Link here -> http://www.wsw.com/webcast/bmry3/aaac/
Some highlights:
- Tongxin International (AAAC.OB) will be transferring to Nasdaq "in the next few days" - quote from Rudy Wilson (COO of the company) on today's presentation.
- Reiterated guidance for 2008 - $15 mil in net income or $1 in EPS based on 15.3 mil O/S
- Expansion of sales to North America and Europe
- Additional profitable acquisition at the end of the year
- More exposure after Nasdaq hits
- Over 30% growth
- Long term contracts
- Very experienced management (30+ years)
If you were on sidelines before, now it's becoming a table pounder. Warrants could provide a best play here. Notice how they are now trading at a premium
Good luck!
Side note: watch TVOC.OB for movement on MXC sympathy.
Actually, TVOC.OB is much better than MXC, which moved from $4 to $44 in just a few weeks.
TVOC.OB trailing PE is 15, while MXC's is 175
TVOC.OB float is 314k, while MXC's is 549k
Latest 1Q earnings came in at .39!!!!
Stock is priced at the last year's oil&gas prices.
In 2007:
Oil Production volume - 61,293 barrels
Average sales price per barrel - $68.04
Gas Production volume - 359,969 MCF
Average sales price per MCF - $7.24
I don't have to stress how much higher oil&gas are right now :)
Today, TVOC.OB hit all time high on the higest volume in years. Yes, it's only 36k, but that's over 10% of the float and is very high for this thin stock.
MXC started the same way. Look at it now...
Anything can happen, but with oil&gas craziness, I would not be surprised to see a double from here in this market. At the same time, it is a dangerous play, as it has very low liquidity and low float stocks are generally hard to play.
Be careful and good luck!
9 comments:
Where did you see the TOVC.OB $0.39 net for the 1st qtr? Where can the 1st qtr financials be seen?
Never mind. found it.
I really love AAAC and would like to buy some of it. My past experience has shown that a stock often dips immediately after it transfers from an unlisted market to a major market like Nasdaq or NYSE. Do you think I should wait until it hits Nasdaq, or should I buy some now?
It's hard to say what will happen to the stock once it hits Nasdaq. Usually, when there is a run up prior to that, the stock gives up some of the gains after the announcement. But, in this case, there is no real run-up.
Here is an example. HRBN - which went on Nasdaq over a year ago. It jumped from 8 to 13 after it hit Nasdaq due to the exposure, since nobody knew about this stock prior to the Nasdaq.
I'm not saying it will happen here, but I would not be surprised to see a nice jump. Stock is undervalued in any case, and I'm here for longer term, not just the Nasdaq announcement.
Good Luck!
Your pick for last year (HRBN) was an excellent call. But I'm surprised with your 2008 pick for AAAC. Do you really think it has any potential? After all, other Chinese profitable automaker part companies like SORL and WATG haven't performed too well. I've been looking at it but to me, AAAC is no HRBN. With AAAC already trading close to $8, do you really see it going much higher?
Add CAAS to that list as well. What makes AAAC better than CAAS, SORL, and WATG? These are all profitable Chinese automaker parts companies, but their stock performance is mediocre...why should AAAC be any better?
I was lucky to get in on AAACW (warrants) at $1.80 less than 2 months ago. They're now worth over $3 a share (I'm up 70% on my investment). Should I cash out or hold for a longer period of time? Please advise!
mike james, my apologies - I have not seen your comment until today.
Looking at fundamentals along, I see AAAC with a stronger position than CAAS and SORL. Ogranic growth is also comparably better than the above mentioned companies. Additional acquisition before the end of the year will bring additional revenues and profits to the company.
One big factor that I like about AAAC, compared to CAAS and SORL is the large investor in this company - Jeff Feinberg. He's been very successful in number of these SPACs, with the latest being APWR (former CSCA.OB).
Another factor is warrants. Companies with warrants usually try to achieve the exercise price (in our case $10), so I believe this is where the stock is headed as a start.
Once Nasdaq listing is achieved (which we've been waiting for a long time now), we'll have to see what kind of exposure it'll bring to the company. At this point, I still believe the company should be trading at $11-12 level by the end of the year, which would mean a nice percentage gain for the warrants.
Gino W., I'm sorry I'm not a financial advisor :), but I can give you my thoughts.
When you are significantly up on your investment, it's always a good idea to sell half and ride the rest, provided nothing has materially changed in the company.
I'm still waiting for Nasdaq listing, which should come shortly (yes, we've heard that before). I do expect a jump in the share price, not as significant as I thought before due to the delays, but $9+ would be a good start. ($4+ for warrants).
Yes, I do expect the stock to appreciate nicely in the long run, but ringing the register and locking up profits never hurt anybody, especially with 70% profits.
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