thedivot's Comments

ZAGG: Poised for Big Returns in 2010

Sun, 11 Oct 2009 09:46:35 -0400

It's a nice story and there is certainly room for the share price to grow. But he's painted a picture of everything going perfectly for ZAGG plus with all these positives 'happening' and known by the market, the stock is trading in the high 20's TTM P/E, which is pretty rich for something not high-tech. Now he proposes that it's going to trade at a P/E of 40. One never knows but it sure sounds like a pump - oh ya, his disclosure says he's an advisor to ZAGG.

Rothman on China: Is It Really a Bubble?

Sun, 04 Oct 2009 13:59:09 -0400

Hey Wei,
You are all over the web pumping this ACLO. Who do you work for? Here's a link to an article talking about Samsung's poor performing flash chips - could those be from ACLO?

www.techspot.com/news/...#

On Oct 04 08:09 AM Leland Wei wrote:

> ACLO.OB: ACL Semiconductor: Flash memory in China
>
>
> I put up a few links here.
>
> Basically, it comes down to this.
>
> ACL Semiconductor has 2500+ employees and is the main supplier of
> flash memory chips and other related chips to Samsung, one of the
> biggest electronics makers in the world.
>
> ACLO.OB is distributing memory chips for Apple IPhone and other devices
> to operate on the new 3G ( full mobile internet) networks.
>
> Right now the demand for memory chips is huge. Prices are up 33%
> in July and August and margins, which were very thin, look to be
> expanding nicely.
>
> How can it get better for ACLO.OB?........ A main memory chip rival
> did not survive the recent down turn and went out of business.

>
> So, putting this all together its not hard to see why ACLO.OB is
> being scooped up right now.
>
> Here are some good DD links.
>
> ACLO.OB has been inching up for weeks as investors move in.
>
> Imho, It makes perfect sense for this one to head much higher.

>
> NOTE: I follow China closely and had never heard of this company
> until a few weeks ago. Based on the stock price its clear I wasnt
> alone........lol
>
>
> China Unicom 3G launch. They have approx. more customers then every
> phone company in the USA has put together
>
> seekingalpha.com/artic......
>
>
> From the recent earnings report concerning their rival, Qimonda AG,
> going out of business:
>
> "After the insolvency of Qimonda AG, the Company has recorded increasing
> demand for Graphic RAM products due to limited supplies. The Company
> also recorded increasing demand for consumer electronics products
> in the PRC market such products require the usage of FLASH products.
> In addition to strong demand in Southern China, demand by Apple for
> FLASH products for its newly launched iPhone 3G S was also strong."
>
>
>
> Link to Samsung and Apple article:
> news.cnet.com/8301-139......
>
>
> Apple to launch in China Oct. 1, 2009:
> www.fonearena.com/blog......

The Case for Investing in Egypt

Wed, 09 Sep 2009 16:06:44 -0400

Look at Centamin Egypt (CELTF.PK or CEE.TO). They are the only company authorised to mine gold in Egypt and they are currently producing. They have almost 10 million oz measured and indicated and another 3 million inferred - and it's not fully explored yet.

Eye on Recon Technology: Small Cap Chinese Energy-Focused IPO

Sun, 09 Aug 2009 09:14:13 -0400

My first impression is how could a company who has worked with two of the biggest Chinese oil companies and have projects on 80% of their fields only have about $12M in revenue after all these years? And we're talking about great growth going forward but where are all these new sales going to come from? Suddenly upon the IPO new clients will come out of the woodwork? I'm being simplistic here but I'm suspicious of people pumping 'sudden' great growth. I like their story but there are lots of Chinese micro-stocks with great growth at much lower P/E ratios.

China North East Petroleum Catapults to the Next Level

Fri, 19 Jun 2009 15:40:02 -0400

Nice article Nawar. I believe it is responsible for the $14 million jump in their market cap today!!

I've been in this stock for a long time now and have also enjoyed your comments on the Yahoo message board. I just keep adding on any big dips as the long-term value has been evident for quite a while.

Thanks for the great research.

Spectrum Pharmaceuticals: Undervalued Growth Company with Strong Late-Stage Pipeline

Fri, 19 Jun 2009 09:15:23 -0400

You might want to read this blog article from The Street. SPPI is the 4th company to try and make money on Zevalin so make sure you're comfortable with the risk if you invest.

www.thestreet.com/stor...

