The GeoTeam

Five Reasons to Invest in China Armco Metals

Dear China Expert,

It seems like you really did your home work on finding useless information. Not one comment about industry or company fundamentals. You should be asking about the one big order in the second quarter or if the company will be able to offset dilution once warrants become an issue. You should be asking if there will be any unforeseen expenses associated with the start up of their recycling facility or if they will need to raise more capital. Will CNAM.OB experience margin improvements from its new recycling endeavor and how long will it take the company to start seeing benefits from the facility? How do they plan on growing their mature core distribution business?

But here were your concerns:

1. Q-Why did the company terminate its IR relationship early this year?

A-Why don’t you call and ask them before you make assumptions. It’s not uncommon for companies to change IR firms.

2. Q-Why doesn't the company have an English speaking spokesman?

A-LMAO. They do have English speaking representatives, at the company and its IR firm. Do your homework. Did you even call the IR firm?

3. Q-Maybe they'd be attending some of the Chinese investor conferences at Roth or Rodman?

A-The CEO will be in town soon to meet with investors. There story has just begun to gain traction. By the way they did have representation at the Rodman conference. LMAO!!

4. Q-Not one of the investors in the "deal" is a recognized investor in Chinese companies. hmmm.

A-Maybe you don’t recognize them. hmmm

5. Q-Overhang at $5.00.

A-Ok let me get this straight; you think the stock is going over $5.00 yet you still don’t like it. $5.00 is fine for investors who bought this stock between $1.00 and $3.00. I can handle more than a double. I am more concerned about fundamentals. But, what can I say, you are the expert.

5. Q-Its nice that the company on August 11, 2009, Armet obtained a RMB 90 million three-year line of credit from a financial institution guaranteed by the Company’s chairman and CEO, none of which have be drawn as of August 14, 2009; the interest is a floating rate not to exceed 5%.......Nonetheless..... Smells here???

A-Many loans are guaranteed by company directors. You really don’t see this as sign of confidence? Seriously??? What smells? Please enlighten us?

6. Q-No Chinese fund has purchased any shares since going public.

A-Who cares??? Most funds are late to the party any way. They will come at higher prices as they inevitably always do. As an expert you should know that you want to get into a stock before the institutions do.

7. Q-If management stays away.....then I will stay away.

A-Do you know how much stock insiders own???

8. Q-Good luck pumping this to "retail" investors.

A-Are you telling me the very few stocks you have generously commented on are not driven by retail investors?

You need to stop overanalyzing and start to really understand how Wall Street operates.

Sincerely,

Maj
President
GeoInvesting


On Aug 23 09:09 PM China Expert wrote:

> I wondered what happened to this company so I spent a few moments
> looking at it. Questions: 1) Why did the company terminate its IR
> relationship early this year ? Hmmmmmm 2) Why doesn't the company
> have an English speaking spokesman ? If they did....maybe they'd
> be attending some of the Chinese investor conferences at Roth or
> Rodman etc ....3) Not one of the investors in the "deal" is a recognized
> investor in Chinese companies....hmmmm 4) With a "cashless provision"
> for the 2.7 million warrants at $5....i expect a lot of selling overhang
> for quite a while once the stock goes over $5.....5) No Chinese
> fund has purchased any shares since going public.........Its nice
> that the company on August 11, 2009, Armet obtained a RMB 90 million
> three-year line of credit from a financial institution guaranteed
> by the Company’s chairman and CEO, none of which have be drawn as
> of August 14, 2009; the interest is a floating rate not to exceed
> 5%.......Nonetheless..... smells here..... seems the company has
> made a committed effort to stay away from investors. If management
> stays away.....then I will stay away. Good luck pumping this to "retail"
> investors.

'Up Listed Chinese Companies: Above Average Returns

YGII now trades as Yongye Intl (NASDAQ:YONG).

Five Reasons to Invest in China Armco Metals

Whoa! Hold on here. We always tell people to do their own due diligence and have many times stated that we provide information as a starting point for individuals who should subsequently delve into multiple sources of information. In case you didn't see the related Blog Entry, it stated that this was a quick checklist highlighting undiscovered opportunities. Never once have we said that we were a full research boutique. What we do is totally independent and free for whoever can appreciate it, basically rendering the "door ajar" so to speak.

I'm not sure how this all of the sudden became "China Expert's" smear campaign against GeoInvesting. THAT is so sad. We are a legitimate company that has found much success in the methods that we utilize to research and invest in companies...something that had been proven WAY before we started sharing our knowledge and techniques with our peers. I kindly ask that we work together in assessing the opportunities present when investing in Chinese stocks. If you want to find what you feel to be shortcomings in third party research, at least please do it in a collaborative manner that we can ALL appreciate. Combative tones only lead to a break down in the system and are totally distracting.

And for the record, the kind of collaborative feedback we liked from you was here:

stockwidget.seekingalp...

