I've only briefly mentioned Jinpan (JST) here a few times, although I really like the company and has been trading in and out of this stock for over 2 years. I decided to mention it here, as it's reaching important resistance levels. The volume has increased lately and the stock is approaching all time highs. Unfortunately, $30-$31 has been a road block for JST on numerous occasions, and the stock also likes to move in direction of the market. I would suggest to watch this level closely, as break above $31 would indicate a major breakout on the way. At the same time, monitor market conditions closely - It can go down $2 on very few shares in the down day on the market.
Another one to watch is China North East Petroleum (CNEH.OB) - expected to report record quarter in a few weeks with very nice revenues and profits. Production levels have already been preannounced. The stock has been trading in pretty tight range for some time now. I believe the stock has a good potential to appreciate significantly in 2008 and beyond, especially with oil trading at $100+. Financing is also expected shortly, which should assure that the company has enough money going forward for operations.
Next one on my list is China Grentech (GRRF). In the past few months it reported number of big contract wins in the Chinese wireless sector. Now look at the earnings reported by China Techfaith Wireless Communication Technology (CNTF) today. GRRF is expected to report earnings in couple of weeks (around March 12th). The stock has been trading sideways lately and has a great potential to appreciate from the current levels.
Finally, I have to mention AAAC.OB one more time, as the big blocks continue, and as reported in SEC filings today, Jeff Feinberg and his funds now have roughly 195k more shares than was reported 2 months ago in December. Buying continues, as we wait for the merger to finalize. I think we should see extention of Equity Agreement within a few days, as it seems like the deal will not be made by February 29th. Patience is needed here.
Good luck to all.
Tuesday, February 26, 2008
Friday, February 22, 2008
Few updates on stocks
First of all- my favorite stock of 2008 - Asia Automotive Acquisition (AAAC.OB)
Asia Automotive Acquisition, Inc. had an excellent presentation at Roth Capital OC Growth Conference 2 days ago. Listen to it and watch the presentation from here: http://www.wsw.com/webcast/roth16/aaac/
Today, we had biggest volume in the past 4 months - over 400k. Most volume was created by very large blocks. It'll be interesting to see if another investor took a position. Hopefully we'll see filing on this soon.
Also, 2 days ago, they announced guidance for Tongxin International in 2008, and it is impressive. Here is the highlight of the PR: "Earnings guidance is expected to reach $15M. TXI anticipates the Chinese light and commercial vehicle market will continue to grow between 25% and 30% and it will complete an add on acquisition by the end of 2008". In 2007 they will have earnings around $9.5 mil, so this means earnings growth from 2007 to 2008 is 57% (excluding one-time costs associated with acquisition). This is based on 15.3 mil dilluted shares, which puts the earnings close to $1 per share -> roughly PE of 8 at the current price based on 2008 earnings, very impressive growth and additional profitable acquisitions? Can you say - undervalued?
Now on to another undervalued stock -> Harbin Electric (HRBN).
I had to come back to talking about it, as lately the volume on it has been pretty low again, but it has stabilized nicely above $21 and trading in range $21-$24 for some time. Again, just like AAAC.OB, Harbin Electric had a very nice presentation at Roth Capital conference. Here is the link to it: http://www.wsw.com/webcast/roth16/hrbn/
Reiterating revenue forecast of 350 mil in 2010 from just 60's in 2007. Yes, it already tripled from last year, but the next HRBN is HRBN itself. I would not be surprised if we see another triple in 2-3 years. Projected net income of over $3.20 in 2009 is very impressive.
Earnings are expected in 2 weeks. Stocks with low float like this can react violent in both directions :), especially if market conditions match; therefore, if you are in for the short term - proceed with caution. For long term - I don't think there is much to worry about (at this point). Company has been delivering on the promises for some time now.
More updates coming....
Asia Automotive Acquisition, Inc. had an excellent presentation at Roth Capital OC Growth Conference 2 days ago. Listen to it and watch the presentation from here: http://www.wsw.com/webcast/roth16/aaac/
Today, we had biggest volume in the past 4 months - over 400k. Most volume was created by very large blocks. It'll be interesting to see if another investor took a position. Hopefully we'll see filing on this soon.
Also, 2 days ago, they announced guidance for Tongxin International in 2008, and it is impressive. Here is the highlight of the PR: "Earnings guidance is expected to reach $15M. TXI anticipates the Chinese light and commercial vehicle market will continue to grow between 25% and 30% and it will complete an add on acquisition by the end of 2008". In 2007 they will have earnings around $9.5 mil, so this means earnings growth from 2007 to 2008 is 57% (excluding one-time costs associated with acquisition). This is based on 15.3 mil dilluted shares, which puts the earnings close to $1 per share -> roughly PE of 8 at the current price based on 2008 earnings, very impressive growth and additional profitable acquisitions? Can you say - undervalued?
