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  • China Housing And Land Development - The Housing Rocket Ready To Launch. 1 comment
    Apr 4, 2013 3:30 PM | about stocks: CHLN, HGSH

    If you have been watching housing sector the last six months then you must have noticed Chinese HGS Real Estate, Inc(NASDAQ:HGSH). This Chinese housing stock, which is now trading at about $10.50/share, was just $0.50/share back in November 2012. And it has been going straight up since. Take a look at the chart below.

    12 Month Daily Chart

    (click to enlarge)

    As you can see this stock has been ripping it up. And on top of that the housing market has started to turn around.

    Now some of y'all may be wondering why I am bring up HGSH, and if this report is about CHLN.

    Like I said before, since the housing market has been turning around, the sectors been heating up, and with HGSH pushing new highs every day, this has created the perfect environment/set up for a sympathy play.

    And that's where Chinese Housing And Land Development, Inc. (NASDAQ:CHLN) comes in.

    12 Month Daily Chart

    (click to enlarge)

    The first, and very obvious reason, why CHLN is a good sympathy play is because, just like HGSH, it is a Chinese housing stock. And since the market has been loving Chinese housing plays, according to HGSH's chart, it makes perfect since that their attention will soon turn to CHLN.

    The second reason why CHLN is such a good candidate for a sympathy play, is what makes it truly explosive!

    During last quarters earnings report HGSH reported an EPS of .12, and an EPS of .11 for the last year(2012).

    That seems pretty good considering it has triggered the stock to soar from $0.50/share to $10.00+/share.

    Now lets take a look at CHLN. In their 4th quarter earnings report, they had reported an EPS of .33, and an astonishing EPS of .47 for the past year!

    This is why CHLN is a "Housing Rocket Ready Launch." This company is in the same business as HGSH, which has been on an insane run the past couple months, and on top of that, their EPS for their last quarter was 3 times higher than HGSH's, and their EPS for the past year was more than 4 times higher.

    With an EPS that high, there is no reason why this $2.00 stock should not rushing up to $10.00, just like HGSH, ESPECIALLY since HGSH's EPS is LESS than CHLN's!!!!!

    Numbers don't lie. And the numbers are there. There is absolutely NO reason why CHLN should not be cost at least HALF, if not MORE than what HGSH is per share!

    In fact there is HARD EVIDENCE on why it should actually cost MORE than HGSH per share!

    Again, Numbers Don't Lie, and Neither does EPS.

    Make sure to always do your Due Diligence! And be on the watch for this housing rocket to LAUNCH!!!

    Price Target: $3.50-$5.00/share

    Disclosure: I am long CHLN.

    Themes: Housing, China, Chinese Housing Stocks: CHLN, HGSH
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    Author’s reply » Have cut losses for now. Earnings will be coming out soon and depending on how they do I will re buy!
    5 Apr 2013, 06:37 AM Reply Like
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