That is the reason we started to follow you in the first place...because we thought you could offer added valuable insight.

As far as your first comment here regarding CNAM, my supervisor will most likely address your concerns.

And we do own CBPO and SKBI, both companies on which we comment at GeoInvesting!! 2 Stocks we can agree upon!!

Anyways, for what it is worth, that is my stance.

Zou
GeoTeam Member

Buy These Three Stocks During the Dip in Highly Valued China

Collins, if you have an RSS reader you can follow any particular author by subscribing to his/her feed. I use Mozilla Thunderbird for its amazing filtering capabilities.

Zou
GeoTeam


On Aug 23 10:38 AM collins wrote:

> Danny,
>
> Thanks for the further details on your investing focus. I clicked
> on "following" next to your name. I'm not sure what that means. What
> I wanted to have happen by doing that is to be notified via email
> when one of your pieces makes it to the internet. But perhaps that's
> not what clicking that button does. I never even knew it was an option
> till this morning.
>
> Also, I'd be very interested to hear what companies you've singled
> out in Brazil and was wondering if you could pass their ticker symbols
> along so I can more quickly find your blogs on them. I suspect there's
> only a couple at this point. But I'm sure you're busy so I understand
> if you want to let this request slip by.
>
> Thanks again. Looks like you picked an excellent time to start investing.
>
>
> Collins

Capitalizing on China's Stimulus Plan, Part I

We commented about this on Monday at our website.

geoinvesting.com/compa...

Also as expected, the stock will succumb to fluctuations around fair value as people take profits made from long-term positions.

We bought some back on the dip, a move that is proving to be profitable at the time being.

China's Massive Healthcare Initiative Provides Vast Opportunities for Investors

And just as an added note. We did actually disclose that Matthew Hayden was from HC International in our initial blog submission. We added an additional statement at the end of the blog, and have reached out to SA to put the same disclaimer at the bottom of the article.

Blog:
seekingalpha.com/insta...

Take Care,

Zou
GeoTeam Admin

China's Massive Healthcare Initiative Provides Vast Opportunities for Investors

There have been some complaints regarding this article, inferring that there were dishonest intentions on our part.

We would like to take a moment to address some issues.

You should know that Matthew Hayden did not write this article for SA. We came upon the article and found the information to be relevant for individuals interested in investing in Chinese stocks. We actually asked Matt for his permission to post his article. We did post his affiliation on our home site. Unfortunately, there was an oversight on our part when we posted his article on SA. In hindsight we should have just made investors aware that the article was available on our home site.

We have submitted over 1000 posts and articles on GeoInvesting and SA combined. This is the only instance in which we submitted a third party article. Unlike many other services, our research is far from pump and dump and aids investors to uncover opportunities as well as reveal potential investment warning signs. We alert investors about information contained in filings that companies often omit from press releases (i.e. liquidity problems). We feel our credibility stems from the performance of our research and from the fact that it is totally independent.

We are asking for your patience as we are relatively new to online blogging. We have disclosed our investment position in every article we have submitted to SA.

I’m not sure what your definition of a scam is? Please enlighten me: What have I “scammed” from you? Was it the superior investment returns obtained from the FREE information provided in our research notes here and on GeoInvesting? It truly vexes me when ignorant investors make wild assumptions from one event, ignoring all of the other useful material. FYI, TPI was around $2.70 at the time we posted this article. It is now $3.45.

Regardless, going forward we will make the proper disclosure in the unlikely event that we submit an article in a similar pretext.

Maj, President
The GeoTeam

On Jul 30 02:46 PM ari5000 wrote:

> If this guy works for TPI -- he should be banned forever from Seeking
> Alpha...
>
> that's just egregiously wrong. Clear pump and dump to write an article
> here and not disclose his relationship with TPI.
>
> This makes Seeking Alpha greatly loses its reputation. Now I have
> to Google every author to find out if there are similar connections.
>
>
> GeoTeam is a scam as far as I'm concerned.

Eight Strong GeoBargain and GeoSpecial Stocks

Great job with sticking to your guns on CSR! We also have a long history with that one.

On Aug 05 09:06 AM Alphameister wrote:

> Even now, the bargains in China are remarkable. I bought CSR and
> calls on the stock when it was below $3. Sold the options for huge
> gains and still holding the stock as a major position. Good work
> on your global bargain hunting.

Discipline: The Key to Successful Investing

Alan.

Wow! It turns out none of the links in this blog submission worked! It is now fixed. A small bug in the way we transferred articles has been identified and will be handled with our cyber bug spray from now on. (of course along with checking the links.) Thanks for the heads up. Our deepest apologies to all who were subject to the bad links.

Zou

Capitalizing on China's Stimulus Plan, Part I

Whidbey,

Thanks for the comment. You are right. Our lists might go unappreciated being that the constituents sometimes have small market caps or are priced under one dollar. But we always give a rational analysis that we hope the 'swine' find useful.