Now on to another undervalued stock -> Harbin Electric (HRBN).
I had to come back to talking about it, as lately the volume on it has been pretty low again, but it has stabilized nicely above $21 and trading in range $21-$24 for some time. Again, just like AAAC.OB, Harbin Electric had a very nice presentation at Roth Capital conference. Here is the link to it: http://www.wsw.com/webcast/roth16/hrbn/
Reiterating revenue forecast of 350 mil in 2010 from just 60's in 2007. Yes, it already tripled from last year, but the next HRBN is HRBN itself. I would not be surprised if we see another triple in 2-3 years. Projected net income of over $3.20 in 2009 is very impressive.
Earnings are expected in 2 weeks. Stocks with low float like this can react violent in both directions :), especially if market conditions match; therefore, if you are in for the short term - proceed with caution. For long term - I don't think there is much to worry about (at this point). Company has been delivering on the promises for some time now.
More updates coming....
Tuesday, February 19, 2008
Update on Asia Automotive Acquisition (AAAC.OB)
Asia Automotive Acquisition Inc. is presenting tomorrow at Roth Capital 20th annual OC Growth Stock Conference. Live web cast and powerpoint presentation will be available here:
http://www.wsw.com/webcast/roth16/aaac at 5:30 pm EST.
There is also going to be a Special Panel session on Blank Check Companies (SPAC's) that have announced an agreement to acquire an entity, but not closed as well as selected Blank Check company presentations.
Judging by the volume and activity today, there is an interest in the company now.
http://www.wsw.com/webcast/roth16/aaac at 5:30 pm EST.
There is also going to be a Special Panel session on Blank Check Companies (SPAC's) that have announced an agreement to acquire an entity, but not closed as well as selected Blank Check company presentations.
Judging by the volume and activity today, there is an interest in the company now.
Wednesday, February 6, 2008
Update on Asia Automotive Acquisition (AAAC.OB)
There was a new filing with SEC yesterday extending Equity Acquisition Agreement expration from Feb.6th to Feb 29th. That makes me believe even more that the merger will be complete this month.
Monday, February 4, 2008
New undiscovered company - China Wind Systems (CWSI.OB)
Here is another interesting company and completely unknown (in my opinion):
China Wind Systems (CWSI.OB)
Wind Energy sector in China is hot. Here is the unknown company that makes components for wind systems...
It just made a reverse merger, and here is what it is now:
China Wind Systems, through its affiliates, Huayang Dye Machine and Huayang Electrical Power Equipment, manufactures and sells industrial equipment for use in the textile and energy related industries in China. Since August 2007, the Company has shifted its strategy to focus on the growing wind energy industry in China, and has begun to supply high precision rolled rings to companies in the wind power energy industry.
Check out this presentation on their web site:
http://www.chinawindsystems.cn/en/ChinaWind-%20web%5B1%5D.ppt
Read more on this company here:
http://sec.gov/Archives/edgar/data/819926/000114420408005833/v101418_8ka.htm
Few highlights:
Check out the latest PR from few weeks ago:
http://biz.yahoo.com/prnews/080116/cnw025.html?.v=10
WUXI, China, Jan. 16 /Xinhua-PRNewswire-FirstCall/ -- China Wind Systems, Inc. (OTC Bulletin Board: CWSI - News; ''China Wind Systems'' or the ''Company''), which through its wholly owned subsidiaries manufactures and sells industrial machines for use in the textile and energy related industries in the People's Republic of China, today announced that it has purchased new equipment to expand its forged rolled rings manufacturing capabilities. The $4.13 million purchase was in line with the Company's strategy to focus on the growing wind power industry in China, and was largely funded with the proceeds from its recent private placement financing.
The purchase marks the first step in execution of the Company's expansion plan. In the initial phase, China Wind Systems will focus on producing rolled rings that measure up to 6 meters in diameter as well as other windmill components such as shafts. China Wind Systems plans to purchase additional equipment during phases two and three of its expansion. In phase two, the Company intends to manufacture yaw bearings and gear boxes. In phase three, the Company will manufacture other windmill components such as rotor blades. At the conclusion of its expansion, China Wind Systems will be capable of producing forged rolled-rings, measuring up to 8 meters in diameter and weighing up to 150 tons to suit different applications and processes in the wind power industry.
