Betting BIG on Small Cap China: CHLN, CMFO, CHTL.OB, CPQQ.OB, and LPIH.OB
Nov 21, 2009 Small Cap Stock Picks
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When it comes to finding attractive bullish small cap stock picks with high growth, strong earnings, and deeply undervalued. There’s no better place to do your stock hunting than in Chinese small cap arena. Back in 2007 and early 2008 we were able to gain substantial profits playing Chinese small cap stocks and now that the dust has settled with the recession there is an abundant amount of small cap chinese stocks grabbing my undivided attention. My favorites that i have spotted so far are CHLN, CMFO, CHTL.OB, CPQQ.OB, and LPIH.OB. I have substantial positions in all of these.
Small Cap Stock Pick: CHLN
| BUSINESS SUMMARY |
China Housing & Land Development, Inc., through its subsidiaries, engages in the acquisition, development, management, and sale of commercial and residential real estate properties in the People?s Republic of China.
CHLN has been a huge favorite of mine for the past several years as we have traded it here @ thetechnicaltrader.net on numerous occasions all for big profits. And i don’t plan on this winning streak to end here and now. CHLN reported some substantial earning growth over the past year last weak which gave way to a huge rally now sparking a lot of momentum for the bulls in CHLN and the short term trend is now highly in favor of being long.
CHLN is trading @ an extremely low forward P/E of just 6.66x earnings while the industry average is trading much higher @ 22.81. Given that CHLN is expecting forward EPS in 2010 of .65 this gives us a fair value within its industry for CHLN around $15/share which gives us +200% upside potential from a fundamental perspective. Short term technically i think $6/share on momentum is in plain site.
Technical Analysis:
Small Cap Stock Pick: CMFO
| BUSINESS SUMMARY |
China Marine Food Group Limited engages in the processing, distribution, and sale of processed seafood products, as well as the sale of marine catch in the People?s Republic of China and internationally.
CMFO has been in a huge uptrend for all of 2009 making some substantial gains. Yet this stock is still extremely depressed in value. After trading in a range from 4-6 over the past 4.5 month this finally broke out to all time highs Friday on substantial volume placing a lot of conviction for bull power on this breakout.
CMFO is trading with a low forward P/E ratio of just 7.91x earnings in an industry with an average multiple of 19.9x earnings. CMFO is expecting strong forward growth and expects .79 EPS in 2010 which gives them a fair value within there industry around 15.75/share. Short term technically i think we could reach $8
Technical Analysis:
Small Cap Stock Pick: CHTL.OB
| BUSINESS SUMMARY |
China Tel Group, Inc., through its subsidiaries, provides engineering and deployment services related to the development of a wireless broadband telecommunications networks.
CHTL is a really speculative small cap penny stock that has some huge upside potential. Yet always with penny stocks there poses some risks. We first took a position here in CHTL @ .50 and we are currently up around +20% on this position.
#1 They embark in deploying the LARGEST 4G Wi-Max network in the world. We look for CHTL to VASTLY expand its initial 5 city simultaneous deployment schedule as the demand for TRUE broadband connectivity purely from the Shanghai World Exposition is significantly more than we first projected. Travel and business demand from the 78 million Chinese traveling to Shanghai during the May-October 2010 event creates security/surveillance projects through out the region, not just Shanghai and Beijing. They ALL run on private broadband networks and China simply does not have NEARLY enough bandwidth from its most DSL providers to make this happen. CHTL is literally the only broadband provider that will have the spare capacity to make this happen.
And in light of the problems the PRC has had in its northern provinces, they will NOT be unprepared for the influx of tens of millions into Shanghai. We have intelligence reports from a number of Wi-Max vendors that they expect to see a HUGE wave of Wi-Max demand in the big cities and regions in China.
For the full story on CHTL visit my other article here HERE
Technical Analysis:
Small Cap Stock Pick: CPQQ.OB
Business summary
China Power Equipment, Inc., through its wholly-owned subsidiary, Xi’an Amorphous Zhongxi Co., Ltd., has developed a proprietary patented technology to produce a new generation of energy saving transformers and transformer cores. The company currently manufactures 59 different products, primarily amorphous transformers in four product series that are sold throughout China. The company was formed in 2006 as a U.S. corporation, and in November 2006, created a Chinese subsidiary that was granted a license as a privately held wholly owned foreign enterprise by the Chinese government.
CPQQ.OB is one of my favorites of the small cap china group as the chart pattern here breaking the ascending triangle to all time highs and a low price stock. This is a recipe for some huge profits im hoping to pull at least 30-50% gain out of this stock. CPQQ released some substantial earnings and growth results in their latest 10q last week which sparked its intial move that lead me to buying into this stock @ 2.25
Third Quarter 2009 Highlights
-- Net revenues increased 252% to $7.89 million in the third quarter 2009
from $2.24 million in the third quarter 2008.
