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Finally!!!!!! |
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Finally: ultimately as the end result of
a succession or process
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Finally: After a week
of testing, retesting, writing, rewriting, testing, and testing again,
we're finally ready to roll out the new service. This is something my partners
and I decided to do about one year ago. We put it on the back burner in
the Spring, and it didn't seem worthwhile to launch through the summer
bear market and severe drubbing suffered by so many China names.
However, my new China focused
subscription based newsletter is now ready for Prime Time, and OTC Journal
members will have the first opportunity to be the founding subscribers
on Saturday. With Q3 earnings releases coming up in a few weeks, you'll
want to be positioned in some of these names now.
This past week we've been cleaning
up the information on the stocks in the portfolio, testing the enrollment
process, getting ready to be able to smoothly disburse information, and
watching stocks in the China sector start to go nuts again.
And- speaking of going nuts again-
those who have been following the progress of my new publication know we
posted our 12 initial ideas on October 1st. I wish I had been able to offer
this up in conjunction with that day, because some of the ideas have been
tearing up the charts. Here's a recap.
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In the small to mid cap section of 6
ideas: #1- up 32.5%; #2- down 4.7%; #3- up 4.5%; #4- up 30.5%; #5- down
1.2%; #6- up 18%.
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In the micro to small cap section of
6 ides: #1- up 2.4%; #2- Up 12.75%; #3- up 2.3%; #4- down 20%; #5- down
14.57%; #6- down 2.5%.
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In the "Tom's Special Picks" section
of 3 ideas: #1- up 42.5%; #2- UP 12.6%; Idea #3- up 5.9%.
As you can see, there have been some
real break away winners, and a number of the stocks just treading water
so far. Some of the stocks on this list are ones I have written about in
the past, so they won't be new names for OTC Journal members. There
are also a number of new ideas- about 50/50. Once I launch the new service,
I will stop covering the ideas in the OTC Journal that cross with
the new publication- you will have to be a member at the new publication.
For those who wrote testimonials
in return for a free 30 days- I haven't forgotten about you. I'll be honoring
the commitment, and sending you confirmation and instructions individually.
And, speaking of China: What
week so far:
Updates on Some of My Favorite Names
It's been a great week in many of
the stocks I hold personally. It would probably be easiest to drop in some
charts, and go over them one by one. There's 6 of them. No time like the
present.
Here's your one by one recap of the
week so far around the horn on the charts:
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CCME- China MediaExpress-
long my #1 call, has been on a tear. Up from $10 to a $13.25
closing yesterday in the last five days. I've been holding for about 5
months, and I'm finally making money on the common and my options as well.
No doubt, a short covering rally. Huge short position in this one, and
they are now trapped. Some insiders have been looking to liquidate part
of their position, and it was announced today one of the founding institutions
has agreed to buy 1.5 million of their shares. Where are the shorts going
to get their supply to cover now?. This might end up being one they want
to forget. One analyst has a price target of $22.50 on the
stock. My longer term target is $25. Big momentum play right
now.
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CEHD- China Electronic Holdings-
a newer and less liquid idea, but trying for a new all time high since
I first covered them. Released June quarterly numbers yest - $29.1 Million
for the quarter- net profits of $5 million, or $.35 EPS fully diluted.
The "Sears" of the New China is just rocking. Let's see-
$.34 in EPS for the quarter implies $1.36 in EPS for the year- stock closed
at $3.55. Wow- not worth less than $10 plus. Love
it.
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CEU- China Education Alliance-
a holding of mine finally got back through $5 yesterday on nice volume.
Investors are realizing the stock has been stupid cheap with nearly $3
per share in cash. Recently, the CEO said he's angling to be the second
$1 billion China based private education business. I'm forecasting $.62
in EPS this year. No way it's worth less than $8 to $10 with
their cash levels and profitability.
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LPH- LongWei Petroleum-
another one I've been in for five months. I own this one at $2.23,
and watched it trade for months around the $2 level. Year end audited numbers
make the company's forecast for $1/2 billion in revs in current fiscal
year (started Oct 1) quite believable. Likely $.75 plus in EPS this year.
Target $5.50 stands. It's going there. Like owning Exxon or Mobil in 1960.
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WKBT- Weikang Bio- I featured
this one last week at $3 and said it was technically going to $3.50. Sorry-
today it closed at $3.49, but it has been above $3.50 this week. Company
issued a forecast stating it would deliver about $.75 in EPS on $55 million
in revs this year. Another one worth twice where it's trading. I made a
very nice trade in this idea.
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EFRDF: Eagleford Energy-
A month ago I called this one a stock to watch. Developing several promising
properties in Texas's Eagleford Shale- a very productive area. In fact,
Eagleford garnered the attention of China this past week when one of the
major China oil companies invested in Eagleford properties. Drilling has
begun, and stock trying to work higher. Watch out for this sleeper.
Ok- I'm tired- that's 6 stocks I've
reviewed from this week alone. All of them are going to higher levels.
After next week, you're going to have to subscribe to the new property
to follow them all with me.
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Harbin Electric (NASDAQ:
HRBN): Laugh of the Week |
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Harbin Electric is my laugh
of the week. The stock did absolutely fantastic, and wait till you hear
the punch line.
Note HRBN- another stupid
undervalued China stock, had a 30% gap this week on some rather
robust news. It seems the CEO of China based electric motor manufacturer
Harbin
got fed up with the pathetic valuation his company was receiving in US
markets.
He got together with a huge private
equity fund to explore the possibility of taking the company private. The
management and the private equity group would buy the shareholders out
for $24 per share in cash- 30% higher than the current market. They
hired Goldman Sachs to act as an advisor in the transaction. The Wall Street
Journal observed the management was tired of their lousy valuation, and
decided it wasn't worth it to be a public company anymore.
Here's what I find hysterical. In
September, a number of China stocks were accused of fraud in their financial
reporting. No allegations have ever been made by any Regulatory body or
enforcement agency. They have just come from sources with an agenda. As
a result, the sleaze bag ambulance chasing law firms have lined up to form
class action suits against companies who have likely done nothing wrong
beyond being targets for smear campaigns from short sellers.
The CEO of Harbin decided
to take advantage of this market and buy out his company at a nice premium
for shareholders. Since making the announcement of the possible tender
offer, 12 sleaze bag law firms have announced "investigations" on behalf
of investors to make sure they are getting a fair deal.
Wow- on behalf of shareholders? You've
got to be kidding me. The CEO of an absurdly undervalued company announces
he's personally going to try to take advantage of an inefficient market
and buy his own company. Existing shareholders get a big pop in the stock.
Shorts are getting killed.
Come on short sellers, this is absurdly
transparent. Come on law firms- on "behalf of shareholders". Are you kidding
me? It's on behalf of you and you alone. ROTFALMAO.
In the mid term elections I'm voting
for any candidate in favor of TORT reform and/or campaign finance reform.
These jackals need to get out of our markets.
Disclosure: Long CCME, CU, LPH, EFRDF
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