3SOF

CHID's revenues in 2003 were $0, in 2004 were $2.34M and for the nine months until September 2005, revenues were $9.63M (year over year revenue growth will be about 5 fold).

Market cap is just $22.88M. Working capital is plenty. The company is profitable, returning 1 penny a share in EPS for the last 3 quarters, so P/E Ratio is about 10.

This penny stock seems to be severely undervalued. I'll buy it for the 3 Pennies on Fire, around today's open, about $1,150 of stock, or 10% of the 3 POF capital.

I was looking at this this weekend and was going to buy this morning, but my scottrade account says I cannot buy his and can only sell and to call local branch to place order. First time I have had this. I thought it looked promising.

I bought today on David's recommendation.  Looks good from a TA and fundamental perspective.  We will see.   ;D

What caused CHID to fall from $ 1.50 on the chart ?
Thank you for the input.

-Jeff-

chid infos:
CHID: Receives $2.5M Purchase Order
Friday , January 06, 2006 08:17 ET
China Digital Communication Group (CHID) announced that its wholly owned subsidiary, Shenzhen E'Jenie Science and Technology Development Co., Ltd., has received a purchase order from Shenzhen Yin Si Qi Electronic Co., Ltd., a subsidiary of HeNan Star Technology Stock Co., Ltd. HeNan, which trades on the Shenzhen Stock Exchange Market, is the largest non-governmental and multi-industry high- tech group in the HeNan province of China.
Yi Bo Sun, China Digital's Chairman and Chief Executive Officer, stated, "Yin Si Qi is an innovative company, responsible for creating patented, environmentally-friendly battery technologies that meet today's emerging global industry standards. Yin Si Qi has an excellent reputation and large production base in the Shenzhen Guangdong province in China. Purchases from Yin Si Qi include steel and aluminum shells and caps, and are valued to add $2.5 million to China Digital's revenues in 2006."


I didn´t find any reason on their website...

David,

I am in but need more information about the slide from $ 1.60.
The volume now does not correlate to the price.

Do not know enough information to add here.

Awaiting a return call from the company and Investor Relations.

Thoughts on the slide even with good news ?

-Jeff-

The entire day was spent on CHID in order to catch up on the history.

Several calls were made.  A new Investor Relations firm was hired that has more experience in getting the word out to investors.  Below is the contact information for the new Investor Relations firm.

Peter H. Clark, VP Marketing
National Financial Communications Corp.
300 Chestnut St, Suite 200
Needham, MA 02492
781-444-6100 ext 629
781-444-6101 fax
508-633-3606 cell
website: www.nationalfc.com, www.otcfn.com, and www.nfnonline.com
email: [email protected]


Roy Teng is based out of the Los Angeles office.  Roy is with the company and NOT the IR firm.

* Roy is who you want to call with any questions as he knows the company well.

He was extremely receptive to the call and provided valuable insight.
Speaking with both IR and Roy confirmed the facts below.

May I suggest contacting Roy to gather more information than is provided below.

For further information, contact:
     At the Company:
     China Digital Communication Group
     Roy Teng
     310-461-1322
     E-mail: [email protected]
     http://www.chinadigitalgroup.com

Roy verified the following numbers:
SHARE STRUCTURE

AS 140 million
OS 54 million
Public Float 13 million
% held by insiders: 76%

Cash: $ 2,000,000
Long Term Debt: $0
CHID is Profitable and Growing Quickly

-  Roy said the insiders are restricted and have not sold any shares.  Roy stated the insiders feel the company is undervalued and want to hold all shares.

-  No reverse split is ever discussed.

-  The goal is AMEX for CHID and they feel great about being able to qualify moving forward.

-  Roy said the anticipated acquisition would qualify them for the goal of AMEX this year.

-  They currently account for 10 % of all Chinese business in this arena.
   
-  Management expects the number to jump to 15-20 % this year.

-  100% of the revenue was China so the USA, middle east & others can exponentially grow the Revenues.  Very exciting if they get the major USA retail account.

