super-trades.com

Great ADES article with $50 Target

2012-01-26T02:46:00.000-08:00

ADA Environmental Solutions Benefiting From EPA's New Coal-Fired Power Plant Regulations

"Based on our estimates, the share price can easily trade from the current share price of $20 to $50/share in 2012."

Read ADES Article on Seeking Alpha

Accumulating LIVE in the low $3's for a hold

2012-01-23T07:12:00.000-08:00

New CEO is taking $1 salary. Effective as of January 20, 2012, the Company appointed Jon Isaac to serve as its President and Chief Executive Officer. Mr. Isaac was previously appointed to the Company's Board of Directors on December 12, 2011. Although the Company has not entered into a written employment agreement with Mr. Isaac as of the date of this filing, he will be paid an annual salary of $1 for his services as President and Chief Executive Officer and also be eligible to receive bonuses in such forms and amounts as may be determined by the Company's Compensation Committee in its sole discretion.

Mr. Isaac, 29, is founder of the Isaac Organization and head of Isaac Capital Group, a privately held investment company. In that capacity, Mr. Isaac has closed a variety of multi-faceted real estate transactions, including transactions involving the U.S. federal government and publicly traded companies. Mr. Isaac also has experience in aiding publicly traded companies in implementing turnarounds and in raising capital. Mr. Isaac studied economics and finance at the University of Ottawa, Canada. Read Filing

His firm just bought a 17% stake. Read Filing

The filing says this is why : Item 4. Purpose of Transaction
ICG acquired the Shares to change the composition of the Issuer’s board in the belief that the Issuer and its shareholders would benefit from the diversification of the Issuer’s business. ICG intends to diversify the Issuer’s business, and may seek suitable acquisition candidates through acquisition, merger, reverse merger or other suitable business combination method and/or to restructure the Issuer into a holding company by merger into a subsidiary.

This is the fund's website : Isaac Fund Website

Why ESTE may be the Next Big Oil Momentum Stock

2012-01-06T03:08:00.000-08:00

Years ago when oil stocks were strong, I picked a low float oil stock on the AMEX PDO at $5. In a few weeks it hit $45. Is ESTE may be the Next Big Oil Momentum Stock?

Earthstone Energy, Inc.(ESTE) has only 1.7m shares outstanding and a public float of 1.2m.

ESTE had EPS for the last 6 months of $0.81. The oil revenue for the last 3 months has been booked at an average price of $87 per barrel of oil and they did $0.43 EPS for the quarter. (Recently oil is over $100 per barrel). Reserves increased 2% and the Company has been investing in new Bakken wells participation. Read 10-Q

The Company is expanding with new wells in the Bakken territory (where they mostly reside) and is partners with some of the major Bakken oil players CLR and BEXP.

Recent comment from their President in a press release:

"The Company expects to continue its strategy of participating in drilling non-operated, horizontal wells which now includes both the Bakken and Three Forks formations." Singleton continued, "The next few quarters should prove to be exciting. In addition to the new wells mentioned above coming on production, we are evaluating two non-Bakken opportunities which could positively impact the Company's reserves and production and hope to announce progress on these ventures in the future. With numerous efforts both underway and in the planning process, we eagerly anticipate increasing the Company's profitability and cash flow." Read Press Release

Bakken oil stocks have been very strong as of late. Domestic oil production is a theme growing stronger each day. KOG, CLR, NOG are 3 of them.

CLR is at $75 and is expected to do $2.53 EPS this year for a P/E of 29 See Numbers

KOG is at $10 and is expected to do $0.25 EPS this year for a P/E of 41 See Numbers

NOG is at $25 and is expected to do $0.63 EPS this year for a P/E of 40 See Numbers

Let's assume that ESTE only conservatively doubles first half EPS to end the year at $1.62 EPS. Applying the P/E ratios of CLR, KOG, and NOG would give ESTE a price range of $53 to $75. It is currently at $16. Throw in the fact this has a minuscule float and number of outstanding shares and that is why I think ESTE has potential to be the next big oil momentum stock. I am long at $15.75.

Low float stocks can be volatile and dangerous and are not for chasing or large positions in my opinion.

ADES - DD in at $19.91

2011-12-02T00:03:00.000-08:00

ADA-ES Provides Update on Progress with Refined Coal Activities
First Three M45 Facilities Successfully Placed in Service

Press Release: ADA-ES, Inc. – Tue, Nov 29, 2011 4:27 PM EST

LITTLETON, Colo.--(BUSINESS WIRE)-- ADA-ES, Inc. (NASDAQ:ADES - News) (“ADA”) today provided an update on the progress of Clean Coal Solutions, LLC (“Clean Coal”), its joint venture with an affiliate of NexGen Resources Corporation and an affiliate of The Goldman Sachs Group, Inc. Clean Coal is marketing two different technologies, CyClean and M45, both of which reduce emissions of NOx and mercury, and qualify for IRS Section 45 tax credits of over $6.33 per ton of coal.

To date, Clean Coal has installed and operated 15 Refined Coal (“RC”) facilities, consisting of both CyClean and M45 technologies, at various utility sites, with three more RC facilities scheduled to be qualified by the end of next week. ADA expects that each of these 18 facilities will satisfy the “placed-in-service” requirements from initial operations, which would make these facilities available for full-time operation in 2012 and qualify for the IRS Section 45 tax credits for a ten-year period. Clean Coal’s goal is to install and operate up to eight additional RC facilities by year-end, for a total of 26 facilities installed in 2011.

After initial operation, it takes an average of approximately six months to obtain permits for full-time operation, secure necessary approvals from Public Utility Commissions and complete all necessary contracts. If all planned RC facilities become fully operational, which we expect to occur throughout 2012, they should produce a total of more than 40 million tons of RC per year. At this level of production, ADA expects to generate pre-tax income of approximately $50 million per year after payments to minority partners for the 10-year life of the tax credits. Based on continued progress with permitting and contract negotiations between the lessees of the facilities and the utilities where the facilities are sited, ADA hopes to have several of these additional facilities processing more than 15 million tons of coal per year in routine operations within the next two months.

Clean Coal is financing the construction and installation of the new RC facilities with a $15 million line of credit with a commercial bank, internal cash flows of approximately $20 million per year from the first two RC facilities in operation since June 2010, and deposits received to secure participation in the facilities. To date, Clean Coal has received $11 million in deposits from the likely lessees.

Success with M45 Technology
Included in the 26 new facilities expected to be installed by year-end are six facilities designed to operate using ADA’s new patent-pending M45 technology. In September, ADA announced it had successfully demonstrated this new technology for producing RC that complements and expands Clean Coal’s market for RC beyond the patented and currently operating CyClean technology, which is limited to cyclone boilers. In November, ADA signed a non-binding term sheet granting an exclusive license of M45 to Clean Coal. The exclusive license that would result from the expected definitive agreement will include a royalty based on a percent of operating income on future production of M45 RC and prepaid royalties up to $10 million, in addition to ADA’s 42.5% distributions from the JV.

Over the past few weeks, ADA has successfully placed-in-service three RC facilities based upon the M45 technology. This includes the first system off the line designed exclusively for M45 and two facilities originally built for CyClean. In the full-scale operation of these facilities, the M45 technology demonstrated mercury removal over 40% and up to 70%, and NOx reductions over 20% and up to 30%. The capability of using CyClean facilities with the M45 technology gives Clean Coal greater flexibility in deciding where to locate the plants, increasing the potential RC production.
Dr. Michael Durham, President and CEO, stated, “We have established a very aggressive schedule for optimizing RC opportunities and are making great progress getting these facilities installed and operating. These business opportunities do not depend upon any new environmental or tax regulations. The current 10-year tax credits do not require any additional approval by Congress, which provides us with confidence that CyClean and the M45 technologies will generate long-term cash flows.”

The Company will be presenting this update at the 2011 Baird Clean Technology Conference at 2:15 pm Pacific Time on Wednesday, November 30, 2011 at the Four Seasons Hotel in San Francisco, CA. A copy of the slides will be available via the Investor Information section of ADA’s website at www.adaes.com. The presentation slides will also be filed as a Current Report on Form 8-K with the U.S. Securities and Exchange Commission on or before November 30, 2011.

About ADA-ES
ADA-ES is a leader in clean coal technology and the associated specialty chemicals, serving the coal-fueled power plant industry. Our proprietary environmental technologies and specialty chemicals enable power plants to enhance existing air pollution control equipment, minimize mercury, CO2 and other emissions, maximize capacity, and improve operating efficiencies, to meet the challenges of existing and pending emission control regulations.
With respect to mercury emissions:
We supply activated carbon (“AC”) injection systems, mercury measurement instrumentation, and related services.
Under an exclusive development and licensing agreement with Arch Coal, we are developing and commercializing an enhanced Powder River Basin (“PRB”) coal with reduced emissions of mercury and other metals.
Through our consolidated subsidiary, Clean Coal Solutions, LLC (“CCS”), we provide our patented refined coal technology, CyClean, to enhance combustion of and reduce emissions from burning PRB coals in cyclone boilers and expect to provide our patent pending refined coal technology M-45 which both reduce emissions of NOx and mercury in coal fired boilers.
In addition, we are developing CO2 emissions technologies under projects funded by the U.S. Department of Energy (“DOE”) and industry participants.
This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements include statements or expectations regarding whether the refined coal facilities satisfy the “placed-in-service” requirements and will qualify for IRS Section 45 tax credits; amount and timing of revenues, earnings, operating income, cash flows and other financial measures; timelines for our projects and timing of when the RC facilities will become fully operational; the number of refined coal facilities to be installed by year end and the amount of refined coal capable of being produced from such facilities; the execution and content of the definitive agreement with CCS for the M45 technology; and related matters. These statements are based on current expectations, estimates, projections, beliefs and assumptions of our management. Such statements involve significant risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to, changes in laws and regulations, government funding, prices, economic conditions and market demand; timing of regulations and any legal challenges to them; impact of competition; availability, cost of and demand for alternative energy sources and other technologies; technical, start-up and operational difficulties; inability to commercialize our technologies on favorable terms; our inability to ramp up operations to effectively address expected growth in our target markets; failure of CCS’ leased facilities to continue to produce coal which qualifies for IRS Section 45 tax credits; termination of the leases for such facilities; decreases in the production of refined coal by the lessee; seasonality; failure to build or monetize new CyClean and M45 facilities to meet the Section 45 tax credit placed-in-service date; issues arising out of CCS’s due diligence review of the M45 technology and our inability to address those concerns or negotiate, execute and close on definitive agreements; availability of raw materials and equipment for our businesses; loss of key personnel; intellectual property infringement claims from third parties; and other factors discussed in greater detail in our filings with the Securities and Exchange Commission (SEC). You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.

in $ADES buy and hold small position not daytrade $19.91

2011-11-30T06:39:00.001-08:00

in ADES small position buy and hold....very thinly traded....read PR last night they say to ramp to $5 EPS clean coal

In CMT at $8.60 - Strong Growth and EPS - Target $11-$15 Medium Term Hold

2011-08-12T02:42:00.000-07:00

Core Molding Technologies - CMT
Shares outstanding 7.1m Float 5.8m See Bloomberg
Last Q .39 EPS (v.s .06 prior year)
First 6 months of this fiscal year .70 EPS
Product sales increased 56% this quarter
Bullish outlook for next 2 years in recent press release by CEO
$1.40 EPS run rate current P/E 6.25
Target $11-$15 Medium term hold

Core Molding Technologies, Inc. is a compounder of sheet molding composites (SMC) and molder of fiberglass reinforced plastics. The Company's processing capabilities include the compression molding of SMC, resin transfer molding, multiple insert tooling (MIT), spray up and hand lay- up processes. The Company produces high quality fiberglass reinforced, molded products and SMC materials for varied markets, including light, medium and heavy-duty trucks, automobiles, automobile aftermarket, personal watercraft and other commercial products. Core Molding Technologies, with its headquarters in Columbus, Ohio, operates plants in Columbus and Batavia, Ohio, Gaffney, South Carolina, and Matamoros, Mexico. More information on Core Molding Technologies can be found at www.coremt.com.

Core Molding Technologies Reports Second Quarter 2011 Results

COLUMBUS, Ohio, Aug. 10, 2011 /PRNewswire/ -- Core Molding Technologies, Inc. (NYSE Amex: CMT) today announced results for the second quarter ended June 30, 2011.

The Company recorded net income for the second quarter of 2011 of $2,842,000 or $0.41 per basic and $0.39 per diluted share, compared with net income of $441,000, or $0.06 per basic and diluted share, in the second quarter of 2010. Total net sales for the second quarter were $35,294,000, compared with $23,476,000 in the same quarter of 2010. Product sales for the three months ended June 30, 2011 increased 56% to $33,547,000, from $21,473,000 for the same period one year ago. The increase in sales is primarily due to higher demand for North American medium and heavy-duty trucks.

For the first six months of 2011, net income was $5,111,000 or $0.74 per basic and $0.70 per diluted share, compared with net income of $304,000, or $0.04 per basic and diluted share, for the same period of 2010. Total net sales for the first six months of 2011 were $64,283,000, compared with $43,918,000 for the same period of 2010. Product sales increased 52%, to $62,521,000 through six months of 2011 compared to $41,169,000 for the same period in 2010.

"We are very pleased with our results so far this year as we set another new quarterly earnings per share record for our Company," said Kevin L. Barnett, President and Chief Executive Officer. "Our markets continue to show strong growth and are forecasted for higher levels of demand in 2012 and 2013. We also continue to focus on new growth opportunities which have resulted in the award of several major new business programs that will start later in 2011 and into 2012," Barnett continued.

"We began work on our previously disclosed $14 million Matamoros, Mexico plant expansion project to support capacity needs associated with new business and anticipated demand for existing products in 2012 and beyond. Additional molding capacity is scheduled to come on-line by the end of this year with the project slated for completion in the third quarter 2012," Barnett said.

Why I bought CVV Yesterday - Graphene & Growth

2011-07-19T01:41:00.000-07:00

Usual Disclaimers before I start - Don't chase any stocks. Don't buy stocks just because I buy them. Manage your own entry/exits and risk. This blog is to document my trading ideas and is not investment advice. I am far from 100% accurate. I can be wrong and do have bad picks. Stocks I buy could drop below where I bought them. Low float stocks can be volatile and dangerous. When up on a stock pick I always take some off to protect profit and manage the rest. I don't want to sell you a subscription. I don't want you to follow me. See other disclaimers at bottom of this blog.

CVV (CVD Equipment Corporation) - Bought CVV yesterday at $14-75-$14.85. Moments later it exploded into the $16's (That was kind of SUPER to watch). Has had a great run and Q2 Earnings are on the way. Will add on dips if it gets back close to my buy point. Potential to be a big story momentum stock over the next year and here is why I think that.

CVV - Incredible Growth, Low Float 4.1m per Bloomberg and O/S approximately 6-7m, Manufacturer of potential holy grail material Graphene, Nano-Material Equipment Manufacturer. $0.14 EPS last Quarter and Backlog experiencing Strong Growth. Did I mention they manufacture Graphene ? Get to know Graphene.

DD Links:

CVD Equipment 1st Half Orders Reach All-Time High of $24.6M

CVD Equipment Corporation Announces Record Q1 Results

Graphene Will Change The Way We Live

Graphene Research Expects Great Things

Super Batteries - Graphene

CVV Graphene

CVD Equipment and Graphene Laboratories expand CVDGraphene products and services

Graphene Laboratories Inc. and CVD Equipment Corporation offer single-layer CVD Graphene Products

Graphene Laboratories Inc. and CVD Equipment Corporation sign Exclusive Distribution Agreement for CVD Graphene Products

in CVV as a starter position @ $14.75

2011-07-18T10:58:00.001-07:00

DD coming ....play on graphene Read Article

super-trades.com Mid-Year 2011 Review

2011-07-17T15:34:00.000-07:00

GSVC - First called it at $14.50 on April 29th Read Blog Post and stuck with it by averaging down as it dropped to $10 because it was relatively obscure. Well it closed at $18.90 for a new 52 week high on Friday and would not doubt to see a $20's run this week. My average is in the $12's so will manage core position and trading shares accordingly. Everyone that bought should have made money on it by now so this is a super-trades winner!

MITK - Speaking of super-trade winners, I first called MITK at $3.35 Read Blog Post on November 24th. MITK transfered to the Nasdaq this week and has hit as high as $9.50. super-trades winner

NEPT - I called NEPT at $3.10 on April 21st Read Blog Post and it closed at $3.99 on Friday and has hit as high as $4.27. super-trades winner

ESTE - Called this stock at $19 on February 24th Read Blog Post. 4 trading days later it hit $25.25. While it was a good trade it has performed poorly after hitting the 52 week high. It was a super-trade but I must say I am disappointed by the lack of follow through. I do believe it is a stock to watch on any oil momentum.

PLPE.OB - Called PLPE on January 28th at $0.80 Read Blog Post. It hit $1.12 in April but I am going to label this a bad call because even though it went up a decent % after my call for a super-trade and there was money to be made.....since then it has been an absolute dog.

I am on a roll in 2011 with all 5 of my stock picks going up a nice % after my posting. 3 of 5 are still solidly above where I first called them even though I am NOT a long term holder of stocks.

I am excited about the market this week. Some new picks may be coming soon.

One last note on the 2010 Chinese scams - Most Chinese stocks ended up being absolute scams, including two that were monster winners of super-trades RINO and CCME. RINO I called at $5 and it hit $30 and CCME I called at $9 and it hit $22. I was long gone from both of these stocks and no longer writing about them anywhere near the time of their downfall. They were trades and profitable ones at that. But lessons learned on China stocks and the frauds that can exist in the market. But there was tons of money to be made from my calls on both of these stocks long before their demise. Investing has risks and that is why I only post my own stock ideas and I dont give investment advice or charge people for stock picks.

Here is to a great second half in 2011 !!! super-trades to all !!!!!

GSVC Capital Invests in Facebook !!!

2011-06-27T08:43:00.000-07:00

GSV Capital Invests in Facebook Read Article
Unique Investment Fund Gives Individual Investors Access to Popular Social-Networking Company

WOODSIDE, Calif., June 27, 2011 (GLOBE NEWSWIRE) -- GSV Capital Corp. (Nasdaq:GSVC) announced that it has acquired 225,000 shares in social-networking company Facebook at an average price of $29.28 per share. The investment of $6,587,500 represents approximately 15% of GSV's total portfolio.

"Facebook is a one-of-a-kind business which has created enormous network effects. With over 650 million people on its platform, or approximately 1/10 of the world's population, Facebook has established itself as a next generation social communications platform," said Michael T. Moe, GSV Capital's CEO and founder.

GSV Capital's mission is to identify and invest in the premier VC backed private companies in the marketplace today — at attractive valuations.

"GSV leveraged its network to quickly execute the transaction, entering the agreement to purchase shares of Facebook shortly after the close of our company's initial public offering. This is a true testament to the strength of our team and a great example of how we intend to quickly seize opportunities on behalf of our investors," Moe added.

This purchase of Facebook shares was subject to certain closing conditions, including a 30-day "Right of First Refusal" or ROFR, expiration.

GSV is presently in the final stages with a handful of private company investments that it anticipates acquiring within the next 30 days, subject to applicable closing conditions.

About GSV Capital Corp.

GSV Capital Corp. (Nasdaq:GSVC) is a publicly traded investment fund that gives individual investors access to high growth, venture backed private companies. GSV Capital is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. GSV is headquartered in Woodside, CA. For more information please visit http://gsvcap.com/

Awesome $GSVC article in Forbes

2011-05-16T04:35:00.000-07:00

Read Forbes Article

With GSV Fund, The Little Guy Can Shoot For The Next Facebook
May. 16 2011 - 1:57 am | 222 views | 0 recommendations | 0 comments
If you want a piece of Facebook, Twitter or other hot private Internet companies, you can buy a stake through SecondMarket, Sharespost or a secondary broker–if you’re an accredited investor as defined by the SEC.

But a new publicly-traded closed-end mutual fund, Global Silicon Valley Corp. (Nasdaq: GSVC), which quietly had its IPO last month, gives the average Joe the chance to buy in to the next big technology company–while it’s still private.

On April 28 GSV, which is changing its name from its original moniker NeXt Innovation Corp., raised about $50 million through pricing 3.33 million shares at $15 a piece. The firm is headed by Chief Executive Michael Moe, who was co-founder and former chairman of tech investment bank ThinkEquity Partners.

GSV will initially invest in about 15 to 30 start-ups in secondary deals as well as primary direct investments. It will target companies between $100 million and $1 billion in valuation, with revenue growing at more than 40% annually. The firm has not invested in any companies yet. Moe says he’s looking at growth-stage companies, not competing with John Doerr or Marc Andreessen for the next early-stage star company.

“We intend to invest in the most important, fastest growing companies,” Moe said. “It’s a new normal of companies staying private longer. We’re investing in companies that would’ve historically have gone public… This not only will give start-up companies and their investors big paydays but also give retail investors access to new high growth tech companies.”

GSV will pass on profits to its own investors when it sees liquidity in its portfolio companies through a dividend. GSV is organized as a closed-end fund, which is a publicly-traded company. GSV is managed by the affiliated NeXt Asset Management.

Moe has been thinking about the problems with the IPO market for years. He was co-founder and CEO at ThinkEquity from 2001 to 2008. Prior to that he was head of global growth research at Merrill Lynch from 1998 to 2001, and before that he was head of growth research and strategy at Montgomery Securities from 1995 to 1998. He also is on the board of Sharespost.

He’s still bullish on Sharespost, but he believes there should be a way for retail investors to invest in new growth companies. Whereas in the past companies may have gone public at a $100 million market cap, now due to major changes in the IPO market many are waiting until they reach $1 billion or more. He says GSV will give individual investors access to these companies, which have previously only been accessible to venture capital and private equity firms, as well as accredited investors (which generally means someone with a net worth of more than $1 million or annual income of more than $200,000).

“It’s a way for a broad group of investors to access the kind of companies of tomorrow that they used to have the opportunity to invest in because they had an IPO on the Nasdaq,” Moe said. “Now they’re not. So now investors can participate in those companies in a publicly-traded security. I think that is compelling.”

But will there be sufficient information about these private companies? Many questions have been raised about special-purpose vehicles buying shares of companies like Facebook and Twitter and whether even accredited investors have an accurate sense of what they’re investing in. (I previously covered this at Dow Jones.) That’s because few shareholders have access to the financials of private companies, by definition, except perhaps venture investors with large stakes.

So will retail investors betting on similar private companies be even less informed? Moe says no. He says GSV Capital has detailed information on private companies from NeXtup Research, which Moe co-founded and co-owns. GSV management pays NeXtup for the research out of its management fees. NeXtup Research also provides research to Sharespost.

NeXtup Research does not have inside information but gathers data through its proprietary methods, Moe says. Whether that research is enough for investors to buy the stock remains to be seen. Moe is selling investors on his background and experience in investment banking as well as that of his partners–that he will pick winners in what is a frothy private market for Internet and technology companies.

GSV’s CFO Stephen Bard was chief operating officer and a board member at Fuller & Thaler Asset Management from 2001 to 2009. Prior to that he was managed west coast operations for Fidelity Management Trust Company.

GSV’s board of advisors includes Todd Bradley, executive vice president at Hewlett-Packard, William Campbell, who is an Apple board member and chairman at Intuit, and Robert Grady, managing director and partner at Cheyenne Capital Fund and former partner at the Carlyle Group.

Next Innovation will charge a 2% management fee and a 20% carry on profits after an 8% hurdle, somewhat akin to the way a venture fund works. Moe says that venture and private equity firms would be interested in working with his company because it can provide advice, help with recruiting or connections through their networks. Also, GSV does not require a board seat to invest.

There is some precedent for a publicly-traded venture investor. Internet Capital Group famously was one of the high-flyers during the dotcom bubble, investing in business-to-business e-commerce companies and once had a $60 billion valuation on the Nasdaq. Harris and Harris Group is a publicly traded company investing in nanotechnology. But Moe says GSV is not a publicly-traded venture fund, it’s rather an emerging growth fund.

Ultimately it will be interesting to see how investors react once GSV starts to announce companies in which it has invested. In the dot-com bubble, Main Street investors, eyes glued to CNBC, eagerly invested in every new dot-com IPO. During this era, will retail investors, pumped up by bloggers and Twitter posts, instead invest in hot growth companies through funds like GSV? Will GSV’s stock pop each time it announces a new portfolio company? Stay tuned.