-- Gross profit increased 280% to $1.96 million in the third quarter 2009
from $0.52 million in the third quarter 2008.
-- Net income increased 516% to $1.41 million in the third quarter 2009
from $0.23 million in the third quarter 2008.
-- Diluted earnings per share increased 350% to $ 0.09 per share in the
third quarter 2009 from $ 0.02 per share in the third quarter 2008.
Im looking to take profits between 3-4/share on CPQQ.OB
Technical Analysis:
Small Cap Stock Pick: LPIH.OB
Business Summary
Longwei Petroleum Investment Holding, Limited (the “Company”) is an energy company that, through its subsidiaries, engages in oil and gas operations in the People’s Republic of China (“PRC”). Oil and gas operations consist of transporting, marketing and selling finished petroleum products. The Company’s headquarters and primary facilities are located in Taiyuan City, Shanxi Province (“Shanxi”). The Company’s second facility is located in Gujiao, Shanxi. The Company purchases diesel, gasoline, fuel oil and kerosene (the “Products”) from various petroleum refineries in the PRC.
LPIH is yet anther small cap chinese stock that is in a long standing bullish trend for most of 2009 and was sparked up with another bull rally as they’re earnings report confirmed that this company continues to perform and deserves the rally that investors have given it . I took up a long position in this on Friday as i think this should re-test prior highs around 2.50.
Financial highlights:
-- Revenue up 33% Year-over-Year to $59.36 million
-- Net Income up 31% Year-over-Year to $7.21 million, or $0.09 EPS
-- Net Income Excluding Non-Cash Fair Value Adjustments Associated with
Stock Warrants was $8.26 million, or $0.10 EPS
-- Operating Income up 48% Year-over-Year to $11.06 million
Quote from the EC via yahoo finance link HERE
Chief Financial Officer Jim Crane stated: “We exceeded our internal forecasts for the quarterly reporting period ended September 30, 2009. Revenues were approximately $5.6 million higher than expected due to significant additional sales in August and September, while net income was approximately $600,000 higher than expected. The new facility looks very good and is already active. We are the only licensed non-government operated fuel distributor in Gujiao who also has significant storage capacity. As previously announced, we expect very strong growth in fiscal 2010.”
Financial Outlook:
As of September 30, 2009, the Company’s current assets were $85.24 million and current liabilities were $7.91 million. Cash and cash equivalents totaled $9.43 million as of September 30, 2009. The Company’s shareholders’ equity at September 30, 2009 was $121.65 million compared to $114.92 million at June 30, 2009. The Company had cash provided by operating activities for the three months ended September 30, 2009 of $9.57 million compared to cash used in operating activities of $751,000 for the three months ended September 30, 2008. Net cash used in investing activities was $7.64 million for the three months ended September 30, 2009 compared to $0 for the three months ended September 30, 2008. The Company had net cash provided by financing activities of $76,000 for the three months ended September 30, 2009 compared to $0 for the three months ended September 30, 2008.
Technical Analysis:
Small Cap Stock Picks: How we Banked +21% on IMGG.OB Big Rally TODAY!
Nov 21, 2009 Day Trading, Small Cap Stock Picks
Want Real Time Trade Alerts That Perform? Black Service is up +130% in 2009 and over +1800% since April 2006. Get a 2 week Free Trial! Read testimonials HERE from new members as well from those who have been with ttt.net for years.
IMGG was a high flyer over the past several weeks but what goes up must come down. And in this case back up again! IMGG formed a bullish ascending triangle pattern on the intraday chart which failed to breakout yesterday but ran up big this morning to break on volume @ the open where i alerted the Black Service crew that i took up a long position. I tried to get in @ 1.10 but couldnt get my fill until 1.14. But this was still a huge runner today nonetheless and I alerted that i sold @ 1.38 locking in this huge +21% day trade. Come join us in Live chat everyday for day trading and swing trading tips from me and the Black Service All Star crew HERE
Technical ANalysis:
Black Service Raking in The profits on BRGO, KFS, NLST,CPQQ, CHTL, and AEZ
Nov 19, 2009 Small Cap Stock Picks
Want Real Time Trade Alerts That Perform? Black Service is up +130% in 2009 and over +1800% since April 2006. Get a 2 week Free Trial! Read testimonials HERE from new members as well from those who have been with ttt.net for years.
Its been an awesome past week of trading for the Black Service crew as ive made around $20k in the past 3 market sessions for some short term active trades that i’ve been alerting to the Black Service crew via our real time trade alerts system.
some comments from the crew:
[X][Wed 13:13] <dopp> Hey fous, nice work on these picks. Work has been crazy lately and you’ve still made me 16% on my portfolio trading from my phone!
awesome 
cya tomorrow! 
