Value Microcaps Pick Six Lotto 14

[steeledge]

NSOM challenge:

I can't remember the last time my PSL picks didn't have a heavy dose of China stocks, and I can't see a reason to stop now. It's getting tougher to find the gems with bagger potential, but I feel that the picks below all maintain that potential. If I could have picked warrants, that would have been even better! And now to the picks...


SRRY.OB - This little china recycler has done .07 EPS the previous 9 months, and I'm thinking will end up with .09 for 2009. There's impetus for '10, which could push EPS up to say .12. For a stock trading ~.40, in a sexy green China sector, count me in. Looking for an astounding 100% return in the PSL14 timeframe.

CCME - This probably the most hyped (and justly so) SPAC deal I have ever seen on the China front. It's currently suffering from warrant overhang which will end ~1/29, and after that I expect a strong run, maybe 50%. Great growth and EPS are coming, even considering the warrant dilution.

XNYH.OB - In the financial printing industry in China. Not sexy, but there's value here in XNYH. This is one of those "it hasn't been found yet" type of plays, and if they can post some decent #'s, it's a doubler. I'm expecting appreciation up to about .40/sh, or just over 50%, in the PSL14 timeframe.

CBTE - a true wildcard pick due to its dependence on factors outsided of its operations. Here's the thesis: If the merger with its Chinese peptide partner goes thru, I'm expecting 150% return (stock to trade up to about 1.50)...if it doesn't, it'll drift for a loss of about 80% i would think. The shareholder vote should be a no-surpriser, but CBTE has always been a bit of a disappointment! (and we don't know when the vote is going to be!)

CHBU.OB - Is there a hotter theme than China fertilizers? This one and the one below (CIHD) are really the two least-known. CHBU has a slight scent of scam in it, but I don't know that for sure obviously. Loaded with cash, they need an uptick in their organic fert biz to really get people interested. At around .50, I figured this could either do nothing, or pull in 100%. I'll settle for 50% for PSL14.

CIHD.OB - This chinese specialty chemicals play generates most of its revs from fertilizer, but has some backend biz in snow-melting agents and now thiophene (they recently got an order from Sanofi-Aventis for thiophene's use in their pharmaceuticals). The real reason to own CIHD has to do with a few interesting non-operating factors: 1) Uplist coming, 2) CAGC has been CRAZY, and CIHD is thin enough to get some CAGC players once uplisted, 3) Rodman Renshaw is behind CIHD just like they are CAGC. I"m excited for this one but have no idea where it will go and in what timeframe. If it gets uplisted in PSL14 timeframe, I'm thinking 50% is probable, but it could get crazy.