Recently, China Wind Systems purchased a 4,500-ton hydraulic press for use in its metal forging process to produce shafts that weigh up to 18 tons, used in 2 MW wind turbine units. The Company also acquired a ring rolling mill capable of producing rolled rings measuring up to 6 meters in diameter and weighing up to 12 tons. The equipment will be installed at its new 107,639 square foot facility in Wuxi, Jiangsu Province and the Company expects to start production at the new facility by September 2008. China Wind Systems will utilize the axial closed-die rolling technology in its forging process. The new technology will reduce material waste during the forging process by approximately 35%, ensure high precision and surface flatness, and produce rolled rings with excellent mechanical strength and high flexibility.
''Demand for rolled rings is strong, particularly for larger rolled rings used in the wind power industry. With the addition of our new equipment, we will expand our production capabilities to produce precision rolled rings that measure approximately 6 meters in diameter and shafts that weigh approximately 18 tons,'' said Mr. Jianhua Wu, Chairman and CEO of China Wind Systems. ''We expect the rolled rings segment of our business to increase significantly in 2008, growing from only 8% of revenue in 2007. Once the utilization rate for the equipment reaches 100 percent, we expect to see significant improvement in our overall profitability,'' added Mr. Jianhua Wu.
They are also presenting in this conference:
http://cleanenergynews.blogspot.com/2008/02/third-annual-piper-jaffray-clean.html
Piper Jaffray Conference - Feb 28
as well as Roth Capital conference later this month
China Wind Systems (CWSI.OB)
Wind Energy sector in China is hot. Here is the unknown company that makes components for wind systems...
It just made a reverse merger, and here is what it is now:
China Wind Systems, through its affiliates, Huayang Dye Machine and Huayang Electrical Power Equipment, manufactures and sells industrial equipment for use in the textile and energy related industries in China. Since August 2007, the Company has shifted its strategy to focus on the growing wind energy industry in China, and has begun to supply high precision rolled rings to companies in the wind power energy industry.
Check out this presentation on their web site:
http://www.chinawindsystems.cn/en/ChinaWind-%20web%5B1%5D.ppt
Read more on this company here:
http://sec.gov/Archives/edgar/data/819926/000114420408005833/v101418_8ka.htm
Few highlights:
- 9 months of 2006 revenues of the new company: 12.3 mil
- 9 months of 2007 revenues: 16.5 mil
- 2006 net income: 1.8 mil (operating income 2.7 mil)
- 2007 net income: 9.4 mil (operating income 3.9 mil)
- Total O/S - 36 mil (earnings are already .26 cents for 9 months of 2007)
float should be tiny...no more than 2 mil, if I got my numbers correct.... - Trading at the CURRENT PE of less than 7.
Check out the latest PR from few weeks ago:
http://biz.yahoo.com/prnews/080116/cnw025.html?.v=10
WUXI, China, Jan. 16 /Xinhua-PRNewswire-FirstCall/ -- China Wind Systems, Inc. (OTC Bulletin Board: CWSI - News; ''China Wind Systems'' or the ''Company''), which through its wholly owned subsidiaries manufactures and sells industrial machines for use in the textile and energy related industries in the People's Republic of China, today announced that it has purchased new equipment to expand its forged rolled rings manufacturing capabilities. The $4.13 million purchase was in line with the Company's strategy to focus on the growing wind power industry in China, and was largely funded with the proceeds from its recent private placement financing.
The purchase marks the first step in execution of the Company's expansion plan. In the initial phase, China Wind Systems will focus on producing rolled rings that measure up to 6 meters in diameter as well as other windmill components such as shafts. China Wind Systems plans to purchase additional equipment during phases two and three of its expansion. In phase two, the Company intends to manufacture yaw bearings and gear boxes. In phase three, the Company will manufacture other windmill components such as rotor blades. At the conclusion of its expansion, China Wind Systems will be capable of producing forged rolled-rings, measuring up to 8 meters in diameter and weighing up to 150 tons to suit different applications and processes in the wind power industry.
Recently, China Wind Systems purchased a 4,500-ton hydraulic press for use in its metal forging process to produce shafts that weigh up to 18 tons, used in 2 MW wind turbine units. The Company also acquired a ring rolling mill capable of producing rolled rings measuring up to 6 meters in diameter and weighing up to 12 tons. The equipment will be installed at its new 107,639 square foot facility in Wuxi, Jiangsu Province and the Company expects to start production at the new facility by September 2008. China Wind Systems will utilize the axial closed-die rolling technology in its forging process. The new technology will reduce material waste during the forging process by approximately 35%, ensure high precision and surface flatness, and produce rolled rings with excellent mechanical strength and high flexibility.
