China Technology Global Corp (fka CTGLF)

[alan webber]

Time goes by and some get so jumpy

Some are making such bizarre scenarios as they are tired of the price sitting while the market in general is making a big rally.

Nothing seems so strange to me. I have wondered why someone would keep selling but even someone on this board said they sold 100k last week cheap to buy something else. (0.095 I suppose) and the next day that stock when up to 0.115. I imagine that there are many like him who have bought and held a while the sold to get into something else.

(My day trading or swing trading game is buying pullbacks of a hot stock – so after a huge volume run up I wait until it comes back to support and buy there so if I am wrong I can sell loosing a tiny bit. Anyway so often on the third day of a pullback as an example the stock will get near support and then huge volume comes in as the last panic sellers get out.. that is when I get in and I always wonder of their craziness for buying the highs and selling the lows) The person on this board did it last Thursday and sold the low instead of buying.

By the way - the 144 stock from the private placement last year was restricted and now it isn’t and they should file to sell any. We know that as of last year some of the buyers of private placement wanted their money back after the delisting. Maybe they sold – maybe their shares were not stamped restricted –

None of that really matters as there are buyers as is very clear as the stock has held to fair value during all these moths even with selling. 144 stock even when registered has a restriction, “After the one-year holding period, the number of shares you may sell during any three-month period can't exceed the greater of 1% of the outstanding shares of the same class being sold”

The point is though that at a PE of say 20 – when the company makes 1 cent a share the price would be 20 cents. They plan to make 1 cent by the end of this year. The PE 20 is not dependant on how many shares someone wants to sell. There will be plenty of buyers. I trade penny stocks a lot lately and when they get popular the volumes can be 20-30 million shares a day easily and on peak days double or triple that.

Once the 1 cent is reached then investors start to price in future gains so the PE gets based on forward projected earnings. If buyers think 3 cents is the next step then the price rises accordingly. A projection of 30% growth going to 3 cents as an example would take the PE to 30 and price to 90 cents. All of this is not important now – only to know that at the moment with no profits reported yet the price for such a large outstanding share stock is not at all unusual. Once they start reporting quarterly then confidence builds and so does the multiple.

Some think that MMs are “manipulating” - they are actually just selling what shares are given to them to sell or are shorting – however shorting makes no sense as is obvious as there are plenty of buyers at 10 cents for all the times it has tested. I added another 160k last week myself and did a friend. I know for sure where at least 2.5M are and suspect where another 1 – 1.5M are and they are not being sold for a long tiem unless some amazing fast thing happens such as a buy out or huge government contract etc.

Some one points to the MM open the price lower – gapping the stock down each day – and at the same time point to all the white candles. White candles are caused when the stock closes higher then the open. So in actuality the closing price is being “gapped up” and the opening is just staying where the real price was. There is a reason for this but will not explain now.

As has been stated many times – the company presentation lays out a multi year goal so look to 2006 and 2007 for the big rewards. If you even have say 500k shares and the company does as they expect and do 6-7 cents in the next 2-3 years then your stock will be worth a million bucks so this continual obsession with a couple of pennies now – when the company may not yet have become profitable is rather a waste of effort IMO.

You know that Dr. Fan met with some brokers or other prospective investors early in the year on his road show trip to the USA and he plans to return. I would not be surprised that some of those people are the ones who are doing all this buying.

It is silly again IMO, to talk of “proxies” of the company or Dr. Fan – is in charge of the company and Dichain Holdings and of Dichain Asia the partner etc… he sure does not need any more stock.


The report will come soon enough – as was mentioned CPICE filed this week and they have good sales and are almost profitable. That company can not be traded as the shares are so tight but I was able to buy all that was offered this week under 9. I have been the only buyer except for a buddy of mine for the last couple of months (except for s couple that slipped by me) as at some point it may be another AOB and could got back to a couple of bucks in a heartbeat as only 46M shares are outstanding. And the only pharma in the China Merchants Group stable. Anyway that also is a long term hold.

So if you do not want to wait then buy some shares of a company that is moving now as ther are tons. The market has been on fire since the end of April and should be ok (with a correction) until maybe mid September when it seasonal pullback takes place. So now is still a good time for speculative plays if you are looking for fast action.

If you want 500-1000% or more returns in the longer run though then this stock is fine as it has good support we are near now and new thing happening to drive growth and a report card for last year coming soon.


Conglomerates are confusing and the tight relationship between Dichain Holdings – Dichain Asia – former Dichain Software and now Dichain Technology leave the foor open for idle inquiring minds to make fun stories. In actuality many small companies do this when they are small so in the future they can have separate “divisions” and help each other.

On CNBC the other day a large company reported that their earning were a bit less because their raw material costs were higher but Mark Haynes or whoever said – “but you buy the raw materials from a company you own so don’t you get a discount? – He said no they paid full price so that each division was accountable to itself.

With CTGLF we have a young company with good backing and growing experience that plans on adding many divisions like the big company above and profit centers as they have outlined. Setting this up gets confusing and they have made some mistakes but they are making progress so give it some time if you are here for the bigger profits.

There are a lot of future buyers just waiting for the stock to break above the long term trend line on high volume above 20 cents chart - http://tinyurl.com/7fphw this is also the 200-day EMA so there will be some day traders wanting to sell there also. You may note the top Bollinger band has turned up so we expect some further upward pressure this week.