As of today the author is still very wrong on the gains to be made in these stocks. Being down since 8/07 is a lousy performance. If the author would be worth anything he should be offering a disclaimer- that's an apology!
China 3C Group: Market Overreaction Creates Buying Opportunity [View article]
This Company had big plans but these plans seem to have developing cracks-recent lowering of future growth estimates. It appears that the competition from bigger Chinese companies in this arena limit their pricing power & sales growth. The Best Buy deal has not been a big deal either. This adds to the meaningful lowering of earnings. I would not consider the lower share price a strong buy as you have. I have sold months ago and now own none. So I too am biased! The stall in share price is approaching a long year of dead money.
CHCG's competitors are not difficult to determine as you stated. However it is keen competition and low margins that is CHCG's nemesis. Their optimistic predictions are difficult to believe. The private placement creates more doubts about stock valuation. This stock got hit!
China 3C Group Gets Catalysts From Best Buy, Intended U.S. Listing [View article]
I believe the argument that CHCG has a lot of vulnerability is correct. Their product has little propietary advantage and possibly little price advantage if any. Why should the big Chinese reatailers or Best Buy plan to use CHNG as their source of a commodity type product. Thers is a small case for some of the "old products" to be in vogue in China and not in the more advanced countries? Even CHNG states the Best Buy may add $ 2M/ yr. to sales. No big deal yet! I am a owner of CHCG but with some skepticism that they can have good returns even on big sales growth. The BB deal was just a small pip and then it melted away in a few days. That isn't a big selling point. What is the "BIG PICTURE?"
Bullish on Chinese Microcaps [View article]
Bullish on Chinese Microcaps [View article]
Valuation Analysis: China 3C Group [View article]
China 3C's Deal with Wal-Mart Could Turn Out Interesting [View article]
China 3C Group: Market Overreaction Creates Buying Opportunity [View article]
So I too am biased! The stall in share price is approaching a long year of dead money.
Valuation Analysis: China 3C Group [View article]
Valuation Analysis: China 3C Group [View article]
China 3C Group Gets Catalysts From Best Buy, Intended U.S. Listing [View article]
China 3C Group: Intriguing Microcap [View article]
China 3C Group: Intriguing Microcap [View article]