Caraco Pharma Poised for a Turnaround

Sat, 30 May 2009 21:30:36 -0400

Mike,
The fact that the FDA found no deficiencies leads one to conclude (as you did) that there will be a positive resolution to the inspection issues. So why is the stock down? Why aren't other investors coming to the same 'obvious' conclusion thereby driving up the price? Is there something else lurking out there that is keeping the stock down?

China Infrastructure Smallcaps Worth a Long Look

Mon, 04 May 2009 09:41:38 -0400

A little deceptive here....stating that a couple of months ago CVVT traded at $5. Look at the share history. On Dec 12 & 13 it traded as high as $5 with a total of 1,700 shares trading. Then it hit $5 again on Dec 30 with 100 big shares trading. After that, no shares even traded for a month and a half. Their problem is liquidity and lack of interest - there are more days where no stock trades than days with trades.

Plenty of Upside for Northrop Grumman - Barron's

Sat, 07 Mar 2009 14:43:19 -0500

According to Obama, 100's of billions of dollars are being wasted in military spending and he's going after it. That means these companies probably aren't going to be making the fat margins they've been making for years so their historical financials may not be a good indication of what's coming.

Lead-Acid, Lead-Carbon Batteries: The Only Option for Average Consumer

Sun, 01 Feb 2009 12:42:49 -0500

John, you are a most prolific writer but your articles are much appreciated!

I was wondering about the lifespan of these batteries in cars - how long would they be expected to last in your above scenerios? The price of a battery that goes in as OE and is built into the price of the car is much different than the price of replacing the battery in the after-market.

Alternative Energy Storage Stocks: Review and Outlook

Thu, 01 Jan 2009 10:57:40 -0500

John, your articles are very informative and much appreciated.
Have you considered China Ritar Power (CRTP.OB)? They make lead acid batteries and are profitable, do >80% of their business outside of China, are adding production lines and are moving more into alternative energy storage. They seem to have a good growth story but I don't know enough about them to evaluate them amongst your group. Here's their latest quarterly results.

finance.yahoo.com/news...

Merck’s Gardasil: A Risky and Unnecessary Vaccine

Sun, 24 Aug 2008 08:44:54 -0400

There should be nothing wrong with hearing both sides of the story - that's the best way to make informed decisions. If this drug helps prevent some kinds of cancer, we should all be for it. Do the drug companies exaggerate claims and do whatever they can (crooked or not) to make their drugs blockbusters? Absolutely. But we must all look beyond the hype and judge if the drug has value. This one certainly appears to.

Is Stereotaxis the Next Intuitive Surgical?

Thu, 21 Aug 2008 19:32:28 -0400

Speaking of expensive operating room equipment..........
IMRIS (IM on the TSX) is a small Canadian company that has developed the world's most advanced MRI system. It is a "mobile" system that involves huge expense in setting up an operating room so revenues are very lumpy. This system allows the patient to remain in the operating room and the MRI system is moved to the patient during the operation rather than taking the patient out of the room to the usual MRI station. Then the MRI is moved back out of the way and the operation continues. They're getting sales around the world - don't know how successful they'll be as not much history but could be interesting. Just some more expensive equipment for hospitals to buy!!

Lithium-Ion Batteries and Centerfolds

Sun, 27 Jul 2008 09:16:36 -0400

This article is quite an amazing example of the conflicting and confusing information available on the internet. It's difficult to know who to believe as everyone has 'facts' for their argument. Reading the article and all the comments was really interesting but made me laugh. Who knows what to believe - everyone is so convinced they're right!
As far as MHO, I think this 'industry' is very cloudy at the moment. There is a race to find the right technology which will power hybrid cars which is what the stock market is looking for. Sure there are many other industries that will benefit from improved battery technology that will be good for the companies involved but the focus is on automobiles. All the different companies have a story to tell about their technology with a success story of some sort with a customer who has stepped forward and signed on to use their technology. Lithium-Ion, or whatever derivative of that, looks to be where all the development and potential is and the winner(s) gets to change the automotive world as we know it. That includes the car company that locks onto that technology first as well. Too bad there isn't a Battery ETF to invest in which would spread the risk!

Mannkind: Overlooked Biotech With Excellent Prospects (Part VI)

Sun, 22 Jun 2008 09:49:19 -0400

Below is a Zack's report and sell recommendation. They mention the lung cancer risk which you've covered but their concern is more the cash burn rate until the 2011 possible commercialization and whether the market will be big enough.

