Mike Wagner - Perpetual beta

A good breakdown of my trade pick of the year China 3C Group ticker CHCG.OB. Keep loading up at any price sub-$2 per share and hold on. The company itself has been a money making machine over the past 2 years. The cash flow and earnings per employee is through the roof. At these levels it looks very very underpriced. If CHCG uses its cash for additional expansion, revenue/earnings could easily double. This makes it a growth story. Shareholder Equity Shares Outstanding 52.7 M Institutional Ownership 7.77% Number of Floating Shares 42.7 M Short Interest as % of Float -- Valuation (MRQ) Price/Earnings (TTM) 4.09x Price/Sales 0.34x Price/Book 1.63x Price/Cash Flow 5.32x CHCG's P/E Ratio is lower than 88% of other companies in the Audio & Video Equipment industry. This typically means that investors are willing to pay less for its level of earnings relative to future growth.Profitability (TTM) Gross Margin 17.89% Operating Margin 12.95% ...

Target price may be reduced - but not that much considering the level one could enter the stock now. 03/18/08 - Maxim Group NEW YORK, March 18 (newratings.com) - Analyst Albert Lee of Maxim Group maintains his "buy" rating on China 3C Group Inc (CHCG) , while reducing his estimates for the company. The 12-month target price has been reduced from $7 to $5. In a research note published this morning, the analyst mentions that the company has posted its EPS and sales for the previous year short of the estimates. China 3C’s guidance for 2008 indicates that the sales momentum in 2H08 would be offset by higher-than-previously-anticipated gross margin pressure, the analyst adds. There is low near-term visibility into the company’s internal unit expansion strategy, Maxim Group says. The EPS estimate for 2008 has been reduced from $0.62 to $0.44.

For those who know me know I have been investing since I was 15. Every once in awhile I divert from the usual web 2.0 topics to that of a investment I have taken a position in. Today is one of those days since China 3C Group , CHCG has gotten pummeled today as what I believe to be a over-reaction by speculators to FY2007 results today. I consider the consumer electronics retail sector in China as an opportunity to reap the history of one of the fastest growing staples of any growing economy. Mix that with $25 million in cash on the books and a solid, real (sometimes you just don't know with over the counter stocks). As always, do your own DD but as I see it the stock still looks extremely cheap on a valuation basis even after the guidance, and is building a base on which to spring higher. Not including cash and simply assigning an industry PE of 10 we should be at $4.50 on normal growth rates. Besides the speculators, & extremely volatile world markets, the company has st...

I mentioned China Natural Gas and it seems the company is delivering on what it promised. For me its my energy play in an energy constrained populas and growing country... China Natural Gas Reports First Quarter 2007 Financial Results Tuesday May 15, 4:38 pm ET Net Income Up 414% to $2.1 Million NEW YORK, May 15 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC BB: CHNG - News ), one of the leading providers of pipeline natural gas for industrial, commercial and residential use and compressed natural gas (CNG) for vehicular fuel in Xi'an, China, today announced its first quarter financial results for the period ended March 31, 2007. Financial Highlights for the First Quarter 2007: - Revenue increased 277% year over year to $6.7 million - Gross profit increased 272% year over year to $3.5 million - Income from operations increased 421% year over year to $2.5 million - Net income increased 414% year over year to $2.1 million - Net income per share increas...