China Energy: In the Middle of $3.4 Billion in Spending
May 5, 2009 @ 11:12 am
CGYV is giving it the old college try to bust through the $2 level today on the heels of news concerning the delivery of nearly $5 million in orders for mining concerns in New Guinea.
However, as far as I am concerned, that is not the really big story. Aside from recent evidence the economy is going gangbusters in China, there’s some really big news about how China is planning to deploy the funds for their stimulus plan.
According to a recently published article on a China devoted web site, in the last three months the Chinese government has decided to allocate 23 billion yuan (3.37billion U.S. dollars) for energy saving, anti-pollution, ecological and environmental protection projects.
CGYV is planted firmly in the middle of all this new money with the best solution for factories, and stands to grow quite dramatically over the next two years from this funding.
To read the article, simply click here.
Technically, the stock is trying. $2 continues to be resistance, and in light of recent news I simply don’t understand why anyone would sell this stock at $2.
This is the fifth trip to $2 in the last month, and higher levels are inevitable for this stock. Based on the chart, there’s almost no doubt. It’s simply a question of when. Forces are building behind the scenes every day for a breakout. Stand by, and stay engaged.
Comments and questions are welcome.
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Why hasn’t CGYV posted its’ 2cd quarter earnings yet.
Editor: Sorry- it had-I’m sure you’re up to date now. $7.5 million EPS .03
Comment by JD — 8/6/2009 @ 12:48 pm
Do you see the recent trading of China Energy a result of their 1st quarter numbers or do you see this as an opportunity to add more at this level, 1.50’s?
Thanks
Editor: everyone seems to be bashing me over this stock, but that’s a bit silly. Let’s just look at one fact. A Hong Kong based fund just invested $5 million in the company in a convertible security with a $1.80 conversion price. It has a 9% coupon. They did extensive due diligence, and clearly invested because they think they can make money at a $1.80 cost basis. That pretty much says it all, and some pretty smart guys wrote the $5 million check.
Comment by Stan — 6/8/2009 @ 11:27 am
Mr. Anonymous sounds like he’s about 12 years old, maybe his mom will take away his computer soon. Any competent company having to do with China and energy is an historic opportunity, CGYV is on a great path. Glad to hear you have a new China/energy idea on the way, how will it compare to CGYV?
Editor: By now you probably know it is NFES at about $.80 with $.10 in trailing EPS- probably $.15 this year to $.20. Judge for yourself. Great value in my view. Better margin, and less “big project” oriented. More consistent quarter to quarter.
Comment by Don — 6/3/2009 @ 12:10 pm
China’s economy stabilizing; export orders tick upAsian This could be the Asian century, just as the twentieth century was the American century”. Markets Rally on Chinese Manufacturing cgyv still going dowm nowhere near 2.00 and you pick it at 3.40 so tell me again how well this is doing China market up cgyv down
Editor: I also picked FXI at $25- not mentioning that. It will have it’s day. Lousy first quarter derailed the stock in my view.
Comment by Anonymous — 6/3/2009 @ 10:49 am
again nobody case about China. We owe them so much money we are just trying to keep them happy
Editor’s response: Again, you’re an idiot.
Comment by Anonymous — 6/1/2009 @ 10:29 am
are we getting closer to 2.00 or still going down lok at the chart still going down
Editor: Chart doesn’t look good for a breakout right now. Long term investors only at this time.
Comment by Anonymous — 6/1/2009 @ 7:40 am
…WHY do you think no more volume will come? reason # 3 no cares about China more to come
Editor’s response: Seriously? Nobody cares about China? China’s the story of the decade. It’s only making the front page of every major financial publication on a regular basis now.
I was willing to entertain an intelligent argument with you, but now you’re just grasping at straws…. an indication of how desperate you are. Keep swinging though.
By the way, here’s how much the world doesn’t care about China….
http://www.bloomberg.com/apps/news?pid=20601087&sid=aIb300W_fCyw&refer=home
http://www.reuters.com/article/ousiv/idUSTRE55014920090601
http://dealbook.blogs.nytimes.com/2009/06/01/asian-markets-rally-on-chinese-manufacturing/
http://www.upi.com/Top_News/2009/05/31/Chinese-economists-see-risks-in-US-debt/UPI-49801243822422/
http://www.dailymirror.lk/DM_BLOG/Sections/frmNewsDetailView.aspx?ARTID=50518
All the headlines were made in just the last three hours. I wonder what the news lansscape would look like if people did care about China.
