount chain.
At a Seasons hotel in downtown Shanghai, for example, rooms rent for 300-400 yuan ($43.95-$58.60) a night. The hotel is less than a four minute walk from a shopping mall and subway.
Aimed at mid-level executives and business owners, a room at the Seasons features modern wooden furniture, a black leather chair and large windows.
"It is not bad. It is quite an okay hotel, better for young people. We chose it because our conference is just opposite. It is clean, good for a short trip," said Zhang Lihun, 46, who works in the export business and was in town for a three-day conference.
Another guest, 30 year-old software company employee Guan Kun, in Shanghai for two days, said the hotel was loud at night and he could hear street noise, but the location was convenient.
The hotel group aims for broad appeal, not just business people, and this is reflected on its website, which features an animated cartoon horse.
An employee of China Lodging Group explained that the horse is a nod to the chief executive, who was born in the year of the horse. "It is representative of Chinese history and symbols," the employee said. (Reporting by Farah Master in Shanghai and Clare Baldwin in New York; Additional reporting by Lee Chyen Yee and James Pomfret in Hong Kong; Editing by Toni Reinhold)
tuna
From the street mentioning Chinese CGSH $1.28 close:
Alert: CGSH $1.28 just out this morning:
Top 50 Most Undervalued Stocks of 2010
By Zack Buckley 03/29/10 - 08:49 AM EDT
Stock quotes in this article: EAR , DJSP , CSGH , BFAR.OB , SKBI , BSPM.OB , CHGY.OB , CHBT , LPIH.OB , JADA.OB
This is the first part of a series.
After researching more than 5,000 companies, we've come up with 50 stocks that we believe to be the most undervalued. While we don't know where they will be in the next year, as we cannot predict the market, we believe in the next five years investors will be very rewarded by purchasing these stocks. The purpose of this series isn't to go into great depth on the greatest opportunities in the world, but to cover enough to prove that listening to us in the future is worth your time. We will guarantee we've done much more research than our cursory summaries show. We are so emphatic about the prospects for these companies that we're going to China this summer to visit these firms. We obviously don't like our 50th choice as much as our first, so we have created a tier system for the companies. While we think they are all great buys, the articles are tiered beginning with our favorite companies and ending with slightly less attractive but still very undervalued companies.
Our first company is HearUSA(EAR), a potential buyout candidate, and only an $80 million concern. Siemens(SI) has 600 million euros to purchase a company and can't purchase any company that competes with HearUSA. You do the math. HearUSA also is expanding its business across the U.S.
Another U.S. company is DJSP Enterprises (DJSP), our last U.S. company in the top 50. It services foreclosures in Florida and is expanding across the country. As we all know, foreclosures are sky high in Florida and high across the rest of the U.S. The price-to-earnings ratio right now is about 5.
China Sun Group High-Tech (CSGH) is a battery manufacturer in China with three main products -- cobalt carbonate, cobaltosic oxide and lithium cobalt oxide -- used in the production of lithium-ion batteries. It has a P/E of 8.33. For fiscal 2008, the company saw revenue growth of 46% and net income growth of 27%.
Biopharm Asia (BFAR.OB) is trading at a P/E of 4 and expanding quickly with 22% revenue growth in 2008. The company has its own line of Chinese traditional medicines and also is a distributor of pharmaceuticals. The stock seems too cheap not to own.
tuna
Alert: CGSH $1.28 just out this morning:
Top 50 Most Undervalued Stocks of 2010
By Zack Buckley 03/29/10 - 08:49 AM EDT
Stock quotes in this article: EAR , DJSP , CSGH , BFAR.OB , SKBI , BSPM.OB , CHGY.OB , CHBT , LPIH.OB , JADA.OB
This is the first part of a series.
After researching more than 5,000 companies, we've come up with 50 stocks that we believe to be the most undervalued. While we don't know where they will be in the next year, as we cannot predict the market, we believe in the next five years investors will be very rewarded by purchasing these stocks. The purpose of this series isn't to go into great depth on the greatest opportunities in the world, but to cover enough to prove that listening to us in the future is worth your time. We will guarantee we've done much more research than our cursory summaries show. We are so emphatic about the prospects for these companies that we're going to China this summer to visit these firms. We obviously don't like our 50th choice as much as our first, so we have created a tier system for the companies. While we think they are all great buys, the articles are tiered beginning with our favorite companies and ending with slightly less attractive but still very undervalued companies.
Our first company is HearUSA(EAR), a potential buyout candidate, and only an $80 million concern. Siemens(SI) has 600 million euros to purchase a company and can't purchase any company that competes with HearUSA. You do the math. HearUSA also is expanding its business across the U.S.
Another U.S. company is DJSP Enterprises (DJSP), our last U.S. company in the top 50. It services foreclosures in Florida and is expanding across the country. As we all know, foreclosures are sky high in Florida and high across the rest of the U.S. The price-to-earnings ratio right now is about 5.
China Sun Group High-Tech (CSGH) is a battery manufacturer in China with three main products -- cobalt carbonate, cobaltosic oxide and lithium cobalt oxide -- used in the production of lithium-ion batteries. It has a P/E of 8.33. For fiscal 2008, the company saw revenue growth of 46% and net income growth of 27%.
