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hebercreeper

03/21/11 10:32 PM

#1878 RE: presence #1877

Yes, I think both will soon begin to attract the interest of some mild risk-takers despite the China RTO sickness. That being said, management needs to knock it off with the obscene raises as we are likely at a sub 1 2011 PE ratio here. I don't like the price of the offering last fall and expect .38 to be resistance on the way up. At least they weren't claiming huge cash reserves while at the same time raising capital like so many other US listed China firms.

With CSGJ, it's a great sign to see a private Chinese citizen lending such a large sum of money to the company. Perhaps management has a bit more visibility than the rest of us here. The increased capacity for a bit of 2010 and the first three months of 2011 should bode well as the Chinese RTO space implosion gives us the chance to buy under .30 before earnings. Not many RTO's have wealthy Chinese citizens providing funds, nor do many have the AAA China credit rating that we see from CSGJ (or so they claim).

There are so many catalysts here. Unfortunately, in this space, there are also a lot of risks. Being touted by some notorious IHUB pump and dumpers hasn't helped either...unless you're accumulating.