Best China Micro-caps on the Market

[kuwlness]

These will all be making large moves in the near-term future. China's contraction are likely done after today's sell-off. We'll see some big American institutions come in and buy the market up from here. And for those of you that prefer to be all-American in your investments, a few American stocks are at the bottom of this posting.

These are the stocks to own based off of fundamentals. You practically cant lose money if you buy these now and be patient for a few weeks/months. You can thank me later. *s indicate the upside potential. Three *s will make you money, but not as much, and they tend to be more stable.


China Plays:
CAEI ***
CCGY ****
CHCG ****
CHFI ***/*
CHGI ***/*
CHGY ***/*
CKGT *****
CMTP *****
CNOA ****
CPHI ***
GHII ***
JADA ***
LLFH *****
LPIH *****
LTUS *****
MYST *****
OPAI ****
PUDZ *****
SCLX ****


American Plays:
AHR -- Book value $5, this will get to $3 possibly by years end. 500% upside from today's price.
C -- easy ride up to $6, working it's way there slowly but steadily.


Pinksheet Roulette: (i put $100-500 just for gambling)
SKYF -- up 100% today ... prob another 300% from here, wait for profit taking to get in.
PPBV -- good day to get in, i see an easy 500% run on a PR statement
NXHD -- actually a buy and hold for now, get in before the crowd.
GLBT -- same as above


I will be posting regularly here, and I also post on another forum under the alias i-stab. GLTA

 

[BigDon]

kuwlness- how high do think one of those roulette pinkies could go ? thanks for posting

 

[kuwlness]

I typically shoot for 300-500% for the roulette plays. Then I cut out my initial investment, plus some profit, and let the rest ride. Some of these roulette plays will see penny land in a matter of months, so you could be in the 1000% range if you hold long enough, but that's a little risky. Sometimes, you've just gotta be happy with the profits. Wish I had found this site sooner, you could have participated in my PBSO play, which ran from .16 to $1 in 5 days ... that's about 600%.


GL

kuwlness- how high do think one of those roulette pinkies could go ? thanks for posting

 

[BigDon]

keep posting man ! :toast:

 

[juluvg]

Thanks for sharing.

 

[HuskerFan1]

those are definitely interesting to look at...what i would most intriguing is most are actually profitable and making money...

 

[kuwlness]

I expect CKGT to be $1.50 in another month or so. They have the cleanest balance sheet ever, have an awesome "green" product pipeline, and they're also releasing Cigarettes derived from Cacti later this year (they got approval from the SFDA last year).

PUDZ will be at $8 in a month or two, LLFH I'm expecting to be at $7 before getting uplisted. CMTP is way undervalued ... should be heading to $4 in the very near-term future. CHGI getting sold off today after posting a good quarter. The China stocks have all been getting sold-off after reporting a good Q (except for CKGT). I manage several clients portfolios and use these China Microcaps as awesome value-added plays. All of them are undervalued at today's prices. You practically cant lose money if you can hold for a few months.

CHGI 10Q Highlight: On May 21, 2009 the Company's Board of Directors approved the reduction of Yongle's registered capital from $4,000,000 to $100,000 and has submitted the reduction to the PRC government for approval. These actions effectively reduce the intercompany investment obligations owed to Yongle from $4,000,000 to $100,000 and eliminate possible fines or penalties by the PRC business bureau that could result from the Company's failure to pay the registered capital when required. The Company expects to pay the $100,000 investment to Yongle in full before September 12, 2009.

**So they had a $4Million intercompany contribution that was supposed to be paid, but they negotiated it down to only $100,000. This is huge and it should be getting traded up rather than down. This will rebound later today or for sure early next week.


You can add CGDI to the list as well. Heading to at least $1 in the near-term future.

those are definitely interesting to look at...what i would most intriguing is most are actually profitable and making money...

 

[kuwlness]

I try not to flame, but wanted to make all aware that PUDZ has hit a bottom recently and I'm expecting this to take flight in another day or two. It will head to $5, 6, 7, then $8 in a very short period of time. Please get in now and reap the rewards.

LLFH is going through some consolidation and you might be able to get in under $4, but at today's price, it's still a steal.

CNOA is also available on the cheap right now after reporting an awesome quarter. Very surprised it broke .50 today, it has a lot of resistance at .48, so I'm expecting this to shoot up to .60 very soon.

CMTP has also recently hit a bottom and is going to head back to $4 in a hurry. Dont miss this one.

 

[kuwlness]

Added the following positions today:


China:
CSGH -- lithium ion batteries, possible deal w/ Chinese automakers.
CGDI -- should be worth at least $1, comparables are selling at $2.50 and they dont have nearly as much assets as does CGDI. I see this going to $1.50 before year's end.


American:
RBY -- shoulda included this in the previous post, coulda bought on the dip today. Easily going to at least $5 in near-term future. I see a potential buy-out around $10, if not this thing will be worth $20-40 in 3-5 years.


