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David Schrader  

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  • Long Idea: CHBT [View instapost]
    It's been a solid run... would consider taking profits here
    Dec 20, 2010. 01:02 PM | Likes Like |Link to Comment
  • Long Idea: CHBT [View instapost]
    www.prnewswire.com/new...

    14 new bulk customers
    Dec 13, 2010. 01:49 PM | Likes Like |Link to Comment
  • Long Idea: CHBT [View instapost]
    Based on the outstanding shares, the short of float is approximately half, or ~20%
    Nov 23, 2010. 10:02 AM | Likes Like |Link to Comment
  • Long Idea: CHBT [View instapost]
    Also, a convertible note.... maturity 12/11/10 @ $12/share.

    "On December 11, 2007, the Company sold a 4% Senior Convertible Promissory Note in the amount of $25,000,000 (the “Note”) with a maturity date of December 11, 2010 to Pope Investments II LLC, an affiliate of Pope Investments, LLC, in a private placement. In connection with the sale, the Company entered into an Investment Agreement and a Registration Rights Agreement. In addition, Mr. Song Jinan, the Company’s Chief Executive Officer, Chairman, and largest stockholder, entered into a Guaranty Agreement and a Pledge Agreement pursuant to which Mr. Song agreed to guaranty the Company’s obligations under the Note and to secure such guaranty with a pledge of 4,000,000 shares of China-Biotics’ common stock owned by Mr. Song. The principal amount of the Note is convertible into shares of the Company’s common stock at an exercise price of $12.00 per share at any time until the maturity date subject to adjustment for subdivision or combination of the Company’s common stock and similar events. If the Note is not converted at maturity, the Company will redeem the Note to provide Pope Investments II LLC with a total yield of 10% per annum inclusive of the annual interest."
    Nov 18, 2010. 11:02 AM | Likes Like |Link to Comment
  • Long Idea: CHBT [View instapost]
    FYI...

    insiders own 12mm of the 24mm shares.... which is where the shares outstanding of ~10/11mm was derived from.

    Below is a profile of the CEO
    investing.businessweek...

    Also, there's a recently-launched shareholder lawsuit mentioned on BusinessWeek.com...

    "Saxena White Files Class Action Complaint Against China-Biotics, Inc
    10/14/2010
    Saxena White P.A. filed a class action complaint in the U.S. District Court for the Southern District of New York against China-Biotics, Inc. and certain of its officers. The class action is filed on behalf of investors who purchased the securities of the company during the period between July 10, 2008 and August 30, 2010. The complaint asserts China-Biotics and certain of its present and former officers and directors made material misstatements and omissions about the company's true financial condition. According to the complaint, defendants misled investors about the quality, nature, and quantity of China-Biotics' purported retail outlets and stores, during the class period. The complaint also alleges that the company's fiscal 2008 financial statements filed with the SEC are materially false and misleading. Further, the complaint says that the false statements inflated the price of the company's securities and allowed it to complete a public offering in September 2009 of 4.6 million of its shares of common stock at $15 per share. The complaint asserts that when the adverse information concerning the company's operations began to enter the market, the price of China-Biotics securities dropped significantly, damaging shareholders. The complaint seeks to recover damages caused by defendants' violations of the federal securities laws."

    Even with all of this potential negativity I maintain my conviction on the trade. Again, my loss exit is $10/share on the equity.
    Nov 18, 2010. 10:56 AM | Likes Like |Link to Comment
  • Pre-Paid Legal Services: A Short Squeeze Waiting to Happen [View article]
    The shorts could simply wait until the acquisition took place and sell to the acquiring firm at $60. Their decision to do so would depend on how long their capital would be tied up for and the cost of not having access to that capital over that time period.

    For what it's worth, I don't believe there is an active offer on the table. If management has put its feelers out here at $60 or so I would think the odds are in favor of them selling into the open market if no buyer comes forth. I know I probably would, especially after this run up. In my opinion you'd have to be a pig or know something vital about the firm to go/be long from here on out.
    Nov 15, 2010. 10:59 AM | 1 Like Like |Link to Comment
  • Sell [View instapost]
    I meant I would be taking profits across the board
    Nov 12, 2010. 01:58 PM | Likes Like |Link to Comment
  • A Huge Rally for Equities Coming in 2011 [View article]
    The market might rise but it might fall... intriguing analysis
    Nov 5, 2010. 01:31 PM | 5 Likes Like |Link to Comment
  • Pre-Paid Legal Services: A Short Squeeze Waiting to Happen [View article]
    www.gurufocus.com/news...

    This is interesting. I would be looking to sell my holdings here. The idea that management is looking for a sale or other potential 'strategic alternatives' sounds off an alarm for me, at least in this situation. Apparently they see the firm as being valued to such a point as to attempt to cash out. I suspect they may be concerned about their market impact if they were to sell their shares on the open market. If I were in their shoes, I would probably do the same thing. It's been a fun ride but time to get off, in my opinion.
    Nov 5, 2010. 01:14 PM | 1 Like Like |Link to Comment
  • KEMET Corporation: A Strong Value Play [View article]
    The reverse split in KEM should be good as it will allow more institutions to invest... some have restrictions about not owning equities trading for less than $5.00 per share.

    www.prnewswire.com/new...
    Nov 5, 2010. 01:07 PM | Likes Like |Link to Comment
  • KEMET Corporation: A Strong Value Play [View article]
    Glad I could help.
    Nov 3, 2010. 10:52 AM | Likes Like |Link to Comment
  • Pre-Paid Legal Services: A Short Squeeze Waiting to Happen [View article]
    PPD has come off its recent highs quite and bit and is currently in a consolidation mode. I would be looking to re-open the position with those profits you *may* have taken. The risk/reward still looks good to me and there's still 1.8m short against 8.2m float, according to Bloomberg. Same reasoning applies here, except you can pick up some shares on the relatively cheap if you missed the prior move.
    Oct 11, 2010. 10:58 AM | 1 Like Like |Link to Comment
  • KEMET Corporation: A Strong Value Play [View article]
    Mr Spacely,

    Thanks for taking the time to comment. In my most recent comment I stated that at this point we are relatively flat... or at my estimated value factoring in everything including my (probably) aggressive EBITDA of 190. My belief was that if the economy continued to progress and the company saw growth, there would be plenty of upside. Factor in the idea that I believed we were 'flat' or 'at value', and the risk/reward was certainly intact. Will I be wrong? Quite possibly, especially with the negative economic headwinds we're seeing. However on a risk/reward basis, I still like the name.
    Oct 8, 2010. 08:57 PM | Likes Like |Link to Comment
  • Pre-Paid Legal Services: A Short Squeeze Waiting to Happen [View article]
    Don't forget the 90d avg volume is less than 70k shares. That's a very small doorway for the 1.8mm borrowed shares to escape through.
    Oct 1, 2010. 12:59 PM | 1 Like Like |Link to Comment
  • Pre-Paid Legal Services: A Short Squeeze Waiting to Happen [View article]
    @PDT,

    x. The comments here, for the most part, have been completely off topic regarding my article and the trade idea's basis. I agree with you that they're probably from spammers or people working with PPD. That being said, I want the blowoff topping stage. That's what will (hopefully) force the shorts to cover. They have to be in immense pain right now, on a daily basis, being grinded out, point by point. We jump another 3-5 points and I think we may see some volume come into the name. That is, unless the short position is a minor part of someone's portfolio and they don't mind waiting.
    Sep 30, 2010. 11:33 AM | 2 Likes Like |Link to Comment
COMMENTS STATS
58 Comments
19 Likes