In GSVC at $14.50 - IPO for secondary market investment fund (3.5m Float)

2011-04-29T02:55:00.000-07:00

3.5m float.....simple investment thesis.....will be the public way to invest in the hot private companies on the secondary market (ie. companies like Facebook, Twitter, Groupon, and new concepts like them) with a low 3.5m float :)

Read Article - "IPO filed for secondary market investment fund"

Read Article - "Finally, The Facebook and Twitter Fund is Here – Secondary Market CEF"

Read IPO Press Release

Read interesting message board post

Read SEC Filing

NeXt BDC will be managed by NeXt Asset Management, whose advisory board includes technology heavy hitters such as William Campbell, an Apple Inc (AAPL.O) board member and chairman to the board of Intuit, and Todd Bradley, executive vice president of Hewlett-Packard Co (HPQ.N). The fund's managers intend to purchase minority equity investments in privately held companies that trade on online secondary markets such as Sharespost and SecondMarket, where shares of Facebook, Twitter, Zynga and LinkedIn have briskly traded.

Tech executives launch fund targeting secondary markets

* Apple director Campbell, HP executive Bradley advises

By Nadia Damouni

NEW YORK, Jan 10 (Reuters) - A group of Silicon Valley executives plan to launch the first ever closed-end mutual fund to offer retail investors access to primary and secondary market trading of fast-growing private companies.

The launch of NeXt BDC Capital Corp fund, disclosed in a regulatory filing on Jan. 7 with the U.S. Securities and Exchange Commission, comes as interest in hot privately held Internet companies such as Facebook have soared on online trading platforms such as SecondMarket Inc.

Interest in private Internet companies reached a milestone last week after Goldman Sachs' $450 million investment in Facebook at a $50 billion valuation and a commitment to raise another $1.5 billion drew the attention of the SEC. [ID:nN04246696]

NeXt BDC is structured as a closed-end fund, which is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange. It is seeking to raise $50 million.

The fund is headed by Michael Moe, co-founder and former chairman and chief executive officer of ThinkEquity Partners, an investment bank that focuses on venture capital.

NeXt BDC will be managed by NeXt Asset Management, whose advisory board includes technology heavy hitters such as William Campbell, an Apple Inc (AAPL.O) board member and chairman to the board of Intuit, and Todd Bradley, executive vice president of Hewlett-Packard Co (HPQ.N).

The fund's managers intend to purchase minority equity investments in privately held companies that trade on online secondary markets such as Sharespost and SecondMarket, where shares of Facebook, Twitter, Zynga and LinkedIn have briskly traded.

Took half of NEPT position from $3.10 off at $3.75

2011-04-25T08:17:00.001-07:00

will manage the rest accordingly...overtime expect NEPT to move to $5-$10 but always wise to protect some profits

In NEPT at $3.10 this is a baby AMRN

2011-04-21T06:37:00.000-07:00

In NEPT

Read this link

Read Article

Why ESTE may be the Next Big Oil Momentum Stock

2011-02-28T02:59:00.000-08:00

Earthstone Energy, Inc. (ESTE) completed a reverse split on January 3, 2011 in order to get listed on the Nasdaq Read Press Release. That left them with only 1.7m shares outstanding and a public float of 1.2m See Bloomberg.

ESTE had EPS for the last 9 months of $0.69. Last quarter they had a one time deferred tax adjustment for statutory depletion. EBITDA grew to $2.3m for the first 9 months or $1.35 EBITDA per share for the first 9 months. The oil revenue for the first 9 months has been booked at an average price of $69 per barrel. (Recently oil is $98 per barrel). Read 10-Q.

The Company is expanding with new wells in the Bakken territory. "The Company continues to pursue its strategy of drilling non-operated horizontal Bakken wells along with the acquisition of producing properties in the Montana and North Dakota portions of the Williston basin." Read Press Release. See Company Press Releases

Bakken oil stocks have exploded in the past year. BEXP, CLR, NOG are 3 of them.

BEXP and ESTE are partners:

DENVER, Sept. 23 -- EARTHSTONE ENERGY, INC. (OTC Bulletin Board: BSIC.ob old ESTE symbol ) reported Panther Energy Company, LLC, its
majority partner in the Banks Field, has sold its interest in the field, comprising nearly thirteen thousand gross mineral acres, to Brigham
Exploration Company. This sale does not affect Earthstone's leasehold rights in the area and Earthstone expects to retain its oil and gas
interests. As in the past Earthstone intends to participate in new wells proposed by Brigham, or others, that "pool or space" our leasehold rights
within spacing units they operate.

"We are not just excited by this development, we are ecstatic," commented Ray Singleton, president of Earthstone. "Brigham is on the
forefront of the application of new stimulation technology in Bakken wells and has been instrumental in demonstrating the economic viability
of this area of the Williston basin. With Brigham now involved, we expect the pace of development to heat up. Based on conversations with
Brigham, we anticipate drilling one well, possibly two, on this acreage before the end of the calendar year." Read Article

CLR is at $69 and is expected to do $2.34 EPS this year for a P/E of 30 See Numbers

BEXP is at $35 and is expected to do $1.08 EPS this year for a P/E of 33 See Numbers

NOG is at $31 and is expected to do $0.36 EPS this year for a P/E of 88
See Numbers

Let's assume that ESTE has a conservative $1 EPS run rate. Applying the P/E ratios of CLR, BEXP, and NOG would give ESTE a price range of $30 to $88. Throw in the fact this has a minuscule float and number of outstanding shares and that is why I think ESTE has potential to be the next big oil momentum stock. I am long at $19.

Low float stocks can be volatile and dangerous and are not for chasing or large positions in my opinion.

in ESTE $19 new low float profitable oil trade

2011-02-24T09:51:00.001-08:00

Warning low float and thinly traded not for large positions for me.

.69 EPS last 9 m months
Float 1.2m
O/S 1.7m

Thinking this could be the new MXC but will be very volatile.

Earthstone Energy Inc. acquires, exploits, develops, and operates oil and natural gas properties. The Company's exploration activities are located in the North Dakota and Montana portions of the Williston basin, the Denver-Julesburg basin of Colorado, the southern portions of Texas, and along the on-shore portions of the Gulf Coast.

in PLPE.OB Next Social Media Stock

2011-01-28T11:10:00.000-08:00

In PLPE.OB at $0.80 next Social Media play has interesting concept where users will share in the revenues of social media. More DD forthcoming. Not a daytrade. Approximately 34m shares O/S per Bloomberg. QPSA has 235m market cap and no revenues. PLPE has a market cap of approximately 27m and a great concept. STVI and WEBM have both made runs on programs that work with Facebook, however this is a patent pending concept that could compete with Facebook. This concepts loos like a combination Facebook/Groupon.

http://peoplestring.com/
http://www.tower-of-money.com/

TCCO Blow out Earnings as super-trades.com predicted

2010-12-13T05:41:00.000-08:00

Press Release Source: Technical Communications Corporation On Monday December 13, 2010, 8:30 am
CONCORD, Mass., Dec. 13, 2010 (GLOBE NEWSWIRE) -- Technical Communications Corporation (Nasdaq:TCCO - News) today announced its results for the fiscal quarter and year ended September 25, 2010. For the year ended September 25, 2010, the Company reported net income of $7,868,000, or $4.68 per share, on revenue of $21,551,000, as compared to net income of $943,000, or $0.65 per share, on revenue of $7,752,000 for the year ended September 26, 2009. For the quarter ended September 25, 2010, the Company reported net income of $3,176,000, or $1.74 per share, on revenue of $6,861,000, as compared to net income of $235,000, or $0.16 per share, on revenue of $1,765,000 for the quarter ended September 26, 2009.

The Company also announced that on December 9, 2010, its Board of Directors declared a dividend of $0.10 per share of common stock outstanding in recognition of the positive financial performance of fiscal 2010. The dividend is payable in cash on December 27, 2010 to all shareholders of record on December 20, 2010.

Commenting on corporate performance, Carl H. Guild, Jr., President and Chief Executive Officer of TCC, said, "TCC had a record year in fiscal 2010, far surpassing any year in its 49 year history. The primary driver for our growth has been the need for encryption equipment to provide secure national communications in Afghanistan. TCC made substantial shipments on contracts supporting this endeavor through the fourth quarter of fiscal 2010. The fiscal 2010 contracts have been followed with additional orders in the first quarter of our 2011 fiscal year. It should be noted, however, that while the continued business in Afghanistan is encouraging, our revenue in fiscal 2011 is expected to return to the more modest levels achieved prior to 2010. Our backlog at September 25, 2010 remained strong at $3.4 million and increased to $6.8 million during the first quarter of fiscal 2011. The Company expects to deliver these orders during the remainder of our fiscal 2011 year.

Mr. Guild continued, "For fiscal 2011, TCC expects to maintain its increased investment in internal product development. We are evaluating several technical options for enhancing the DSP 9000 Radio Encryption product line, which may include cryptography modifications, hardware and software changes and partnering with radio manufacturers to incorporate imbedded solutions. The Company also continues to evolve the features of the DSP 9000 RF Encryption System and hopes to expand the market to new customers that can benefit from a universal security solution that can be applied to and interoperate with their existing radio communications suite of equipment."

In October 2010, TCC announced the introduction of the DSD 72B, a new family of high speed SONET/SDH encryptors capable of operating on electrical and fiber optic networks. These encryptors are designed to meet a wide range of stringent environmental and operational environments while providing the highest grade of encryption security. In conjunction with the DSD 72B, TCC has developed the Keynet Optical Manager (KOM)(TM), an advanced key generation and management system capable of single--point, over-the-network management of an entire encryption network. TCC expects that customer evaluations of the DSD 72B will begin in 2011.

Driven by current customer demand, TCC has also completed the development of a variant of its DSD72A-SP Bulk Encryptor, which will provide additional radio/switch interface compatibility. Finally, the Company also expects to expand its CX7000 family of IP and frame sensitive encryptors in 2011 and 2012 to provide additional features and higher speed solutions for enterprise networks and satellite communications systems requiring tailored operational and network characteristics.

Will TCCO make a monster run like TASR?

2010-12-10T19:48:00.000-08:00

In this article, after they received the $9.7m Order for Afghanistan Radios, officials said 2010 sales would be $20m. Read Article

For the 9 months ended June 2010, they had recorded $14.6m of sales and $2.72 of EPS. That means the 4th quarter could be $5-$6m of sales. Q3 ending June 2010 has $6.3m of sales and $1.29 of EPS. Q4 could be approximately $5-6m of sales and $0.80-$1.30 for the fourth quarter. That would leave them with EPS of $3.52-$4.02 for the year and a P/E of 3-4 even with the Friday close in the $14’s. Imagine $3.50-$4 EPS with any kind of decent P/E? From what I read in the last 10-Q they still have over $3m of tax loss carryforwards. The comparable they are up against from last years Q4 is $0.16 EPS. So If my numbers are close to being correct, we could see a headline such as $0.80-$1.30 EPS vs $0.16 in the prior year quarter.

They have said that business was exceptional this year because of the April order of $9.7m for Afghanistan. However they have since received two orders totaling $5.2m for 2011 in Afghanistan and are rolling out new products.

Per the Company, “Backlog at June 26, 2010 amounted to $10,060,000. The orders in backlog are expected to ship during the 2010 and 2011 fiscal years depending on customer requirements and product availability.” Since then they have received the additional $5.2m in orders.

Read 10-Q

With only 1.8m shares o/s and a float of 1.4m, with this EPS and the strength of this sector, it is easy to see why this could become a monster momentum stock. This is a US company founded in 1961 with a P/E of 3-4 and a clean Balance Sheet.

Here is a great article I found on the Company. Read Article

They report Monday morning. Management is always cautious with guidance. They say Earnings could return to a normal level without Afghanistan. However Afghanistan orders are continuing and they are rolling out new products. AAPL also sandbags guidance every quarter. If my number estimates are remotely correct this could be the beginning of a monster run and a new momentum stock and I will add. If I am wrong (and I could be missing something? Taxes?), my average is in the $12’s - so there you have it.

In TCCO WikiLeaks Play - Undiscovered Low Float w/ Monster EPS ($3-$4 this year) & Strong Theme - Secure Government Communications

2010-12-06T06:41:00.000-08:00

TCCO - USA Company with 3-4 P/E
Float 1.4m O/S 1.8m See Share Statistics
http://www.tccsecure.com

With the WikiLeaks scandle TCCO may be a great play as it specializes in secure government communications. (As well as secure mobile and texting to be rolled out to other phone platforms)

Secure Communications has been a very strong theme and APKT has been a monster stock with a 50 P/E for next year's EPS estimates.

EPS for the first 9 months of 2010 $2.72 See SEC Filing

Dividends paid for the first 9 months of 2010 $2.21 per share

EPS for Q3 $1.29 See SEC Filing

Last Press Release

Strong Balance Sheet See Balance Sheet

TCCO is thinly traded so not for chasing or large positions. Not a fast or day trade for me. I think it can at least double in the next 1-12 months from the $12 level it is at now. Please keep in mind that they are due to report year end results early next week, I believe Monday or Tuesday. Holding any stock into earnings can be high risk high reward.

TCCO has conservatively said that this years results were much higher due to $9.7m in orders they received for Afghanistan in April 2010 for this year and early next year, however they have already received $5.7m additional orders for next year and are about to roll out several new products.

Orders for Afghanistan are continuing into 2011:
Read Press Release
Read Press Release

Mobile Prduct Line - The products comprising the CT8000 secure wireless product line will likely continue to evolve and respond to new customer requirements. It is also expected that CiperTalk Secure Voice encryption and CipherSMS Secure Text Messaging will be applied to additional mobile platforms and that customer-specific features will be developed.

TCC designs, manufactures, and supports superior grade secure communications systems that protect highly sensitive information transmitted over a wide range of data, voice and fax networks. TCC's security solutions protect information privacy on every continent in over 115 countries. Government agencies, militaries, financial institutions, telecommunications carriers and multinational corporations worldwide rely on TCC to protect their communications networks.

Technical Communications Corporation designs, develops, manufactures, distributes, markets, and sells communication security devices and systems worldwide. Its products are used to protect confidentiality in communications between radios, telephones, facsimile machines, and data processing equipment over wires, fiber optic cables, radio waves and microwaves, and satellite links. The company’s products include High Speed Data Encryptor, which provides cryptographic security for data networks; Narrowband Radio Security family of products that provide security for voice and data communications sent over HF, VHF, and UHF channels; and Secure Telephone, Fax, and Data system that provides voice, fax, and data encryption in a telephone package. It also offers Secure Portable Telephone Attachment, which provides digital security between telephone and handset; Fax Security System, an automatic transmission fax system that connects to facsimile machine; Executive Secure Telephone, which offers voice and data security in a telephone package; and CipherTalk8000 and CipherSMS secure wireless products to provide encrypted mobile communications. In addition, the company provides CipherONE family of Network Security Systems, which consist of hardware and software-based encryption products for local area network, wide area network, and Internet applications, as well as a network security management system. Further, it provides Frame Relay Network Encryptor, an end-to-end frame relay encryption system; IP Network Encryptor for encryption security at the Internet protocol layer; and KEYNET Network Security Management System, a Windows NT-based key and security device management system. The company markets its products to governmental agencies, law enforcement agencies, financial institutions, and multinational companies requiring protection of mission-critical information. Technical Communications Corporation was founded in 1961 and is based in Concord, Massachusetts.

TCCO is thinly traded so not for chasing or large positions. Not a fast or day trade for me. I think it can at least double in the next 1-12 months from the $12 level it is at now. Please keep in mind that they are due to report year end results early next week, I believe Monday or Tuesday. Holding any stock into earnings can be high risk high reward.

Are you aware about these potential new themes/trading opportunities???

2010-11-30T18:04:00.000-08:00

4 Potential New Themes that will provide many opportunities for traders:

1) BEST CHINESE IPO WEEK in History? Next week there are six Chinese IPO's of MAJOR interest. I will do a blog on all of them this weekend.

Think YouTube --> Youku.com - Operates China's leading internet television/online video portal. Youku.com Info

Think Amazon --> China Dangdang - China's largest online book retailer and e-commerce platform. Dangdang Info

Think Mobile Apps --> Ski-mobi - Mobile application store in China with a leading 50% share and over 479 million users. Ski-mobi Info

BONA - Leading distributor of domestic films in China. BONA Info

Lentuo International - Largest private automobile retailer in Beijing. Lentuo Info

SemiLEDS Co. - Manufactures LED chips and components used in general lighting applications. SemiLEDS Info

2) IBD articles can at times really light a fire under certain stocks/sectors. Tonight there was an article on Chinese Coal. Watch List - CHNR, YZC, LLEN, PUDA, SCOK Read Article

3) New Food Safety Bill was passed today. Watch List - VIFL, SDIX, PURE Read Article

4) Rare Earth theme exists but new stock to trade soon. Read Article Rare earth exploration company Avalon Rare Metals (AVL.TO: Quote) said on Tuesday it had received approval from New York Stock Exchange regulators to apply for a listing on the NYSE Amex exchange.

The Toronto-based company said it must still meet certain conditions before the listing will be official, and it expects the review process to take four to six weeks.

super-trades that are active:

TSRID - entered low $6's hit $12. Looks good for continued move. 1m float 2m o/s. Great action today. Memories of CDTID still exist. Nothing guaranteed but with proper entries and manageable trade this may be a fun reverse split play. Read Original Blog

MITK - Called at $3.35 hit $4.25 in two days. Pullback today. Again I said 1-12 months I can see this doubling from $3.35. Read Original Blog

I usually always take some profit off when up after first pop so I can manage the rest of the shares accordingly in case of dips. Do not trade just because I do, I can be wrong. Low floats not for chasing entries or large positions. Do your own due diligence. This blog is for my stock ideas only. I am great at finding them, trading them is always more challenging. This blog is not investment advice and I may change my mind as market conditions dictate.

TSRID - The next Low Float Reverse Split Monster like CTDID was ?

2010-11-29T19:38:00.000-08:00

Before I begin, the usual disclaimers apply. Low float stocks can be volatile and dangerous and are not meant for large positions or chasing in my opinion. Do own diligence and do not follow me or anyone we all can be wrong.

That being said, stocks with reverse splits that were left with a low float 2 million or less at the time of the split have made some big moves in the past year. None of them had EPS to support the moves but they had some pretty wild moves.

SCOK - $5 to $53
CALL - $4 to $39
CDTID - $4 to $44

Today TSRI starts trading after a 1 for 2 reverse split yesterday, leaving them with 2m shares outstanding and and approximately 1m shares in the float float.

Read Press Release on Reverse Split

Bloomberg Stats Pre-Split

TSRI closed at $2.30 on Monday so it should open at $4.30 or so Tuesday.

Cash Per Share based on the last 10-Q is $8.7m / 2m shares or $4.35 per share.

Book Value/Equity per share based on the last 10-Q is $12.6m / 2m shares or $6.30 per share

Read Balance Sheet from Last 10-Q

While TSRI is not guaranteed to make a wild move like SCOK, CALL, and CDTI, it has the potential given the reverse split.

Again, Low float stocks can be volatile and dangerous and are not meant for large positions or chasing in my opinion. Do own diligence and do not follow me or anyone we all can be wrong.

Today, as a NASDAQ company specializing in information technology staff augmentation and IT consulting, TSR, Inc. continues to expand and transform its services to meet and anticipate its clients’ IT needs.

New Pick $MITK.OB The Microsoft of Mobile Deposit and Bill Pay Software?

2010-11-24T04:58:00.001-08:00

This stock is not a daytrade for me. However, I could see this stock at least doubling from where it is now ($3.35) in the next 1-12 months. I also see it as a buy out candidate.

The Mobile-Payment Gold Rush

MOBILE PAYMENTS IN THE U.S. are expected to grow at a 68% compounded annualized-growth rate over the next five years, fueled by growing smartphone share of the mobile-phone market. Read Article

Mobile Payments to Reach $214 Billion By 2015, Aite Forecasts Read Article

Enter MITK.OB http://www.miteksystems.com/

Float 12.3m Outstanding Shares 18.3m Bloomberg

"Mitek Systems Inc., the leading software provider in the field"

MITK has two very exciting software products in this fast growing field. One is patented and the other is patent pending:

Mobile Deposit - See Website Patented in the fourth quarter, Mobile Deposit gives smartphone users an accurate, secure and easy-to-use way to deposit checks simply by snapping photos of their checks with the cameras on their mobile devices. Mitek's Mobile Deposit patent, entitled "Systems for Mobile Image Capture and Processing of Checks," was issued on August 17, 2010. Among other elements, the patent contains claims that cover capturing an image of a financial document such as a check using a camera in a Smartphone or other mobile device, and transmitting the image to a bank server for processing and deposit into a customer's account.

Mobile Deposit has been widely embraced by leading technology solutions integrators and application services providers for the financial services industry, including Fiserv, NCR, FIS, Jack Henry & Associates, WAUSAU Financial Systems, BankServ, J&B Software, Bluepoint, Cachet Financial and RDM, among others. In addition, the Company has partnered with leading mobile-banking-application providers, including mFoundry, Clairmail, Kony Solutions and Monetise Americas.

More and more banks, credit unions and payment-management organizations, including PayPal, with the Mobile Check Capture feature of its PayPal Mobile app for iPhones, are deploying Mitek's mobile check deposit solution to their customers, which the Company expects will continue throughout the remainder of 2010 and into 2011. The Company anticipates announcing significantly increased adoption and use in the near future by large financial institutions and payment management organizations.

Mobile Photo Bill Pay - See Website Early in the current quarter, Mitek introduced Mobile Photo Bill Pay™, its latest innovative application for the financial services industry, which allows people to pay their bills simply by snapping photos of their paper bills or invoices. With Mitek's new Mobile Photo Bill Pay app, users can submit electronic payments from their smartphones without having to write checks, lick stamps, visit a payment location or even use their personal computers. DeBello said Mitek is now in discussions for the distribution of Mobile Phone Bill Pay with a number of leading banks, integrators of technology solutions and applications services providers for the financial services industry.

Mitek won BAI's first MobileLink award for its new app that allows users to capture and pay bills with a mobile phone the same way they capture and deposit checks.

“We’re seeing an unprecedented level of interest in our products,” company president and chief executive James B. DeBello said at an investor conference call.

For more than 20 years, Mitek Systems (OTC:MITK.OB.ob - News) has provided financial institutions with advanced imaging and analytics software to authenticate and extract data from imaged checks and other financial documents. Mitek's patented technology is currently used by all leading financial organizations in the United States to process more than 10 billion items per year.

Today, Mitek is applying its patented technology and extensive expertise in image correction, optical character recognition and intelligent data extraction to mobile devices. Using Mitek Mobile Apps, smartphone users can now deposit checks, pay bills, save receipts and fax documents while on the road or sitting at a desk -- eliminating trips to the bank, Post Office and file cabinet. Simply take a picture of the document and Mitek does the rest -- correcting image distortion, extracting relevant data, routing images to their desired location, and processing transactions through users' financial institutions.

Financials - MITK is finally is reaping some financial rewards after years of investment Read Article. MITK just had their first profitable quarter of $0.01 EPS but sales were up 100% and gross margins were 87%. I see this company as one just about to become very profitable after years of investment. So it is a future earnings play on a very growing theme. Read Last Earnings Report

Again, I am not in MITK.OB as a fast trade and I think it can at least double from $3.35 in the next 1-12 months.

super-trades update $AERL

2010-11-16T07:39:00.000-08:00

Took some $AERL off from my original call and entry in the low $7's. Holding small. Still believe stock goes higher in time but market and china stocks have been ugly and dont want another year long drama like I had in CCME. Will re-evealuate daily. Have to pay attention to the macro environment.

super-trades update $TORM $AERL

2010-11-12T05:05:00.001-08:00

$TORM earnings report disappointed me.......that is why I rarely hold a stock into earnings, especially after it has made a 100% move

$AERL - still think this will go higher...macau is booming...they are starting to meet with funds..... in with core shares since low $7's.

No other new stocks right now seeing if markets will recover.....watching for earnings reports

super-trades update $AERL $TORM

2010-11-10T02:05:00.000-08:00

Market was down yesterday. Great opportunity for twitter shorts to get their scalps. Bulls are geniuses in green markets and shorts are geniuses in red markets.

$TORM - not holding much at all into earnings on Thursday.....no need after big run up from call at $6.50. Will evaluate report when out.

$AERL - Stock took a healthy dip after run from $5 to $11. Consolidating and gathering some shorts and yesterdays red market was ideal as most stocks took a dip. In my opinion it will go higher as Macau is very hot and this is a pure play and EPS is projected to be $2.85 in 2011. They are working at MGM and LVS casinos. Presenting at a few conferences soon. Again originally called and entered in the low $7's, added a few trading shares in the high $9's but core average still in $7's. Most of my stocks follow this pattern, initial run up then pullback and shorts bash and act like its dead, then they move higher. ie. $TORM, $CCME, $RITT etc.....

No other positions right now.

What do these stocks have in common? $AERL, $CCME, $TORM, $RITT, $HIHO, $ANTP, $LIVE

2010-11-09T02:26:00.000-08:00

What do these 7 stocks have in common?