-  Roy said they set up offices to the USA to penetrate the market and gain exposure to USA investors.

-  They are in trials with a Major USA Retailer at this time, more news to come.

-  They produce the case.

-  Roy said they are looking at a major acquisition that can get them into producing more than just the casing.  This may happen this year.

-  It costs 8-10 cents per case and the Profit Margin is 20-21 %.

-  With an acquisition, a battery would cost around $ 1 and Profit margin 15 %.

-  They currently employ 591 people.

-  Cost per employee per day is roughly $ 10.

-  They have patents on the products.  Roy said it would be hard for another company to penetrate their area as they have such a head start.

-  The financing was originally with 7 investors, 30 million shares.  No further financing is needed.  They are debt free and solid moving forward with the cash.

-  Roy expects a push to gain exposure for CHID near term.

-  This will be huge for the share price if the above plan is executed.

* Please feel free to correct and/or add any information above.

APPLAUDE!

I appreciate your leg work.

Nice pic.

Great gap. Your continuous work is greatly appreciated!

Thanks.

I bought in yesterday.

Quote from: fill_the_gap on January 10, 2006, 04:30:22 PM

Roy verified the following numbers:
SHARE STRUCTURE

AS 140 million
OS 54 million
Public Float 13 million
% held by insiders: 76%

Cash: $ 2,000,000
Long Term Debt: $0
CHID is Profitable and Growing Quickly

-  Roy said the insiders are restricted and have not sold any shares.  Roy stated the insiders feel the company is undervalued and want to hold all shares.

-  No reverse split is ever discussed.

-  The goal is AMEX for CHID and they feel great about being able to qualify moving forward.

-  Roy said the anticipated acquisition would qualify them for the goal of AMEX this year.

-  They currently account for 10 % of all Chinese business in this arena.
   
-  Management expects the number to jump to 15-20 % this year.

-  100% of the revenue was China so the USA, middle east & others can exponentially grow the Revenues.  Very exciting if they get the major USA retail account.

-  Roy said they set up offices to the USA to penetrate the market and gain exposure to USA investors.

-  They are in trials with a Major USA Retailer at this time, more news to come.

-  They produce the case.

-  Roy said they are looking at a major acquisition that can get them into producing more than just the casing.  This may happen this year.

-  It costs 8-10 cents per case and the Profit Margin is 20-21 %.

-  With an acquisition, a battery would cost around $ 1 and Profit margin 15 %.

-  They currently employ 591 people.

-  Cost per employee per day is roughly $ 10.

-  They have patents on the products.  Roy said it would be hard for another company to penetrate their area as they have such a head start.

-  The financing was originally with 7 investors, 30 million shares.  No further financing is needed.  They are debt free and solid moving forward with the cash.

-  Roy expects a push to gain exposure for CHID near term.

-  This will be huge for the share price if the above plan is executed.

* Please feel free to correct and/or add any information above.

great work as always fill_the_gap;  applaud  ;)

Applause gap - I am in too

76% held by insiders-

On the surface it would seem a good thing for insiders to own such a high percentage.

I am in another stock with insiders owning more than 50% and would expect they would have a vested interest in seeing the company perform, on the other hand wouldn't insiders selling be a huge red flag.

Would the common shareholder even have a chance to exit without taking a large loss?

CHID is confusing.

Boatguy.
You are correct.  The insiders would have to file for a sale as the shares are restricted.

A few concerns to bring to light.

-  The 7 individuals that provided the financing:

A.  How many shares do they have ?
B.  Think they got in around 5 cents, 30 million shares, raising 1.5 million dollars
(this needs to be verified, but came in the notes with the Roy call)
C.  Are these people selling as they are in the money ?

Another theory.
The volume is shares being transferred between accounts.
The shares have to hit the ticker, yet are being shifted around.
This was the theory of the past IR person (Zack) today in a call.

This would throw out TA research because the volume is deceiving.