Biopharm Asia (BFAR.OB) is trading at a P/E of 4 and expanding quickly with 22% revenue growth in 2008. The company has its own line of Chinese traditional medicines and also is a distributor of pharmaceuticals. The stock seems too cheap not to own.
From TheSteet.....
Hope so Joe!! Enjoy your Sunday evening...tuna
Thanks Joe...it did...better than Friday in the market for sure...haha! Hope you also had a good one and that you and the rest of us have a good week ahead in the market too! tuna
MILL looking great wick! All the best with it for all of us in! tuna
Yeah wick...I sold the WSCI I had but glad I have some MIll and wish I also had more...haha! tuna
Yeah wick...I have 2k shares of MILL...thanks! Hope it makes new highs this week also! Thanks....tuna
You're welcome baroness...I was surprised CREG dropped today after just 2 days of rallying, but I get surprised a lot in the market...haha! tuna
CREG 6.02 +.12 STV 7.39 +.09 early here...CREG needs to break 6.16 for a new 52wk high...tuna
Thanks Mikey for CREG info! Nice.....tuna
Chinese CREG's 52wk high is 6.16 so a break of that would likely pop it nicely if we continue to get strong volume in it as we have these last 2 "green" days...tuna
Right Joe...hope CHINA and these other Chinese companies like CREG STV YTEC CHGI NEWN CYXN and others I'm in pop today for us! tuna
Okay baroness...and nice on EWPI and SMCE also! tuna
Also Chinese STV 7.30 is just .06 from it's 200dma so may pop soon imho...tuna
Chinese CREG now 6.00 x 6.09 bid/ask closed 5.90 best so far today!!
With Hang Seng +1.3% some of my Chinese stocks may do well...holding: CREG STV YTEC CHGI CYXN NEWN CSGH and EBIG which isn't Chinese but brings Chinese companies onto U.S. exchanges for fees plus stock and then gives us shareholders dividend shares in those Chinese companies...kind of cool! All the best everyone...won't be around much today, but good luck and enjoy the weekend also!! tuna
Hang Seng +1.3%...CREG 5.90 looking up, STV 7.30 just .06 from 200dma may pop soon also of the Chinese stocks I'm in...wishing all a good day and weekend coming!! tuna
It sucked baroness! Haha! Chinese CREG 5.90 may do well with Hang Seng index up 1.3% overnight! I'm also in a few other Chinese companies: CHGI CYXN NEWN CSGH STV YTEC and EBIG which though not a Chinese company, EBIG gets young Chinese companies onto U.S. exchanges for fees plus stock in those companies and then give their shareholders dividend shares in them for free!! Cool...I added CRXX back at 1.39 late yesterday after they posted .57 vs a loss for the last Q reported in PM yesterday. Hope your day is a good one...won't be around a lot unfortunately but have a great weekend also!! tuna
Thanks for GRRF and CHINA mentions...nice on both Joe...won't be around a lot today unfortunately so probably little trading...wish you the best today!! tuna
Hang Seng +1.30% Nikkei +1.6% may bode well for Chinese stocks again today! In CREG NEWN CHGI CYXN CSGH YTEC STV and EBIG which brings Chinese companies to U.S. exchanges for fees and stock in the IPO's, which in turn EBIG gives dividend shares in these companies to their shareholders of record for "free"!! tuna
Chinese CREG 5.90 close bid 5.95 x 6.10 in PM here...w/6.16 the 52wk high! Up last 2 days on strong volume and more upside coming imho for this fast growing and profitable Chinese stock that just uplisted to Nasdaq Monday of this week...tuna
WSCI $2.52 close earnings out in AH .01 vs -.11 for Q...got a mention on Briefing.com late yesterday. Only 2.77 mil. shares in the float with just 2.88 mil. outstanding and a book value of $3.18 so trading under B.V. And head $2.45 mil. in operations cash flow all stats per Yahoo. Here is the Q report:
Press Release Source: WSI Industries, Inc. On Thursday March 25, 2010, 5:00 pm EDT
MINNEAPOLIS--(BUSINESS WIRE)--WSI Industries, Inc. (Nasdaq: WSCI - News) today reported sales for its fiscal 2010 second quarter ending February 28, 2010 of $4,060,000 versus the prior year amount of $4,001,000. Year-to-date sales for the six months ended February 28, 2010 totaled $8,314,000 versus $10,037,000 in the prior year. The Company recorded net income of $28,000 or $.01 per diluted share in the fiscal 2010 second quarter as compared to a net loss of $307,000 or $.11 per diluted share in the prior year quarter. For the year-to-date period ended February 28, 2010 the Company’s net income totaled $132,000 or $.05 per diluted share as opposed to a net loss of $206,000 or $.07 per diluted share in the prior year-to-date period.
