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Erik Wright  

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  • Gulf Resources: A Compelling Opportunity in the Bromine Market [View article]
    I will try to find the answer for you questions and will contact them shortly as for insight on the 10k:

    I have recently reduced my position by half. The reasons are the company provided no guidance in the earnings report nor the conference call and most importantly there was no Q&A allowed in the conference call which has gotten many investors very frustrated.
    The results were good in terms of earnings and revenue but output of bromine was slightly down since in Q4 they only operated at 60% due to Chinese government restrictions which hopefully won't effect this year. They also have yet to buy back shares which has me wondering if this was just a "stunt" to keep the price lower to be able to buy more or to make a deal with HAP. The new acquisitions should be accreditive to future earnings and I would not be shocked if we did over 1.80 EPS this year with Bromine prices continuously rising and production boosted from current acquisitions and the lease which enables them to produce an additional 2500-3000 tonnes potentially selling at $4500 at tonne.

    That is my insight on the performance, good, but cc could have been much better and hopefully when guidance is issued later on that the stock reacts positively and we see some better output. Stock is still ridiculously undervalued but sector is terribly out of favor I may add more if it gets even more ridiculous in terms of share price.

    Take care,
    Mar 19, 2011. 06:28 PM | 1 Like Like |Link to Comment
  • Gulf Resources: A Compelling Opportunity in the Bromine Market [View article]
    Update: Gulf Resources Conference Call tomorrow at 7:30 AM
    We should see the 10k year end earnings out by after hours.
    Mar 16, 2011. 11:40 AM | 1 Like Like |Link to Comment
  • 6 Stocks to Capitalize on China Trade Worries [View article]
    I recommend you go write your own article on how bad most China stocks are for you to share it with the world. Listen go ahead and hate on this article all you want, it was written before CCME was halted and yes I agree CCME is probably headed much lower unless they continuously keep it halted...
    But I am not the only author that has been wrong about certain stock picks, and I still agree that my others remain oversold especially because this halting of China stocks is affecting all of the others that "may" be I repeat "may" (especially for you) be fraudulent but ofcourse they can't all be and therefore it can be a good opportunity to pick up some of the companies in which we believe in. I know that you don't believe in much of them in that case go write an article on shorting them i'm done with replying to your insensible posts.
    Mar 14, 2011. 09:26 PM | 2 Likes Like |Link to Comment
  • China Clean Energy: A Stellar Opportunity in China's Clean Energy Sector [View article]
    Just released preliminary guidance, looks very good to me, would suggest around 0.36-0.40 EPS for 2011. They are also suggesting better margins, always a plus for investors.
    Mar 14, 2011. 11:08 AM | Likes Like |Link to Comment
  • 6 Stocks to Capitalize on China Trade Worries [View article]
    To all posters:

    I respect your various views and understand that many of us may have diverging interests and opinions on the subject of business in China.
    I for one believe that China will remain an engine of growth for the world economy. However, like most have pointed out China has been renown for a certain degree of fraudulent business activity which I fully agree on. Sadly, most Chinese companies traded on American exchanges have been affected by the perception that maybe they could also be frauds and that the numbers are too good to be true. I fully agree that China has dug itself its own whole in terms of investors perception and that the fear that investors have towards the companies in this sector can be fully attributed to some real life examples such as RINO. It is clear that if Chinese companies want better valuations they have to distinguish themselves in this sector as reputable and reliable.

    It is evident that not all of the Chinese companies can be fraudulent, and it is a shame for those who are not fraudulent to be perceived the same way as those who are. But, the fact still remains that investors should do a full analysis of a company before investing regardless if it is from China or from North America. Because, it is just as possible that an American company is defrauding its shareholders. The best known example is Enron.

    I do understand that the probability of fraud is higher in China than in the United states and that most are skeptical about reverse mergers. Reverse mergers can simply be an easy way for a company to access capital without the process of a traditional IPO. Which in many cases, is not for fraudulent intentions. I understand that reverse mergers warrant some additional precautions because they are in fact skipping some of the process of becoming a public entity and some very well may be defrauding investors.