But the main concern is the selling terms of the private investors.

Any thoughts ?

Quote-  The financing was originally with 7 investors, 30 million shares.  No further financing is needed.  They are debt free and solid moving forward with the cash.

Well, the company didn't sold any shares at least since April 2005, on every 10-Q since then it always says: the company has 54,460,626 shares outstanding. Knowing OTCBB companies like we do, this is a major positive.

If the company doesn't seek to get money from investors it means it doesn't need it and it wants to protect shareholder value, not dilute it. From this point we can make fundamental assessments - if they improve, without a doubt over time the stock price will also rise.

Why the 73% fall from July to August 2004? I don't know. But why the previous 277% rise, also in just 2 months? Not a clue:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=13291;image)

They're even buying their factory:

«The Company entered into a factory purchase agreement with the landlord
         after  the end of the  lease for  approximately  $1,000,000.  Since the
         landlord   could  not  obtain  the   relevant   Property   Registration
         Certificate  from the PRC Government by September 15, 2005 the landlord
         has agreed to provide  three (3) months  free rent to the  Company.  If
         after  December 15, 2005 the  agreement can not be completed due to the
         Governmental filings, the landlord and the Company will renegotiate the
         lease.»

Here are the 7 investors:

«On March 17, 2004, we sold 30,000,000  shares or approximately 62% of our issued
and common stock at a per share  purchase  price of $0.05 to seven  unaffiliated
individuals in a private  placement,  which yielded  aggregate gross proceeds of
$1,500,000 (the "Private Placement").»

They have an 8 fold profit at this point. It doesn't mean they're selling, but if they are, I believe they're making a mistake, fundamentals are outstanding now !

What they do:

«Through  E'Jenie,  we  manufacture  and  distribute  lithium  battery shells and
related products primarily in China. Based upon  specifications  from customers,
E'Jenie  develops,  customizes  and produces  steel,  aluminum  battery  shells,
aluminum caps, and lithium batteries for mobile phones,  PDAs and MP3s and other
small electronic consumer products.»

Intense revenue growth:

«Net sales for the nine  months  ended  September  30,  2005  totaled  $9,629,077
compared to $2,761,992 for the nine months ended September 30, 2004, an increase
of $6,867,085 or approximately 248.63%. »

Intense profit growth:

«Income  (loss) from  operations  for the nine months  ended  September  30, 2005
totaled $2,318,322 compared to income from operations of ($291,945) for the nine
months ended September 30, 2004, an increase of $2,610,267. The increase was due
to the strong growth in company's revenue in 2005.»

They have cash and working capital:

«Cash and cash equivalents were $2,155,531
at September  30, 2005 and current  assets  totaled  $4,438,375 at September 30,
2005. The Company's total current  liabilities  were $1,537,966 at September 30,
2005. Working capital at September 30, 2005 was $2,900,409.  We believe that the
funds available to us are adequate to meet our operating needs for 2005.  During
the nine months ended  September  30, 2005 and 2004,  net cash provided by (used
in) operating activities was $2,037,285 and ($1,496,306), respectively.»

More info: «A GROUP OF SEVEN INVESTORS  BENEFICIALLY OWN 62.53% OF OUR COMMON STOCK. We sold
30,000,000 shares of common stock to seven individuals in a private placement in
March of 2004.  As a result of such  offering,  such  investors  as a group will
beneficially own  approximately  62.53% of the issued and outstanding  shares of
common  stock.  The  investors  have granted Yi Bo Sun an  irrevocable  proxy to
direct the voting of their shares of common  stock,  which  expires May 1, 2006.
Upon the  expiration  of these  proxies (and  assuming that such proxies are not
extended),  the  investors as a group will be able to exercise  control over any
matters  requiring  the vote of  stockholders,  including  the  approval  of any
business   acquisition  and  the  election  of  directors  assuming  no  further
issuances.  This  could  delay or  prevent a change in  control  of our board of
directors. This may have the effect of precluding or delaying the opportunity of
minority stockholders to sell their common stock to interested purchasers or may
significantly reduce the offering price in any such transaction.»