Comment by Anonymous — 5/29/2009 @ 10:35 am
rationale reason why CGYV won’t be a $2.00 stock reason # 2 what happens when China backs N Korea? and it is more likely to happen before this gets to 2.00
Editor: We’ll have our day with this one soon.
Comment by Anonymous — 5/29/2009 @ 9:41 am
rationale reason why CGYV won’t be a $2.00 stock reason #1 no volume more to come
Editor’s response: OK, you’re getting there, but your argument is still weak……WHY do you think no more volume will come? Keep trying.
By the way, I’m not going to post your other CGYV comments that say slightly different things but work towards the same result (to push the stock lower)…. there’s no need to foster redundancy. You may be trying to make it appear as if there are several different commenters all thinking the same thing, but we know it’s you, over, and, over, and over. It’s just a lot more efficient if you compact your comments into one entry.
Comment by Anonymous — 5/28/2009 @ 1:06 pm
Any concern on the news today about their financing transaction of $5 million?
Editor’s response: Concern? None at all…. more like excitement. Though we - in general - try to steer clear of dilution because it’s just a lifeline in most cases, China Energy’s a different beast. The company makes good use of their money, as they did in early 2008 (which is really what put the company on the map). I’m confident the ROI on this $5 million will be worth many times that 12 months from now, which is what hold sCGYV apart…. the ROI on every dollar they get.
Comment by RBM — 5/26/2009 @ 1:31 pm
Whoa - CGYV has $5 million in new money, according to the new 8k. What’s your analysis of the terms? Thanks.
Editor’s response: Those thoughts appear in the latest edition of the newsletter.
Comment by Don — 5/26/2009 @ 12:00 pm
poor bastard 800 share a 2.00 and lost money this well never be a 2.00 stock and you pick it at 3.40 DUMP DUMP DUMP
Editor’s response: Since you’re the same person who basically wrote the same thing (sans the position size comment) a few days ago, I’m not going to respond to both of your comments - just this one. I’ll still approve and post the one from the 21st though. Here’s my response to both your messages ….
You’re an idiot.
We picked it at $3.40 in September of 2008. If the date rings a bell, it was right before the market went to hell in a a hand basket. I have no problem owning up to bad picks and calls that we just got wrong, but surely to God you’re not going to deny that the market had more to do with that pullback than the company’s performance did. Surely you aren’t going to deny the company is fundamentally more attractive now than it was then.
Do we sell shares? Yep - we have to eat too. We’ve never tried to pretend we don’t own and sell shares.
Will this be a $2.00 stock? You seem (or at least act) far more certain that it won’t be more so than we’ve ever suggested it would or could be, which clearly tells me your short CGYV. That’s fine. Maybe you’re right. Maybe not. Let’s come back in about six months and compare portfolios, and see where CGYV went in the meantime. Until then, I don’t have time to waste.
My only advice to you is to actually come up with a rationale reason why CGYV won’t be a $2.00 stock. Any reason will do - it doesn’t even have to be a good one. When you just say “it won’t be a $2.00 stock”, it simply comes across as desperate. At least think up a logical reason rather than just try and talk the stock down. People see through it. Just be prepared for the debate.
Comment by Anonymous — 5/26/2009 @ 10:57 am
hey what happen you don’t use the name Lewis anymore on yahoo or write to yourself
Editor’s response: I can’t even respond, as I’m not sure what you’re talking about.
Comment by Anonymous — 5/23/2009 @ 2:48 pm
this will never be a 2.00 stock there has to something wrong
Comment by Anonymous — 5/21/2009 @ 2:09 pm
Today I added another 800 shares of this stock which is not much but I did it to see if we could break through $ 2.00. The bid was $1.97 and the ask was $2.00 so I put a bid in at $ 2.01 and it sold me my 800 shares at $ 2.00 does this mean it is being held back at $ 2.00 ?
Editor: It’s always tough to say what these individual days could mean in the big picture. On that particular day, it simply meant there was someone willing to sell you some shares at $2. Today, the lowest offer is $2.04, and it’s starting to get some traction. Tomorrow, it could be $2.10 or $1.97. If you’re a trader, this could be important. If you’re thinking a little more long term on this one, it’s all pretty meaningless. You should only be worried about where the stock might be in six months. Or, even better- just think about where it might be in a year so you can get a long term capital gains rate on your profits.
Comment by andy — 5/5/2009 @ 12:55 pm