    As for the list of companies they are among the many on my watch list and are simply a few examples and descriptions of discounted pure China plays that in my opinion may be oversold. My watch list has many other names such as SCEI, JASO,SOL, CBEH, PUDA, CSR,SKBI,NIV, CCGY.PK,SIAF.PK,... as well as many other China and non China stocks. You may or may not agree with my choices of companies and i respect that.

    As for CCME, the case will soon be discovered and I am sure regardless of the news there will be lots of "I told you so's" either by those stating it is a fraud or those who have stated otherwise.

    Hope that clears up a few of the comments for both sides of the argument.
    Mar 13, 2011. 12:09 AM | 4 Likes Like |Link to Comment
  • 6 Stocks to Capitalize on China Trade Worries [View article]
    Thank you David for your comment and source. You appear to have a good point on LPH. I have listed some of the few that I have on my watch list and in no way infringe people to believe they are all equal in legitimacy or potential. They are all clearly under-performers, undervalued and all are currently have high demand for their products strictly within China. I strongly urge people to evidently do much more in depth research before ever taking a position in any stock because this is in no way meant to be an article of depth on these companies but simply food for thought about China and a description of a few opportunities that I find may be intriguing to investors.

    As for LPH I have owned it but sold for a profit at $3.07. I had owned since it had been listed as LPIH.OB and sold for a healthy profit. My reasons for selling was strictly profit taking as well as charts becoming overbought. I did miss out on the continuation of the run to the 3.70's but am now glad I sold since it has come down to a level it hasn't been trading at for a long time. As stated in the article, LPH's expansion will cause dilution which has caused a drop in the stock and may cause it to drop further but based on the charts it is currently very oversold in the short term. I still have it on my watch list and may consider buying into it again in the future because I do believe they will continue to experience a high growth rate through their aggressive acquisitions of storage facilities and rising demand for fuel in China.
    Mar 12, 2011. 11:05 PM | 1 Like Like |Link to Comment
  • Gulf Resources: A Compelling Opportunity in the Bromine Market [View article]
    Jason, view my previous comment higher up on this issue where GFRE's investor's relations replied that the government does not regulate bromine pricing.
    GFRE has an average contract length of 3 months and prices its own products therefore I would expect them to price accordingly and similar to the market price. GFRE is saving on shipping and tariffs that would normally be put on the product if companies in China imported their bromine from over sea companies. These are cost savings that could potentially enable them to price their products slightly lower than international competitors that would have to price these costs into the product.

    As you can see from their rising margins these types of costs savings and higher prices for bromine has truly benefited them.

    At this price you can't really go wrong, earnings are next week. I presume a jump on earnings which are said to be the 16th.

    Good luck and do not hesitate to ask other questions and I will try to find the answers for you.
    Mar 11, 2011. 11:11 PM | 1 Like Like |Link to Comment
  • 6 Stocks to Capitalize on China Trade Worries [View article]
    The article was simply to state that there are opportunities in China because people overreacted that China's growth and exports are slowing which affected the Chinese sector. The beginning simply states this. I also agree that this is not the only factor affecting Chinese stocks and that the whole perception of fraud is also harming them.
    The companies where only to mention and give a brief description about a few that sold off yesterday and this year. The companies listed above among many others where also mentioned because they are trading at compelling valuations. I agree that some may have lower valuations because of the way they are perceived in the investment community and many investors may not be willing to take these risks.