This is a $21M market cap company and earnings in 2005 are going to something like $2.89M, so the earnings multiple is 7.26, coupled with a 248% revenue growth.

I understand that a few people control the stock, and they're sitting on a 8 fold profit in just about 18 months, but ... the stock is undervalued and ultimately the market will reflect that.

David,

I found out today from Roy that the 7 investors are Restricted from selling until March.  They are free to sell the shares they got at 5 cents then.  So how can the volume and descending trend be explained ?  I am holding shares but have to say the entire trading pattern is a mystery to me.   ???

Jeff

news out
China Digital Communication Group Targets Acquisitions in the Electronic Power Resource Sector
Friday January 13, 8:00 am ET
LOS ANGELES, CA and SHENZHEN, CHINA--(MARKET WIRE)--Jan 13, 2006 -- China Digital Communication Group (OTC BB:CHID.OB - News), one of the fastest growing battery components manufacturers in China, announced today that the Company is seeking potential acquisition opportunities within the electronic power resource sector in both China and the United States.
Yi Bo Sun, China Digital's Chairman and Chief Executive Officer, stated, "We have an acquisition strategy focused on building our sales, marketing and distribution opportunities in the global electronic power resource industry. In the United States and China, this industry remains highly fragmented and we believe it is now ready for consolidation. With our production facilities in China, we can offer companies the opportunity to significantly grow their business through increased access to capital and research and development. We are focused on those companies that complement our existing competencies, and can be accretive to earnings immediately or within 12 months of joining China Digital."

Looked good at the end of the day.  If it tops .44, I'm in.  Have a great long weekend everybody. :)

This stock has major resistance right here at .42. If we break that this week it could start to head higher. Next resisatnce is .52.


Here's the chart:
http://stockcharts.com/def/servlet/SC.web?c=chid,uu[m,a]daclyymy[pb50!b200][vc60][iub14!la12,26,9]

Ok lets try this again:

Finding out that the 7 investors are able to sell as early as March bothers me.
The are up 800% and who knows if they will sell.
Roy says they are trying to get them to keep the shares, but who knows.

That said, I will sell and take a wait and see approach.

Everything looks great on paper and I will jump back in with a breakout. 

The fundamentals should take it much higher.  It does not make sense as to why it has not risen so far.  ???

It will be close on the radar.  Until a breakout, the money will be used in other stocks.

*DJ China Digital Communication Group Elects New Chief Executive Officer And Chief Operating Officer>CHID   

01/23/2006
Dow Jones News Services
(Copyright © 2006 Dow Jones & Company, Inc.)


(MORE TO FOLLOW) Dow Jones Newswires

01-23-06 0755ET

Copyright (c) 2006 Dow Jones & Company, Inc.

*DJ China Digital Names Chang Chun Zheng CEO, Chmn>CHID 

CHID.OB is the only losing stock on the Pennies on Fire Portfolio, but it seems to be the one with the best fundamentals, truly a sound pick. So I'll have patience with it and continue holding.

Revenue growth is the kind of number CHID.OB has to show, look at the graph below:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=14039;image)

Also, there's an interesting thread on CHID.OB at the Penny Stock Picking Board: CHID.OB  (http://www.3stocksonfire.org/trading/index.php?topic=1196.msg6694#msg6694)

(people were trading CHID.OB around $1.75 then)

fill_the_gap, as usual, provided great information. Maybe the stock is so low now because investors are afraid of what those 7 investors which hold a big chunk of the shares at $0.05 are going to do with them when they're released in March (they have an 8 fold profit at this moment).

Actually, I've seen this sometimes, and usually, the stock is undervalued and people don't sell and the stock sky rockets when they don't sell.

I'm willing to wait until March or more to watch CHID.OB move on the upside, really undervalued here, with $21.78M in market cap, profitable and 5 fold YoY revenue growth.

«About China Digital Communication Group

China Digital Communication Group, through its Shenzhen E'Jenie subsidiary, is a
rapidly growing manufacturer of battery shells and related technology for use in
electronic products, primarily mobile phones. Since December 2003, the Company
has adopted the approach of using licenses, joint ventures, mergers and
acquisitions to bring battery and telecom equipment makers in China to markets
overseas. The Company's products now power digital cameras, camera phones, PDAs
and laptop computers in East Asia and beyond. China Digital is continuing its
expansion across China, while also seeking distribution partners in the United
States. For more information, visit www.chinadigitalgroup.com (http://www.chinadigitalgroup.com/).»

I'll continue holding CHID.OB, truly undervalued at this point.

Hey, CHID is making a move. Up to .47 now

Does anyone find a bullish news? 0.59 ;D  :o

Alright, sold half at .57

Sold all at .57
I regret already that I've sold so early - I can't hold against my emotions...  :(
In any case, what's a reason to this breakout?

I think the sudden price increase is due to the CHINA related hype that is going on with alsmost all chinese stocks. As someone on this site already said, 'buy anything with the CHINA name on it and hold for 2 weeks'  for a good return. 
I might be wrong and it just could be that impending goods news are about to come out. 

Either way, I believe this thing will go much higher.

Quote from: bocasva on February 03, 2006, 12:08:03 PM
I think the sudden price increase is due to the CHINA related hype that is going on with almost all chinese stocks. As someone on this site already said, 'buy anything with the CHINA name on it and hold for 2 weeks'  for a good return. 
I might be wrong and it just could be that impending goods news are about to come out. 

Either way, I believe this thing will go much higher.

The candlestick below on 2 million shares traded at this time of the day will make many people notice CHID.OB over the weekend. When they see the kind of fundamentals this company has, they'll push it higher more than 100% next week.

This is my believe, hold on to those shares.

Hmmmm... I remember I looked at this loooooong time ago when EliteG was hot on the trail.

I liked it then but time pasted .....

Now it is below $1 so I guess I have to do some number crushing.

I am really not good at these momentum stocks. I remember I once promised EliteG that I would just follow his advise. After that he disappeared!

Life is not fair  ::)

nice pop up today  ;D

When you do the number crunching on these momentum penny stocks you normally end up crunching the stock instead. Not in this case. These 7 guys simply have an outstanding business.

As we all know over the last couple of year's manufactures of electronics products such as mobile phones, PDA's, Digital cameras, MP3 players etc. etc. etc. has moved production to china both to be able to supply the local market and to take advantage of the low cost structure in China.

This has caused an explosion in the suppliers of parts to the electronic industry in China. Very few of them are available for international investors but China Digital Communication group is!

CHID (the name is not pronounced shit!) is producing steel and aluminum shells to batteries. Is that a sexy industry?

Well the growth in Revenue and Gross profit certainly looks sexy to me:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=14669;image)

Think about it like this. The world consumes more than 2 billion mobile handsets per year and an increasing part of those are produced in China. Each phone will use 1.8 batteries over its lifetime. That is 3.6 billion batteries. Then add MP3 players, PDA's etc....

CHID's production capacity is 300 000 shells per day. With the strong balance sheet they should be able to finance further expansion without going to the market.

Both the market and CHID's market share are growing rapidly. Hardly surprising that revenue in Q3 increased with 242%

The company is actively looking for acquisitions to add fuel to the organic growth:

QuoteYi Bo Sun, China Digital's Chairman and Chief Executive Officer, stated, "We have an acquisition strategy focused on building our sales, marketing and distribution opportunities in the global electronic power resource industry. In the United States and China, this industry remains highly fragmented and we believe it is now ready for consolidation. With our production facilities in China, we can offer companies the opportunity to significantly grow their business through increased access to capital and research and development. We are focused on those companies that complement our existing competencies, and can be accretive to earnings immediately or within 12 months of joining China Digital."