1) They are all www.super-trades.com winning stock picks.
2) Shorts were wrong on 6 of 7 of them as only one of them has even pulled back significantly from the original run up even though many shorts called them junk and said they would.
3) They had the EPS growth to support a move and/or a strong growth theme in the news.

Usual disclaimers - Do not chase my stocks and do your own research. I can be wrong.

AERL - I first called AERL in the low $7's last Thursday, November 4 Read Blog Post. It hit $11.55 today and closed at $10.70. As we learned from TORM recently, stocks can take a short breather but that does not mean that the story is over. Of all the stocks I have recently called, I think the story and the fundamentals here are the best. Macau is growing like gangbusters, casino stocks have been on fire, and AERL is a macau pure play with a forecasted $2.85 EPS in 2011. That is better EPS than even CCME, another huge super-trades winner. The stock is now free to move since last week as the warrant overhang is over. I think this stock is going much higher, and I am in from the low $7's and have alot of cushion to see this play out. But to me it is like owning CCME when it was $10.70, with even stronger EPS.

CCME - What can I say, this is a super-trades winner and the type of play I am known for. While this did take much longer than I originally thought (as I mis-timed the attack on china stocks over the summer), CCME came to fruition to be everything I always thought it could be today. I originally called this stock last year at $7.50 when the symbol was TMI Read Blog Post and it hit $22.30 today on a great Q3 report and guidance raise. Shorts were wrong here (they can be very wrong at times). Think stock can go higher in time, but no need for me to have any kind of large position after the run up we have had and stocks like AERL being available which to me is like owning CCME when it was $10.70. It was rewarding to see CCME, a stock I had such conviction on, come to full fruition.

TORM - I called TORM at $6.50 on Tuesday October 26th Read Blog Post, and it hit $14 today! Again shorts were wrong on this as it was a real undervalued company with EPS and a mineral in high demand. I think the stock will move higher into earnings this Thursday. I took half off in the $11's and we play it day by day as this appears to be very strong.

RITT - I am no longer in this stock, but I called it in the low $2's on October 21st Read Blog Post and it is still in the $7's today, even after a bad earnings report (as I also predicted). Short sellers can be very wrong at times (as can longs). RITT had a press release with an order from a customer in India the other day.

HIHO - Called this stock on Tuesday October 19th at $2.80, Read Blog Post and it hit $4.24 today and closed at $3.73 after a decent earnings report. Good one to take profit on and watch for more news if it pulls back significantly. I no longer have a position here.

ANTP - Called this stock around $4 on October 19th Read Blog Post and it hit $6.37 on October 22nd and has now pulled back to the low $5's. Definitely a stock to keep on my watch list for more product news and the next earnings report.

LIVE - A stock I called in the $4's on October 14th Read Blog Post It exploded to $22.25 on October 21st in a bizarre explosion and I sold that day in the $10-$13 range. Since then it has fallen all the way back to the $6's. I have no position and think it will take EPS, an acquisition, or product news for this to move again.

Watch China mineral stocks as the news has been China is buying up commodities.

super-trades comments AERL, CCME, TORM

2010-11-05T05:35:00.000-07:00

$CCME wont hold large position into earnings on monday although i think all positive to go higher...no need after big run....

$AERL EPS/growth - check ($2 eps 2011) hot theme - check (macau) called at low $7's going much higher

$TORM should keep going higher into next thursday earnings....$20 target by hedgie yesterday and trapped shorts

In AERL, Macau Pure Play

2010-11-04T02:37:00.000-07:00

Macau, the Asian version of Las Vegas, has been booming. The results of booming gaming operations in Macau has boosted the earnings of LVS, MGM, and WYNN. The Wall Street Journal just has an article entitled "Macau Gambling Revenue Surges". Read Article

That is why I bought AERL in the low $7's, as it is a pure play on Macau gaming. AERL, formerly known as CS China Acquisition Corp., acquired AGRL on February 2, 2010. The principal business activities of AGRL’s wholly owned subsidiaries are to hold Profit Interest Agreements with its VIP room gaming promoters that provide AGRL with 100% of the profit streams from the operations of the VIP room gaming promoters. AGRL’s VIP room gaming promoters currently participate in the promotion of two major luxury VIP gaming facilities in Macau, China, the largest gaming market in the world. One of the VIP gaming rooms is located at the top-tier MGM Grand Macau Casino in downtown Macau that is operated by the MGM Grand Paradise S.A. The other Macau VIP gaming facility is located in the luxury 5-star hotel, the Star World Hotel & Casino in downtown Macau, which is operated by Galaxy Casino, S.A.

Recent acquisition of another VIP room:
On October 12, the Company announced it had entered into a non-binding Memorandum of Understanding to acquire another VIP gaming promoter, which operates in the Venetian Resort on the Cotai Strip and earns revenues based upon the fixed commission rate of 1.25%. Currently, the Company's VIP gaming rooms are located in Downtown Macau. The Company believes that this acquisition will offer an alternative for its current patrons and be accretive to both gross revenues and net earnings. As a result of this acquisition, the Company believes that approximately 90% of its revenues will be generated under the 1.25% fixed commission, which would further reduce monthly earnings volatility.

The numbers:

In latest earnings release, the Company said 2010 Net Income will be $36-$39 million based on the current rooms. Read Earnings Release

They have approximately 25-27m shares o/s after the recent exercise of approximately 14m warrants. Read Article The float should be 6-19m depending on how many of the warrant holders actually hold the stock for higher prices. For 2010, I estimate EPS will be approximately $1.40-$1.65. According to an article on SeekingAlpha Read Article, in 2011 with the new Venetian VIP room, AERL could do approximately $55m of net income (I am trying to verify that calculation), or over $2 EPS. That would put AERL at a forward P/E of 3-4 in a pure play hot sector. Assuming Macau stays hot and Chinese stocks remain in favor, I could see AERL targeting the $12-$20 range eventually.

Why $TORM was different and shorts should've listened

2010-11-02T16:04:00.000-07:00

I was in and called $TORM on October 26th at $6.50, it hit $11.40 that same day. (I took some off and kept some because I believed in the story) Read Blog Post Then it took a few days where it languished near and just below $10. Of course the small cap shorters network (SCSN - I made up this acronym - group of Twitter shorters) was ready to call it dead. They said it was a POS, that the chart was breaking and it was just a pump. In this blog post I warned them that TORM was different Read Blog Post Well today shorts were crushed as TORM exploded to new highs.

As I stated, the Company reports earnings Nov 11th, already has $0.43 EPS for the first 6 months of 2010, and titanium dioxide shortages are in the news. I said this is a small cap with a real story and EPS that could catch fire as it had both EPS, growth, and a strong theme. $KRO has almost a 20 P/E in the same industry so if $TORM can get near a $1 EPS run rate this could be an interesting story. However, that is contingent on the next EPS report.

However, I said TORM in sweet spot...new article today shows DOW looking for ways to reduce dependence on white titanium dioxide.......TORM has a unique solution:

DOW article Read Article

TORM info:

Read Article

Read Article

Management said growth the rest of the year to show improvement over prior year (Possible $1 EPS run rate - my estimate). Easy comps this quarter. Also, showing Asia demand from the 10-Q:

2010 Outlook

In 2010, we anticipate market conditions for our products in certain end markets to improve. Based on our conversations with customers, economic data and information from other market participants, it appears that the worldwide demand in the paint and plastics markets has started to stabilize. We saw significant improvement in our more mature HITOX sales during the last quarter of 2009, which has continued during the first six months of 2010. In Asia, HITOX sales for in-country use have increased and we are now starting to see production rates for HITOX used in export products increase. In addition to improving market conditions in the US and Asia, HITOX sales are beginning to benefit from new niche markets, which we are hopeful will generate additional incremental revenue for HITOX this year.

That is why I said do not short TORM and that is why shorts were squeezed and probably will have more pain to endure.

Again, low floats not for big positions or chasing. If you are like me in on the original call you can enjoy some stress free profits.

Why small cap shorts have been squeezed on certain plays $RITT $TORM $LIVE $SHZ

2010-11-01T04:26:00.000-07:00

Short sellers have been getting squeezed on many low floaters lately. While many of these stocks do lack substance, I do not think you can call every one of them garbage unless you do some research first. In my experience, two top factors that can sustain a run and cause a squeeze are : #1 - EPS and growth that support valuation or #2 a hot sector theme that the company does or may participate in the future. If it is just #2 when the theme fades the stock will fade.

SHZ - Ran because of a seeking alpha article that said because they have fluorite they probably have rare earth minerals (hot theme). Well if a Chinese small cap had rare earth, believe me they would be putting out press releases everyday on it. Did not see the substance here nor the EPS so I expected this to drop eventually and it has. Did not have the EPS, growth, or realistic part of hot sector theme.

LIVE - I called this a week before it ran and then the day it ran when it was in the $6's. The day it ran I called it as a sympathy play on TZOO/Groupon/Local Internet advertising (hot theme) and the fact it has an extremely low float as well as cash per share was high. Expected it to go up but not all the way to $10-$13 where I got completely out. Great trade but it will take EPS, news or an acquisition to make this run again in my opinion. Did not have the substance to sustain beyond the low float run. An overload of shorts could always cause a squeeze where there is a catalyst but that catalyst would need to appear first. Did not have the EPS, growth and the theme faded after TZOO's earnings.

RITT - I originally called and played RITT on LIVE sympathy because of the low float. I was in under $2 and out in the $4's. I thought the move it made to $8 would happen the first day of the run. However, it continued to squeeze frustrated shorts. I believe that is because it was a hot Israeli tech play in the same group as RDCM which ran last year, and earnings are due, and supposedly a new product showed up on its website. It will take great EPS or hot product news to mitigate this eventually falling and I don't expect EPS to be all that great. Shorts will get relief if EPS is not all that and there is not a hot product to launch. Did not have the EPS, but was in a hot sector so it squeezed. If EPS is not good and there is no guidance for growth, it will eventually show that it does not deserve the hot sector theme. But if EPS or a hot new product is there it would be sustained because there would be created hope for EPS.

TORM - I called this stock in the $6's and it hit the $11's right away. I sold half but kept half because this is the one stock that has a reason to go higher. TORM did .43 EPS for the first six months of the year and management said the rest of the year would show growth year over year. So this company could be on pace for close to a $1 EPS run rate while competitor KRO has a P/E of near 20. Titanium dioxide is in great demand these days and TORM has a synthetic process to make a cheaper version to avoid the expensive white kind. There have been many articles out there about the demand for titanium dioxide. So you have EPS to support a move, a good story in a hot theme (minerals demand), and a low float. I would not short a stock with these characteristics. They have both characteristics. EPS and growth, with a hot sector theme.

Before you short, do the research , every small cap stock is not automatically garbage, although many can be.

Why $CDTID went ballistic and Riders on the $TORM

2010-10-26T17:17:00.000-07:00

The reason $CDTID went ballistic today is a simple pattern to me. They did a reverse split and merger at the same time, which left a small float and outstanding shares. Coincidentally, they received a small, new contract and diesel emissions reduction was in the news. However, this is the SAME share structure that $SCOK and $CALL had before the both ran from the single digits to the $30+ range. Reverse split (leaving low float and outstanding), and merger with another company. If there is any interest in the industry at the time it is a plus. When $SCOK did it China coal was hot. When $CALL did it , there was talk of Skype IPO.

In the future when a Company does a reverse split and merger (especially if there is substance to the merger), leaving a low float, the possibility will always exist for a run up. However, the halt tells you not to get greedy whether you are long or if you are crazy enough to short these. I scalped some from $15-$20 and have no position. Nor did I blog or tweet on this stock ($CDTID)

Low floats or small caps in general are not for chasing or large positions. When I have profit always best for me to take some off and if I want to let the rest ride.

I was in and called $TORM today at $6.50. Read Blog Post The stock hit $11.40, before the $CDTID halt scared small cap traders. The Company reports earnings next week or two, already has $0.43 EPS for the first 6 months of 2010, and titanium dioxide shortages are in the news. Took some profit off but will manage the rest accordingly as this is a small cap with a real story and EPS that could catch fire as the titanium dioxide need is in the news and I was told was mentioned on CNBC today. $KRO has almost a 20 P/E in the same industry so if $TORM can get near a $1 EPS run rate this could be an interesting story. However, that is contingent on the next EPS report. I was in when $TORM was in the $6's and did not chase a new position so I have the luxury of taking some profit off and watching to see if this catches fire some more on the story or with the help of crazy shorts.

in TORM $6.50

2010-10-26T09:06:00.000-07:00

in TORM $6.50. Low float so NOT A STOCK TO CHASE or for LARGE POSITIONS. Low float stocks can be volatile and dangerous.

Why I bought:
***** TORM 925k Float 1.9m O/S TORM- Bloomberg
***** Unnoticed 0.18 EPS last Quarter, .43 for the 6 months Read Press Release
***** Up against easy comps this quarter See Quarterly Comps
***** Bullish comments from CEO last quarter - The Company said it expects to continue to produce year-over-year improvement in financial results during the second half of fiscal year 2010.
Supplies of Titanium Dioxide reported to be low relative to demand
Read Article
***** Strong stock performance and 19 P/E for KRO which is in similar space

Commenting on the results, Dr. Olaf Karasch, Chief Executive Officer said, "Second quarter marked our highest quarterly sales in more than four and one half years and our sixth quarter of year-over-year improvement in profitability. The continued growth in revenue and profitability is a result of improving market conditions, the successful introduction of new products, and the hard work we have completed over the past two years to improve efficiencies and remove costs from our business. The improvement also reflects the powerful leverage in our business, as a large portion of each incremental sales dollar makes a significant contribution to our bottom line."

"We've come a long way in diversifying our product and geographic mix in the past several years. The addition of several new large customers also diversifies our customer concentration. Greater diversification should improve our ability to deliver consistent growth in revenue and profitability," Dr. Karasch continued.

super-trades mayhem! $LIVE and let $LIVE

2010-10-21T18:26:00.000-07:00

$LIVE, a stock I blogged about last Thursday See Blog Post while it was in the $4's, hit $22.25 today in some of the craziest trading I have ever seen since the dot.com era. I expected it to go higher but not hit $22 in minutes! I tweeted Read Tweet on it as a trade and also posted on thelion.com today Read Post. super-trades.com had it first last Thursday. Testing a system to send out my alerts through the blog real time as well as the place I always post my positions first at (www.super-trades.com).

$LIVE went up so fast I couldn't sell fast enough. I was out $10-$13 range from entries in the $4's and a few in the $5's. What a SUPER-TRADE ! As I said the stock had the lowest float I have seen and it was not for big positions and the spread was crazy.

Low floats could be in play again as $LIVE as well as $CTDID another reverse split/merger had big days. $RITT has been talked about as the next low floater to run and I picked up some for a trade in case it does a $LIVE tomorrow. $RITT float supposed to be 300-700k. I am also researching a few other low floaters. Keep in mind $ALAN was mentioned in the blog thursday as a reverse split with a nice story building on food spoilage costs savings.

This blog is not investment advice for you or anyone. It is for me to post my stock ideas. Keep in mind LOW FLOATERS can be DANGEROUS to trade. They can move up and down dollars in minutes and are hard to execute trades on. I never chase them, never have too large a position in them (after a few painful lessons) or never overstay my welcome unless they are news driven. This article today said computer trades were responsible for some of $LIVE Read Article

super-trades update $CCME $HIHO $ANTP

2010-10-19T05:49:00.000-07:00

CCME hit all time high of $16.60 ! Took some profit off and will manage the rest of my shares accordingly. I do think stock will go much higher but foolish of me to have never taken some profit off the first run. super-trades winner from original call at $7.50 to $16.60. I do expect the stock to go higher still and short squeeze may start second leg.

Just a trade : HIHO had interesting news yesterday. Read News Looks like recurring revenue and potentially could be iphone cases. Company already profitable with .11 EPS It churned all day like ANTP last week. Will watch for volume price action or see if it just goes to sleep. Mental stop $2.50 on HIHO from entry around $2.80. ANTP volume has slowed but it keeps flirting to go higher. Still have half shares from $4 on ANTP.

super-trades.com watch list $CCME $ANTP $LIVE $ALAN $OINK

2010-10-14T19:35:00.000-07:00

CCME - The short squeeze continues ! Closed in the $14's and all time highs are in reach. Feels good to see my research proved correct again although it has taken much longer than I thought, not seeing the short/slander attack on china small caps. Well shorts overstayed their welcome on CCME that is for sure. It was funny yesterday when CCME said that Starr Investment (Owned by AIG's Herb Greenberg) was upping their stake in CCME by buying 1.5m shares from the founders at $9. Read Press Release CCME haters (even some on my favorite message board to my dismay) were instantly out saying scam and other lame comments. Well they did not see that the $9 price was the average of the month of September when the deal was negotiated and that this was actually bullish news that Starr wants more shares and reinforces CCME is legit. Well the bashers were shamed again (not as though they have much credibility left) as CCME closed at new highs for the day. We could see a parabolic jump in the next day or so the way this stock is squeezing with so many shorts in it. Remember that earnings, guidance raise , dividend, or an accretive acquisition are all possibilities in my opinion. I must say it feels good to be proved correct again with CCME! I originally bought CCME as TMI in the $7's so my core shares are rocking. (Although my trading shares did not fare as well during the short slam).

super-trades.com watch list: (If you think a stock belongs on my watch list, email me at superman@super-trades.com)

ANTP - I blogged on this stock Tuesday night this week as I picked some up at $4 in afterhours on EPS turnaround and guidance that mentioned the demand for their antennas due to smart phone use (a buzz topic). With a low float and a history of running I am watching this for follow through after taking half of my shares off in the low $5's. It seems like it was being shorted / accumulated the last 2 days and it closed strong today. Like I said I am watching this for follow through.

LIVE - This stock did a reverse split and now has approximately 600k shares o/s and a 305k float. See Bloomberg - LIVE I have never met a low float (under 1m) that I did not like :)
This stock is extremely thin and has low volume so not for large positions and is extremely speculative. However, on GOOG's blowout results (see what LIVE does in the next paragraph) this could be seen as a small cap sympathy play and/or just move when traders figure out how low the float is as low float stocks have been moving. I picked up a few today as a speculative play. Again, extremely thinly traded and low floats can be feast or famine. Read Today's Press Release

LiveDeal, Inc. provides local customer acquisition services for small businesses to deliver an affordable way for businesses to extend their marketing reach to local, relevant customers via the Internet. LiveDeal delivers website creation, Search Engine Marketing (SEM), Social Media Marketing (SMM), video, and other online marketing tools as part of its InstantAgency suite of products. These products and services are dedicated to delivering agency quality online advertising at a fraction of the price of a traditional online marketing agency.

ALAN - Another reverse split stock that left it with approximately 3.5m shares o/s and a 5.2m float. See Bloomberg - ALAN

This is what they do : Alanco Technologies, Inc. provides wireless monitoring and asset management solutions through its StarTrak Systems subsidiary. StarTrak Systems is the dominant provider of tracking, monitoring and control services to the refrigerated or “Reefer” segment of the transportation marketplace, enabling customers to increase efficiency and reduce costs of the refrigerated supply chain.

They had a press release today that sales are up 25%. Read Press Release The main angle here came from this IBM commercial I saw on TV the other night. See Commercial It seems ALAN addresses this problem with their technology. Watching for price/volume follow through.

OINK - HOGS and OINK are both China pork stocks. HOGS has exploded to all time highs. OINK just got back to its IPO price today ($6). Traders are watching this to see if it gets picked up as the next HOGS. Watching for strong volume price action and/or company/sector news. Approximately 10m shares o/s and I cannot find the float but I think the IPO was approximately 2m shares if my memory is correct. See Bloomberg - OINK

Tianli Agritech, Inc., through its subsidiary, HC Shengyuan Limited, engages in raising, breeding, and selling hogs for use in Chinese pork production and hog breeding markets. The company sells its products to distributors and large-scale swine farms. Tianli Agritech, Inc. was founded in 2005 and is headquartered in Wuhan City, the Peoples Republic of China.

Again these are my investment ideas only and is not intended as investment advice for anyone. Make trades at your own risk. No individual is 100% accurate in their views.

super-trades is back!!! $CCME $ANTP

2010-10-12T16:39:00.000-07:00

I am back from a vacation, time off for family , and depression that CCME did not hit $30+ :)

But seriously, CCME is a stock I first called at $7.50 when it was still TMI. It ended up hitting $14.82 from there, which was a 100% super-trades gainer. However I said it had the numbers for a much higher share price. What I did not see coming was the smear campaigns and short sellers attack on most all China small caps. This was bad judgment on my part - a bad call for super-trades. (Did you hear me? I said it was a bad call for me not to see this coming) CCME got hammered all the way back to the $7's. Some china stocks did have accounting issues. CCME was smeared on message boards (even my favorite message board to my dismay), and shorts piled on. At the latest report there were approximately 4.4m shares short CCME. They are now on the Reg SHO list for naked short sellers and it looks like the last week a forced buy in squeeze is happening. Shorts never produced one shred of evidence meanwhile CCME had blow out earnings of $0.80 last quarter and authorized a $30m share buyback. With earnings on the way, in my opinion raised guidance, and I hope the possibility of a dividend, this has the makings of a potential epic short squeeze that may already have started. Many of these shorts are way underwater in my opinion and panic buy -ins could happen. (My original buy from the $7's still looks great although some trading shares did not fare as well!)

ANTP - I would watch this stock tomorrow as they reported nice EPS and backlog afterhours. The stock has a low float and history of running. The guidance talk about the need for cell phone capacity due to smart phone and that their antennas are in the sweet spot. I picked some up around $4 in the afterhours for a trade.
Here is the press release link.

Read Press Release

Again I am blogging my trade ideas only and this is not investment advice. I have trade ideas that go well and trade ideas that don't go so well.

However super-trades is back !

CCME - New exciting concept appears to be coming

2010-06-20T10:26:00.000-07:00

CCME, as they stated on their last conference call, appears to be going to the SkyMall / E-Commerce concept for additional high margin revenue and more revenue from advertisers in the catalog itself. SkyMall does approx 100m+ in revs from what I see and serves 650m customers annually (travelers who can view the catalog). CCME has 800m customers annually. This is nice potential for big additional revenue growth on top of the huge existing organic growth...and potentially E-COMMERCE........see link on home page titled "E-Business". Appears to be not much cost involved for CCME just margins. They are an order taker and advertiser. However, could add online sales element. Another reason CCME should be a double to triple soon once Wall Street wakes up to this gem. The Yuan announcement over the weekend should cause a rally in china stocks over the next few weeks.

View Link on CCME Website

Technically, SkyMall is an advertising company. Retailers pay to have their products listed in the catalog, which is published four times a year and changes most of its product selection each time. SkyMall has a variety of financial arrangements with its retailers, Ms. Aguilera said, and sometimes gets a cut of sales in addition to charging for advertising.

Forty percent of SkyMall customers order merchandise through the company’s toll-free telephone number and the rest order through the SkyMall Web site; SkyMall said sales from the Web site alone were up last year, to $81.5 million from $75 million in 2007.

SkyMall Article

SkyMall 650m annual customers around their catalog. Web Site Sales alone were $82m.

CCME has arround 800m passengers on their buses annually.

SkyMall Website

super-trades.com update EDS, CREG, HWG, CCME, TRIT, DGW

2010-06-14T17:18:00.000-07:00

EDS - I think the stock is down because they have been way too silent. More press releases and information on earnings are needed. The earnings report is coming up and they said they will have quarterly releases after that. I would buy back big once I see this next report as the stock is very cheap at these levels. Great nibbling area here for me to get a small position started. Once the report and guidance are out the stock should snap back quickly. Morgan Joseph reiterated the stock as a buy today and $13 target. A good play on Chinese consumer demand once they communicate earnings and guidance. Silence is stupidity in this market and I question the Investor Relations firm strategy thus far. After being $11.50+ for so many days they will go through warrant overhang issue like CCME for a few months. I believe warrants expire worthless in November 2011 if memory is correct. So if numbers and guidance are what I believe they would be it would be a great trade from these levels to the $12-$13 range. But they need to start speaking up like CCME has.

CREG - Was in this for a trade on RINO earnings and uplisting but ended up getting stopped out in the China downdraft. Another company that has been way too silent with the street/investors. Was a bad call by me all things considered. Will watch the earnings and news flow but they need to prove themselves to me.

CCME has made all the right moves. Big 4 auditor, Investment from reputable Starr International after months of diligence, frequent communication with press releases, Insider buy, funds starting to buy, incredible growth and cash flow generation. That is why the stock has held up incredibly well and I believe it is about to make a move to the $15-$20 and I personally rate it as a strong buy for myself at these levels.

HWG - Nailed earnings on this one and the stock came close to may target of $60 from $40 (hit the high $50's).

TRIT, DGW - Will watch for entry if they get lower. Love the water sector in China.