[X][Wed 11:43] <rohitmal1999> GREAT CALL!
[X][Wed 11:43] <rohitmal1999> KFS babababaooooey
[X][Wed 06:43] <MatthewNYC> CAKE
[X][Wed 06:42] <MatthewNYC> of course you mean CPQQ
Small Cap Stock Pick Of The Week: CPQQ.OB China Power Equipment
Nov 19, 2009 Small Cap Stock Picks
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Small Cap Stock PICK CPQQ.OB
I knew right when i found this stock just by looking at the chart that this stock was going to be a huge winner for the black service crew. CPQQ IPO’d earliar this year and has since formed the picture perfect ascending triangle pattern which broke out @ $2/share where i took up my first position @ 2.25 in anticipation of a continuation and alerted to buy more on any chance you get in case of a dip.
CPQQ.OB reported huge growth on Tuesday with a 253%($7.9m) increase in revenue and staggering numbers on net income which increased 516% ($1.4m) compared to 2008 third quarter numbers. CPQQ develops an amporphous alloy transformer that serves as a GREEN replacement to the standard steel bases transformers. According to CPQQ their alloy transformers consume 77% less electricity while in operation compared to the silicon steal transformers. China has began the process of switching to CPQQ’s type of power source as it not only reduces the amount of energy needed to be used but it cuts down on air pollution as it takes less coal to burn to generate the electricity needed to power the transformers. Rumors have also been scattering that CPQQ is releasing their alloy Transformer version of Optimus Prime in early 2010 which will have a huge advantage over the Decepticons with its light weight and energy efficient alloy.
Comments from the CPQQ.OB
Mr. Yong Xing Song, Chairman of the Board of China Power Equipment, said, “The third quarter 2009 was a dramatic improvement in our financial performance over the third quarter 2008, led by amorphous alloy transformer cores that were up 322 percent in revenues and up 354 percent in gross profit from the third quarter 2008. Amorphous alloy transformers in the third quarter were up 159 percent in revenues and up 169 percent in gross profit from the third quarter 2008. To help fulfill the large increase in our customers’ orders, we contracted out some production to a manufacturer for whom we provide technical support.
“Our revenues from silicon steel cores and transformer declined because we have exited that product line to focus on amorphous alloy products as our major product lines and are no longer actively marketing steel core products.
“In addition to higher revenues, our expenses remained under good control and our interest expense was lower, so our net income increased 516 percent to $1.41 million in the third quarter compared with the third quarter 2008.
“We have funded our recent operations mainly through cash generated from operations. We believe our existing cash and cash equivalents will be sufficient to maintain our operations at the present level for at least the next 12 months.”
The Chinese government has mandated that in the next few years, China’s traditional steel core electric transformers will be gradually replaced by amorphous alloy transformers, because they are far more energy efficient.
For the full earnings overview article CLICK HERE
Technical Analysis:
After breaking out from $2/share we have risen strait to the $3 mark. This could be an area that we battle or we shoot right past this into tomorrow. I think its very possible that momentum continues into tomorrow and price pushes past $3 and possibly this hits $4 within the next month. I have a sizeable position here though and will be looking to take at least some of my profits in the next days weeks.
Small Cap Stock Picks: Bullish Stock Chart of the Day American Oil & Gas : AEZ
Nov 17, 2009 Bullish Stock Charts, Small Cap Stock Picks
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Small Cap Stock Picks: Bullish Stock Chart of the Day American Oil & Gas : AEZ
| BUSINESS SUMMARY |
American Oil & Gas, Inc., an independent energy company, engages in the acquisition, exploration, and development of crude oil and natural gas in the western United States.
AEZ has been consolidating and formed up a beautiful ascending triangle stock chart pattern over the past few months. I noticed this stock after it popped up on my screens from Mondays session with its big move in increased volume which broke it out of its symmetrical triangle pattern. Today we broke horizontal resistance and pushed past $3 into the close leading me to believe that this could definitely see a continuation into tomorrows session. I alerted the Black Service crew that i was taking a long position in AEZ @ 2.92
Bullish Stock Chart:
NLST Bites the Dust and Black Service Pulls A +10% Day Trade Short
Nov 17, 2009 Day Trading, Technical Analysis
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NLST had made an insane run over the past week from below $1 to nearly $7/share in no time on an insane amount of volume. What goes up must come down its just a matter of timing. I alerted today in real time that i took a short position in NLST as it was breaking down an intraday pattern @ 5.54. My target here was $5/share as it is a pretty big psychological support area. We were able to cover @ 4.99 for a solid +10% day trade in a short amount of time. Though if you were a little more patient NLST continued to get hammered into the close after it stalled around 5 for a short while. NLST ended up closing the session @ 4.10
Technical Analysis:
