China Growth Stocks

[ratobranco]

CCLTF - Beautiful Quarter. What a relief!

I was nervous, my fear was that they had a terrible quarter to report and had scheduled the warrant conversion after the report in order to ensure that as many people convert as possible. I almost sold some shares/warrants on Friday, but the price action convinced me not to. Very happy I didn't.

Assuming the conversion of all warrants, I get 1.10 in EPS for the 1st half. That's 2.20 for the year, or 2.7 P/E right now. Very strong.

Tempts me not to undo my conversion as well, but I still think I'm going to convert. The break even is around 10.00, and I just don't like the risk-reward of the stock reliably moving past that level given that there will almost certainly be a public offering and the warrant holders will no longer have Paul Kelley and Cheng Davis as voices on the board to protect them (since they have agreed to convert).