From Zacks:
MannKind's (NasdaqGM: MNKD - News) lead drug, Technosphere Insulin (TI), is an inhaled insulin product and is in large phase III trials for the treatment of diabetes. The inhaled insulin market has witnessed a major upheaval in recent times with Pfizer (NYSE: PFE - News), Lilly (NYSE: LLY - News) and Novo Nordisk (NYSE: NVO - News) withdrawing their late-stage candidates citing lack of market prospectus for this class of drugs.

Occurrence of lung cancer in diabetic patients treated with Exubera has further cast a shadow over the future of TI. The company's cash burn is a matter of grave concern and the lack of any late-stage or approved product adds to the company's woes. Hence, we maintain our target price of $1.50.

Even if TI makes it through the approval process, we do not expect the drug to reach the market before 2011. Considering the $1.1 billion in cash burn incurred so far, coupled with the high SG&A costs necessitated to strategically position and distinguish the drug from other therapies, we do not expect the company to achieve profitability without TI achieving blockbuster status a status seemingly out of reach in the current market scenario.

We do believe that opportunity exists in adversity and given the current exodus of all late-stage competition in the inhaled insulin market, successful commercialization of TI may enable MannKind to reap benefits of the magnitude which earlier were not possible because of the competitive landscape. However, until the company is able to navigate through these tough times, we maintain our Sell rating.

China Precision Steel: This Rollercoaster Will Climb Big Hills

Mon, 16 Jun 2008 10:59:07 -0400

Make sure you are comfortable with your investment. CPSL was named in a Barron's article about dubious auditors - here's the link.

online.barrons.com/art...

You might want to do some research on companies who use the same PR firm - CCG Elite with Crocker Coulson - as there have been stories about his recurring link with Chinese companies who have had accounting problems.

The numbers look good but are the numbers right?

Which Solar Stocks Will Continue To Shine?

Sat, 07 Jun 2008 11:11:41 -0400

Jack,
It must do you proud when the market validates your thesis. Congratulations on a couple of great articles. Back around your first article I flip-flopped between buying CSIQ or YGE and opted for YGE so I blew that one though I think it will do fine longer term. But I also bought LDK & STP near their recent lows so am up over 100% on LDK and over 50% on STP. The solar group is so volatile that you can make money on just about any of the stocks if your timing is good.
Please continue your thorough analysis and interesting articles - they prompt lots of good discussion.

Colfax IPO Should Get Your Liquids Flowing

Tue, 13 May 2008 07:53:27 -0400

Hey Gold, I almost made the same mistake as you. I was going to invest until I read the prospectus and found the asbestos issue. Take that out and they made $0.40 a share giving a P/E of roughly 50. Kind of expensive for a 'boring' stock. Of course, last night Jim Cramer gushed all over this stock so it will likely go up in the short term. Maybe I should have bought anyway!

Why Gencor Industries Hit the Asphalt

Tue, 13 May 2008 07:47:50 -0400

Another possible reason for the rise in price could be that Sharpeyed.com has been pumping this stock like mad for a couple of months now - I don't know how wide their influence is though.

Buying Broadwind on GE, Gamesa Wind Energy Deals

Thu, 08 May 2008 12:58:20 -0400

Two more companies are involved in wind turbines:
American Superconductor AMSC and Composite Technology CPTC.OB (which is mentioned at the start of the main article). They are both also involved in the power grid infrastructure.

Two Smallcap Winners: TASER and Acorn Energy

Sat, 03 May 2008 14:59:18 -0400

Alphameister is right. Take out the Comverge shares sale and they show a loss of about $0.43 a share.

Beijing Olympics Investing: Think Travel Stocks

Mon, 28 Apr 2008 07:35:42 -0400

There is also a Chinese small cap - Universal Travel - involved in China travel.

seekingalpha.com/artic...

Shengtai Pharmaceutical: A Steal at Current Prices

Mon, 31 Mar 2008 08:38:42 -0400

Sounds good but watch out! This company is handled by the Crocker Coulson CCG IR firm which in various articles has been shown linked to several Chinese companies with auditor problems. Here are a couple of the articles:

chinaotcplayer.blogspo...

chinaotcplayer.blogspo...

LDK Solar: Material Discrepancies in Analyst Coverage/Media Reporting

Wed, 05 Mar 2008 18:21:27 -0500

Check out the SeekingAlpha articles under LDK from Jan 22 & 23 - Conversations with Jesse Pichel. He has been one of the main 'negative' analysts against LDK - as much as I see a bright future for LDK, these articles make some interesting points and Pichel comes across as a serious, competent analyst - not some flake. I think alot of the problems come from lack of clear communication from LDK which leaves interpretation up to everyone.