Replies to post #1420 on China Sun Group Hi-Tech Co. (CSGH)

[Ecomike]

Two of CSGH's customers, ABAT and CBAK are reporting huge growth in the lithium iron phosphate battery sector of their business and building huge new plants right now to expand their lithium iron phosphate battery manufacturing capacity, That confirms the CSGH news, in part it seems because is it is inherently better than cobaltic oxide, as far as rapid charge discharge rates "C" rates go, and as far as fire/explosion safety are concerned if the battery is impacted, like in a vehicle accident. And one of the major applications for the lithium iron phosphate batteries is vehicles, from scooter-bikes to buses and trains. One of the reasons I invested in these three companies (recently at the rock bottom lows) was I could see the benefits of the new lithium iron phosphate designs 3 years ago when they were first being introduced, and rapidly growing sales in that sector are now confirming my earlier conclusions. Also cobalt is more expensive than iron!

[Ecomike]

Looks to me like, with a little luck, we may get the chance to pick up more all time low cheap CSGH shares here by year end (maybe as cheap as .10/share?), perhaps when late year tax loss selling hits on a down day. I am gathering dry powder to add to my longs when that day comes. I am buying to hold long term for 2-3 years or more, maybe longer if the clouds over China stocks clears by then.

I also expect to see one last round of short article attacks on China stocks as the deadlines for audited annual reports arrives for most of them in March to May 2012. China stocks seem to have a hard time meeting US deadlines for annual reports as a group, and that seems to draw out mr. shorty, just as the spring rallies end and selling starts going into the summer. But they may be too cheap, under $1/share for shorts to bother with next year, in which case they may not get attacked again.

When the new China lithium iron polymer phosphate production plants are completed and go on line by year end (like ABAT's and CBAK's new plants being built right now, and note they are CSGH customers of the LiFePO4 material that CSGH has built a new plant for), and start shipping the new generation of large LiFePO4 polymer batteries for use in hybrid buses, and other large heavy duty road vehicles, the sales and profits on CSGH (who is supplying them with the raw materials) should spike nicely, and show up next spring in the quarterly reports. I plan to be a lot longer on share counts on all three stocks by then, especially CSGH.