LLFH: the train just backed up to the station so you can throw your bags on. Get in while the gettings good.

GLTA

 

[WorldNumberOne]

when a company is listed like PPBV at 0.0014 .

does that mean you can buy 1000 shares for $ 1.40 ?

where do you trade these types of stocks ?

thanks

 

[kuwlness]

Yep, 1000 shares = $1.40. I typically buy between 1M-5M shares. It ends up being like $100-$500 typically, that's where I usually try to be for the pinksheet roulette picks.


You can buy these through your broker. I use Ameritrade and Scottrade.

when a company is listed like PPBV at 0.0014 .

does that mean you can buy 1000 shares for $ 1.40 ?

where do you trade these types of stocks ?

thanks

 

[kuwlness]

S&P resistance of 1015-1020 was broken today. A close above 1020 gives us a lot of support, so downside is very minimal. We have resistance at 1025-1030, make sure you buy on any weakness that we have trying to get thru these levels.

1050 will be the next resistance level, but will soon become a support level. I'm expecting to close next week above 1050, I'd advise you to jump on the bull and ride this one to at least 1100. We'll likely get small contractions along the way, just dont get shaken out when the big boys try to scare everyone off with a sell-off. Futures for next week are looking solid and theyre above the 1015 level, that's enough to be a buyer into today's close.


Hope you guys were able to get on CPQQ yesterday or earlier today, it's had a 30% run today. PUDZ broke free from it's bottom range and looks to be making a break out. LLFH still going thru some consolidation, buy under $3.85 and you'll be happy in a week. C up nicely again ... once this hits $5, $6 is just around the corner as it becomes marginable. CMTP is having a nice run with a few weak shareholders selling at market keeping it from going to $3.50 today. CGDI is going thru some consolidation as well, time to get in, under .35 and you'll be making almost 200% when this goes to $1. CYXN is available on the cheap. CNOA at .48 is a steal. CKGT hitting another 8-10% run, and it still has plenty more to go, no resistance until around $1.35. CSGH also looking to break out of its range, if you buy today, you'll be happy in a week or two.


Added today:
JNGW -- 5,000 shares
HPJ -- 3,000 shares


JEDM -- Pinksheet I missed, was up 650%, now only 450%, but that woulda been killer ... had it on my watchlist too, sux. I'll let you know if it becomes a good buy again.


GLTA and have a good weekend.

 

[tiznow]

i'm a huge fan of HQS

not a microcap but small cap

aquaculture play....they sell neutraceutical type stuff domestically in china too (shark cartilage, oil pills and shit like that) not sure how it can be this cheap....

probably earns a buck this year after earning 77 cents last year

their earnings are really backloaded....last year they lost money in the first two quarters....and 3rd and 4th quarters gave um the profits......this year they made money in the first two quarters

solid growth and going for a sub 10 p/e

 

[kuwlness]

Check out CKGT if you're looking for an Ag/Feed play. Insane balance sheet and way undervalued here.

My projected EPS for 2009 = at least .37/share based on the forward looking statements and their eps history.

Here's how I'm getting this number:
Q3 and Q4 have historically (since 2007 anyway) been the strongest by far for CKGT.

eps for Q3 2008 was .08/share
eps for Q4 2008 was .12/share

Since revenue <NOBR style="COLOR: darkgreen; FONT-SIZE: 100%; FONT-WEIGHT: normal" id=itxt_nobr_5_0>growth </NOBR> and net income both increased (30-37%), and the CEO states that "trend is accelerating", and they're expecting "continued improvement" we're looking at a major ramp in earnings.

So, using the LOW END of 30% growth vs. 2008, we should see Q3 eps of .10/share, and Q4 eps of .16/share.

CKGT already booked .11, so we're looking at .37/share this year.

This is using the LOW END of growth curve.

With the launch of the Hog feed still pending this fall, we could see .40+ net <NOBR style="COLOR: darkgreen; FONT-SIZE: 100%; FONT-WEIGHT: normal" id=itxt_nobr_9_0>income </NOBR>.

And if they get those cigarette things launched this year- a double in a day on that news.

i'm a huge fan of HQS

not a microcap but small cap

aquaculture play....not sure how it can be this cheap....

probably earns a buck this year after earning 77 cents last year

their earnings are really backloaded....last year they lost money in the first two quarters....and 3rd and 4th quarters gave um the profits......this year they made money in the first two quarters

solid growth and going for a sub 10 p/e

 

[tiznow]

looks like a very interesting play will look into it definitely

:toast:

 

[tiznow]

American:
RBY -- shoulda included this in the previous post, coulda bought on the dip today. Easily going to at least $5 in near-term future. I see a potential buy-out around $10, if not this thing will be worth $20-40 in 3-5 years.

yeah RBY i'm guessing eventually gets gobbled up by goldcorp who's campbell mine is right next door to rby's pheonix deposit