FXI has certainly made a nice recovery since March. You have to hand it to the managers of FXI. They are eerily confident in putting a large percentage of the assets into foreign penny stocks that your every day investor might not be so comfortable with. And rightfully so. Breaking down the list and conducting your due diligence on the stocks would certainly be a daunting task given that 1) they are foreign, leading to an inherent difficulty in obtaining accurate information and 2) they most likely report in foreign currency, making research an exercise laced with uncertainty and quadruple checking.

But I guess if you bought FXI at the dip it's all just as well. Quite a nice return. One thing the fund has going for it is that it is comprised of very liquid stocks. And both you and I know it's as easy for them to shift assets as it is to acquire them. Their top holding, China Construction Bank (CICHF) would be nothing but a distant memory to them. Interestingly enough, CICHF has toggled between just over $1.00 to under $0.25 for the last three years. Is there potential there? Maybe we'll check it out and get back to the SA community, but only in a blog of course.

Take Care,

Zou
The GeoTeam

Companies That May Benefit From China's Stimulus

Thanks for the comment Alan. You're suggestion will be implemented accordingly in all of our future alerts.

China Green Agriculture Appears Poised For Growth

Alan,

Sorry it took so long to get back to you. Regarding your question about weathered coal and carbon footprints...

Carbon footprints are usually referenced when CO2 emissions are released due to industrial activities. To extract humic acid, alkaline (pH greater than 10) solutions are added to weathered coal. This does not DIRECTLY produce CO2 in any way. However, in any large-scale industrial process, there will be carbon emissions due to the energy needed to run the facility. Heat is most likely necessary to act as a catalyst for the extraction of humic acid. With heat comes the need for energy. Other processes that would need heat are perhaps:

-drying the weathered coal for extraction preparation.
-separating the solvent from the resultant humic acid through distillation.
-other processes to clean the extraction apparatuses from any unusable byproducts.

There is no actual CO2 carbon footprint of naturally occurring weathered coal, and to clear things up, the carbon that exists in soil is the good kind that binds to different constituents of the soil.

In fact, the absorption of CO2 into the subterranean landscape that occurs is one of the single largest contributors to naturally ridding the gas from our atmosphere. However, the science behind that is way beyond the scope of our discussion. All that we need to know is that the breakdown of organic (carbon-based) material by microorganisms over a long period of time produces weathered coal and no (natural) carbon footprint.

If anything, China Green Agriculture's carbon footprint from industrial activities would be offset by the organic matter that is being reapplied to the very ground that it came from.

To assess the overall affects/benefits to the environment, a comprehensive study of the total process, from the removal of weathered coal from the ground to the application of CGA's products and other mitigation activities, would be needed.

It is my opinion that they would not be largely affected by any carbon-cap legislation.

Zou
The GeoTeam

On Apr 15 07:34 PM Alan Young wrote:

> Great macro points, and the company looks financially sound, as well.
>
>
> One big question: weathered *coal*? What kind of carbon footprint
> is that? If China eventually joins a carbon-cap agreement, would
> that be an asset or a liability? --Might never happen, but organically-inclined
> investors want to know, anyway.

The Happy Three: Chinese Smallcaps with Big Potential

Nawar,

Yes, we do give disclosures on the companies we own. Chances are that if we write about the company on SA, we own it and we will disclose on SA. As far as disclosing this info on GeoInvesting.com, that is something we plan on doing--basically an up-to-date disclosure page that lists all of the stocks we actually own. Thanks for your concern and we look forward to your future research.

Zou
The GeoTeam

On Apr 14 04:58 PM Nawar Alsaadi wrote:

> I just went through your website, and I believe that you provide
> an excellent resource for investors looking for undervalued and overlooked
> companies, however upon further research I noticed that Geoinvesting
> management is also involved in Marketedge (which if I am not mistaken,
> some kind of hedge fund?), thus perhaps a disclosure about Geoinvesting
> team interest in the covered companies (if any) would be appropriate.
>
>
> Keep the good work,
> Regards,
> Nawar

Worldwide Energy & Manufacturing: An Undiscovered Opportunity

Artful, mb,

We will keep you updated on any significant developments regarding WEMU. In the meantime, if you have any questions we would be happy to answer them. We will most likely post another follow-up on the company as well as the other GeoBargains on our site.

The GeoTeam

The Happy Three: Chinese Smallcaps with Big Potential

Thanks for the article Nawar. We focus mainly on Micro Cap Chinese stocks that we believe are bargains. We have developed a system by which we value the stocks based on a set of criteria that reinforces a foundation for growth.

We recently wrote about CGA and are glad that someone other than us has realized its potential. We like to interview companies, and CGA for one is very open to discussions about the future. Please let us know your thoughts on some of the stocks we have labeled as GeoBargains on our website GeoInvesting.com since it seems you have a good handle on how to look for value.