Michael J. Pudil, chief executive officer, commented: “We are encouraged by our bottom line results in our fiscal 2010 second quarter. Our net income of $28,000 versus the prior year loss on similar sales volumes can be attributed in part to the steps we have taken over the past year to streamline our cost structure.” Pudil went on to say: “Our overall sales remain mixed. We had some encouraging signs in our fiscal second quarter with our ATV and Motorcycle business which experienced an increase in sales over the prior year quarter, but our total sales were hampered by lower sales from our energy sector.”
Benjamin Rashleger, president and chief operating officer, added: “We continue to remain focused on executing our strategy to expand our business. We recently announced the addition of Lars Ossmo as a business development manager with our sales and marketing group. Mr. Ossmo’s primary responsibility will be to find new sales opportunities for WSI and, with his addition, we now have five individuals on our sales and business management team. We are confident that we have the right balance of people to best allow us to focus on generating new opportunities for WSI, as well as take care of our existing customer base.” Rashleger continued: “It is critical at this time of economic uncertainty to remain diligent in our business development efforts and to promote an environment focused on growth while providing a wide range of tools to our business development managers to aid in their search for new business opportunities. We are making good progress in revamping our branding and marketing communication strategy, and our intention is to develop a brand platform that will put WSI at the forefront of our industry. Included in our marketing and branding strategy is a complete redesign of our website to make it current with the latest technologies, as well as to better communicate and promote our key strengths, values and capabilities. We anticipate our new site will be launched in the next few months.” Rashleger concluded: “Coinciding with our new business objectives is a continued focus on operational excellence. We are consistently evaluating and working to improve our internal systems and processes to insure we are providing a superior value to our customers.”
WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense markets.
The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.
WSI INDUSTRIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
In thousands, except per share amounts
Second quarter ended First six months ended
February 28, March 1, February 28, March 1,
2010 2009 2010 2009
Net Sales $ 4,060 $ 4,001 $ 8,314 $ 10,037
Cost of products sold 3,402 3,809 6,874 9,019
Gross margin 658 192 1,440 1,018
Selling and administrative expense 531 558 1,061 1,140
Interest and other income (9 ) (4 ) (17 ) (10 )
Interest and other expense 92 117 190 210
Profit (loss) from operations
before income taxes 44 (479 ) 206 (322 )
Income taxes 16 (172 ) 74 (116 )
Net earnings (loss) $ 28 ($307 ) $ 132 ($206 )
Basic earnings (loss) per share $ 0.01 ($0.11 ) $ 0.05 ($0.07 )
Diluted earnings (loss) per share $ 0.01 ($0.11 ) $ 0.05 ($0.07 )
Weighted average number of common
shares 2,800 2,789 2,797 2,787
Weighted average number of
dilutive common shares outstanding 2,800 2,789 2,797 2,787
CONDENSED BALANCE SHEETS (Unaudited)
In thousands
February 28, March 1,
2010 2009
Assets:
Total Current Assets $ 8,188 $ 7,974
Property, Plant, and Equipment, net 6,991 8,044
Intangible Assets 2,915 3,005
Total Assets $ 18,094 $ 19,023
Liabilities and Shareholders' Equity:
Total current liabilities $ 4,394 $ 3,884
Long-term debt 4,445 6,264
Shareholders' equity 9,255 8,875
Total Liabilities and Shareholders' Equity $ 18,094 $ 19,023
Contact:
WSI Industries, Inc.Michael J. Pudil (CEO), 763-295-9202orBenjamin Rashleger (President), 763-295-9202orPaul D. Sheely (CFO), 763-295-9202
tuna
Yeah...I had TRIT in the 14's awhile back wick! I saw WSCI earnings were picked up by Briefing.com this evening. Would have been a better effect if written up in the morning but still may pop it a bit as the earnings were positive vs -.11 same Q last year. Also I noticed the float is just 2.77 mil with only 3.88 mil OS. And the Book Value of $3.18 so the stock isn't even selling at BV here...could be interesting in the morning! tuna
Thanks Duster...I agree with you on CREG's nearterm upside potential...I'm patiently waiting...best of luck on all your stocks! tuna
Yeah on MILL wick...CREG 5.90 +.25 running hard too!!
Chinese CREG 5.88 +.23 late SURGE!
Chinese CREG 5.88 +.23 late rise here...tuna
Chinese CREG 5.78 late pop here!!
BLGW .99 +.04 new HOD!!
Appreciate it wick...will take a look! tuna
Yeah Joe...CHINA doing fine today!
EBIG .15 x .159 here...company gives dividend shares to it's shareholders as they bring Chinese companies public in the U.S. markets...win - win situation! tuna
Added CRXX back at 1.39 for overnight w/.57 Q4 earnings vs a loss...who knows maybe they'll get an upgrade in the morning...seems worth more than this imho...tuna
Added more CRXX for overnight hold...would love an upgrade in the morning...haha!
Make that 5.77 x 5.78 on CREG w/nearly half a million volume...big for this stock!! tuna
Chinese CREG 5.75 x 5.77 ut'ing here...NASDAQ newbie this week that is growing revs and earnings rapidly!
BLGW .965 +.015 at HOD w/news on rapid growth in the U.S. today!
Back in CRXX 1.39 +.13 w/.57 per share in Q4 vs a loss reported this morning...tuna
Thanks for the info Joe...tuna