Super Stock Blog

Archive for December, 2010

What do they do?

Quoted partly from their homepage, Sino Clean Energy is a “commercial producer and distributor of coal-water slurry fuel (“CWSF”) commonly referred to as Coal Water Mixture (“CWM”) which is a clean fuel that consists of fine coal particles suspended in water. Our clean fuel is used in boilers and furnances to generate steam and heat for commercial, industrial, residential, and government clients throughout China.”

Why invest in them?

They are a great play on alternative energy. They have no debt. Their return on equity was 195.74% for the last 12 months. Their net profit margin was also 31.20% for the same period. They are ranked as the #1 US-Listed Chinese stock with highest return on equity (http://www.cnanalyst.com/2010/12/top-10-us-listed-chinese-stocks-with-highest-return-on-equity-scei-scok-gprc-kun-hgsh-dq-cyou-cnet-s.html). Their costs are cheaper than coal but they still support the local coal industry.

They are supported by the government with subsidies. President Hu Jintao pledged to curb carbon dioxide emissions by a notable margin during the UN summit. They also have strong expertise and knowledge of processing different types of coal. Their process is proprietary and gives them an advantage over their competition.

They recently completed a stock offering of $33 million on December 29, 2010. Remember they have no debt, but they can use this money to expand their production facility. They will continue to increase production and bring more revenue to their business. This is a definite way to play energy in the chinese market.

Technically, it has hit a bottom at $5.50. Just a month ago it was at $10. The PE ratio is below 4 and the long term weekly chart is showing a nice uptrend. Their revenue for 2009 was $26.7 million. The 2010 revenue is expected to be at least $105 million.

Being a chinese stock, you have to be thinking about the Orient Paper fiasco and RINO with the report by Muddy Waters. Sinco Clean Energy is using Ernst & Young to assist with financial reporting in accordance with the Sarbanes-Oxley Act of 2002. By this fact alone, they have made themselves much more transparent compared to other chinese stocks. They will be reporting their finances to the same degree of US companies.

Problems?

On November 16, 2010, Mr. Yong Li resigned as a member of the Board of Directors of the Company. He resigned for personal reasons and there were no disagreements with the company. Although this looks quite mutual, we do not know any of the specifics to his resignation. I suggest buying and holding until it hits $9-$10. If there continues to be good news on this stock, you can play the longer term.

Disclosure: I own SCEI

Twas the week after Christmas and all through the land, millions of folks were making merry with iPads in their hands. in their pockets were iPhones, both fresh from the box. This Christmas was the best, they shouted, it really does rock!

But off in the distance they heard a small sound, the noise of a lawsuit slapping Apple around! They’re stealing our info, the lawsuit did shout. Leaving folks all to wonder what the fuss was about.

It’s the apps, said the lawsuit, they’re selling us out, they’re smashing our privacy of that there’s no doubt. our names and locations, age, gender and more, if the app companies want it, we should show them the door! Apple can’t be allowed to sell our info this way, without our consent and without giving us pay. It’s our information and we want it kept quiet, so the court needs to stop them so no one can buy it!

<a href="http://www.marketingpilgrim.com/2010/12/are-you-still-using-that-old-phone-mobile-marketing-goes-for-the-throat.htmltag:news.google.com,2005:cluster=http://www.marketingpilgrim.com/2010/12/are-you-still-using-that-old-phone-mobile-marketing-goes-for-the-throat.htmlMon, 27 Dec 2010 22:04:44 GMT 00:00″>Internet Marketing News

Rogers, a commodities evangelist for more than a decade, has tweaked his pitch, saying the producers of the world — whether individuals, companies or countries — will become the new growth sector. In short, Rogers told the Reuters 2011 Investment Outlook Summit in new York, being productive, saving the fruits of your labor, and owning hard assets hold the keys to a bright future. “All these people who got MBAs made a mistake. the city of London and Wall Street are not going to be great places to be in the next two or three decades. It’s going to be the people who produce real goods,” he said. “Throughout history we’ve had long periods when the financial centers were in charge. but we’ve also had long periods when people who produced real goods were in charge — the farmers and the miners,” Rogers said.

CASSANDRA’S HYPOTHESIS: JIM ROGERS BETS ON COMMODITIES…SHUNS WALL STREET

what are stocks and why do people own a certain amount of them and what is wall street with all the crazy yelling men in suits waving the pieces of papers and then the big signs with all the stock numbers… please explain i dont get it and what is with the etrade buying stocks over the internet????

http://en.wikipedia.org/wiki/Stock

Wall Street, E-Trade, Stocks???? Please Explain what are these!!!??

NEW YORK: Wall Street will see the year-end rally carry into the last week of 2010 but the question on everyone’s mind is, “what’s next?”

Dow Jones, Standard & Poor’s (S&P) and the Nasdaq on Thursday were up more than 5% on the month and the level of optimism in the market was at a six-year high. The CBOE Volatility Index VIX, known as Wall Street’s fear gauge, was down by two-thirds from this year’s peak in May.

“I would think that the Santa Claus rally will continue into next week as there are still lots of mutual funds trying to beat or at least meet the performance of the S&P 500 within the calendar year of 2010,” said TD Ameritrade’s chief derivatives strategist, Joe Kinahan, based in Chicago. “The VIX is also telling us that the market is expecting low volatility, which would also support upside movement.”

Some contrarian analysts were more cautious as optimism at peak levels is usually a sign of a pullback and thus, negative for equities.

US stocks racked up a fourth straight week of gains on Thursday, as investors expected optimism about the economic recovery to support equities through year-end.