    Furthermore, I mention in the concluding thoughts that additional due diligence is required before investing in any of the companies above. GFRE is the only one I currently hold, I wrote an article that covers a little more depth that can also be viewed. I personally believe that GFRE is legitimate.
    I do know how to evaluate companies, financial statements, ratios, etc... I apologize this was not evident in this article.
    Mar 11, 2011. 05:03 PM | 3 Likes Like |Link to Comment
  • 6 Stocks to Capitalize on China Trade Worries [View article]
    Thanks for the insight, I agree with you that today the sector is very well overshadowed by CCME's halt and that if the eventual outcome is negative it will reign over the China sector even more. I also agree that it is all about perception as well as fear and risk tolerance. People will not invest in companies which "may" be frauds or that are in a sector where the risk of fraud is ramped. Therefore, the perceived value of this stock is less due to the agglomeration of investors' perception as well as a multiple of other factors. The value based on multiples is evident but the perceived value is much different. When will perception change? Who knows... Companies will have to differentiate themselves from the group to increase investors perception of the value of the company or an eventual shift in the perception of Chinese companies would also do the trick. I am however happy to see that CNIT, GFRE and LLEN have bucked the trend today.
    Mar 11, 2011. 04:12 PM | 1 Like Like |Link to Comment
  • 6 Stocks to Capitalize on China Trade Worries [View article]
    Yesterday they dropped much more than the market indexes did due to the announcement of a Chinese trade deficit. Being Chinese companies, this affected them much more and that's the main reason for their drop yesterday. I very much agree that there are many other factors affecting them such as the whole black cloud above China stocks in general and presuming they are all frauds.
    But, who are you to say they are frauds?
    Not all China Stocks are fraud and it is with this premise that I believe that there are many Chinese small caps that are trading at very compelling valuations. Yes some may very well be frauds, and there are many others than the ones presented above that are trading at a value. But you cannot jump to the conclusion that they are all dropping because they are all frauds.
    Mar 11, 2011. 03:53 PM | 6 Likes Like |Link to Comment
  • 6 Stocks to Capitalize on China Trade Worries [View article]
    I agree they all have been out of favor as i stated, but they are also companies that sell everything domestically and that drastically dropped due to the Chinese trade deficit news. I believe you are wrong to say they are all going to zero, they may be out of favor but the valuations on some of them is ridiculous. Not all Chinese stocks are scams and many are getting unfairly punished which presents investment opportunities since many are oversold.

    Make what you want of it, the whole China sector is oversold.
    Mar 11, 2011. 03:14 PM | 4 Likes Like |Link to Comment
  • 6 Stocks to Capitalize on China Trade Worries [View article]
    Business Economics Analyst, I get your point, I issued a correcting comment 1 minute after the first comment my mistake.
    As for the article you can have your own judgment about it I am indifferent about what you believe. I am simply listing oversold stocks in the Chinese sector which supply all of their products domestically. If you decide to take a position in any stock you obviously should do more in depth due diligence. As stated I only have a position in GFRE, the rest are on a watch list. I have no position in CCME and personally hope for those who have a position in it that this company issued halt turns into some positive new release for the company.
    Mar 11, 2011. 11:05 AM | 6 Likes Like |Link to Comment
  • 6 Stocks to Capitalize on China Trade Worries [View article]
    Correction CCME has just been halted. It is a T1 halt which is a company issued halt because they are about to issue news. Look forward to hearing what the company has to release.
    Mar 11, 2011. 10:44 AM | 3 Likes Like |Link to Comment
  • 6 Stocks to Capitalize on China Trade Worries [View article]
    CCME is not halted as you can see:
    Down more based on Cramer's comments.
    Mar 11, 2011. 10:39 AM | 1 Like Like |Link to Comment
  • 6 Stocks to Capitalize on China Trade Worries [View article]
    CCME has lots of legitimacy to it. You can view this blog which presents an abundance of videos, pictures and facts that the company is in fact real. I will not dispute that there are Chinese frauds but not all should be placed under the same label of fraudulent Chinese companies, there are good opportunities out there. As for CCME we will soon see their conference call and earnings, might clear up some stuff maybe they will turn out to be a fraud but my personal beliefs are that the company is being falsely accused.

    As for CNIT I have been following the company and the stock is currently oversold on all metrics. It is due for at the very least a short term run upwards. In my opinion the company seems pretty solid but the decrease in margins have to stabilize and they have to show investors they are good at controlling costs while growing revenue. They have lots of growth in their sector and it appears to be a good buy in point but it is simply out of favor like many other China names. I will keep an eye on it and may take a position sometime in the future.
    Mar 11, 2011. 10:36 AM | 4 Likes Like |Link to Comment