megiddo666

China 3C Group Finally Turns a Corner

The company is grossly undervalued, and will quite well, and the recovery in Chinese small caps will add fuel to the stock price. One more quarter of great earning will do the trick.

Disclosure - Long

5 Reasons Why China Retail, China 3C Group Are on a Roll

Great summary. A couple of anecdotal comments from the Google message board add to your premise, made by zhisheng. This first regards the Chinese retail business cycle, the second the winter strom impact inrelation to CHCG:

1) I am Chinese and here are my two cents: there are two peaks of
weddings in China's rural or urban areas: The first lunar month
(Mainly from the Spring Festival to the 15th of the the first lunar
month), and October when most people have at least one week long
holidays (National day on Oct 1). Getting married is becoming more and more expensive now in China, I don't have the number but besides
furniture following things must be purchased for their new home: a
nice TV, digital camera or camcorder or both (to record the phynomenen events of the new couple like wedding, birth of new baby, etc.), a PC (remember China became number one in internet users, most average home has one PC, though the family does not use them very often - Chinese are very fast to pick up new technologies :) Now you know what this mean to the Q1 and Q4 earnings of electronics stores like China 3C.

2) The winter storm would have some impact on the sales but I would not worry too much in a long run. I talked to my friends in China on this issue, they are all optimistic with 2008. Plus the regions that were
hard hit are mainly in Hunan and Guizhou, China 3C's sales region are
mainly in Jiangsu and Zhejiang (big cities as shanghai, nanjing and
hangzhou are in this region), the impact of the snow on this area is
not that bad, people lived normal life during the storm - they
experienced a few cold days and the streets were slippery due to ice,
other than that I've nothing very severe, like the cut of power lines
and close of the stores, etc.