China Expert Technology, Inc. (fka CXTI)

[abh3vt]

Mike010173, have you looked at the possible impact of a private placement on CXTI? Its possible, given that the company has stated several times in SEC filings that it needs $10MM to complete its projects for this year and next. Of course, they could get advances from either the principals at the company or from the municipalities they will be doing work for......

That's the wild card out there for me that keeps me from making this one of my larger positions. I added recently in the 1.95 - 2.05 area (first buys were at 0.60). Haven't sold any of those yet.

I remember the AOBO debacle a year ago when they released decent earnings and then lowered the boom with the announcement of a PP far below what was then market price. Took about 8 mos for the price to recover, and fell as low as 1.02 in the process.

If you're interested in another China play that is much better capitalized, check out CNTF. I've mentioned it several times on the microcap value board. Earnings estimates have been cut recently, but they still expect strong growth in FY06 and recent results have been fantastic, with revenues nearly doubling in the first half of FY05 vs last year. CNTF earned 0.28 basic (ADR) and now trades at 9.30. Expected to earn 1.14 next year, up 30% from FY05 expectations, yet trades at 8x eps.