CHID has become a major player in the Chinese electronic manufacturing during the three years since the company was formed. With the organic growth and earning accretive acquisitions I can see this company continue its rapid growth in the years to come.

There are 54,5 million shares fully diluted outstanding so CHID's market cap is around $30 million with Fridays share price. The Company has a healthy balance sheet with over $1 million in cash and no long-term debt.

After a quick look at the fundamentals on Friday I decided to buy. To be honest I thought it would fall back at the end of the day so my bid was as usual a bit on the low side. I managed to get a few shares. Enough to keep my interest but not enough to keep me satisfied so I will be on the buying side again on Monday.

I am wondering what the h... I was doing when David mentioned this the first time. I am normally not interested in penny stocks unless they provide exceptional value (like BRVO and BPTR) so I am not keen reader of this forum. That might however change from now! (http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=3072)

Mike

nice update Michael; let me give some additional information:
cheers
Oliver

China Digital Communication Group (OTCBB: CHID), through its wholly-owned subsidiary Shenzhen E'Jenie Technology Development Co., Ltd. ("E'Jenie"), is one of the fastest growing providers of power-supply components to China's explosive $2.1 billion battery market. Based in southern China's manufacturing core of Shenzhen, E'Jenie develops, produces, distributes and markets steel and aluminum battery shells (ABS) and related technology for use in electronic products such as mobile phones, digital cameras, camera phones, PDAs and laptop computers in East Asia and beyond.

E'Jenie has been profitable from its inception in 2002, and has consistently grown its revenues and earnings. While the Company is focused on increasing manufacturing capacity at E'Jenie to meet skyrocketing domestic demand, CHID is actively pursuing licenses, joint ventures, mergers and acquisitions, and strategic partnerships that link Chinese manufacturing companies with U.S. distribution networks to achieve greater profitability. Management announced it is on track to achieve $11.4 million in revenues and a net income of $2.6 million, both up 100% year-over-year, at year-end 2005.

With its strong fundamentals and solid prospects for growth, China Digital is a dynamic new issue to the U.S. stock market that is poised to rapidly build shareholder value.

Strongly Favorable Market

With China becoming the world's manufacturing hub for cell phones and other digital mobile devices, E'Jenie is strategically positioned to supply vast numbers of battery shells for lithium-ion batteries, an industry standard in today's digital world.
Large & Growing Cell Phone Market: China's domestic mobile phone battery market is expected to expand in 2005 to 570 million units, up from 450 million in 2003. The worldwide market for mobile phone batteries is projected to see a two-year rise to 2.52 billion from 2.16 billion units. Domestic battery sales in China are expected to rise to $2.1 billion in 2005, up from $264 million, or more than 14%, from 2004. China will experience a 50% increase in demand of the lithium ion batteries in 2005 (Source: China Statistics). E'Jenie now recognized as a leading provider of ABS shells for lithium ion batteries.
Not only are more Chinese consumers buying mobile phones, but current users are also constantly upgrading their equipment as rapid advances in technology bring about new cell phones which are eagerly accepted into the marketplace. This trend also opens up the market for rechargeable batteries, which is valued at $500 million and growing 20% annually. A mobile phone battery has a typical usage life of 300 to 500 recharges, which translates to a ratio of 1.8 batteries in service life of each phone (source: Chinese Statistics). Moreover, battery replacement demand grows faster than this when consumers turn in their phones for new models before the normal life of the battery is over. A short product life, combined with an accelerated product innovation cycle, have created rapid product turnover and tremendous, ongoing demand for battery shell makers such as China Digital.
China's Move to Capitalism & the Appreciation of Chinese Currency: The Company is also poised to benefit from China's booming manufacturing sector. Makers of batteries and electronic products are direct customers for CHID's components, and their growth – fueled by exports as well as rising domestic demand – can translate into higher sales for CHID. China's entry into the World Trade Organization and the continued privatization of its industrial base will continue to fuel this expansion. State-owned enterprises are continually being reborn as private firms, creating demand for CHID to supply parts and materials to a new crop of manufacturers. In tandem with a move toward capitalism, the Chinese economy is benefiting from a stronger currency. Financial analysts predict the Yuan will continue to appreciate to a greater degree against U.S. currency. This trend favorably impacts the CHID's projected revenues and asset valuation.