 

[kuwlness]

Pinksheet Roulette (.0001 - .01):

PELE -- ProElite (aka EliteXC) is in the MMA arena. I'd say this has huge potential to be bought out, or at least get more recognition. I'm putting this one in a whole new category for the Pinksheet Roulette ... this is a potential 100-1000% near-term ROI, with medium- to long-term looking like 10,000% if UFC or another MMA organization decides to buy them out. This is a must-own gamble. I already have a sizeable position and am always adding at .01. Easy double to .02 on low volume, I'm scared what the potential is once this gets more attention and the volume starts coming in. Also note, Tito Ortiz in a recent interview made a comment about StrikeForce, Affliction, and ProElite all being in cahoots with eachother. I smell profits!!

FCRZ -- been trying to buy more shares of this one for several weeks, but cant seem to get more than 50k here and there. Had a limit order in for 1M, all-or-none, for over a month, and it still hasnt gotten filled. That tells me there is a very small float, which means when this thing starts moving, it'll be another JEDM (which had a 1130% run today, btw).

LLBO -- no thoughts, strictly momentum after getting beat down recently. 300-500% short-term gainer.


Other Pinksheet Plays (> .01):

CEMJQ -- owned for a while, I really like the potential with this one. I can still see another 300-500% upside from here over the next 2-6 months. I'm giving this a $10 price target in the next 3 years (1900% ROI), but possibly sooner.

ZENG -- this thing pops on any PR announcement. Things have settled back down and people are getting impatient waiting for a new announcement, therefore theyre selling out of their positions. I'm a buyer when others are fearful, and this thing has some serious upside. Thinking around 400-600% upside from today's close in the near-term future or upon any PR announcement.


Speculative, but not Pinksheet:

MESA -- looks to have established a support base at .25, probably a good time to get in. No idea where this one could get to in the near-term, but I'd say a safe price target would be $1.50-2 within 2-3 years, so a 500-700% upside from here. Could possibly get bought-out, but i dont see that happening considering the condition our airline industry is in. This is very speculative, but if you're a believer in the recovery (as I am), then this could be a great turn-around story.


**A NOTE TO ALL**
These are all largely speculative plays, but it makes investing/trading a little more exciting compared to the norm. I never recommend investing more than $500 into any one of these plays as I dont want to get hate mail if a trade doesnt work out, lol. This is for the Gamblers, that's why I add the Roulette title to these posts. Although, the main difference between this and placing a bet is you rarely ever lose all of your money, and your upside is significantly greater than any sports bet you can make.

If you are a big-time gambler with a large bank account, feel free to make larger purchases, I do in most cases. But I only recommend making $100-$500 wagers for my clients and friends as any $100-$500 loss is easily outweighed by the other roulette plays that will likely make you money.

And dont be scared to take profits, once a roulette play has had a 200% run, pull out your initial investment and "play with the house's money," which is terrible advice, but these are typically gambles, not long-term investments (unless otherwise noted), so I dont mind using that adage. If you have any questions or want input on a specific stock, feel free to PM me or post your questions here.


The China and American stocks I post on here are investments, and should not be considered speculative by nature. These are all sound investments that I, and others, have conducted significant due dilligence on, and I feel safe recommending them to you, as well as to my clients. The majority of these investments have an ROI ranging from 300-1000% in the next 1-5 years, and I intend to hold positions in all of them for at least that long unless something drastic changes at said company. These are much safer than the roulette plays and I recommend adding to your positions on any dips/pull-backs if you have free cash laying around. I'm always open to questions and criticism, so lets get this board going and make some serious cash in the meantime.


GLTA, have a good weekend. :toast:


Disclosure: I own, or intend to own, positions in all of the above mentioned stocks in my own portfolio, as well as my clients' portfolios.

 

[kuwlness]

Pinksheet Roulette Play of All-time:

WAMUQ:
Dont miss the opportuntity of a lifetime. With "discovery" set to take place on Wednesday, odds are JPMorgan will offer to settle at the requested price rather than having to go to court and possibly pay more. 1000-8000% upside from Friday's close. Get in and live happy. This thing could run to $24, 24,000% upside here, might have to be patient, but its a Gamble I'm willing to take ... and there arent many that I am.


GLTA

 

[snoop]

Thanks for posting man.

 

[kuwlness]

Added:

BIEL.pk -- could be the next JEDM. Major healthcare breakthroughs with this company. Potential in near-term future, 400-1500%.

WAMUQ -- added another 10K shares. I see .36 in the near future as more and more people hear about the potential pay-out to shareholders. You wont hear about it on TV, so it might not get to the masses very fast, you still have time to act. This will be worth more than .10 either way, you can't lose here and upside is insane ranging from 1,000-24,000%.


Please keep in mind these are both to some degree Roulette plays, though these are ones I'd put more money into.


GLTA