CCME - How to Profit From China's Emerging Middle Class

2010-06-13T16:22:00.000-07:00

Much has been written as of late about the emerging middle class in China and the the increase in domestic consumption. Workers wages are rising, and multi-national companies are tripping over themselves to establish their brand in what they see as the next big growth market. The headlines are everywhere:

"Pepsi, Coke in race to conquer China"
"China to become second largest advertising market"
"Getting the Chinese to drink like Americans"
"American Eagle wants to capitalize on China's consumer spending boom"

In a recent article, Stephen Roach said China will soon embark on a 5 year stimulus plan to boost internal consumption. In this Bloomberg article the other day, it stated "Companies including Volkswagen AG and PepsiCo Inc. are boosting investment in the world’s third-largest economy to tap rising consumer spending fuelled by the government’s stimulus package and higher wages.
“China will remain an attractive investment destination as the government spurs consumer spending,” said Xing Ziqiang, a Beijing-based economist at China International Capital Corp. “The expansion of infrastructure, including transport links, in central and western regions is also opening up a vast inland market for consumption and investment.”

While Chinese stocks have been in a bear mode, it has mainly been the property and infrastructure stocks. CAAS, FMCN, ASIA, HMIN, SORL, AUTC, CAGC, CNYD, DEER are just some examples of stocks that still maintained P/E ratios of 10-30, even in the latest bear market for Chinese companies. The common theme amongst most of them is they are domestic consumption stocks.

Well what is apparent to me is this is the next momentum wave for Chinese stocks. What is equally apparent to me is that there will be a boom of advertising as companies fight to get the attention and loyalty of chinese consumers. That is why China MediaExpress is the most undervalued Company in this space and the best stock I can find to take advantage of this next wave of momentum.

China MediaExpress Holdings, operates the largest television advertising network on inter-city express buses in China. CCME's clientele includes local brand names as well as those well-known international and national brands such as Coca Cola (KO), Pepsi (PEP), Siemens (SI), Hitachi (HIT), China Telecom (CHA), China Mobile (CHL), China Post, Toyota (TM), Bank of China and China Pacific Life Insurance.

1) CCME is audited by a big 4 auditor Deloitte. A major investment firm Starr International, performed months of diligence before investing $30m in CCME. They were recently listed on the Nasdaq Global Select market which has the most stringest corporate governance requirements.

2) CCME has long term (5-8yr) agreements with over 50 bus operators that cover about 22,000 buses (up from 10,000 in 2007) with 80M passengers/month - the whole market is estimated at 65,000 buses. There are substantial benefits to this type of scale in dealing with advertisers, particularly in an advertising market as immature and fragmented as China. They are also an excellent way to reach second and third tier cities, as many advertisers are clamoring to do.

3) CCME has approximately $114 million of cash with no debt. They will generate approximately $50m of cash this year from operations. Their DSO's are approximately 40 compared with over 100+ for many Chinese companies. Their rates are low so they get paid quickly. This is unique for a Chinese companies. With CCME there is no fear of furhter dilution. Their CFO recently stated, "we have sufficient resources to fund our business expansion plans, including internal growth initiatives as well as potential acquisitions.”

4) CCME has amazing growth. The Net Income target is $71-$75m this year which would represent 79% growth from 2009. That $71-$75m range seems very conservative by management since they did $18m Net Income in Q1 ($72m run rate) and they expect higher growth and margins the rest of the year. Management has a huge incentive to make $84m of net income this year in the form of earn out shares. I believe the Company will make the $84m in net income this year. With approximately 40.5m fully diluted shares, EPS could range from the $1.85 guidance to over $2 if they hit the earn out target. FMCN, which is the best comparable in this sector, currently trades at a P/E of 17 based on the 2010 estimates of $0.94 EPS. To give CCME a P/E of 17, they would have a share price of $34 right now. This research report gives them a $35 target and said they are discounted 68% to their peers. Read Report

This stock is incredibly undervalued given the above 4 discussion points. CCME, being a new listing has yet to receive analyst coverage. The Company stated they have met with many analysts and institutions so I personally expect coverage soon. Analysts typically assign P/E ratios anywhere from 10-30, depending on the Company. Because of the above discussion points I think CCME qualifies for a higher multiple. Lastly, they were recently selected to be added to the Russell Global Select fund.

CCME is the most undervalued stock poised to profit from China's emerging middle class.
I am long CCME.

CCME Report $35 Target - Trades at 68% Discount to Peers

2010-06-13T07:19:00.000-07:00

CCME report $35 target Trades at 68% discount to peers

Click to Read Research Report

http://docs.google.com/fileview?id=0B1ziYZzhUnpGMzdmZGMzZTUtMmQzNy00NzcwLWI0NzAtNzUzMGQ2ZTEwNGE4&hl=en

CCME going to NASDAQ !!!

2010-05-19T05:54:00.001-07:00

China MediaExpress Holdings, Inc. to Begin Trading on the NASDAQ Global Select Market on June 3rd
Last update: 5/19/2010 8:45:00 AM
FUJIAN, China, May 19, 2010 (BUSINESS WIRE) -- China MediaExpress Holdings, Inc. (CCME) ("CME" or "Company"), China's largest television advertising operator on inter-city and airport express buses, today announced that its common stock has been approved for listing on the NASDAQ Global Select Market.
Effective as of the close of trading on June 2, 2010, the Company's common stock will cease trading on NYSE AMEX. Upon the opening of trading on June 3, 2010, the Company's shares will commence trading on NASDAQ Global Select Market, under the same ticker symbol "CCME".
Mr. Zheng Cheng, CME's Founder and CEO, noted, "We believe that NASDAQ represents the best fit for our Company and our shareholders. NASDAQ's market maker structure should lead to increased liquidity, an expansion in our shareholder base and, ultimately, to increased shareholder value. In addition it will provide our investors with the best prices and the fastest execution. As the world's largest electronic stock market, NASDAQ promotes innovation and attracts leading growth companies from a diverse group of sectors. CME is one of the very few Chinese companies to qualify for the NASDAQ Global Select Market, which has the highest initial listing standards of any exchange in the world. Out of 136 China-based companies listed on NASDAQ, only 26 companies such as Baidu, CTrip.com International, Shanda Interactive Entertainment and NetEase.com, fulfill NASDAQ Global Select Market requirements. Within only seven months since CME became a public company in October 2009, we have qualified and are making the decision to move to the NASDAQ Global Select Market. This achievement is an important milestone for our Company and we look to the future with confidence."

CCME getting strong institutional buys

2010-05-18T06:30:00.001-07:00

Stock should be ready to make a big run

http://www.mffais.com/ccme

CCME - Huge Bus Acquisition News

2010-05-17T05:48:00.000-07:00

China MediaExpress Holdings, Inc. Announces Addition of 816 Inter-City Express Buses to Its Existing Network

Press Release Source: China MediaExpress Holdings, Inc. On Monday May 17, 2010, 8:45 am
FUJIAN, China--(BUSINESS WIRE)--China MediaExpress Holdings, Inc. (NYSE Amex: CCME) (“CME” or “Company”), China’s largest television advertising operator on inter-city and airport express buses, today announced that it has signed a framework agreement with a media company to purchase the exclusive right to operate television screens on 816 express buses originating in the Autonomous Region of Inner Mongolia.

This agreement grants the Company the exclusive right to provide television programming and advertisements on 816 express buses managed by several bus operators, for a period of seven years commencing May 1, 2010. In accordance with the framework agreement, CME paid a one-time fee for the acquisition of the operating right to the media company.

In addition, CME signed a seven-year long-term framework contract with the bus operators of the 816 express inter-city buses to supply entertainment programming along with paid advertising. CME will pay the bus operators a fixed monthly concession fee over the term of the contract, with an annual increment of 10%-30%.

Inner Mongolia is China’s third largest region and one of its fastest growing economies, with 18% annual GDP growth since 2005. Inner Mongolia’s economic growth has led to a boom in construction, including new commercial development and large apartment complexes in the region. Over the last decade, Inner Mongolia’s industry has grown mainly around coal, power generation, and forestry-related industries. The local government is now focusing its efforts on developing six competitive industries, namely energy, chemicals, metallurgy, equipment manufacturing, processing of farm produce as well as hi-tech products.

Mr. Zheng Cheng, CME’s Founder and CEO, noted, “With this framework agreement we have increased our presence in Inner Mongolia and have enlarged our network to approximately 22,300 express buses. As previously mentioned, we are focusing our work to meet the demands of our advertising clients who are accelerating their efforts to grow their sales beyond the first- and second-tier cities into less developed markets, including the fast developing region of Inner Mongolia. The addition of Inner Mongolia into our network has enhanced our geographic coverage. This signing of this agreement is a result of the great efforts we have put in the past six months.”

HWG $3.44 EPS for the Quarter

2010-05-17T04:08:00.000-07:00

HWG was a stock I blogged and bought on November 16, 2009 at $40 Read Blog Post.

Warning - Stocks that have such a low float (500k) and number of shares outstanding (1.5m) can trade thin and be very volatile. They can drop several dollars on low volume. I never take large positions in such stocks and I always understand that they can be illiquid and have risks. I never chase these type of stocks.

Press Release Source: The Hallwood Group Incorporated On Friday May 14, 2010, 5:42 pm EDT
DALLAS, May 14 /PRNewswire-FirstCall/ -- The Hallwood Group Incorporated (NYSE Amex: HWG) today reported results for the first quarter ended March 31, 2010.

For the quarter, net income was $5.3 million, or $3.44 per share, compared to net income of $3.0 million, or $1.94 per share, in 2009, on revenue of $47.2 million and $39.7 million, respectively.

$CCME Blowout EPS $.54 !!!

2010-05-14T05:56:00.001-07:00

Revenue increased by 137% to $44.5 million as compared to $18.8 million;
Gross margin for first quarter was 60%;
Income from operations increased by 130% to $24.2 million as compared to $10.5 million;
Net income increased by 143% to $18.1 million as compared to $7.5 million; and,
As of March 31, 2010, the Company had more than $114.4 million in cash.

CCME - Q1 Blow Out Earnings

2010-05-10T20:16:00.000-07:00

Today CCME released a filing that previewed their net income for Q1 2010. They said it will be approximately $18m. In Q1 2009 they did approximately $7m. This is an unheard of 150%+ net income growth. EPS should come in close to $0.50 for Q1 which is their weakest quarter. Q4 is typically their strongest quarter and they did a record $14m net income in Q4 2009. This company is the most undervalued, hyper-growth, cash rich company that I see out there. They should easily do over $2 EPS in 2010 by my estimations. The company trades at a P/E in the 5's. They have 150% net income growth, margins in the 60-70% range, $100m cash in the bank, strong cash flow generation, and an exclusive contract in their industry. FMCN trades at approximately a 20 P/E and is in the same space. Companies with CCME's characteristics usually get a high multiple. A 20 multiple for CCME would make it a $40 stock. I have called some big winners in the past, EFUT $11 to $50, PDO $5 to $45, and RINO $7 to $30 , to name a few, yet none of them had the growth numbers like CCME. I do not see numbers like this very often. It is a matter of time before Wall Street notices this gem and it rockets to a proper valuation. I believe CCME is due to report by this Monday, May 17th.

We anticipate a significant change in our results of operations from the corresponding period in the last fiscal year due to our former status as a shell company. Based on currently available information, we anticipate reporting net income of approximately $18 million for the quarter ended March 31, 2010, before making any adjustments for the accounting of the preferred shares that we previously issued for the quarter ended March 31, 2010.

Read Filing

CCME going to have HUGE Q1

2010-05-10T12:38:00.000-07:00

18miilion in Net Income way above expectations!

CCME blowout quarter coming "We anticipate a significant change in our results of operations from the corresponding period in the last fiscal year due to our former status as a shell company. Based on currently available information, we anticipate reporting net income of approximately $18 million for the quarter ended March 31, 2010, before making any adjustments for the accounting of the preferred shares that we previously issued for the quarter ended March 31, 2010."

Most undervalued growth stock out there

CCME Right Place Right Time

2010-04-16T06:09:00.000-07:00

This is from an article the other day on the booming China Ad market:

Advertisers are accelerating efforts to grow sales beyond China's first- and second-tier cities into less-developed markets, and that expansion into lower-tier cities requires bigger media investment.

Read Article

This is from CCME PR today:

“As advertisers are accelerating their efforts to grow their sales beyond the first- and second-tier cities into less developed markets, we are confident that they will continue to view our large network of buses and wide geographic coverage, which covers many of the third-tier cities, as a great advertising platform to promote their products and services to a large number of travelers at a very competitive cost. We will continue to look for additional opportunities to expand our current network both organically and through similar acquisitions of the operating rights from other local media companies.”

CCME Press Release

CCME News - This Stock Will Eventually Make a Big Run

2010-04-16T05:54:00.000-07:00

Read Press Release

China MediaExpress Holdings, Inc. Announces Addition of 527 Express Buses in Its Existing Network

Press Release Source: China MediaExpress Holdings, Inc. On Friday April 16, 2010, 8:45 am
FUJIAN, China--(BUSINESS WIRE)--China MediaExpress Holdings, Inc. (NYSE Amex: CCME) (“CME” or “Company”), China’s largest television advertising operator on inter-city express buses, today announced that it has signed a framework agreement with a media company to purchase the exclusive right to operate television screens on 527 express buses originating from the city of Huizhou in the Guangdong province. This agreement grants the Company the exclusive right to provide television programming and advertisements on 527 express buses managed by one bus operator, for a period of five years which commenced on April 1, 2010. According to the framework agreement, CME paid a one-time fee of RMB 50,000 per bus for the acquisition of the operating right to the media company and will pay a monthly concession fee to the bus operator over the term of the contract.

Guangdong is one of the richest provinces of China, with the highest GDP among all the provinces, contributes approximately 12% of China's national economic output, and is home to the production facilities and offices of many multi-national and Chinese corporations. In addition, Guangdong’s provincial capital, Guangzhou which is China’s third largest city, after Beijing and Shanghai and its economic hub Shenzhen, are amongst the most populous and fast growing cities in China. Furthermore, Guangdong has one of the most developed highway system in China. Each of the 21 administrative divisions of the Guangdong province is well connected through an extensive network of highways, which by the end of 2010 is expected to be more than 3,000 miles long.

Zheng Cheng, CME’s Founder and CEO, noted, “This framework agreement comes on the heels of our contract with the organizers of the Asian Games in the city of Guangzhou to display a 30 second advertisement promoting the games on our network of buses and, the agreement to purchase the exclusive right to operate television screens on 124 express buses originating from the city of Shenzhen, both of which we announced last month.”

“As advertisers are accelerating their efforts to grow their sales beyond the first- and second-tier cities into less developed markets, we are confident that they will continue to view our large network of buses and wide geographic coverage, which covers many of the third-tier cities, as a great advertising platform to promote their products and services to a large number of travelers at a very competitive cost. We will continue to look for additional opportunities to expand our current network both organically and through similar acquisitions of the operating rights from other local media companies.”

CCME - Article Most Undervalued Companies

2010-04-07T10:22:00.000-07:00

China MediaExpress (CCME) has issued incredible revenue guidance of 80% growth for 2010, which doesn't even include the expansion of its bus lines which will surely occur. With a P/E of just under 7, this company's valuation does not make any sense, considering it just uplisted to Amex. The markets will eventually realize their mistakes and investors will be strongly rewarded.

My sentiments exactly !!!

Read Article

EDS Reports $1.59 EPS

2010-04-07T04:36:00.000-07:00

Read Press Release

Superman what do you think about CCME ?

2010-04-06T04:41:00.000-07:00

1) I am still holding CCME

2) I first blogged on CCME at $7.50 when it was TMI Read Blog Post. It has since hit a high of $14.82 which is a 98% gain.

3) Many traders like myself who have a lower cost basis because they bought early and did not chase recent highs, have cushion and can focus on the fundamentals and not the short term day to day trading (or daytrading).

4) Speaking of fundamentals, I have not seen a report out recently where a Company has higher growth, profit margins, cash flow generation, and guidance like CCME. That is a fact that remains. They are trading at a 5-7 forward P/E , depending how they use their $100m. FMCN trades over a 20 P/E and is in a similar space, out of home advertising in China. CCME could be anywhere from $20-$40 and it could be justified with their numbers on a fundamental basis.

5) CCME has received a $30m investment from Starr International and has now been audited by a Big 4 Accounting firm.

6) CCME trading is volatile. On some days you see crazy buying and some days you see crazy selling. Yes it can be frustrating to watch. However, it has not been limited to CCME, many Chinese small caps have been trading with weakness and/or volatility.

7) CCME's float went from 750k to a much more institution friendly 8-10m in a short time period due to the 8m warrant holders that converted to common. That created 8m holders of stock with a low cost basis. When a float of any stock (especially a low float of 8-10m) goes through this you are going to see volatility until the float is in stronger hands no matter what the fundamentals are.

8) Some of the 8m warrant converts may have wanted to sell half or all of their low cost basis stock.

9) For all of the selling going on at times, someone with big money is absorbing all of these sells at a very nice price. Forward P/E of 5-7. The float is getting into stronger hands.

10) Naked shorts realize #7 and #8 and have been naked shorting CCME. CCME is on the SHO list due to naked shorting. These naked shorts will eventually have to cover soon. If this can be timed with the slightest of good news it will create rocket fuel like you have seen in many of my past monster stocks PDO, EFUT, RINO, etc. By the way RINO is amongst the most heavily shorted stocks. It encountered heavy selling/shorting in the teens. It is now in the $20's after hitting $30's.

11) Also for all of the naked shorts selling see point #9.

12) I have an expression "EPS does not lie". No matter what the chart says, the bashers, the skeptics, if a Company puts up numbers eventually the stock will get fully valued.

13) So it comes down to capital, cost basis, timing, and opportunity/risk. If your cost basis is low, you have adequate capital per your size investment, you believe in the story/numbers, then you have time and can also manage your opportunity/risk. If you are a daytrader and chased in the $14's then that is a different story. The market is not a formula nor does it make perfect sense in the timing you think it should. No one trading / investing style is always correct. It is always good to take at least some profit off when you have it if you are worried. (With CCME I have made an exception to this rule for myself because I have the capital to do so. However, the rule is the best advice I can give)

SKBI took forever to realize the gains I thought it could. Called it in the $11's and it hit split adjusted $24. RINO pulled back before it blasted off. PDO was naked shorted heavily before taking off. All I know is unless the story changes, CCME is greatly undervalued. It may get properly valued today, next week, or in 3 months, the question is do I have the time, cost basis and capital to manage the opportunity/risk that the market presents with CCME and every stock?

Long CCME

HWG 10-K out $11+ EPS for the year

2010-03-31T14:08:00.000-07:00

HWG, a super-trades.com pick since $40, has been flat, has reported their 2009 EPS of over $11. Thin and volatile stock not for new traders, but I said $10+ EPS.

Read 10-K

CCME files Form 10-K !

2010-03-31T13:19:00.000-07:00

I believe this was the last hurdle before institutions buy in heavy:

Read 10-K

Still holding CCME

2010-03-25T12:18:00.000-07:00

Digesting this move and getting ready for another move in my opinion.

Out Half of TRIT at $16.70 range from $15 entry

2010-03-25T09:51:00.000-07:00

will manage the rest accordingly

Out Half of NIV at $4.20 from $3.30 Entry

2010-03-25T09:36:00.001-07:00

will manage the rest accordingly

Do Not Chase - I bought NIV at $3.30 in Pre Market

2010-03-25T04:41:00.000-07:00

10-K out last night $.59 EPS for 2009

would add under $3.50 but would not chase

in TRIT $15 After Hours - Here is Why

2010-03-24T16:44:00.000-07:00

In TRIT afterhours at 15 and will add tomorrow if I can in 14's

2010 Guidance
For 2010, we anticipate that our revenues will range between $40.6 million and $50.5 million. We anticipate our net income will likely reach between $7.0 million and $9.2 million. We expect that we will be able to reach these revenue and net income projections without receiving further financing.

5.2m shares o/s

EPS guidance is $1.33-$1.75

No more dilution

China Water sector

Guides for:

Revenue Growth: 142% - 200%
Net Income Growth: 81% - 138%
No further financing needed

More to come

Out Half of NIV at $4.30 from $3.30 Entry

2010-03-24T09:17:00.000-07:00

will manage the rest accordingly

2 Pieces of super-trades advice

2010-03-24T07:35:00.000-07:00

1) If you are a daytrader, need to make money/trade everyday, or are impatient then we have exact opposite styles and you will not like the stocks I usually buy - I waited months for CCME to take off

2) Not ever stock I pick will be a CCME or a PDO....do own diligence I will have stocks that do not work

CCME - Blow Out Earnings & Guidance

2010-03-23T08:50:00.000-07:00

China MediaExpress Holdings, Inc. Announces 2009 Fourth Quarter and Year-End Financial Results

Fourth Quarter Revenue and Net Income Increased by 90.6% and 99.6%, Respectively

Announces 2010 Net Income Guidance

CCME $1.80 EPS for 2010 without acquisitions throwing off huge crash and growth !!!

FUJIAN, China--(BUSINESS WIRE)--China MediaExpress Holdings, Inc. (NYSE Amex: CCME) (“CME” or “Company”), China’s largest television advertising operator on inter-city express buses, today announced financial results for the fourth quarter and year ended December 31, 2009.

Financial Highlights – Fourth Quarter 2009 vs. Fourth Quarter 2008

* Revenue increased by 90.6% to $32.0 million in the fourth quarter of 2009 as compared to $16.8 million in the same quarter of 2008;
* Gross margin for fourth quarter was 68.9%;
* Income from operation increased by 104.7% to $19.5 million in the fourth quarter of 2009 as compared to $9.5 million in the same quarter of 2008; and
* Net income increased by 99.6% to $14.3 million in the fourth quarter of 2009 compared to $7.2 million in the same quarter of 2008.

Financial Highlights – Full Year 2009 vs. Full Year 2008

* Revenue increased 52.3% to $95.9 million in 2009 as compared to $63.0 million in 2008;
* Gross margin for year ended December 31, 2009 was 65.7%;
* Income from operation increased by 61.3% to $56.6 million in 2009 as compared to $35.1 million in 2008;
* Net income increased by 58.2% to $41.7 million in 2009 as compared to $26.4 million in 2008; and
* As of December 31, 2009, the Company had $57.2 million in cash.

Zheng Cheng, CME’s Founder and CEO, commented, “2009 has been an exciting and eventful year for our Company. We started the year as a privately-held business and concluded as a publicly owned company trading on the NYSE Amex. Since our inception in 2003, we have been working hard to successfully grow CME to a multi-million dollar company and to become the market leader in the express bus advertising industry in China. 2009 was the best year in our history as we continued the rapid organic growth of our business by: signing new contracts with additional bus operators partners, both in the areas where we have a strong presence and in new areas as well; entering into exclusive agreements with several operators of airport express buses, broadening our revenue sources to further augment our potential revenue growth through providing additional advertising channels to advertisers and new services to passengers such as the broadcast of the embedded advertisements which are displayed during the broadcasting of the content; and exploring a number of avenues to further grow our market share and geographic coverage through possible acquisitions.”

Discussing 2009 fourth quarter and year-end results, Mr. Cheng noted, “As expected, our fourth quarter was the strongest quarter of the year. Our revenue for the quarter grew by 22.3%, 67.4% and 70.2% compared to the third, second and first quarters of 2009, respectively. Also net income for the quarter increased by 22.7%, 72.8% and 92.0% compared to the third, second and first quarters of 2009, respectively.

He added, “Our network has grown with the signing of several new agreements with bus operators. As of today, our network includes 49 bus operator partners, up from 46 at the end of November; these agreements run from three to eight years. The total number of buses equipped with our television systems is now over 21,000, increasing approximately by more than 1,000 buses since the end of November.”

Mr. Cheng continued, “Our successful platform, the large and growing network of bus operators partners, the wide geographic coverage and our competitive advertising rates, continue to attract a large number of international and national brands to our advertising network. More than 450 advertisers have purchased time on our network either through advertising agents or directly from us. Our growing clientele includes local brand names as well as well-known international and national brands such as Coca Cola, Pepsi, Wahaha, KFC, Siemens, Hitachi, Haier, China Telecom, China Mobile, Nokia, China Post, Procter & Gamble, Bank of China, China Constructing Bank and China Pacific Life Insurance.

“In addition, we plan to further broaden our revenue sources by providing additional advertising channels to our clients and new services to passengers. These additional revenue sources include: a) separately packaging advertising time slots on airport shuttle buses and tour buses which should generate higher revenue, b) displaying soft advertisements packaged as entertainment content, c) establishing stationary advertising media at inter-city express bus terminals to complement our main business, and d) offering new services to advertisers and passengers by featuring hotels, spa resorts, local restaurants on our network along with relevant contact information of service providers and charge advertising fees.

“We remain focused on improving our profit margins by attracting more direct advertising clients. As a result, at the end of 2009 direct clients accounted for 21% of our net revenues, as compared to only 2% at the end of 2008 and 16% at the end of the 2009 third quarter. Our goal is for direct advertising clients to represent approximately 35% our net revenue mix by the end of 2010.”

Jacky Lam, CME’s Chief Financial Officer stated, “In 2009, CME generated approximately $46.2 million of cash from operating activities, of which $16.4 million were generated in the fourth quarter. Our cash position remains very strong and as of December 31, 2009, we had $57.2 million of cash.”

Mr. Lam continued, “In January 2010, we completed two important transactions for our Company. The first transaction was a $30 million private investment from Starr International Company, Inc. (“Starr International”), involving newly issued shares of CME Series A Convertible Preferred Stock and CME common stock purchase warrants. We are very pleased that Starr International, a respected investment firm with a significant presence in China and the US, has shown great confidence in our growth prospects and has become one of our major investors.

“The second transaction was the completion of the exercise and redemption of all of our outstanding public warrants, which brought CME net proceeds (after deducting the amounts paid to the original shareholders of CME) of approximately $26 million. Through the redemption we simplified our complicated capital structure, increased the public float, and made CME more attractive to a larger number of institutional investors. In addition, we eliminated the warrant overhang, removed the associated downward pressure on our stock price and the trading volatility associated with arbitrage.”

Mr. Lam added, “As a result of the above two transactions and the settlement of $10 million promissory note due to the CME original shareholders, as of today, we have over $100 million in cash, to fund our business expansion plans, including internal expansion initiatives and potential mergers and acquisitions of local companies capable of delivering customized, time-specific and local-oriented content.”

Pursuant to the earn-out provisions of the share exchange agreement (“Share Exchange Agreement”) entered into in connection with the Company’s initial business combination with TM Entertainment and Media, CME anticipates issuing the original founding shareholders of the Company 1,000,000 common shares. This earn-out issuance is a result of the Company achieving its 2009 adjusted net income (as defined in the Share Exchange Agreement) of $42 million.

Announces 2010 Guidance

Based on the current customer base, geographic coverage, network of express buses and existing revenue streams, CME’s management projects that its 2010 net income (non-GAAP which is before share based compensation or fair value adjustments for the Company’s financial instruments), will be in the range of $71 million to $75 million. These projections exclude the impact of any possible acquisitions, additional of new buses and new investments in other media projects in 2010.”

Mr. Cheng concluded, “We believe that our Company is well positioned to further benefit from the rapid growth in the advertising spending in China, the second largest advertising market in Asia, and one of the largest and fastest growing markets in the world. We are very proud of our success and are confident that our Company has a bright future.”

I bought some CREG - Uplisting Monday

2010-03-19T11:37:00.000-07:00

In CREG at $5.50 for a trade they are uplisting to Nasdaq Monday. The sector is very hot and it reminds me of RINO.

Target $7-$12 depending on momentum and volume.

Recycling Energy Corp. (OTCBB:CREG.OB;.ob - News) is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

I am leaving thelion.com

2010-03-18T09:57:00.000-07:00

I will no longer be posting at thelion.com website. I will post here on my blog and twitter and will be re-emerging at a new message board. Please feel free to contact me with questions.

Research Report out with $28 Target on CCME

2010-03-16T08:38:00.001-07:00

Get Report

CCME Filing out - Net Income $41m for 2009 !

2010-03-16T04:10:00.000-07:00

There is a filing out this morning where CCME said they will have net income of approximately $41m for 2009. This is great as it shows approximately 100% net income growth for Q4 year over year! The filing says approximately $41m so we will have to wait until the 23rd for the exact number. Additionally they may not be required to give 1m shares to management for earnout but that could be offset by shares that Starr may receive if they come in just under $42m making it a neutral event to EPS. CCME had no analyst targets to hit or miss, so this is a great number and should result in great headlines on March 23rd when they release the full earnings report. My previous blog post underlines why this stock is very undervalued and why analyst coverage should be coming in my opinion. There was uncertainty to what kind of numbers this Company would actually put up and this is now removed. There was uncertainty to what 2010 would look like and that was removed last week when the CFO said 50% organic growth and 50% acquisition growth. This filing is just for technical reasons because the report was due on the 15th of March and they are releasing it on the 23rd.

See Filing

Read previous Blog Post

CCME Earnings Preview

2010-03-14T09:42:00.000-07:00

CCME, a stock I have been in since I called it at $7.50 when the symbol was still TMI Read Blog Post, will report financial results for the fourth quarter and year- ended December 31, 2009, on Tuesday, March 23, 2010 before the stock market opens. Following is what I think the results may look like and is my opinion only based on facts that are available.

It is important to note that CCME does not have any analyst estimates to hit or miss right now. So that headline risk does not exist for them on March 23rd. They do however, need to show growth and have a bullish outlook on 2010. Then I believe the analyst coverage and upgrades will be follow.

Let's address both the growth and then potential for a bullish outlook.

Growth 2009 v.s. 2008:
The last earnings information was the Q3 report for the CCME business. Read Press Release Revenue and Net Income for the first 9 months of 2009 exceeded Revenue and Net Income for all of 2008.

Financial Highlights – Third Quarter 2009 vs. Third Quarter 2008

•Net revenues increased 65% to $26.1 million in the 2009 period compared to $15.8 million;
•Gross margin for the 2009 period was 67% of net revenues; •Operating income increased 83% to $15.5 million in 2009 compared to $8.5 million; and,
•Net income increased 83% to $11.7 million compared to $6.4 million.
Financial Highlights – Nine Months 2009 vs. Nine Months 2008

•Net revenues increased 38% to $64.0 million in the 2009 period compared to $46.2 million;
•Gross margin for the 2009 period was 64% of net revenues;
•Operating income increased 45% to $37.2 million in 2009 compared to $25.6 million;
•Net income increased 43% to $27.4 million compared to $19.2 million.

Now as far as Q4 2009, the Company has an internal target of $42m see SEC filing for which management has incentive to hit both because they will receive 1m shares if they hit it and they will be penalized if they miss it due to the recent financing deal they signed with Starr International. Read SEC filing on Starr deal

Since this Starr International deal was signed after 2009, I am going to make the assumption that CCME made more than 42M net income for 2009 and did not sign an agreement that they knew would penalize them because the net income target was already a miss. That would mean 14.5M+ net income in Q4. The net income comparison for Q4 2008 is 7.2m. see page 56 for 2008 results That would mean 100% year over year net income growth for Q4 2009 over Q4 2008!!! That would be a strong headline, whether they strongly beat the 42m target or even come close to it.

In the Q3 press release the CEO made this comment about Q4 --- Mr. Cheng concluded, “Historically, our fourth quarter is seasonally our best quarter. It appears that the 2009 fourth quarter will be no exception.”

And in a press release on Feb 8, 2010, the CFO said this about Q4 - Jacky Lam, CME’s Chief Financial Officer stated, “As anticipated, we believe our 2009 fourth quarter was exceptionally strong. Read press release

CCME had approximately 24m shares outstanding and approximately 10m warrants with a strike price of $5.50 at the end of 2009. Estimated fully diluted shares outstanding according to GAAP using the treasury method will be approximately 29m at the end of 2009. EPS for 2009 should be approximately $1.45 if they hit the 2009 $42m net income target. CCME was a SPAC and they acquired the CCME business in Q4 2009. Recently another SPAC reported earnings and used the GAAP treasury method to calculate EPS. Read Press Release (CCME has approximately 38.5m shares outstanding here in March 2010 so it would be approximately $1.09 EPS if you choose to look at it in a non-GAAP manner for comparison.)

Growth 2010 v.s. 2009:

The 2010 net income target for management is $83.5m. This would represent 99% growth over 2009 net income assuming they hit the 42m target. Management has strong incentive to hit this target as they would receive 7m shares!. The penalty on the Starr deal would be if they have less than 55m net income in 2010.

On March 8, 2010 (last week), the CFO said they expect to have 50% organic growth and then seek an additional 50% growth from acquisitions with their cash war chest of $100m. Listen to webcast at 22:40 into it Just last week the CFO said 50% organic growth in 2010 and another 50% growth from acquisitions. Does that sound like a Company about to warn for 2010??? No the outlook for 2010 was given at that conference and it was bullish 50-100% growth. CCME should have approximately 39.5m shares outstanding (assuming they hit the 42m net income). If they hit just the 50% organic growth that would be approximately $1.60 EPS for 2010. (42 X 1.5 / 39.5m). If they achieve the $83.5m net income target that would be approximately $2.11 EPS for 2010. (83.5 / 39.5)

Reasons why CCME deserves a high P/E multiple of 15 - 20 :

1) Growth - 100% YOY Net income growth 2009 over 2008 and potential to do 50-100% again in 2010 over 2009.

2) Barriers to entry - CCME has an exclusive license from China's Minestry of Transportation to install in-vehicle television systems on buses traveling on highways nationwide. (Page 12 of the March 9 presentation)

3) Extremely high Gross Profit and Net Income margins - 64% Gross Profit and 43% Net Income for first 9 months of 2009.

4) Strong cash flows - $30m cash flow generated from operations for first 9 months of 2009.

5) $100m of cash and no debt

CCME with only 50% organic growth in 2010 and EPS of $1.60 :

10 P/E would be $16 price per share (would be very low P/E for this type of growth - shown to illustrate that CCME is currently undervalued)

15 P/E would be $24 price per share
20 P/E would be $32 price per share

CCME with 100% targeted growth in 2010 and EPS of $2.11 :

10 P/E would be $21 price per share (would be very low P/E for this type of growth - shown to illustrate that CCME is currently undervalued)

15 P/E would be $31.65 price per share
20 P/E would be $42.20 price per share

Lastly, here is another Chinese Bus competitor (although they are more inner-city and not public in US) and this is how they are doing and what they said for 2010.
Read Press Release

CCME Earnings on March 23rd

2010-03-11T07:08:00.000-08:00

China MediaExpress Holdings, Inc. to Announce 2009 Fourth Quarter Results and Conduct a Conference Call on Tuesday, March 23rdLast update: 3/11/2010 10:05:03 AMFUJIAN, China, Mar 11, 2010 (BUSINESS WIRE) -- China MediaExpress Holdings, Inc. (CCME) ("CME" or "Company"), China's largest television advertising operator on inter-city express buses, today announced that it will issue its financial results for the fourth quarter and year- ended December 31, 2009, on Tuesday, March 23, 2010 before the stock market opens. CME's Founder & CEO, Zheng Cheng and CFO, Jacky Lam will host a conference call at 8:00 PM ET that day to discuss these results as well as recent corporate developments. The dial-in numbers are: (877) 241-7870 (US & Canada) (281) 312-0045 (International)

CCME News - I estimate 100% YOY Earnings growth for Q4

2010-02-24T04:48:00.000-08:00

CCME due to report by March 15th, but could be sooner. I expect 100% earnings growth for the fourth quarter. This will put this undervalued Company on the radar.

Why CCME is severely undervalued: After market correction , FMCN is trading at a forward 18 P/E. ($14/.79 2010 EPS estimate). CCME should do approximately $42m Net Income in 2009. And they are targeting $83m Net Income in 2010. I do think they will hit their targets. However, let's say in 2010 they only grow net income by 50% from 42m to 63m. There will be approx. 39m shares o/s for full year 2010. So if they only grow net income 50% EPS would be $1.62. FMCN P/E is 18. $1.62 X 18 P/E is $29.16. They are targeting $2.13 EPS in 2010 X 18 P/E = $38.34. This stock is still severely undervalued with the market correction because it NEVER came close to a decent valuation pre-correction due to the warrant overhang which is now over. TSTC, TRIT, RINO and others have had stock runs on similar or less EPS once they were discovered.

China MediaExpress Holdings, Inc. Signs a Contract with the Organizing Committee of the 16th Asian Games

Press Release Source: China MediaExpress Holdings, Inc. On Tuesday February 23, 2010, 5:22 pm EST
FUJIAN, China--(BUSINESS WIRE)--China MediaExpress Holdings, Inc. (NYSE Amex: CCME) (“CME” or “Company”) today announced that it has signed a contract with the Organizing Committee of the 16th Asian Games which run from November 12 to November 27, 2010 in Guangzhou. The agreement provides for CME to display a 30 second advertisement promoting the games on its current network of buses from February 1, 2010 until November 30, 2010.

Guangzhou is China’s third largest city, after Beijing and Shanghai, and is the second host city in China after Beijing in 1990. A total of 42 sports are scheduled to be contested in 53 different venues, making it the largest Asian Games ever. Tens of millions of travelers are expected to travel to Guangzhou and other surrounding cities to view the games.

Zheng Cheng, CME’s Founder and CEO, noted, “We are pleased to have been selected by the Guangzhou Asian Games Organizing Committee as one of its media advertisers. Our association with the Asian Games should enhance our reputation among our clients, both leading advertising agencies and corporations, as well solidify our position as a major media player in this market. We are working on signing on additional bus operators and advertising clients to take advantage of the exceptionally large number of travelers in the Guangzhou area during the Asian Games.”

About CME

CME, through contractual arrangements with Fujian Fenzhong, an entity majority owned by CME’S former majority shareholder, operates the largest television advertising network on inter-city express buses in China. While CME has no direct equity ownership in Fujian Fenzhong, through the contractual agreements CME receives the economic benefits of Fujian Fenzhong’s operations. Fujian Fenzhong generates revenue by selling advertisements on its network of television displays installed on over 20,000 express buses originating in fourteen of China’s most prosperous regions, including the five municipalities of Beijing, Shanghai, Guangzhou, Tianjin and Chongqing and nine economically prosperous provinces, namely Guangdong, Jiangsu, Fujian, Sichuan, Hebei, Anhui, Hubei, Shandong and Shanxi which generate more than half of China’s GDP.

Significant News for CCME Industry

2010-02-08T04:43:00.000-08:00

CCME, which I believe is undervalued Read Blog Post, is in the same industry that has significant news this morning. Google and Disney are investing big in the same industry that CCME is in.

Their investment in Bus Online for 30% or $100m in a company that did $46 mill in revenues values them at over $300m. They are doing 1/2 of CCME revenues and now are valued at a similar market cap to CCME. We saw the same high multiple paid by VISN to buy DMG for $160m and DMG had approximately $20m in revenues. Multiples are high in the Chinese advertising sector further validating to me that CCME is undervalued.

CCME - China MediaExpress Holdings, Inc. provides television advertising services on inter-city express buses. It offers advertisements on its network of television displays installed on approximately 18,000 express buses originating in four municipalities of Beijing, Shanghai, Tianjin, and Chongqing and eight provinces, including Guangdong, Jiangsu, Fujian, Sichuan, Hebei, Anhui, Hubei, and Shandong in China.

Disney, Google eye stake in China bus media firm
Mon Feb 8, 2010 5:57am EST

* Disney-led consortium in talks to buy into Bus Online
* Google among investors in Disney consortium

* KFC to partner with Bus Online in 2,000 restaurants (Adds KFC deal, Disney and Google's China business)

By George Chen and Melanie Lee

HONG KONG/SHANGHAI, Feb 8 (Reuters) - A consortium led by Walt Disney Co (DIS.N) is in advanced talks to buy into China's largest in-bus digital media and advertising company, a deal that could offer the U.S. entertainment giant a new platform to promote Mickey Mouse in China, three sources told Reuters.

Google Inc (GOOG.O), the world's No.1 Internet search company, which threatened to quit China last month over censorship and hacking concerns, was among investors in the Disney-led consortium, the sources said on Monday.

The consortium planned to buy a stake of between 30 and 40 percent in Bus Online for more than $100 million via a purchase of old and new shares to be issued by the company in private placements, said the sources.

"Disney wants to be a strategic partner not just a financial investor in Bus Online as Disney is going to do many things in China -- for example, the theme park to be opened in Shanghai," said one of the sources. "To Disney, the deal is not just about sharing in the growth of China's advertising market but more about the promotion of Disney, the brand itself, and this is strategically important to Disney in China."

In November, Disney's (DIS.N) made a breakthrough deal to build one of its signature theme parks in Shanghai, marking a major advance for Western media and entertainment companies seeking to crack the tough Chinese market. [ID:nN03523281]

Senior executives of Disney are expected to fly to Beijing to meet Chinese media regulators to discuss Disney's long-term development plan in China including the Bus Online deal, said another of the sources.

GOOGLE IN FOCUS

In the wake of it's recent problems in China, Google is finalising a deal that will let the U.S. National Security Agency (NSA) help it investigate a corporate espionage attack that may have originated in China.

Beijing has already warned Washington not to make the Google incident political, in addition to other growing sources of friction between the two nations, including Tibet, Taiwan, yuan appreciation and Sino-U.S. trade.

Google was expected to take only a small stake in the Bus Online deal, while Disney aimed to take the greater part, said the sources, adding that no agreement had been signed yet.

The sources briefed on the possible deal declined to be identified as the negotiation process is confidential. Bus Online, headquartered in Shanghai, declined to comment.

A Google spokeswoman said the company could not immediately comment. Disney could not be immediately reached for comment.

Bus Online is China's No.1 in-bus digital media and advertising company, with revenue of about 314.5 million yuan ($46.07 million) in 2009.

Since 2004, the company has received a total of $80 million from venture capital funds and banks including IDG, Yangtze Fund, China Renaissance Capital Investment and CCB International.

Bus Online is the exclusive partner of state broadcaster CCTV and the official Xinhua news agency for in-bus media content and advertising.

Yum! Brands' (YUM.N) fried chicken restaurant chain KFC would sign a deal with Bus Online to allow the Chinese company to set up screens in KFC's more than 2,000 outlets across China, said the sources.

Disney expected to provide media content to Bus Online for its partnership with KFC in China on the condition that Disney and Bus Online agreed on the equity stake investment first, they said. ($1=6.826 Yuan)

Read Article

CCME - "The Hangover"

2010-01-14T03:16:00.000-08:00

The movie, "The Hangover", was a Las Vegas-set comedy centered around three groomsmen who lose their about-to-be-wed buddy during their drunken misadventures, then must retrace their steps in order to find him. For CCME, my first pick of 2010 that I believe has strong potential to be in the www.super-trades.com 100%+ gainers club, you must retrace their steps to get the full potential of this story.

China MediaExpress Holdings (CCME), operates the largest television advertising network on inter-city express buses in China. CCME's clientele includes local brand names as well as those well-known international and national brands such as Coca Cola, Pepsi, Siemens, Hitachi, China Telecom, China Mobile, China Post, Toyota, Bank of China and China Pacific Life Insurance.

CCME, formerly TMI, was acquired in a SPAC transaction this October. SPAC transactions usually involve warrants which can create an overhang in the common stock until they are converted. CCME's warrrant "hangover" is almost over as they announced that January 29, 2010 is the last day for warrant redemption. According to this article about SPAC warrant overhang, "after the warrants expire and the overhang is over though, all the investors that wanted to own shares of this stock can now buy them without fear that they are over-paying. This can result in significant outperformance in the stock, regardless of the market's performance." Read Article

CCME is targeting exceptional growth. As of the end of Q3 2009, they had already outperformed all of FY2008 revenue and net income. Read Q3 They are targeting 2009 net income of $42m and 2010 net income of $83.5m! Judging by the Q3 report , they are on track to hit the 2009 targets. However, the 100% target for net income in 2010 seemed aggressive. That is until yesterday. Yesterday, CCME announced a $30m private placement with Starr International, Inc. and this gave me great confidence in their 2010 net income target of $83.5m. Read Press Release

The press release told me three things:

1) CCME must be planning a large, accretive acquisition that will enable them to achieve the 100% net income growth in 2010 to $83.5m. From the PR, "In addition to enlarging our market share and geographic coverage through agreements with additional bus operators, we are now exploring possible M&A opportunities." They will now have approximately $100m in cash after this transaction and the warrant conversion.

2) CCME has been planning this acquisition and private placement for sometime. From the press release, Jacky Lam, CME’s CFO added, “We are pleased with the valuation that Starr International offered and appreciate the thoroughness of their validation procedures. Having worked with them over the past several months on negotiating the terms of the investment, we believe that they have gotten to know CME’s business and management and their decision to proceed is a strong vote of confidence in our business model.”

3) CCME has attracted a powerful institution as a major investor. "We are delighted to have Starr International, a respected investment firm with a significant presence in China and the US, as one of our major investors and we are delighted in the firm’s confidence in CME, our business plan and growth prospects.” Starr is headed up by Maurice Greenberg, from AIG.

The numbers show me that CCME is extremely undervalued and has some appreciating to do with the warrant "hangover" ending.

CCME will have approximately $100m of cash with no debt. Revenues grew 65% last quarter and net income grew 43%. Net Income through September 30, 2009 was $27.4m and the Company appears to be on track to take on management's full year target of $42m. CCME had approximately 24m shares outstanding and approximately 10m warrants with a strike price of $5.50 at the end of 2009. Estimated fully diluted shares outstanding using the treasury method will be approximately 29m at the end of 2009. EPS for 2009 should be $1.35-$1.45 if they hit the target. (The CEO said, “Historically, our fourth quarter is seasonally our best quarter. It appears that the 2009 fourth quarter will be no exception.”). For 2010, management is targeting $83.5m in net income and fully diluted shares outstanding should be approximately 38.5m, for a targeted 2010 net income of $2.17 per share.

To apply the forward 2010 P/E of 20 that competitors FMCN and VISN currently have to $2.17 EPS would give CCME a price per share of $43.38.

I am long CCME since $8. I believe the warrant "hangover" is almost over and the real party is about to begin. At a stock price in the $10's, CCME has strong potential to be the first super-trades.com 100%+ gainer in 2010.

Final 2009 www.super-trades.com Performance

2010-01-02T11:19:00.000-08:00

Final 2009 www.super-trades.com Blog Stock Performance :
-Best Pick - RINO
-Second Best Pick - TRIT
-Pick I wish I did not make - NIV
-18 stocks have been blogged (average 1.5 per month)
-Average Peak Gains 111%
-Average time for each stock to get to the peak is 58 days !
-Range of Peak Gains 17%-364%
-Range of days to get to the peak is 2 to 166
-*** 15 of the 18 stocks are still above the original spot I entered them ( while I am not a long term holder of these stocks, it does speak to the quality of the ideas and the entry point) ***
-Three stocks still long into 2010 - CCME, EDS, HWG
See Detail Below:

Original Blog Posts :

HWG Read Blog Post

CCME, EDS, IDI Read Blog Post

TRIT Read Blog Post

RINO Read Blog Post

AIM Read Blog Post

SKBI Read Blog Post

EVK Read Blog Post

UTA Read Blog Post

SMCG Read Blog Post

MRM Read Blog Post

FIT Read Blog Post

JVA Read Blog Post

DIT Read Blog Post

VIFL Read Blog Post

NIV Read Blog Post

LZR Read Blog Post

CCME Should Be The Next Chinese Momentum Stock

2009-12-20T19:21:00.000-08:00

This year we have seen many Chinese momentum stocks make runs of $10-$20+ per share: TRIT, RINO, FUQI, CAGC and the list goes on. All of these stocks were in hot sectors with growing sales and EPS. TRIT and RINO were first called here at www.super-trades.com

Lately, Chinese out of home advertising stocks have been on fire. Focus Media holdings (FMCN), and VisionChina Media (VISN) are both at or near 52 week highs with strong trading volume. FMCN, closed at $16.81 on Friday, December 18, which represents a 20 P/E against the average 2010 EPS estimate of $0.83. VISN, closed at $12.05 on Friday, December 18, which represents a 22 P/E against the average 2010 EPS estimate of $0.54.

I think Wall Street is about to discover a third major player in the same sector and find it incredibly undervalued compared to FMCN and VISN. Enter China MediaExpress Holdings (CCME), which operates the largest television advertising network on inter-city express buses in China. CCME's clientele includes local brand names as well as those well-known international and national brands such as Coca Cola, Pepsi, Siemens, Hitachi, China Telecom, China Mobile, China Post, Toyota, Bank of China and China Pacific Life Insurance.

CCME, formerly TMI, was acquired in a SPAC transaction this October. They have $41m of cash with no debt. Revenues grew 65% last quarter and net income grew 43%.
Net Income through September 30, 2009 was $27.4m and the Company appears to be on track to take on management's full year target of $42m. CCME has approximately 24m shares outstanding and approximately 10m warrants with a strike price of $5.50. Estimated fully diluted shares outstanding using the treasury method will be approximately 29m at the end of 2009. EPS for 2009 should be $1.35-$1.45 if they hit the target. (The CEO said, “Historically, our fourth quarter is seasonally our best quarter. It appears that the 2009 fourth quarter will be no exception.”). For 2010, managment is targeting $83.5m in net income and fully diluted shares outstanding should be approximately 35m, for a targeted 2010 net income of $2.39 per share.

To apply the forward 2010 P/E of 20 that competitors FMCN and VISN currently have to $2.39 EPS would give CCME a price per share of $47.80. What makes CCME even more interesting is it currently has a trading float of only approximately 750k shares with 168k of those shares sold short.

If Wall Street likes FMCN and VISN enough to give them a 20 P/E, they should salivate over CCME once they discover the fundamentals of this Company.

Disclosure - I am long CCME since it was TMI under $8. This blog is my personal opinion and not investment advice. Never chase stocks and always do your own due diligence and be responsible for your trades.

Recent SEC Filing with Net Income Targets and Share Counts

Third Quarter Press Release

CCME Float Information

super-trades.com update TMI EDS IDI HWG

2009-12-05T12:32:00.000-08:00

RINO was my most successful pick so far this year, with a 364% gain, from $7.65 to it's peak of $35.50. However, it is interesting to point out that it took 121 days or approximately 4 months to get to that peak. Many of my stocks require patience. The way I make money in the stock market is to find undervalued stocks that have growth which will drive them higher. This is my style and it works for me but there are many other (better and faster) styles out there. I just do what works for me. I focus on quality not quantity as I have no need to daytrade. I will take some of my shares off the table when I am up 30-50% on a stock and manage the rest accordingly.
Everyone should do their own research and not follow any individual as the stock market has risks as well as rewards.

at www.super-trades.com in 2009 :

17 stocks have been blogged (average 1.4 per month)
Average gains so far 108%
Average time for each stock to get to the high is 37 days
Range of gains 45%-364%
Range of days to get to the high is 2 to 166
*** 16 of the 17 stocks are still above the original spot I entered them ( while I am not a long term holder of these stocks, it does speak to the quality of the ideas and the entry point) ***

My 4 latest stocks that I am in and I do not believe they are finished moving are:

TMI - Blogged at $7.50, currently at $10.54 and has hit $13.65 so far 82% gain at high
EDS - Blogged at $7.90 , currently at $9.04 and has hit $13.69 so far 73% gain at high
TMI - Blogged at $7.85, currently at $8.03 and has hit $9.02 so far 17% gain at high
HWG - Blogged at $40, currently at $41 and has hit $49.95 so far 25% gain at high

TMI - Has a very small float and has been shorted from the high in the $13's. They are about to go on a road show to institutions to get much needed exposure. Competitors VISN and FMCN were just upgraded with targets that give them P/E's in the 20+ range. TMI should do approximately $1.40 EPS in 2009 and over $2 in 2010. I believe this stock is on the verge of a powerful second leg higher. Eventual target $15-$25. I am in from the $8's.

EDS - This Company is virtually unknown by Wall Street thus far. They are a popular spotsgear Company in China (Think Nike, Reebok, UnderArmour ground floor). They should do approximately $1.40 EPS in 2009 and competitors have P/E from 17+. This Company just needs exposure. They are not required to report 2009 results until March 2010, however I have to believe they try to get exposure before then. This stock, when discovered should make a powerful second move higher. Eventual target $15-$25. I am in from the $8'S.

IDI - Same problem as EDS. just needs exposure. Another out of home advertising Company in China that should do approximately $1-$1.20 EPS in 2009. Competitors have P/E of 20+. Not required to report until March 2010 also. Just needs exposure to make a powerful first move. Eventual target $11-$15. I am in from the $7's.

HWG - 500k float, 1.5m shares outstanding and on a pace to do $10 EPS in 2009. Was a $140 stock before they had problems in their energy sub that have now been written down to zero. Should be slow going but steady move to much higher levels $60+. Very thin and volatile and meant for small positions that can handle 5 point swings on 5k shares. Eventual target $60-$100. I am in from $40.

General market conditions must be monitored as well as the macro environment in China for the Chinese companies.

HWG - 500k Float and $10 EPS Run Rate

2009-11-16T04:36:00.000-08:00

DIT was a stock I blogged and bought on April 22, 2009 at $32 Read Blog Post. At the time I said the Company would do $10-$12 EPS this year. They reported $10.87 of EPS from continuing operations. DIT hit $71.75, 143 days after my blog post, for a 124% gain so far from the blog post.

I believe I have found a stock with similar characteristics as DIT. I think this stock over 1-12 months could make a similar move as DIT based on similar EPS.

Warning - Stocks that have such a low float and number of shares outstanding can trade thin and be very volatile. They can drop several dollars on low volume. I never take large positions in such stocks and I always understand that they can be illiquid and have risks.

HWG - Hallwood Group Inc. See Bloomberg
Shares Outstanding - 1.5m
Float 500k
EPS for Q3 - $2.67 per share Read Press Release
EPS for 9 Months of 2009 $6.94 per share

Industry Textile - Hallwood Group Inc., together with its subsidiaries, engages in the textile and energy businesses in the United States. It develops and markets fabrics, including breathable, waterproof laminate, and other fabrics for use in military clothing and equipment, sailcloth, medical equipment, industrial applications, and consumer apparel. The company’s products include woven synthetic products, and woven and coated nylon products. It also operates as a converter, finisher, and laminator in the textile industry.

Strong Textile Sales to Military: See Website
We serve the specialized fabric needs of the contractors who supply all branches of the armed services, including the Department of Defense, Department of Justice, United States Postal Service, United States Forestry Service, and others.

The Military Group offers diverse products ranging from fabrics that meet our soldiers’ basic needs to the highly technical performance fabrics for combat and special forces requirements.

Military sales of $32,415,000 and $92,845,000 for the 2009 third quarter and nine month periods, respectively, were 52.9% and 14.4% higher than the comparable periods in 2008 of $21,194,000 and $81,148,000.

Among branded products that Brookwood manufactures are the following:

•ASSAULT
•BARRIER ASSAULT TEXTILE TECHNOLOGY
•BATT
•GLACIER X-TREME
•STORM-TECH
•X 202 U.S.A.

Litigation : The Company is involved in some litigation that they believe they will win but should be noted. Per Note 11 on pages 21-22 of Form 10-q Read Note 11

super-trades.com analysis:

Small position at $40 with a 1-12 month target range of $60-$100

14 Stocks Blogged in 2009 - Average Gain 111% Average Time to Peak 47 Days

2009-11-06T18:33:00.000-08:00

14 super-trades.com Stock Ideas Blogged in 2009
Average Gain 111%
Average Trading Days From Mention to Peak 47 Days
Range of Gains 45% to 257%
Range of Trading Days From Mention to Peak 2 days to 143 days
13 of 14 still above original entry price (although I am not long term trader)

3 New stocks in progress TMI, EDS, IDI Read Blog Post

TRIT 139% Gain Called at $8.50 on Sep 9th Hit $20.33, 26 days later on Oct 14th. Read Blog Post

RINO 257% Gain Called at $7.65 on June 16th. Hit $27.30, 87 days later on Oct 14th. Read Blog Post

AIM 77% Gain Called at $4.20 on June 15th Hit $7.44, 2 days later on June 16th. Read Blog Post

SKBO.OB (now SKBI) 104% Gain Called at $11.00 on June 5th Hit $22.49, 18 days later on June 29th. Read Blog Post

EVK 62% Gain Called at $1.85 on June 2nd Hit $3, 4 days later on June 5th. Read Blog Post

UTA 124% Gain Called at $7.60 on May 29th Hit $17.20, 49 days later on August 5th. Read Blog Post

SMCG 67% Gain Called at $1.35 on May 21st Hit $2.27, 11 days later on June 4th. Read Blog Post

MRM 109% Gain Called at $6.40 on May 19th Hit $13.38, 16 days later on June 9th. Read Blog Post

FIT 153% Gain Called at $3.50 on May 7th. Hit $8.87, 56 days later on July 23rd. Read Blog Post

JVA 58% Gain Called at $3.15 on May 6th Hit $5.21, 101 days later on Sep 23rd. Read Blog Post

DIT 124% Gain Called at $32 on April 22nd. Hit $71.75, 143 days later on Nov 6th. Read Blog Post

VIFL 122% Gain Called at $1.35 on March 26th Hit $3, 15 days later on April 13th. Read Blog Post

NIV 45% Gain Called at $3.80 on March 17th Hit $5.50, 2 days later on March 18th. Read Blog Post

LZR 140% Gain Called at $5.40 on December 23,2008. Hit $11.14, 125 days later on June 15th. Read Blog Post

650k Float TMI retires 19% of warrants = bullish

2009-11-06T06:55:00.000-08:00

less warrants - less dilution = higher EPS

China MediaExpress Holdings, Inc. Repurchases and Retires 1.9 Million Warrants in Private Transaction

Press Release
Source: China MediaExpress Holdings, Inc.
On 8:45 am EST, Friday November 6, 2009
Buzz up! 0 Print.FUJIAN, China--(BUSINESS WIRE)--China MediaExpress Holdings, Inc. (NYSE Amex: TMI; TMI/U; TMI/WS) (“CME” or the “Company”) today announced that it has repurchased and retired a total of 1.9 million of its publicly-traded warrants in a private transaction, for an aggregate purchase price of $950,000 ($0.50 per warrant). The repurchase of these warrants, which represent approximately 19% of all of CME’s publicly-traded warrants, was made pursuant to a warrant repurchase agreement dated October 12, 2009, which was amended on November 1, 2009. All of the terms of the remaining publicly-traded warrants remain the same.

Zheng Cheng, CME’s Founder and CEO, noted, “We believe it to be in the long-term interest of our shareholders to repurchase and retire these warrants thereby eliminating the dilution that would have occurred in the event these warrants were exercised.”

TMI FLOAT IS ONLY 752k !!!

2009-10-31T09:08:00.000-07:00

TMI, a stock I recommended at $8 (upon approval of its business combination)See Blog Post, only has a float of 752k by my research below !!!

TMI is forecasting to earn $42m this year which would equate to approximately $1.45 EPS fully diluted after the transaction.

(23.9 outstanding + Treasury method on the warrants 12.3m warrants X $5.50 conversion = 67.6m dollars divided by current market price $9.15 = 7.4m shares that could be bought back. 12.3m warrants - 7.4m treasury method buyback = 4.9m dillution on warrants. 42m net income divided by 23.9m + 4.9m fully diluted = $1.45 EPS)

Competitors FMCN and VISN have P/E Ratios of 17-20 for this hot chinese sector.

FMCN $12 stock .69 EPS estimate per yahoo finance = 17 P/E
VISN $8 stock and .39 EPS estimate per yahoo finance = 20 P/E

If TMI were to have a 15 P/E on $145 EPS that would be $21.75 share price.

But the best part is that TMI only has a tradeable float of 752k !!

1) 23,917,413 Common shares outstanding after the transaction:

Read Link

Page 187 CME owners received the following in new TMI shares:

Zheng Cheng 13,266,684

Thousand Space Holdings Limited 6,095,085

Bright Elite Management Limited 2,303,231

That equals 21,665,000 of the 23,917,413 (leaving 2,252,413)

The 21,665,000 are locked up (cannot be sold) for 6-12 months

Page 92:

Lock-Up Agreements

At the closing of the Transaction, the Sellers will enter into lock-up agreements with TM, providing, among other things, that they not sell or otherwise transfer any of the shares of TM Common Stock received in the Transaction, subject to certain exceptions, for a period of:

• twelve months from the closing date of the Transaction or, with respect to the earn-out shares, from the date of issuance of such shares, for those shares beneficially owned by Mr. Cheng; and

• six months from the closing date of the Transaction or, with respect to the earn-out shares, from the date of issuance of such shares, for those shares beneficially owned by Thousand Space Holdings Limited and Bright Elite Management Limited.

Read Link

2) Of the 2,252,413 shares remaining, 1,500,00 are owned by the original TMI IPO investors (also on Page 187 of the Proxy). (Leaving 752,413 float).

The 1,500,000 are locked up for one year (cannot be sold) following the business combination, unless the stock trades over $11.50 for 20 consecutive days.

Page 49 of the TMI S-1

All of the initial shares outstanding prior to the date of this prospectus will be placed in escrow with Continental Stock Transfer & Trust Company, as escrow agent, until one year after the consummation of our initial business combination. The
initial shares may be released from escrow earlier than this date if, within the first year after we consummate a business combination:

• the last sales price of our common stock equals or exceeds $11.50 per share for any 20 trading days within any 30-trading day period; or

• we consummate a subsequent liquidation, merger, stock exchange or other similar transaction which results in all of our stockholders having the right to exchange their shares of common stock for cash, securities or other property.

Read Link

THAT LEAVES A TRADING FLOAT TO THE PUBLIC OF 752,413 SHARES !!!

TTY Acquisition Approved - Symbol Changed to EDS

2009-10-20T07:09:00.000-07:00

2020 ChinaCap Acquirco, Inc. Stockholders Approve Acquisition of Windrace International Company Limited

* Press Release
* Source: 2020 ChinaCap Aquirco
* On 11:25 am EDT, Monday October 19, 2009

MARLBOROUGH, MA--(Marketwire - 10/19/09) - 2020 ChinaCap Acquirco, Inc. ("2020") or (the "Company") (NASDAQ:EDS - News), (NASDAQ:EDSWW - News) and (NASDAQ:EDSUU - News) announced that its stockholders have approved all proposals related to the acquisition by 2020 of Windrace International Company Limited ("WHL"). WHL is one of the largest branded sportswear companies in China that is engaged in the design, manufacturing, trading and distribution of sporting goods, including footwear, apparel and accessories, in the People's Republic of China ("PRC"). The vote to approve the acquisition took place today at the Company's special meeting of stockholders. The transaction is expected to close on October 21, 2009. Prior to the completion of the transaction, the Company will be merged into its wholly-owned subsidiary incorporated in the British Virgin Islands, Exceed Company Limited ("Exceed"), with Exceed as the surviving entity. This will result in the redomestication of the Company to the British Virgin Islands. 2020 changed its ticker symbols from TTY, TTYWW and TTYUU for its common stock, warrants and units respectively to EDS, EDSWW and EDSUU, respectively on October 19, 2009. Upon completion of the transaction, the common stock, warrants and units of Exceed will continue to trade on the NASDAQ Stock Market under the new ticker symbols.

"We are very pleased that our stockholders approved the acquisition of WHL," stated George Lu, Chairman and Chief Executive Officer of 2020. "This transaction provides the business of WHL with a public listing on NASDAQ and the capital to execute its growth strategy of scaling up its distribution network through continued supply chain management enhancements and expansion as well as continued product innovation. WHL has a strong track record of growth, having emerged as one of the leading sporting goods companies in China over the last six years, and we look forward to working with the WHL management team to take the business to the next level and build shareholder value over the long-term."

ABOUT 2020 CHINACAP ACQUIRCO, INC.

2020 is a public acquisition company organized as a corporation under the laws of the State of Delaware on August 21, 2006. It was formed to effect a business combination with an unidentified operating business having its operations in China. In November 2007, it consummated its IPO from which it derived gross proceeds of $69 million, including proceeds from the exercise of the underwriters' over-allotment option. $68 million of the net proceeds of the IPO and a private placement completed prior to the IPO were deposited in a trust account and such funds and a portion of the interest earned thereon will be released only upon the consummation of the business combination or to holders of 2020's common stock in connection with its liquidation and dissolution. Other than its IPO and the pursuit of a business combination, 2020 has not engaged in any business to date.

TMI Deal Approved and Final Oct 16

2009-10-15T09:17:00.000-07:00

TM Entertainment and Media, Inc. Announces Shareholder Approval of Business Combination with Hong Kong Mandefu Holding Limited (d/b/a China MediaExpress "CME")

NEW YORK--(BUSINESS WIRE)--TM Entertainment and Media, Inc. (NYSE Amex: TMI; TMI/U; TMI/WS) (“TM”) announced that the proposed business combination with the shareholders of privately-held Hong Kong Mandefu Holding Limited (d/b/a China MediaExpress) (“CME” or the “Company”) was approved at the special meeting of its stockholders held this morning. Additionally, TM stockholders approved all other related proposals that were voted upon at the special meeting. The transaction is expected to be consummated by October 16, 2009, subject to satisfaction of all closing conditions of which there can be no assurance.

About TM Entertainment and Media, Inc.

TM Entertainment and Media, Inc. is a Delaware blank check company incorporated on May 1, 2007 in order to serve as a vehicle for the acquisition of an operating business in the entertainment, media, digital and communications industries and to seek out opportunities both domestically and internationally to take advantage of its management team’s experience in these markets. The entertainment, media, digital and communications industries encompass those companies which create, produce, deliver, own, distribute or market entertainment and information content, products and services.

About CME

CME is China’s largest television advertising operator on inter-city express buses. The Company generates revenue by selling advertisements on its network of television displays installed on over 18,000 express buses originating in twelve of China’s most prosperous regions, including the four municipalities of Beijing, Shanghai, Tianjin and Chongqing and eight economically prosperous provinces, namely Guangdong, Jiangsu, Fujian, Sichuan, Hebei, Anhui, Hubei and Shandong which generate nearly half of China’s GDP.

3 New China Stocks May Be Coming To Market

2009-10-13T02:54:00.000-07:00

A special purpose acquisition company, or (SPAC), (sometimes called a blank check company or an empty shell company), uses an initial public offering (IPO) to raise money it will use to purchase or merge with an existing company. Definition

The acquisitions close after shareholder vote approval. It is not recommended to buy them prior to shareholder approval / acquisition close. If they do not get an approved acquisition, SPAC's can sometimes liquidate and distribute cash back to shareholders.

There are 3 SPAC's about to conduct shareholder votes to purchase Chinese Companies:

1) TMI - TM Entertainment & Media, Inc.
Current Price : $7.50
Cash per last 10-Q - $81m
Current common O/S - 12.5m
Cash Per current common O/S = $6.48

Company to Acquire : China MediaExpress - CME is China’s largest television advertising operator on inter-city express buses. The Company generates revenue by selling advertisements on its network of television displays installed on over 16,000 express buses originating in eleven of China’s most prosperous regions, including the four municipalities of Beijing, Shanghai, Tianjin and Chongqing and seven economically prosperous provinces, namely Guangdong, Jiangsu, Fujian, Sichuan, Hebei, Anhui and Hubei, which generate nearly half of China’s GDP.

Date of Shareholder Vote on Acquisition - October 15, 2009

Approximate Fully Diluted Shares upon closing : 33 million

2008 Net Income : $26m
2009 Projected Net Income : $42m
2009 Projected EPS : Approximately $1.27 ($42m/33m O/S)
Competitor's P/E : FMCN trades at $12 with .65 avg EPS estimates = 18 P/E
VISN trades at $8.72 with .39 avg EPS estimates = 22 P/E
AMCN trades at $7 with .20 avg EPS estimates = 35 P/E

If TMI can achieve $1.27 EPS in 2009, a 15 P/E would be $19.05

super-trades 1-12 month target range if deal is approved - $13-$20

Investor Presentation

2) TTY - 2020 ChinaCap Acquirco Inc (The Nike of China?)
Current Price : $7.90
Cash per last 10-Q - $68m
Current common O/S - 10.5m
Cash Per current common O/S = $6.48

Company to Acquire : WINDRACE INTERNATIONAL COMPANY LIMITED
Windrace designs, develops and engages in wholesale of footwear, apparel and accessories under its own brand, XIDELONG, in China. It is one of the leading domestic sports and leisurewear brands in China in terms of market share by sales revenue. Since operations began in 2002, Windrace has experienced significant growth in the mass market concentrated in the second and third tier cities in China and has established a market leading position as one of the top five Chinese sportswear brands. Windrace has three principal categories of products: (i) footwear, which comprises running, leisure, basketball, skateboarding and canvas footwear, (ii) apparel, which mainly comprises sports tops, pants, jackets, track suits and coats, and (iii) accessories, which mainly comprise bags, socks, hats and caps.

Date of Shareholder Vote on Acquisition - October 19, 2009

Approximate Fully Diluted Shares upon closing : 27 million

2008 Net Income : $24m
2009 Projected Net Income : $38m
2009 Projected EPS : Approximately $1.41 ($38m/27m O/S)
Competitor's P/E : NKE trades at $63 with $3.63 avg EPS estimates = 17 P/E
Per Page 7 of presentation, Chinese traded competitors avg 17 P/E

If TTY can achieve $1.41 EPS in 2009, a 15 P/E would be $21.15

super-trades 1-12 month target range if deal is approved - $13-$20

Investor Presentation

3) IDI - IDEATION ACQUISITION
Current Price : $7.85
Cash per last 10-Q - $79m
Current common O/S - 12.5m
Cash Per current common O/S = $6.32

Company to Acquire : SearchMedia
SearchMedia is a leading nationwide multi-platform media company and one of the largest operators of integrated outdoor billboard and in-elevator advertising networks in China. SearchMedia currently operates a network of over 1,500 high-impact billboards with over 500,000 square feet of surface display area and one of China's largest networks of in-elevator advertisement panels consisting of over 175,000 frames in 57 cities throughout China. SearchMedia ranked first in market share of in-elevator advertising displays in 13 out of the 26 most affluent cities in China and ranked second in an additional nine of these cities, according to Nielsen Media Research. Additionally, SearchMedia operates a network of large-format light boxes in concourses of eight major subway lines in Shanghai. SearchMedia's core outdoor billboard and in-elevator platforms are complemented by its subway advertising platform, which together enable it to provide multi-platform, "one-stop shop" services for its local, national and international advertising clients that numbered more than 780 cumulatively from its inception to July 31, 2009.

Date of Shareholder Vote on Acquisition - October 27, 2009

Approximate Fully Diluted Shares upon closing : 22 million

2008 Net Income : $16m
2009 Projected Net Income : $26m
2009 Projected EPS : Approximately $1.18 ($26m/22m O/S)
Competitor's P/E : FMCN trades at $12 with .65 avg EPS estimates = 18 P/E
VISN trades at $8.72 with .39 avg EPS estimates = 22 P/E
AMCN trades at $7 with .20 avg EPS estimates = 35 P/E

If IDI can achieve $1.18 EPS in 2009, a 15 P/E would be $17.70

super-trades 1-12 month target range if deal is approved - $12-$17

Investor Presentation

TRIT - Low Float IPO China Water Pure Play - Compare to DGW

2009-09-09T19:08:00.000-07:00

I am extremely excited about today's IPO and I am long in this name from 8.50-8.75.
This has all the makings to be one of the hottest momentum plays of the year.

- Water is a scarce resource, especially in China
- DGW was a Chinese water pure play and has gone up over 100%, at times with a 20-30 P/E
- TRIT has amazing growth prospects and an extremely small float for a pure play on Chinese water management

TRIT - 1.7m float 5.2m O/S shares
"Our company works with local and regional government bodies in China to design and implement systems to monitor and manage China’s natural and municipal water resources. Since we began providing these services in 2002, we have implemented more than 200 projects in provinces, municipalities, autonomous regions and special administrative regions throughout China".

We design sewage treatment and odor control systems for municipal supplies. These systems, which coordinate technological solutions (software, management information systems, enterprise resource planning and local and wide area networking) with hardware (sensors, distributed control systems, programmable logic controllers, supervisory control and data acquisition systems and mechatronics), allow our clients to monitor and control numerous variables in the sewage treatment and odor control processes. Our goal in this regard is to be a total solution provider for our clients, allowing them to engage us to design processes and systems that work seamlessly to manage the process from the initial intake of raw sewage through the return of water to consumers for reuse.

We also assist the government in monitoring natural waterways. We provide systems that combine technological solutions (software, geological information systems, management information systems, enterprise resource planning and local, wireless and wide area networking) with hardware (sensors, supervisory control and data acquisition systems and mechatronics) to track water levels for drought and flood control, monitor groundwater quality and assist the government in planning its water resource use and management.

Read 10-Q
Read Prospectus

Last Quarter Revenues increased by 54.5%
Net income increased 93.3%
EPS Run Rate with new shares $852k for the last Qtr X 4 = $3.4m / 5.2m O/s = .65 EPS. However, with growth prospects and current growth rate I can see this having potential to quickly climb to $.75-$1.00 EPS. DGW has had a P/E of 20-30 at various times since its IPO.

Based on Growth Prospects and DGW P/E range I get a personal potential target range of $15-$30 if momentum volume occurs. (Not a prediction, just a personal assessment).

Some Growth Prospects (From 10-Q)

New Opportunities in Water Resources and Wastewater Treatment

We are currently pursuing over 100 smaller river basin flood monitoring and forecasting systems with a market potential of approximately $72.5 million, and groundwater monitoring systems for over 100 counties across the country with a market potential of another $72.5 million. There can be no guaranty that we will be successful in all or any of these endeavors. Through local distributors and partnerships, we also promote our proprietary products targeting the water monitoring and dispatching systems of the Northward Rerouting of Southern River engineering construction, which has market potential of approximately $43.5 million.

South-North Water Transfer Project is a large, inter-basin, long-distance water transfer project that is charged with dozens of major urban water supply tasks for such cities as Beijing, Tianjin and Shijiazhuang. The current automated dispatch system monitors a total of 304 buildings. As a result of our ability to assist with (i) the use of information acquisition and processing technology, (ii) the modernization of the operations maintenance and management, (iii) the establishment of a sound system and (iv) the greatest degree of rational management of water to make full use of China’s valuable water resources, we expect an increase in sales of this project.

China frequently faces flash floods and similar national disasters, so strengthening the prevention and treatment of such disasters is essential. System monitoring of rainfall by the water system, early warning and early warning response system is comprised of three parts. Data and early warning information processing service as the core, through computer networks, databases, early warning command and control platform release constitutes a set of flash floods disaster early warning system, especially for Hubei and Qinghai provinces. We expect an increase in sales of this project.

Our wastewater treatment business segment focuses on Tianjin City and Hebei Province. Specifically, the Tianjin Binhai New Area spurs the growth of the total output value with major new infrastructure projects. The total GDP output value of the Binhai New Area is expected to increase by 22%. Within the next few years, Binhai New Area plans to construct over 40 large scale pumping stations and over 30 sewage treatment plants with a total market potential of approximately $8.7 billion.

Hebei Province is another targeted market. Hebei Province plans to construct over 50 sewage and grey water reuse treatment plants in the next two years.

We also actively pursue opportunities in the industrial wastewater and process tail gas treatment market in the petrochemical industry, such as SINOPEC Yanshan Plant, Petro China Jilin Plant, SINOPEC Anqing Plant, and Dalian.

Currently almost all newly designed sewage treatment plants have odorous gases containment and control requirements. As such, we expect an increase in sales of our proprietary biofiltration odor control systems.

To take advantage of these new market opportunities, we continue to increase our workforce to meet the increased work load. In order to pursue several major new water projects, we registered a branch office in Tianjin Dongli Economic Development Zone and set up a branch office in Hebei Province to get closer to our clients.

SKBI - $23 Target by Rodman & Renshaw

2009-09-01T06:03:00.001-07:00

Skystar Bio Pharmaceutical initiated with a Mkt Outperform at Rodman & Renshaw; tgt $23 (13.74 )

Rodman & Renshaw initiates SKBI with a Mkt Outperform and price target of $23 saying dietary shift towards higher protein content and better food safety throughout the burgeoning Chinese urban/middle class population, has led to rapid developments in the animal husbandry sector. The gross output of animal husbandry sector has more than doubled from RMB684bn (or approximately $100bn) in 1997 to RMB1,612bn (or approximately $236bn) in 2007, growing at a 10-year CAGR of 9.0%. This rapidly developing animal husbandry sector has created a compelling market opportunity for veterinary healthcare products; in particular, strong demand for vaccines and micro-organism products far exceeds the current supply.

Major News from China that will drive SKBI Momentum

2009-08-27T09:43:00.000-07:00

Huge news from China that impacts SKBI. SKBI could do $3+ EPS this year and has only 3.5m shares outstanding. Now a major momentum theme is developing in the sector SKBI is in. I believe this stock will see major momentum on swine flu and animal disease threats.

BEIJING, Aug. 25 (Xinhua) -- Chinese lawmakers warned Tuesday of a "grave hidden peril" of epidemic animal disease because of inadequate monitoring facilities and a complex international environment.

Even though the government has set up a compulsory vaccination system, requiring immunization of animals against diseases harmful to people's health and the husbandry industry, the possibility of outbreaks of disease still existed, the lawmakers said in a report presented at the 10th session of the Standing Committee of the 11th National People's Congress (NPC).

The problems of excessive veterinary drug residues and banned food additives in livestock products were not fully under control in certain areas, the report said.

The lawmakers suggested the government subsidize treatment of animal carcasses that had died from disease or unknown causes to contain animal epidemics.

They also said there should be relevant authorities to standardize use of veterinary drugs, strengthen and improve monitoring of the production and distribution of livestock products.

The lawmakers also proposed nationwide inspections for excessive veterinary drug residues and banned food additives be put in place in the near future.

As the world's largest producer of poultry, livestock and aquatic food products, China has a lot to lose from outbreaks of animal diseases. It is estimated they cost China 40 billion yuan annually.

In 2007, China's top legislature adopted an amendment to the law on prevention of epidemic animal disease, which ordered all animal owners to comply with compulsory vaccination policies, especially owners of poultry and livestock bred in rural backyards, and pets in urban houses.

Tuesday was the second day of the legislature's four-day meeting, which is usually held every two months.

Read Article

MELA - Speculative Second Half 2009 Stock

2009-08-23T07:14:00.000-07:00

MELA had a very interesting article in Barrons this weekend. The success of this stock will depend on FDA approval, which is due by the end of the year. It is an all or nothing trade (FDA approval stock could go up 50%, FDA denial stock would tank), but one worth researching. Here is the article.

Taking Aim at Skin Cancer By NEIL A. MARTIN

If approved by the FDA, the handheld MelaFind device made by Electro-Optical Sciences will revolutionize the way patients are screened for skin cancer. Look for earlier detection and fewer unnecessary biopsies. Video: Taking Aim at Skin Cancer

ONE OF THE MOST CRITICAL decisions a dermatologist can make is whether a mark on a patient's skin might be melanoma, the deadliest form of skin cancer. Until now, doctors have been forced to rely largely on their own vision, sometimes aided by a dermascope -- a hand-held magnifying glass with a light to illuminate the skin area -- to decide whether a spot or wart merits a biopsy. It involves a lot of guesswork -- and untold numbers of unnecessary biopsies.

"Skin cancer is approaching epidemic proportions," says Dr. Joseph V. Gulfo, chief executive of EOS. He thinks the company's new tool will boost the rate of early detections and reduce unnecessary biopsies.

A small Irvington, N.Y.-based medical device maker may have a better approach. Electro-Optical Sciences (ticker: MELA) has developed a computer-assisted device, currently under expedited review by the Food and Drug Administration, that could revolutionize the way doctors screen patients for cancer, and transform the Nasdaq-listed firm into a powerhouse in medical devices. If all goes according to plan, its shares could surge at least 50%.

The device, called MelaFind, consists of a hand-held imaging "gun" that emits 10 different wavelengths of light to capture images of suspect pigmented skin lesions. Because MelaFind can see where the clinician cannot -- up to 2.5 millimeters below the skin's surface -- it is expected to help catch melanomas much earlier, without the need for as many biopsies, which is good news for most patients fearful about body scarring from the procedure.

Right now, for every 30 or 50 biopsies they order up, most doctors find just one case of melanoma. The hope for MelaFind is that it will more frequently rule out melanoma before a biopsy is performed, thanks to a database of some 9,000 pigmented skin lesions. Dermatologists say it could reduce to about seven the number of biopsies performed for finding one case of melanoma.

"There will still always be the need for the experience and judgment of the dermatologist," says Doris Day, Assistant Professor of Dermatology at the NYU Langone Medical Center. "But this is a very welcomed and useful additional tool in helping us identify melanomas with greater accuracy."

MelaFind comes none too soon. Melanoma is the deadliest form of skin cancer, responsible for killing one person an hour and accounting for 80% of all skin cancer deaths. It is also the fastest growing, with over 150,000 new cases reported annually in the U.S., partly the result of excessive sun-worshiping. Hundreds of thousands of other patients visit doctors out of fear that a mole or wart might be melanoma, experts say.

"Skin cancer is approaching epidemic proportions," asserts Joseph V. Gulfo, EOS's chief executive. "Early detection is the key to survival. But medical tools to help doctors detect the malignancy have been lacking, at least until now. We believe we have found the answer in MelaFind."

THE ACCURACY OF MELAFIND'S analysis was borne out by a pivotal Phase 3 study last February. Conducted at seven locations across the U.S., the study included 1,831 pigmented skin lesions from 1,383 patients, making it the largest prospective study conducted in melanoma detection. MelaFind's specificity, or ability to accurately rule out the disease, was 2.5 times greater than that of dermatologists. The company's volatile common shares skyrocketed 80%, from $3.53 to $6.36, the day the results were announced. They've lately been trading at $7.68.

"The device has the potential to save lives like nothing we have seen in this field," says Day, who has no connection to Electro-Optical Sciences. "With the incidence of melanoma on the rise, the machine may be that much more important for the everyday practice of dermatology."

The company has already won some big fans on Wall Street. "Once the general public catches on about the ease, simplicity and accuracy of the instrument and the added benefit of avoiding unnecessary biopsies, EOS' business will shift to a higher gear," says Jeb Besser, portfolio manager with Manchester Management, a Boston hedge fund that has held EOS' shares since it went public in 2005.

Roth Capital Partners analyst Matt Dolan figures sales of the devices could hit $10 million the first year, then climb to $40 million.

Nasdaq-listed Electro-Optical Sciences is taking some of the guesswork out of the way doctors detect melanoma. Barron's Neil Martin reports.

Still, with FDA approval still pending, the stock is clearly speculative. The company now has no product on the market, no revenues and no earnings. It has had to rely on dilutive equity financings, including a $15 million deal a month ago. It now has about $21 million of cash, enough to last more than a year, given its current quarterly cash-burn rate of about $4-million-to-$5 million.

"When dealing with the FDA, there is never a sure thing, but this is probably as close to that as you are going to get," says analyst Dalton Chandler with Needham Securities. "In addition to expedited review, which means a decision within 180 days, the company has additional clinical data that look compelling and will be presented to a panel of dermatological experts in a special FDA panel meeting, probably sometime this fall.

The Bottom Line:

If MelaFind passes FDA muster, medical device maker ESO could see its share price go from near $8 to $12.
"Best bet is formal approval by the end of the year or early 2010," say Chandler. He rates MELA a Buy with a price target of $12.

See the Article

Why I think SKBI will do $3 EPS in 2009 and $3+ in 2010

2009-08-18T04:03:00.000-07:00

SKBI reported earnings last Friday. 40% Revenue Growth and $0.73 EPS (excluding one time non-cash charge) See Press Release

- SKBI's business is strongest in Q3 and Q4, with Q1 and Q2 being the weakest quarters. In 2008, (after adding back $1.1m of non-recurring financing expenses to the first half of the year), 72% of SKBI's annual revenues and 76% of annual net income were earned in the last six months of 2008. A similar trend occurred in 2007.
See flow of earnings
2008 Quarterly #'s

- SKBI has grown revenue 40% year over year (YOY) in the first six months of 2009.

- SKBI Non-GAAP (excluded non-cash warrant charge and IPO costs) Net Income was $2.4m for the first six months of 2009. The comparable Net Income was $490k for the first six months of 2008. However, this included $1.1m of non-recurring financing charges so the true comparable for the first six months of 2008 is $1.6m. SKBI has grown net income 50% YOY so far in 2009.

- SKBI's Net income for the second half of 2008 was $5.1m (as mentioned 76% of 2008 total non-GAAP net income)

2009 EPS Analysis

- If SKBI grows Net Income for the last six months of the year 50% (like the first six months) they would end up with $10m of net income ($5.1m last 6 mo. of 2008 X 50% + $2.4m first 6 mo of 2009). GAAP weighted average shares outstanding for 2009 will be approximately 2.669m (1.869m were outstanding the first 6 months of 2009 and 3.469m will be outstanding the last 6 months of 2009). 2009 EPS under this scenario would be approximately $3.75.

- If SKBI grows Net Income for the last six months of the year only 25% they would end up with $8.8m of net income ($5.1m last 6 mo. of 2008 X 25% + $2.4m first 6 mo of 2009. GAAP weighted average shares outstanding for 2009 will be approximately 2.669m (1.869m were outstanding the first 6 months of 2009 and 3.469m will be outstanding the last 6 months of 2009). 2009 EPS under this scenario would be approximately $3.30.

- If SKBI Net Income is flat for the last six months of the year they would end up with $7.5m of net income ($5.1m last 6 mo. of 2008 + $2.4m first 6 mo of 2009). GAAP weighted average shares outstanding for 2009 will be approximately 2.669m (1.869m were outstanding the first 6 months of 2009 and 3.469m will be outstanding the last 6 months of 2009). 2009 EPS under this scenario would be approximately $2.81.

2010 EPS Analysis

SKBI will have approximately 3.469m shares outstanding for 2010. Let's consider the three scenarios I presented above.

- If SKBI grows second half 2009 Net Income by 50% (compared to 50% for first half 2009), they would end up with net income of $10m. Applying this 2009 net income to 2010 outstanding shares that would equal $2.89 EPS. To achieve $3 EPS in 2010 ($3 X 3.469m shares outstanding) they would need $10.4m of net income. They would need to grow net income by only $0.4m or 4% YOY.

- If SKBI grows second half 2009 Net Income by 25% (compared to 50% for first half 2009), they would end up with net income of $8.8m. Applying this 2009 net income to 2010 outstanding shares that would equal $2.54 EPS. To achieve $3 EPS in 2010 ($3 X 3.469m shares outstanding) they would need $10.4m of net income. They would need to grow net income by only $1.6m or 18% YOY.

- If SKBI second half 2009 Net Income is flat (compared to 50% growth for first half 2009), they would end up with net income of $7.5m. Applying this 2009 net income to 2010 outstanding shares that would equal $2.16 EPS. To achieve $3 EPS in 2010 ($3 X 3.469m shares outstanding) they would need $10.4m of net income. They would need to grow net income by only $2.9m or 39% YOY.

They will have significant capacity coming online in 2010 that could significantly add to net income:

Business Outlook

"We are in the process of completing our vaccine manufacturing facility and expanding our existing micro-organism facilities, which are expected to be completed later this year," stated Mr. Lu. "Once completed, the vaccine facility is expected to increase our vaccine production capacity by 2,300%, from 250 million units to 6 billion units, with a will have a projected increase in revenue of $14 million and related gross margins of 60-70% in 2010. Our micro-organism facility expansion is anticipated to increase our micro-organism and feed additives production capacity by 48.7% and add $2.7 million in revenue with a gross margin of 70% in 2010."

By my estimates, I believe SKBI will achieve around or above $3 EPS in 2009 and $3+ in 2010 and therefore is significantly undervalued with a P/E of 4-5.

Skystar Bio-Pharmaceuticals to Report Second Quarter 2009 Financial Results

2009-08-10T05:07:00.000-07:00

Skystar Bio-Pharmaceuticals to Report Second Quarter 2009 Financial Results and Host Conference Call on Friday, August 14, 2009

Press Release
Source: Skystar Bio-Pharmaceutical Company
On Monday August 10, 2009, 7:00 am EDT

XI'AN, CHINA--(Marketwire - 08/10/09) - Skystar Bio-Pharmaceutical Company (NASDAQ:SKBI - News) ("Skystar" or the "Company"), a China-based producer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, today announced that it will report its financial results for the second quarter of 2009, on Friday, August 14, 2009 at 8:00 a.m. Eastern time.

To participate in the conference call, please dial 877-941-2321 or 480-629-9714 from the US. Participants dialing in from China can access the call toll free by dialing 10800-152-1142. Investors may also access a live audio webcast of this conference call under "Events/Presentation" on the Investors Relations section of the Company's website at http://www.ir-site.com/skystar/events.asp.

A replay of the webcast will be available approximately two hours after the conclusion of the call. The webcast replay will remain available for 90 days. An audio replay will also be available approximately two hours after the conclusion of the call and will be made available until Friday, August 28, 2009. The audio replay can be accessed by dialing 800-406-7325 or 303-590-3030 and entering passcode 4138197# from the US. For toll free access to the replay from China please dial 852-2287-4304 and enter reservation number 109110#.

About Skystar Bio-Pharmaceutical Company

Skystar is a China-based developer and distributor of veterinary healthcare and medical care products. Skystar has four product lines (veterinary medicines, micro-organisms, vaccines and feed additives) and over 170 products, with over 40 additional products in the developmental stage. Skystar has formed strategic sales distribution networks covering 29 provinces throughout China. For additional information, please visit http://www.skystarbio-pharmaceutical.com.

To be added to the Company's email distribution for future news releases, please send your request to skystar@tpg-ir.com.

13 Stock Ideas Blogged in 2009. Average Gain 96% in 33 Days

2009-08-04T20:03:00.000-07:00

13 super-trades.com Stock Ideas Blogged in 2009. Average Gain 96% - Average Trading Days From Mention to Peak 33 Days
Range of Gains 45% to 153% - Range of Trading Days From Mention to Peak 2 days to 125 days

FIT 153% Gain Called at $3.50 on May 7th. Hit $8.87, 56 days later on July 23rd. Read Blog Post

LZR 140% Gain Called at $5.40 on December 23,2008. Hit $11.14, 125 days later on June 15th. Read Blog Post

RINO 129% Gain Called at $7.65 on June 16th. Hit $17.50, 37 days later on Aug 5th. Read Blog Post

UTA 124% Gain Called at $7.60 on May 29th Hit $17, 48 days later on August 4th. Read Blog Post

VIFL 122% Gain Called at $1.35 on March 26th Hit $3, 15 days later on April 13th. Read Blog Post

MRM 109% Gain Called at $6.40 on May 19th Hit $13.38, 16 days later on June 9th. Read Blog Post

SKBO.OB (now SKBI) 104% Gain Called at $11.00 on June 5th Hit $22.49, 18 days later on June 29th. Read Blog Post

DIT 92% Gain Called at $32 on April 22nd. Hit $61.46, 80 days later on July 27th. Read Blog Post

AIM 77% Gain Called at $4.20 on June 15th Hit $7.44, 2 days later on June 16th. Read Blog Post
,
SMCG 67% Gain Called at $1.35 on May 21st Hit $2.27, 11 days later on June 4th. Read Blog Post

EVK 62% Gain Called at $1.85 on June 2nd Hit $3, 4 days later on June 5th. Read Blog Post

JVA 58% Gain Called at $3.15 on May 6th Hit $4.84, 20 days later on June 2nd. Read Blog Post

NIV 45% Gain Called at $3.80 on March 17th Hit $5.50, 2 days later on March 18th. Read Blog Post

Skystar to Ring NASDAQ Opening Bell on July 22

2009-07-21T05:05:00.000-07:00

My latest research on SKBI

Press Release
Source: Skystar Bio-Pharmaceutical Company
On Tuesday July 21, 2009, 7:00 am EDT

Skystar Bio-Pharmaceutical Company (NASDAQ:SKBI - News) ("Skystar" or the "Company"), a China-based producer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, today announced that the Company's Chairman and CEO Weibing Lu, CFO Bennet P. Tchaikovsky and Director R. Scott Cramer, will ring the opening bell at the NASDAQ Capital Market on Wednesday, July 22, 2009, in New York City. Skystar's common stock began trading on the NASDAQ on June 26, 2009

The opening bell ceremony will take place beginning at 9:20 a.m. Eastern Time at the NASDAQ MarketSite in New York's Times Square and will be broadcast live on the seven-story NASDAQ tower.

"We are honored to participate in the NASDAQ opening bell ceremony," said Mr. Lu. "We believe that our recent listing on NASDAQ will expand our exposure to the U.S. investment community and further enhance shareholder value. Skystar is a leading supplier in the rapidly growing veterinary health- and medical-care industry in China. For fiscal 2009, Skystar increased revenues by 42% to $25.6 million, and increased net income by 73% to $5.6 million. We are anticipating adding approximately 40 new products to our portfolio this year and expanding our manufacturing capabilities, which we expect can add $16.7 million in revenues and improve gross margins by up to $11.7 million by 2010." Press Release

Accurate Research Results in 4 super-trades.com winners

2009-07-21T04:28:00.000-07:00

RINO - Called this stock at $7.65 on June 16th Read Blog Post. This stock has been on an absolute tear, hitting $12.38 yesterday July 20th, for a 62% gain from my original call. Around $9-$10, mainly other stock gurus jumped on this great stock. Again, this company is on a $2 EPS run rate. Most growing, profitable, China stocks get a P/E of at least 10.

FIT - Bought at $3.50 on May 7th. See Blog Post It hit $8.19 (52 week high) yesterday July 20th for a 134% gain from original entry.

DIT - Bought at $32 on April 23rd See Blog Post. It hit $49.70 yesterday (52 week high) July 20th for a 55% gain from the original call. Lowest float out there and very volatile. What is better is that DIT reported earnings this week and EPS from continuing operations was $3.11. My original DD said a $10-$12 EPS run right and it was correct. See Press Release

And last but not least, the stock I believe has the most upside and momentum potential.

I have been buying and blogging SKBI (was SKBO.OB prior to Friday) since the $11 range See Blog Post.

Updated Float Analysis: Skystar has approximately 1.869m shares outstanding pre-secondary. On page 38 of the most recent S-1 Read S-1, it states that between management and two funds there are approximately 1.5m shares held. On page 7 it states management is locked up for six months from the date of the secondary. After the 1.6m shares were sold recently, I am guessing that not many will flip this stock for $5-$10 dollars with this EPS potential and a P/E of 4. Depending on how many hold these shares, SKBI could have a float range of approximately 1m to 1.5m (Mid-point is 1.25m).
Also, according ot this article out last week, SKBI is on the naked short list (have not confirmed) Read Article

Updated EPS Analysis: In 2008 (see the presentation and the S-1 they did $3.07 EPS on the shares outstanding), Skystar had $5.6m of net income that included $1.1m of non-recurring expenses, or $6.7m adjusted net income.

Skystar had approximately 1.869 shares at the beginning of FY2009. They will sell 1.6m shares this week, however those shares will only be outstanding approximately six months of FY2009. So fully diluted weighted average shares for FY2009 should be approximately 2.769 (1.869 + half of 1.6m).

If I divide the FY 2008 adjusted net income by the new post-IPO share count of approximately 2.569m, I get EPS of $2.51. Skystar would only have to grow net income by approximately 20% in 2009 to have EPS of $3. However, in the first quarter of 2009, net income was up 72% YOY! It is easy for me to see how this Company could potentially do over $3 EPS for FY2009. Lastly, as discussed in my original blog post, in FY2010 expansion sales give the potential for approximately another $1 EPS. So I also see that potential for this Company to do over $4 EPS in FY2010.

Again most growing, profitable Chinese companies get a P/E of at least 10. Most do not have such a small outstanding share structure as SKBI (which can drive momentum).
With my estimated 2009 EPS range of $2.50-$3.50 and 2010 of $3-$4, a P/E range of 10-20 on 2009 EPS at the mid point of my range ($3) would be $30-$60 price per share. Combine that with a low float this stock is the most attractive out there for value/momentum. I believe hedge funds have been buying this stock and soaking up the float as they see the same potential I do.

This blog is just my rationale for my own investing and not a prediction or investment advice.

Skystar Bio-Pharmaceutical Announces Expansion Plans and Growth Expectations

2009-07-14T05:14:00.000-07:00

Read My EPS Expectations for SKBI

Press Release
Source: Skystar Bio-Pharmaceutical Company
On Tuesday July 14, 2009, 7:00 am EDT

Skystar Bio-Pharmaceutical Company (NASDAQ:SKBI - News) ("Skystar" or the "Company"), a China-based producer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, today announced its business expansion plans and growth expectations following the Company's recent common stock listing on the NASDAQ Capital Market.

Skystar's veterinary healthcare and medical care products cover the major segments of the animal farming industry through its four product lines: veterinary medications, micro-organisms, feed additives and veterinary vaccines. The Company has a robust portfolio of over 170 products, as well as over 40 products under development for which the Company expects approval this year. Skystar has a strategic sales and distribution network of more than 1,128 agents and 400 direct customers. Skystar's distribution network covers all 29 farm producing provinces in China. Skystar is currently the only China-based veterinary supply company that is listed on a U.S. stock exchange.

"At this stage in our corporate development, we are pleased to increase our visibility by listing on the NASDAQ Capital Market," Weibing Lu, Skystar's Chairman and Chief Executive Officer, stated. "We are competing in a young and fragmented industry where demand exceeds supply. We hold a significant competitive advantage by offering four product lines that address key segments of the animal farming industry, whereas most of our competitors offer only one or two products. We also strive to deliver higher quality and more effective products, with lower prices and better service than our competitors. We are leveraging our extensive distribution network and solid customer base by adding an estimated 40 products currently under development. In addition, we are seeking to increase our manufacturing capabilities as well as exploring acquisition opportunities in our industry.

"We are in the process of completing our vaccine manufacturing facility, which is expected in the fourth quarter of this year," continued Mr. Lu. "Once completed, this facility is expected to increase our vaccine production capacity by 2,300%, from 250 million units to 6 billion units, with a projected increase in revenue of $14 million with gross margin of $8.4 to $9.8 million in 2010. We also expect to complete our micro-organism and feed additives facility in the fourth quarter of this year, which is anticipated to increase our micro-organism and feed additives production capacity by 48.7%. Once completed, the micro-organism facility is expected to add $2.7 million in revenue with gross margin of $1.9 million in 2010."

For fiscal 2008, Skystar reported $25.6 million in total revenues and net income of $5.6 million, compared with revenues of $15.1 million and net loss of $2.0 million for fiscal year 2007. For fiscal 2003 through 2008, Skystar has achieved a compound annual growth rate of 84.39% for revenues and 84.36% for gross margins.

