Why is anyone buying this beast anymore? It's P/E has been driven
up past any sane valuation all the way to the outrageous figure of 70.
The cost benefit analysis is awful for this dog. You might make
another
20 percent if you are _very_ lucky but you could just as easily lose
70
percent or more. In fact, you're basically guaranteed to if you don't
sell sometime before the bubble bursts. What you should be looking
for are CHEAP China stocks that are just starting to take off. That
way,
your loss is limited and the potential upside is huge (upwards of 200
percent).

Take CHCG for example. It has a P/E of just 13, making it an extremely
undervalued stock relative to other Chinese companies. Between fiscal
years 2005 and 2006 it churned out an amazing year-on-year revenue
growth of over 350 percent, and its year-on-year income growth during
the
same period was over 670 percent. Additionally, one of its directors,
who previously
ran a huge portfolio at Bear Stearns, just made a large insider buy.
It also has a clean balance sheet with lots of cash on hand, a quick
ratio of over four, and no long term debt. Despite all this and its
upcoming NASDAQ listing, it's barely been noticed until just recently,
but people are evidently catching on because it jumped 10 percent
today, smashed through resistance at $5, broke its trend line, and
volume is on the rise.

This is the kind of stock you should be trying to find. Not KUN which
is
destined for the "house of pain."

jdb, thanks for attempting to sell us on CHCG.  The motivation behind
your remarks is quite clear.  However, if you do not own this stock or
are only trying to short it, perhaps your comments aren't needed.

thanks for your comment.
Do you have any idea about the near future of KUN.

Any idea?????

I'm not trying to sell anything -- I was merely trying to illustrate
what a terrible China investment KUN is by showing people what a good
one looks like. CHCG is merely an example, albeit the best one I have
personally found so far.

As for what is going to happen to KUN in the near term, I can not say
definitively and neither can anyone else. What I can tell you is that
it's going in the toilet in the long term because all its valuations
(P/E, P/B, etc) are outrageous by any conventional standard. The cost
benefit analysis for KUN is terrible because your best case is
squeezing an extra 10 or 20 percent out of this bubble, whereas your
worst case (and the long term inevitability) is losing 50 percent or
more.

jdb, you're simply riduculous.  You wrote the same thing about CHCG in
the CHNR blog.  All you did was copy and paste.  You have no
credibility and should probably change your user name at this point.
If you knew so much about evaluating stocks you wouldn't be attempting
to use meaningless propaganda to persuade us on what stocks should be
purchased as they'd speak for themselves and increase accordingly.
Those who listen to you will perhaps sell and lose money, only to see
this stock rebound and create a higher high in the near future.

He may be ridiculous, but he's right. CHCG is by far the better buy.
Do the research.

What are the difficulties in selling stocks that are trading on the
Bulletin Board?
This stock for example, CHCG.OB (Pinksheet stock?). It does look like
a good buy, but  I am afraid to jump in as it's trading on the BB.

Thanks.

The fact that it's on the OTC BB does not in-and-of-itself make CHCG
more or less difficult to buy or sell outside of certain limitations
your broker might put on buying/selling OTC stocks. For example,
Scottrade does not allow you to place stop orders on OTC stocks but
you can still buy and sell them using limit orders, which is very
easy.

What you should be really concerned about when buying any small-cap
stock (not just OTC) is whether or not the average volume is high
enough that you can liquidate your position quickly should the need
arise. The volume for CHCG for the past few days has been above 1
million shares/day, so you should have no problem selling your
securities quickly if you want (I've traded CHCG off and on for months
and it's never taken longer than a few seconds for me).

The other thing you should be aware of is that stocks like CHCG have a
small float and are therefore "volatile." However this means to the
upside as well as the downside, i.e. CHCG will be driven up in price
faster as buyers arrive than a stock with a larger market
capitalization. Since the Chinese market is so very bullish right now,
this volatility will probably make you money rather than work against
you. In fact, the most astute traders looking to profit from this
Chinese bull market are explicitly searching for stocks like CHCG
which have small floats, since this means they're far more likely to
explode.

Another reason to buy CHCG while it's still on the OTC BB is that
according to management it is going to be listed on the NASDAQ before
the end of '07, and the share price is likely to go crazy when that
announcement is made, given current the market conditions for Chinese
companies.

When buying overseas OTC BB companies you should be more concerned
that the company is legitimate than about whether or not you'll be
able to liquidate your securities quickly. I can tell you from my
personal experience that CHCG is a real and profitable company. If
you're skeptical and want to investigate this yourself, do what I did
-- contact investor relations, listen to the recordings of the
conference calls, review their SEC filings, look at the deal they have
with Best Buy, talk to people who have lived in China and visited CHCG
stores personally, etc, etc.

Remember buying companies traded on major exchanges like the NYSE and
NASDAQ is no assurance that these companies aren't crooked. Remember
Enron and Worldcomm.

$ 19.00 tomorrow before noon

CHCG, or KUN?

KUN of course

Best cast for KUN is squeezing out another 15 percent. Worst case is
the bubble breaks and you lose practically everything.

Best case for CHCG is it triples or quadruples (it has traded at over
$20/share in the past, when its fundamentals were much less
attractive). Worst case is you lose the 20 percent gain it's already
made.

Be logical. Don't make absurd claims; you're just going to mislead
neophytes who don't understand the cost benefit analysis here.

$ 19.00 tomorrow before noon

$ 19.00 tomorrow before noon

$ 19.00 tomorrow before noon

$ 19.00 tomorrow before noon

$ 19.00 tomorrow before noon

$ 19.00 tomorrow before noon

Is anyone ever going to listen to you again once you're proved wrong
tomorrow at 12:00 (Eastern time I'm guessing)? CHCG is so much better
than this dud.

Thanks for the explanation, think I'll jump in.

One more question though, say it moved to NASDAQ in the end of '07,
what will happen to the stock I had on the OTC BB?

Thanks agian.

momo analysis looks like a $4-8m move Monday possible for KUN if the
whole sector doen't implode

KUN-new cosmetics line should really help the profit margin and bottom
line

ANY IDEA ABOUT THE PRICE?