SSK on ETLT and CXTI, I agree to most of your points but respectfully disagree on a few of your points (and I believe it's just a matter of personal preference/option)...
Not all business can grow fast rapidly all the time.. of course it's nice to have business grows.. solid cash cow business is sometime is not bad if the PE is very low... anyway in the case of CXTI they have been increasing profit and revenue and backlog also at record level so I'm not sure what news that trigger your sell recommendation when it hits $6 (and afterwards I believe it continue to go up to $7 and $8. but I admit that I was so dumb or greedy not even take any profit off a table after a 10 bagger.. lesson learned.)
ETLT also fit with a lot of the criteria that you mentioned.. growing profit year to year though might not be as fast as your criteria/want to be... balance sheet is solid (in fact P/cash is less than 1).. (whether the management is lying or not is a different questions) It will be absurd to say (though you are not implying it) that if ETLT stock price right now is $1 or $2, all of sudden their business becomes less risky (less chance of fraud).. I know the market is smart enough to know which one the bad apple is but theya re not always correct. AOB was one point at $1 for many years, and SGZI was under 15 cents for a long time as well..
SGZI has exactly similar attributes when I purchased it first time under 10 cents.. (price / book less than 1, profit on annual basis etc).. it is true that afterwards they manage to grow sales and profit hence the stock price is at what it is today.
My point is that if management want to lie (with CXTI as example), they can lie about the growing profit (and it's true it doesn't have to be china.. take HSOA for example..)
I agree however on your statement that some companies gives feeling of confidence to shareholder which is improtant and ETLT is not doing that for sure.. and that also lead me to a conclusion that I have to stop buying ETLT (been doing this for a while now) no matter how cheap it will get. the next step is of course when and if I should start selling slowly. I do have a lot of ETLT shares (130,000+ shares) and well aware that it can go to $0 anytime (just like cxti). now to think about it again, it's pretty scary to lose all that money that I invested in ETLT. I always tell people not to play with fire if they don't want to get burned and I need to apply that advice to myself. so far what keeps me in the stock is greed and the feeling of "what if" theya re telling the truth and they indeed make those money that they said they are making and eventually will increase to $1 or $2.. as they should be.. if everything they said is true.
JMHO
Stan
PS: Can AOB considered as a quality china company? how about LDK or PTR (though both are not microcap at all)?