Skystar Common Stock

Skystar common stock began trading on June 26, 2009 on the NASDAQ Capital Market. A public offering of 1.61 million shares of common stock at $12.98 per share was completed on July 8, 2009 for gross proceeds of $20.89 million.

About Skystar Bio-Pharmaceutical Company

Skystar is a China-based developer and distributor of veterinary healthcare and medical care products. Skystar has four product lines (veterinary medicines, micro-organisms, vaccines and feed additives) and over 170 products, with over 40 additional products in the developmental stage. Skystar has formed strategic sales distribution networks covering 29 provinces throughout China. For additional information, please visit http://www.skystarbio-pharmaceutical.com.

To be added to the Company's email distribution for future news releases, please send your request to skystar@tpg-ir.com.

Forward-looking Statements

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the progress of new product development. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

Contact:
ContactsThe Piacente Group, Inc. (Investor Relations Counsel)Kristen McNally(212) 481-2050Email ContactSkystar Bio-Pharmaceutical Co., Ltd.Scott CramerDirector - U.S. Representative(407) 645-4433Email Contact

SKBI at Higher End of Range - Free to Scream

2009-06-30T17:39:00.000-07:00

Will it gap down first or gap up? I don't know. Don't know don't care. I would buy a gap down if it even happens (today may have been it). I just have learned that low floats and EPS like this (rare) usually attract strong interest from momentum/value funds/traders. Whether it be tomorrow, Thursday into the holiday weekend, or next week, I think momentum/value funds/traders/investors will come for this stock. Read my analysis below.

SKBI priced known secondary in accordance with NASDAQ listing tonight at $12.98 , 63%higher than the original $8 range! In my opinion this speaks to the strong demand and the fact that trailing 12 months EPS is $3.39 and Trailing P/E is only 5 at a share price of $18 See Link. Read my DD why I think at current run rate this company has potential for $3+ EPS this year and $4+ next year - after this offering. Again, read why I am in this stock (the purpose of this blog is to post my ideas only) and do not chase any stock or buy it because I am in it.

I have been buying and blogging SKBI (was SKBO.OB prior to Friday) since the $11 range See Blog Post. Well as expected the Company moved to the NASDAQ this last Friday and closed at $20 per share. This week I expect them to complete a known share sale as part of the move to NASDAQ and to fund amazing expansion capabilities for their business.

Updated Float Analysis: Skystar has approximately 1.869m shares outstanding pre-secondary. On page 38 of the most recent S-1 Read S-1, it states that between management and two funds there are approximately 1.5m shares held. On page 7 it states management is locked up for six months from the date of the secondary. That would put SKBI at a float of approximately 369k pre-secondary if my calculations are correct. When the 1.6m shares are sold this week, I would guess that not many are going to flip this stock for $5-$10 dollars with this EPS potential. Depending on how many hold these shares, SKBI could have a float range of approximately 369k to 1.769k (Mid-point is 1.1m).
Lastly, according ot this article out last week, SKBI is on the naked short list (have not confirmed) Read Article

Updated EPS Analysis: In 2008 (see the presentation and the S-1 they did $3.07 EPS on the shares outstanding), Skystar had $5.6m of net income that included $1.1m of non-recurring expenses, or $6.7m adjusted net income.

Skystar had approximately 1.869 shares at the beginning of FY2009. They will sell 1.6m shares this week, however those shares will only be outstanding approximately six months of FY2009. So fully diluted weighted average shares for FY2009 should be approximately 2.769 (1.869 + half of 1.6m).

If I divide the FY 2008 adjusted net income by the new post-IPO share count of approximately 2.569m, I get EPS of $2.51. Skystar would only have to grow net income by approximately 20% in 2009 to have EPS of $3. However, in the first quarter of 2009, net income was up 72% YOY! It is easy for me to see how this Company could potentially do over $3 EPS for FY2009. Lastly, as discussed in my original blog post, in FY2010 expansion sales give the potential for approximately another $1 EPS. So I also see that potential for this Company to do over $4 EPS in FY2010.

The expected price range of the share sale this week is $9-$11 ( I would guess the high end and personally question if they could get more)? The stock could either pullback creating what I would consider a nice opportunity to buy or gap up as it is already on the NASDAQ now.

One thing is for certain, considering the P/E of approximately 24 that recent IPO DGW is trading at as of last week, combined with my calculations of $3-$4 EPS potential and the ultra low float of SKBI, it is easy for me to be very excited of what SKBI potentially could do.

I am long SKBI with an average of approximately the $12 range.

Skystar on the NASDAQ with Huge EPS and Low Float

2009-06-28T20:48:00.000-07:00

I have been buying and blogging SKBI (was SKBO.OB prior to Friday) since the $11 range See Blog Post. Well as expected the Company moved to the NASDAQ this last Friday and closed at $20 per share. This week I expect them to complete a known share sale as part of the move to NASDAQ and to fund amazing expansion capabilities for their business.

Updated Float Analysis: Skystar has approximately 1.869m shares outstanding pre-secondary. On page 38 of the most recent S-1 Read S-1, it states that between management and two funds there are approximately 1.5m shares held. On page 7 it states management is locked up for six months from the date of the secondary. That would put SKBI at a float of approximately 369k pre-secondary if my calculations are correct. When the 1.4m shares are sold this week, I would guess that not many are going to flip this stock for $5-$10 dollars with this EPS potential. Depending on how many hold these shares, SKBI could have a float range of approximately 369k to 1.769k (Mid-point is 1.1m).
Lastly, according ot this article out last week, SKBI is on the naked short list (have not confirmed) Read Article

Updated EPS Analysis: In 2008 (see the presentation and the S-1 they did $3.07 EPS on the shares outstanding), Skystar had $5.6m of net income that included $1.1m of non-recurring expenses, or $6.7m adjusted net income.

Skystar had approximately 1.869 shares at the beginning of FY2009. They will sell 1.4m shares this week, however those shares will only be outstanding approximately six months of FY2009. So fully diluted weighted average shares for FY2009 should be approximately 2.569 (1.869 + half of 1.4m).

If I divide the FY 2008 adjusted net income by the new post-IPO share count of approximately 2.569m, I get EPS of $2.61. Skystar would only have to grow net income by approximately 15% in 2009 to have EPS of $3. However, in the first quarter of 2009, net income was up 72% YOY! It is easy for me to see how this Company could potentially do over $3 EPS for FY2009. Lastly, as discussed in my original blog post, in FY2010 expansion sales give the potential for approximately another $1 EPS. So I also see that potential for this Company to do over $4 EPS in FY2010.

The expected price range of the share sale this week is $9-$11 ( I would guess the high end and personally question if they could get more)? The stock could either pullback creating what I would consider a nice opportunity to buy or gap up as it is already on the NASDAQ now.

One thing is for certain, considering the P/E of approximately 24 that recent IPO DGW is trading at as of last week, combined with my calculations of $3-$4 EPS potential and the ultra low float of SKBI, it is easy for me to be very excited of what SKBI potentially could do.

I am long SKBI with an average of approximately the $12 range.

Review of 3 Chinese IPO's- Week of June 22nd

2009-06-19T19:44:00.000-07:00

1) DGW - Duoyuan Global Water Inc. - NYSE Listing

What They Do :
We are a leading China-based domestic water treatment equipment supplier. Our product offerings focus on addressing the key steps in the water treatment process, such as filtration, water softening, water-sediment separation, aeration, disinfection and reverse osmosis. Founded in 1992, we offer a comprehensive set of more than 80 complementary products across the following three product categories:
• Circulating Water Treatment Equipment
• Water Purification Equipment
• Wastewater Treatment Equipment

Links :
F-1 Filing
Road Show Presentation

The Numbers :
- Float will be 5m. Outstanding will be approximately 21m. (Each ADS represents 2 ordinary shares. There will be approximately 42m ordinary shares outstanding after this deal).
- Revenue growth 40% 2008 vs 2007 and 39% Q109 vs Q109. Net Income growth 63% 2008 vs 2007 and 92% Q109 vs Q109.
- They did 19.5m of Net Income in FY 2008.
- Expected Pricing $13-$15

super-trades summary : This is perhaps one of the sexiest sectors that exists. Water is a scare resource, especially in China. China is predicted to lead the world out of this recession. When I take the 19.5m of net income divided by the post-IPO ADS shares outstanding of 21m I get .93 trailing EPS with the company growing revenue and net income in Q109 by 39% and 92%, respectively. At $15 pricing that is about a 16 trailing P/E. Mix in a 5m float and I expect this IPO to generate strong interest. Only question is how high does it gap up. Under $20 I will try some shares.

Sympathy plays :
CLWT - Small cap play on this IPO similar business. Due to release annual report in June. I am sure those that like lower priced stocks come for this in a sympathy trade.

RINO.OB - Similar business with much better EPS and priced at what I consider to be ridiculously cheap. (Currently P/E of 4-5) Read why I think RINO.OB is a much better play than DGW. Applying the 16 P/E on RINO.OB recent EPS run rate would make it a $32 stock. Read Blog Post

2) CPC - Chemspec International - NYSE Listing

What They Do :
We are a leading China-based contract manufacturer of highly engineered specialty chemicals. In particular, we are the largest manufacturer of fluorinated specialty chemicals in China based on sales with a share of approximately 21% and 25% of the Chinese market in 2007 and 2008, respectively, according to a commissioned report prepared by Frost & Sullivan. We manufacture specialty chemicals, which are typically highly engineered chemicals used as building blocks in the manufacture of more advanced chemicals or to enhance the performance of the end products manufactured by our end users in various industries including electronics, pharmaceuticals and agrochemicals.

Links :
F-1 Filing
Road Show Presentation

The Numbers :
- Float will be 8.1m. Outstanding will be approximately 36m. (Each ADS represents 60 ordinary shares. There will be approximately 2.1B ordinary shares outstanding after this deal).
- Revenue growth 60% 2008 vs 2007 and 23% Q109 vs Q109. Net Income growth 34% 2008 vs 2007 and -44% Q109 vs Q109.
- They did 45.9m of Net Income in FY 2008.
- Expected Pricing $7-$9

super-trades summary : China is predicted to lead the world out of this recession. When I take the 45.9m of net income divided by the post-IPO ADS shares outstanding of 36m I get 1.28 trailing EPS. The company grew revenue by 23% in Q109, yet net income declined by 44% due to lower margins and increased R&D expenses. They also mentioned a slowdown due to the global recession that they gradually see recovering. I am sure that affected the pricing range. At $9 pricing that is about a 7 trailing P/E. I need to see how well this is received, but I think a 10 P/E range would not be unreasonable for this Company. It could get a higher one if they convince investors that net income growth will continue. Would try some around the pricing range or 10% above but will not chase unless I sense it is getting interest.

Sympathy plays :
CPC may not have enough interest to push some sympathy plays. However if this IPO is well received, then NOEC and SDTH are two small cap sympathy trades to watch.

3) SKBO.OB - Skystar Bio-Pharmaceutical Company - Nasdaq Listing

What They Do :
Skystar is a China-based developer and distributor of veterinary healthcare and medical care products. Skystar has four product lines (veterinary medicines, microorganisms, vaccines and feed additives) and over 170 products, with over 40 additional products in the developmental stage. Skystar has formed strategic sales distribution networks covering 29 provinces throughout China

Links :
S-1 Filing
Company Presentation

The Numbers :
- Float will be approximately 1.5m. Outstanding will be approximately 3m. Company currently trades on the OTCBB and will do an IPO on the Nasdaq with the placement of 1m shares.
- Revenue growth 70% 2008 vs 2007 and 42% Q109 vs Q109. Net Income growth 63% 2008 vs 2007 and 73% Q109 vs Q109.

Mind Boggling Numbers - In the S-1 filing, Skystar reported $3.07 EPS for FY 2008 and $0.57 EPS for First Quarter 2009. Revenue was up 70% in FY 2008 vs. FY 2007. Revenue was up 42% and Net Income was up 73% in the First Quarter of 2009.

More Mind Boggling Growth - From the S-1 "Manufacturing Facilities. We intend to complete a vaccine manufacturing facility with approximately $2.5 million from the net proceeds of the offering. Under our current plans, this facility is expected to be completed by the fourth quarter of 2009 and obtain GMP certification in late 2009. Once completed, we believe that this facility will increase production capacity by 6 billion units, or 2,300.0% from 250 million units, with a value of $14.0 million in projected revenue at a gross margin rate of 60-70%.

Additionally, we are planning to construct a new production facility for micro-organism and feed additives with approximately $1.5 million from the net proceeds of the offering. Under our current planning, the annual production capacity of this production facility will be approximately 4,000 metric tonnes, an increase of 48.7% from our current capacity of 8,200 metric tonnes. We anticipate construction to complete in the fourth quarter of 2009."

By my calculations, with the addition of these two facilities the Company will have the potential to add up to $14m additional revenue at 60-70% gross margin rate from vaccines and approximately $3m in feed additives (facility increases capacity by 49% and they did $5.9m in this category in 2008 at a 65% blended gross profit margin - see Presentation). If they can produce and sell this extra capacity I calculate that as an additional $10m in gross profit. In Q1 2009 the Net Income margin was around 28%. So this extra capacity (if produced and sold successfully and at these same margins) could add another $1 EPS in 2010 by my calculations.

In 2008 (see the presentation and the S-1 they did $3.07 EPS on the shares outstanding), Skystar had $5.6m of net income that included $1.1m of non-recurring expenses, or $6.7m adjusted net income. If I divide that by the new post-IPO share count of approximately 2.9m, I get EPS of $2.31. Now, in the first quarter of 2009, net income was up 72% YOY. If the Company hypothetically can even grow net income by 30% for all of 2009 over 2008, that $2.31 would go to $3.00 EPS with the new shares offered.

In 2010 if they have these new facilities in place and produce and sell with the above assumptions from the S-1 that would calculate to another $1 EPS. Going by my calculations, I see a scenario where if all falls into place perfectly this company could do $3+ EPS in 2009 and $4+ in 2010. (Not to mention potential growth from the many products they have awaiting approval) You can use your imagination with a 10-20 P/E ratio. Again, this is what I see as potential when I look at their numbers and information, not a prediction or guarantee.

Lastly, according to the Company website, they are also working on an Avian flu vaccine for the birds themselves. "While larger international companies are focusing on vaccines to prevent people from catching avian flu, Skystar's focus is on vaccines to be administered to farm chickens and other poultry to prevent them from catching H5N1 Avian Influenza. This type of vaccine is well within Skystar's current scope and expertise and could potentially prevent an epidemic/pandemic by controlling an outbreak at the source (the poultry)." See Website

super-trades summary : This is perhaps one of the most exciting scenarios I have seen in sometime. If the Company can do $3+ EPS in 2009 then this is pricing at a P/E of 3! If DGW ends up with a P/E of 20+, applying that to $3 EPS would be a stock price of $60. With this float and amazing EPS and low valuation, if the momentum/valuation crowd shows interest, I can see this stock being one of those rare stocks that runs to the $30-$50 range like EFUT did in 2006. Read Blog Post

Sympathy plays :
Any low float China stocks with great EPS and low valuations.

I am long SKBO.OB. This blog is my opinion and not investment advice or a prediction of future prices.

RINO.OB - Amazing Growth - Compare to Coming DGW IPO

2009-06-16T11:00:00.000-07:00

There is an exciting IPO scheduled to trade the week of June 22nd. Duoyuan Global Water (DGW) They are a provider of water treatment equipment in China. China has a water scarcity issue so this is one of the hottest sector to me. Water and Air industry in China. By my calculations DGW would have done approximately $1 EPS with the post-IPO share count for 2008. The IPO is expected to price at $13-$15 for a 13-15 p/e and I would guess this gaps open much higher. The problem with hot IPO's in many cases is they gap so high that the only people that make money are the people who were able to participate in the IPO shares. I think I found a much better stock.

RINO.OB - RINO International Corporation, through its direct and indirect subsidiaries, including Innomind Group Limited and Dalian Innomind Environment Engineering Co., Ltd., its contractually-controlled affiliate, Dalian RINO Environmental Engineering Science and Technology Co., Ltd. ("Dalian Rino") and Dalian Rino's wholly-owned subsidiaries, Dalian Rino Environmental Engineering Project Design Co., Ltd. and Dalian Rino Environmental Construction & Installation Project Co., Ltd., is a leading provider of environmental protection equipment for the iron and steel industry in China. Specifically, RINO designs, manufactures, installs and services proprietary and patented wastewater treatment, flue gas desulphurization equipment, and high temperature anti-oxidation systems, which are all designed to reduce either industrial pollution and/or improve energy utilization.

This Company has amazing numbers:

Fiscal Year 2008 Sales Increase 119.8% to $139.3 million, **Adjusted Net Income Increases 119.9% to $39.0 million with EPS of $1.56 -- Reaffirms 2009 Guidance: Revenues expected to exceed $176.5 million Read 2008 Press Release

Q1 Net Sales Increased 87.0% to $35.6 Million while Net Income Increased 148.5% to $12.5 Million with EPS of $.50 vs. $.20 Read Q1 Press Release

"The first quarter represents a very strong start in 2009 as we made significant improvements in all of our key financial metrics," stated Mr. Zou Dejun, President and CEO of RINO International, "Our business continues to be driven by a number of fundamental factors all centered around China's desire to ensure that iron and steel manufacturers properly protect the environment, specifically the water and air. By collecting a significant portion of our receivables we ended the quarter with $47.9 million cash and cash equivalents on our balance sheet. This generated significant cash flow from operations, and puts us in an excellent position to capitalize on our growth opportunities for the balance of 2009. We ended the quarter with a backlog of approximately $61.8 million, which represents 8 desulphurization, 5 wastewater treatment and 1 anti-oxidation projects which will be implemented during the next two quarters. We are very confident that we will continue to provide incremental and robust top-line and bottom line growth for our Company".

There is one analyst that has estimates for RINO on yahoo that expect over $2 EPS. It does not look like they were updated for the recent Q1 results. See Estimates

If DGW is going to trade at a P/E of 20 or higher, it is easy to see why a Company like RINO seems extremely undervalued to me at current prices. If RINO is currently near or above a $2 EPS run rate with impressive growth and backlog, then a P/E of 13-15 like DGW is pricing at would be a $26-$30 stock.

Lastly, the Company stated in the 2008 year end conference call that they have applied to list on the Nasdaq. Listen to Conference Call

The float is 7.1m and outstanding shares are 25m according to Bloomberg Bloomberg

I am long RINO.OB

AIM Great News the Day After Great Earnings

2009-06-16T05:14:00.000-07:00

Aerosonic Chosen as Key Supplier to AleniaSIA for the AleniaAermacchi M-346 Trainer Aircraft
On Tuesday June 16, 2009, 8:00 am EDT
CLEARWATER, Fla.--(BUSINESS WIRE)--Aerosonic Corporation (NYSE Amex: AIM), a leading supplier of precision flight instruments and systems for commercial, business and military aircraft, announced today that it has signed a Long Term Supply Agreement (“LTSA”) and received an initial production order from AleniaSIA to supply its Integrated Multi-Function Probe (“IMFP”) and related equipment for the production of AleniaAermacchi M-346 aircraft FBW Flight Control System. The deliveries to AleniaSIA will begin in March of 2010. Based on current forecasts, Aerosonic expects this program to generate up to $10 million in revenue over the next 4 years
Read Article

AIM - super-trades.com started off the week with a buy/alert on AIM at $4.20 today Read Blog Post. It hit $6.45 for a one day gain of 54%! This situation reminds me eerily of my recent stock pick MRM Read Blog Post, which I called at $6.40 on a similar earnings and EPS turnaround and hit a high of $13.38, or 109% from the original alert. While AIM may pullback, I think it has much higher to go based on what appears to be a potential EPS run rate of well over $1+. Now with a new contract I like it even further for a continued move. I am long AIM from $4.20.

super-trades Momentum Continues With Staying Power

2009-06-15T19:23:00.000-07:00

AIM - super-trades.com started off the week with a buy/alert on AIM at $4.20 today Read Blog Post. It hit $6.45 for a one day gain of 54%! This situation reminds me eerily of my recent stock pick MRM Read Blog Post, which I called at $6.40 on a similar earnings and EPS turnaround and hit a high of $13.38, or 109% from the original alert. While AIM may pullback, I think it has much higher to go based on what appears to be a potential EPS run rate of well over $1+. I am long AIM from $4.20.

SKBO - I am extremely excited about this stock and cannot wait for it to get to the Nasdaq. I am long this stock with an average in the $11's and will be adding on any pullbacks. (Although it does not seem to want to pullback so far). Read my reasons for thinking this is the next EFUT type mover Read SKBO Research

LZR - Old super-trades favorite LZR which I nailed for 100% gain TWICE, still kept going. Today it hit a new high of $11.14 becoming a 140% super-trades idea gainer from low to high.

VIFL - Another old super-trades favorite. Bought at $1.35 Read Blog Post It hit $3.00 for a 122% gain. It then pulled back under $2. Today it closed at $2.80 on the strength of Friday's news of irradiation approval for oysters Read Article.

super-trades Notes:
- Very exciting to me that many of my picks are not only working , but showing staying power much higher than my original alerts. This proves the research was correct more than anything.

- When I have profit on a pick, I will always take some off the table and use a mental stop on the rest to ensure profitability.

- Look for more new ideas every week as I spend much time researching.

- Don't chase any stocks. Low float stocks can be volatile and dangerous. My blog is not investment advice but instead documents my trades/ideas.

In AIM $4.20

2009-06-15T06:32:00.001-07:00

In AIM at $4.20 on a nice quarter. $0.37 EPS less an insurance claim so I get $0.28-$0.29 without it. Read Press Release

Float 3m Outstanding 3.7m per Bloomberg Bloomberg

SKBO.OB Also has Swine Disease Expertise

2009-06-09T20:49:00.000-07:00

SKBO.OB is my latest position/idea Read Blog Post. I wrote how I am in this stock because I think this stock has potential to be the next EFUT. (EFUT went from $11 to $49 in 2006)

Aside from the $3-$4 EPS potential (by my estimates but read blog post it is based on information from the filings - they did report $3.07 EPS in 2008), the growth potential, and the Avian Flu angle, I found these articles from 2007 about SKBO.OB and swine fever/diseases:

Skystar Bio-Pharmaceutical Releases First Aid Kit for Swine High-Fever Syndrome
7/23/2007

The Company has developed prevention and treatment therapies specifically designed for large-scale pig farms.

XI'AN, China, July 23 /Xinhua-PRNewswire-FirstCall/ -- Skystar Bio-Pharmaceutical Co., Ltd. (''Skystar''; ''Company''), a leading bio-pharmaceutical company in the People's Republic of China (''PRC''), today announced that it has successfully developed a first aid kit to treat the recent outbreak of Swine High-Fever Syndrome (''SHFS'') among pigs in China. The kit is expected to generate about $526,000 in revenue during the second half of 2007.

SHFS is caused by mutated viral strains of porcine reproductive and respiratory syndrome, also know as blue ear disease, and is often complicated by porcine circovirus type 2 (PCV-2). The complication evolves in three stages. First, the viral infection damages pigs' immune system resulting in immunity paralysis or complete loss of immunity. Consequently, primary mixed infections usually follow including many other viral diseases such as hog cholera, pseudorabies, cephalitis B, parvovirus, rotavirus and influenza. Further, complicated viral infections lead to secondary mixed infections caused by highly contagious bacterial diseases such as streptococcemia, pleuropneumonia, colibacillosis, pasteurellosis and mycoplasma pneumonia. As a direct result of blue ear disease, SHFS often results in rapid infection and extremely high mortality rates.
Read Article

Skystar Receives Approval For 36 New Veterinary Medicines
Article Date: 12 Jun 2007 - 0:00 PDT
Three of the new products target a variety of indications in pigs and piglets and are expected to become top sellers. Chinese Goldthread (Huanglian) Detoxification Powder ("CGDP") is a TCM which clinical tests have shown is especially effective in treating pig diseases such as upper respiratory tract inflammation, acute bronchitis, pneumonia, diarrhea, contagious gastritis and blue-ear disease, also known as Porcine Reproductive and Respiratory Syndrome (PRRS). GGDP has overcome many of the shortcomings of traditional Chinese medicines such as slow effectiveness and unstable components. Its effectiveness in the prevention and treatment of viral diseases such as blue- ear disease is a significant advantage. CGDP is estimated to generate annual revenue of RMB 5 million in 2007.
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Here is what the SKBO.OB website says about the Avian Flu:
While larger international companies are focusing on vaccines to prevent people from catching avian flu, Skystar's focus is on vaccines to be administered to farm chickens and other poultry to prevent them from catching H5N1 Avian Influenza. This type of vaccine is well within Skystar's current scope and expertise and could potentially prevent an epidemic/pandemic by controlling an outbreak at the source (the poultry). See Website

I am long SKBO.OB