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Tom Rex's  Instablog

I'm semi-retired and currently doing some investing, with some small cap holdings, and mostly larger caps. My investment philosophy is to invest in great companies, or those aspiring to be great, who are innovative, and have some potential. This blog on Seeking Alpha seems to be a good way to... More
  • My Position in China Architectural Engineering Inc. 1 comment
    Aug 21, 2009 01:31 AM | about stocks: CAEI
    (CAEI) is a company I hit upon when I saw that they were one of the most active stocks on NASDAQ a few days back. Well, since I've had some professional experience with construction companies, and my wife is an architect, and my son has a commercial glass company, I couldn't resist, so I bought some shares.

    They have been profitable in the past, and are building up their backlog with some exciting, though risky projects. But that's construction and development! Their balance sheet is OK, which is something you need in that business, but there's risk there too, and that too is construction and development!

    There's risk every where in life, and small cap companies are no exception. In their case, there seems to be some potential reward for that risk.

    The market beat them up after their recent earnings release, but that's because the market was ahead of the company's earnings. You got to hang in there with construction companies, whose projects are usually like S-curves. Slow to start, and slow to finish! The end of a project can eat you up, so with their experience, they should be factoring that into their bids and contracts!
    Themes: construction Stocks: CAEI
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This post has 1 comment:

  •  
    What's going on lately with CAEI? I've been having a hard time getting any information since the change in focus to core-China projects. With the number of employees and the high-level work that they're doing, I'm finding it hard to believe the little amount of chatter going on. Is Nine Dragons Resort even for real?
    Oct 27 11:19 AM | Link | Reply
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