''Demand for rolled rings is strong, particularly for larger rolled rings used in the wind power industry. With the addition of our new equipment, we will expand our production capabilities to produce precision rolled rings that measure approximately 6 meters in diameter and shafts that weigh approximately 18 tons,'' said Mr. Jianhua Wu, Chairman and CEO of China Wind Systems. ''We expect the rolled rings segment of our business to increase significantly in 2008, growing from only 8% of revenue in 2007. Once the utilization rate for the equipment reaches 100 percent, we expect to see significant improvement in our overall profitability,'' added Mr. Jianhua Wu.
They are also presenting in this conference:
http://cleanenergynews.blogspot.com/2008/02/third-annual-piper-jaffray-clean.html
Piper Jaffray Conference - Feb 28
as well as Roth Capital conference later this month
Sunday, February 3, 2008
Few updates on Asia Automotive Acquisition (AAAC.OB)
Again, sorry for the lack of updates.
Merger on Asia Automotive Acquisition (AAAC.OB) is getting closer. The proxy was out few days ago, showing February as a month to hold the shareholder meeting to approve the merger. I expect the stock to trade on Nasdaq almost immediately after the final voting. After that, we might see a PR machine similar to another Chardan blank check company that completed its merger (CSCA.OB, which is now APWR). Keep in mind there are at least 4 aquisitions coming, which bring a big portion to net income.
I kept mentioning CSCA.OB (Chardan South) throughout the year, putting it on the same page in terms of potential as YTEC (Yucheng Technologies). If you recall, Yucheng Technologies (CUAQ.OB -> YTEC) went from 7$'s to $15+... We now have CSCA.OB -> APWR to go from $7's to $15+. I expect AAAC.OB to do the same once the merger is complete and it begins trading on Nasdaq. Even though the strike on the warrants is $5, they (AAACW.OB) usually tend to trade lower than that, because of the risks involved in the merger. Once the merger goes through, they will maintain $5 difference between the common, because after the merger, they can be exercised at any time.
Besides great management, strong growth and acquisitions, Asia Automotive Acquisition (AAAC.OB) also has same investors that were on successful companies, such
as Yucheng Technologies (YTEC) and A-POWER (APWR, former CSCA.OB): Jeff Feinberg, who owns 20% of AAAC.OB (he owned over 40% of CSCA.OB).
Once the merger is complete, we will have a company with only 12 mil O/S, roughly 2 mil in float, 66 mil income in 9 months of 2007 alone, and net income of 8.8 mil in 9 months of 2007. It's not hard to figure how undervalued this company is.
Comparing it to the competition, the board currently values the stock at $20's
Good Luck.
Merger on Asia Automotive Acquisition (AAAC.OB) is getting closer. The proxy was out few days ago, showing February as a month to hold the shareholder meeting to approve the merger. I expect the stock to trade on Nasdaq almost immediately after the final voting. After that, we might see a PR machine similar to another Chardan blank check company that completed its merger (CSCA.OB, which is now APWR). Keep in mind there are at least 4 aquisitions coming, which bring a big portion to net income.
I kept mentioning CSCA.OB (Chardan South) throughout the year, putting it on the same page in terms of potential as YTEC (Yucheng Technologies). If you recall, Yucheng Technologies (CUAQ.OB -> YTEC) went from 7$'s to $15+... We now have CSCA.OB -> APWR to go from $7's to $15+. I expect AAAC.OB to do the same once the merger is complete and it begins trading on Nasdaq. Even though the strike on the warrants is $5, they (AAACW.OB) usually tend to trade lower than that, because of the risks involved in the merger. Once the merger goes through, they will maintain $5 difference between the common, because after the merger, they can be exercised at any time.
Besides great management, strong growth and acquisitions, Asia Automotive Acquisition (AAAC.OB) also has same investors that were on successful companies, such
as Yucheng Technologies (YTEC) and A-POWER (APWR, former CSCA.OB): Jeff Feinberg, who owns 20% of AAAC.OB (he owned over 40% of CSCA.OB).
Once the merger is complete, we will have a company with only 12 mil O/S, roughly 2 mil in float, 66 mil income in 9 months of 2007 alone, and net income of 8.8 mil in 9 months of 2007. It's not hard to figure how undervalued this company is.
Comparing it to the competition, the board currently values the stock at $20's
Good Luck.
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