Comments on: Can the Chinese consumer save the global economy? http://jubakpicks.com/2010/02/02/can-the-chinese-consumer-save-the-global-economy/ Tue, 22 May 2012 22:19:06 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Neal http://jubakpicks.com/2010/02/02/can-the-chinese-consumer-save-the-global-economy/comment-page-1/#comment-3738 Neal Wed, 03 Feb 2010 16:10:49 +0000 http://jubakpicks.com/?p=2998#comment-3738 Regardless of what the Chinese government does to increase their own domestic consumer consumption, I feel it may have little to do with the fortunes of any US Company who has not located a facility there. China has the US government right where it wants it - beholden. As long as China controls the US pursestrings and we have a clueless American President and Congress, the US will never prosper because of anything China does. In fact, the US could suffer greatly if China calls our debt. My feeling is beware of China. Regardless of what the Chinese government does to increase their own domestic consumer consumption, I feel it may have little to do with the fortunes of any US Company who has not located a facility there. China has the US government right where it wants it – beholden. As long as China controls the US pursestrings and we have a clueless American President and Congress, the US will never prosper because of anything China does. In fact, the US could suffer greatly if China calls our debt. My feeling is beware of China.

]]> By: EdMcGon http://jubakpicks.com/2010/02/02/can-the-chinese-consumer-save-the-global-economy/comment-page-1/#comment-3702 EdMcGon Tue, 02 Feb 2010 21:57:00 +0000 http://jubakpicks.com/?p=2998#comment-3702 Andante, Yes and no. The financials are good and the growth is good. Here's the catch: TPI has a bunch of outstanding stock warrants. They CAN issue up to 50 million shares of stock. They currently have issued 25 million shares. Basically, they could dilute the current outstanding shares at any time. But there is a bright side: If you can buy the stock for under $3/share, it might be worthwhile. The warrants were all valued above $3/share when they were issued (some were over $4), so the receiving parties would be taking a loss if they got the shares issued at under $3 each. It closed up at $3.79, so it may be awhile before you see a good buying price. But it might be worth keeping an eye on this stock over the long term. Andante,
Yes and no. The financials are good and the growth is good.

Here’s the catch: TPI has a bunch of outstanding stock warrants. They CAN issue up to 50 million shares of stock. They currently have issued 25 million shares. Basically, they could dilute the current outstanding shares at any time.

But there is a bright side: If you can buy the stock for under $3/share, it might be worthwhile. The warrants were all valued above $3/share when they were issued (some were over $4), so the receiving parties would be taking a loss if they got the shares issued at under $3 each.

It closed up at $3.79, so it may be awhile before you see a good buying price. But it might be worth keeping an eye on this stock over the long term.

]]> By: andante http://jubakpicks.com/2010/02/02/can-the-chinese-consumer-save-the-global-economy/comment-page-1/#comment-3699 andante Tue, 02 Feb 2010 20:47:54 +0000 http://jubakpicks.com/?p=2998#comment-3699 Does TPI look good to you? Does TPI look good to you?

]]> By: EdMcGon http://jubakpicks.com/2010/02/02/can-the-chinese-consumer-save-the-global-economy/comment-page-1/#comment-3693 EdMcGon Tue, 02 Feb 2010 19:57:24 +0000 http://jubakpicks.com/?p=2998#comment-3693 Andante, Actually, I am in the process of buying back into China. I sold off most of my Chinese stocks during the recent drop. Now they are starting to look nicely valued again. The first one I bought back was New Energy System Group (NEWN). How often do you see a small cap stock with cash to burn? NEWN is a Chinese lithium battery manufacturer with some of the sweetest financials I've ever seen! Another one I just acquired today is Shengkai Innovations (SHE), a ceramic valve manufacturer. It looks a lot like NEWN financially, although with better growth (historically). As for sectors in the Chinese market, I'm partial to pharma there. That sector heated up a bit after the Chinese government introduced their health care plan. I jumped out of this sector before the recent Chinese selloff when several of the drug companies I owned reported less than stellar earnings (no losses, just disappointments). I'm watching this sector closely for a good buying opportunity, which I suspect could be as soon as this month or next. Andante,
Actually, I am in the process of buying back into China. I sold off most of my Chinese stocks during the recent drop. Now they are starting to look nicely valued again.

The first one I bought back was New Energy System Group (NEWN). How often do you see a small cap stock with cash to burn? NEWN is a Chinese lithium battery manufacturer with some of the sweetest financials I’ve ever seen!

Another one I just acquired today is Shengkai Innovations (SHE), a ceramic valve manufacturer. It looks a lot like NEWN financially, although with better growth (historically).

As for sectors in the Chinese market, I’m partial to pharma there. That sector heated up a bit after the Chinese government introduced their health care plan. I jumped out of this sector before the recent Chinese selloff when several of the drug companies I owned reported less than stellar earnings (no losses, just disappointments). I’m watching this sector closely for a good buying opportunity, which I suspect could be as soon as this month or next.

]]> By: andante http://jubakpicks.com/2010/02/02/can-the-chinese-consumer-save-the-global-economy/comment-page-1/#comment-3688 andante Tue, 02 Feb 2010 19:27:57 +0000 http://jubakpicks.com/?p=2998#comment-3688 EdMcGon, what are your favorite Chinese small caps and sectors? EdMcGon, what are your favorite Chinese small caps and sectors?

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