Expansion Capacity:
CHID's key acquisition E'Jenie operates a new 65,000 sq.ft. manufacturing facility with over 110 pieces of manufacturing and test equipment in the Xinglian industrial zone of Shenzhen, China. E'Jenie brings expertise in the research and development, manufacture and distribution of battery shells and related technology. Its main products are steel and aluminum battery shells, aluminum battery caps and lithium batteries. Its primary market consists of battery manufacturers selling to the mobile-phone industry.
E'Jenie was founded less than three years ago with one steel-shell production line. It quickly took advantage of China's skyrocketing demand for mobile phones, adding three more production lines before the end of its first year. By the end of 2003, it had 14 steel-shell production lines. In 2004, it bought five aluminum-shell production lines, adding to a pair of battery-cap lines purchased earlier. With its scalable manufacturing capacity, E'Jenie quickly became a major supplier to the Chinese electronics manufacturing sector. The facility now employees more than 550 skilled workers with a daily production capacity of 300,000 steel shells; 150,000 aluminum shells; and 150,000 aluminum caps.
E'Jenie also stands out as the first manufacturer to establish technical and quality production standards in the lithium ion battery industry. These guidelines solidify E'Jenie's position as a leading supplier in the lithium ion battery industry in China, while addressing increasing demands from consumers to deliver technical and quality standards for lithium ion battery shells.

Key Contract:

E'Jenie recently signed a contract with Wuhan Jie Xin Communication Development Co., Ltd, one of the largest lithium ion battery manufacturers in China. The contract calls for E'Jenie to supply 9.4 million steel and aluminum battery shells and sell them to Wuhan Jie Xin over a 12-month period for a purchase price of $667,053. As a result, E'Jenie has met its goal of obtaining at least 25% of Wuhan Jie Xin's annual ordering capacity for steel and aluminum battery shell products and lithium ion batteries. This is a significant accomplishment for E'Jenie, earning it a larger portion of China's electronic power supply market.

Multifold Growth Strategy:

With the E'Jenie acquisition, CHID is now a major presence in the booming Chinese electronics manufacturing sector, and is poised to leverage its strengths to reach new global markets, including the U.S.
Aluminum battery shells (ABS) is at the center of China Digital's growth strategy. Battery makers are demanding aluminum shells and caps for a number of reasons. ABS components give batteries better electric conductivity; are lighter than steel; allow for greater capacity; and appear to be safer. In reports of battery explosions and other accidents, China Digital reports that ABS are linked to low injury rates when compared to steel components. ABS also has a cost advantage over steel. Though ABS products are sold at prices close to those of competing steel items, their raw material costs are much lower. Profit margins of ABS products remain above 30%.
E'Jenie's manufacturing capacity to produce ABS for lithium-ion batteries include multiple consumer product applications, including such mobile devices as digital cameras, MP3 players, cellular phones, notebook computers and PDAs. While increasing sales within this primary electronics market, CHID also has potential to expand to new and emerging markets, including the automotive market.
Overall, E'Jenie is currently holding 10% of the market in China and is now seeking to gain a presence beyond domestic sales. CHID is currently surveying the landscape of battery distribution networks in the U.S. to gain access to lucrative overseas markets. The Company's mid-term strategy is to use licenses, joint ventures, mergers and acquisitions to successfully bring together Chinese manufacturing companies with U.S. distribution networks. As the Chinese currency appreciates, CHID stands to significantly increase margins as it begins importing activities in the U.S.