If there is war, [America] is going to print money. If there is not war, they are going to print money and so whenever there has been money printing, the result has been that you should have your money in real assets.

It has been a pretty clear thing throughout history. The real assets are the only way to protect yourself. Real assets are basically the only way to protect yourself in time of war.

So in my view whatever happens, if the world economy gets better, commodities are going to be good because of the shortages developing. If there is war, commodities go up in war. If there is peace and there is not going to be an economic recovery for governments, they are going to print even more money, it is the western government. so depending on how things work out tonight, I would probably use this opportunity to jump in and buy more commodities.

in BusinessInsider

Related: iShares MSCI South Korea Index Fund(ETF) (NYSE:EWY), Korea Electric Power Corporation (ADR) (NYSE:KEP), United States Oil Fund LP (ETF) (NYSE:USO), iPath S&P GSCI Crude Oil Total Return (NYSE:OIL)

Jim Rogers is an author, financial commentator and successful international investor. He has been frequently featured in Time, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times and is a regular guest on Bloomberg and CNBC.

Jim Rogers Blog: If There Is War, Commodities Go Up In War.

A couple I know say the Wall Street mess is a result of "Greenspan raising interest rates 16 times in 2 years" and not sub prime preadtory lending. Her brother is a realator, which is my suspicion of this slant. Greenspan was the Fed chairman for a long time and very respected, so there has to be 2 sides to this story……why did he raise interest rates so many times? Aren't these problems intertwined?

Are my friend's right about the Wall Street mess being Greenspan's fault?

In Peter Lynch's "Beating the Street," there is the following: "my top 10 stocks in 1978 had p/e ratios of between 4 and 6, and in 1979, of between 3 and 5. When stocks in good companies are selling at 3-6 times earnings, the stockpicker can hardly lose." (page 100). Are there any stocks like this now? every one I've looked up doesn't have a p/e ratio anywhere close to 3-6. I know p/e ratios aren't the only factor in evaluating a stock; I just want to know if I'm missing something here. Do such stocks even exist in today's market? (Just doing this for my own research; not looking to buy anything right now). Thanks!

Go here:

http://screener.finance.yahoo.com/newscr…

and run Yahoo Finance's stock screener. you can search for low P/E stocks among other things.

PM, E, MO, BCS, UL, AIB, and many more have P/Es under 5.

What he means is the PEG ratio:

http://search.yahoo.com/search;_ylt=AkK8…

You can easily find it in Yahoo Finance, for example:

http://finance.yahoo.com/q/ks?s=T

Basically, the PEG indicates how much you pay for a "dollar"

PE is no reason to buy a stock period. End of story. all stocks are different. a low PE means/can mean investors aren't looking at that stock. they have probably passed it up for a better oppurtunity elsewhere.

For instance, take Google in 2004. it was priced at ~115 a share and the PE was 130 + !!! Would you buy it? Not if you are looking for low PE? after that it climed nearly 7 fold.

Look more for EPS, Cash flow per share, ROE. P/E can be helpful, just don't be chasing on PE alone.

P/E ratios of 3 to 6?

by Cold-Steele O (Senior Chimp, 17 Points) on 12/19/10 at 7:31pm

Honestly, the hoarders of the Wall Street bonuses will likely go to the top revenue generators. From the 1990s and up through 2007 I understand that at most BB firms tailored their business-models to focus on revenues primarily driven from trading activities. Going forward I think it’s safe to say that with Frank-Dodd, Basil III, and an overall more prudent outlook on credit that S&T revenues could be hurt—particularly the guys working in structured products.

That being said, financial markets are still obviously going to operate and they need players who facilitate the processes which means S&T is still going to be a worthy business segment: but will S&T be able to turn as impressive of profits in an environment with so many restrictions and oversight?

I recall a report released by the BCG back in 2009 about how investment banks will likely see fewer revenues from trading: futures, options, equities, forex, and the big obvious one ABS. The report did not cite huge increases in i-banking revenue but it did suggest that i-banking revenues stand to gain as banks attempt re-center their businesses around more traditional operations. I was unable to find a link…

Depending on how the financial reforms work in practice as opposed to theory I think traders do stand to lose out a little, especially with the 3% prop-trading restriction. on the other hand do I think that corporate America is going develop a new thirst for M&a when the concepts of synergy and shareholder-value have almost become laughable opposites? I’d be surprised if such an event occurred.

In the end I think it’s really going to come down to how pending regulation affects Wall Street’s revenue generating ability—and of course—the degree to which Wall Street innovates financial products and services. At this point, it seems that reform is primarily aimed at S&T operations. who knows how long it will be before the jocks of Wall Street feel the pain.

I say point goes to “team xerox” on this subjective matter.

Weekend (Bonus) Wars: IBD vs. S&T

I was curious if anyone thinks Warren Buffet will buy Dow Jones & Company?

The reason I ask: It seems to fit Buffet's idea of a "durable competative advantage"; even though newspaper's in general are loosing readerships, it seems that wall street journal is a durable name that will stick around for decades to come. And Berkshire might make a good fit for the Bancroft family who are concerned with Murdoch tinkered with the editorial side. Buffet typically likes companies that run themselves and typically does not get involved in running the busnesses aquired.

Also in an interview on Charlie Rose, while Buffet dismissed his interest by suggesting he "watches" a lot of things, I picked up on his acknowledgement that wall street journal has that key quality buffet looks for, "a durable competative advantage".

Any thoughts?

I don't see that happening but Warren doesn't tell me what's on his 'hit' list.

Will Warren Buffet (BRKa) purchase the Wall Street Journal?