Strong Upside Potential:
For the fiscal year 2004, China Digital recorded pro forma sales of $5.18 million, nearly all of which was revenue acquired through E'Jenie. The Company also reported a sharp rise in revenue from sales of its new aluminum battery shell (ABS) line, which first went on the market in October 2004. For the first two quarters of 2005, China Digital posted revenues of more than $6.2 million, representing an explosive 528% increase from $991,541 in the same periods in 2004, and a net income after tax of $1,426,596, up 433% increase from a loss of ($428,087) in the same periods in 2004. China Digital expects its trend of record sales and profitability to continue through 2005.
Operating in a highly-fragmented global industry, E'Jenie's manufacturing strengths, experienced management team and established customer base provide CHID with unique advantages to attract acquisition targets. Combined with increasing business in E'Jenie, CHID is poised to rapidly build revenues and earnings. Management projects 2005 revenues of $11.4 million and net income of $2.6 million, both representing increases of 100% year-over-year. The Company also has a healthy balance sheet with over $1 million in cash, no long-term debt and is self-financed. Within the micro-cap sector, CHID represents a solid, long-term upside opportunity for investors to benefit from the fast-growing market of electronic components, both within China and overseas.

Experienced Leadership:

Yi Bo Sun, Chairman and CEO - Mr. Sun assumed the leadership post at CHID when it acquired E'Jenie, where he had been chief executive officer and president since February 2004. Previously, he was president of Shenzhen Jing Kong Chao Ying Electronic Industrial Corp.; marketing director of Shenzhen Heng Tian Communication Equipment Co., Ltd.; and executive president assistant of Shenzhen Te Fa Tong Cheng Industrial Inc. He holds a Bachelor of Science degree from Jilin University.

Yao Miao, Chief Financial Officer - Mr. Yao Miao has served as the chief financial officer of CHID since February 2004. Before assuming this role, he was the chief financial officer of Shenzhen Southern Heng Ye Industrial Co., Ltd.; the auditing manger of the accounting department at Shenzhen Run Ze Universal Development Co., Ltd.; and accounting department director at Golden Butterfly International Software Co., Ltd. He has a Bachelor of Science degree in economics from Hubei University, and is a Certified Public Accountant.

Mei Bin Jin, Secretary - Ms. Jin has been on the Board of Directors of CHID since February 2004. Before that, she was the executive general manager of Shenzhen E'Jenie Science and Technology Development Co., Ltd. She is a graduate of Hubei Province Huaangshi City Professional Institute.

MARKET OPPORTUNITY:

The key to China Digital's growth lies in the soaring demand for mobile digital products and power sources. The record of its E'Jenie subsidiary shows how fast this market is expanding.
E'Jenie was founded less than three years ago - in May 2002 -- with one steel-shell production line. It quickly took advantage of China's rocketing demand for mobile phones, adding three more production lines before the end of its first year. By the end of 2003, it had 14 steel-shell production lines. In 2004, the year of its acquisition by CHID, it bought five aluminum-shell production lines, added to a pair of battery-cap lines purchased earlier. The upshot of all this is a projected manufacturing volume of 100 million product units in 2005.
Why such rapid growth? The answer can be found in the sharply rising demand for new mobile phones in China. Not only are more Chinese consumers buying the phones, but current users are also constantly upgrading as new phones with new features are introduced into the market. A mobile-phone battery has a typical usage life of 300 to 500 recharges, which translates to a ratio of 1.8 batteries in service life of each phone, according to official Chinese statistics. However, battery replacement demand is faster than this when consumers turn in their phones for new models before the normal life of the battery is over. A short product life combines with a short product innovation cycle to create rapid product turnover - and plenty of business for battery shell makers.
All told, China's domestic mobile phone battery market is expected to expand in 2005 to 570 million units, up from 450 million in 2003. The worldwide market will see a two-year rise to 2.52 billion from 2.16 billion. In dollar terms - more meaningful for CHID investors - domestic battery sales in China are expected to rise to $2.1 billion in 2005, up $264 million, or more than 14%, from 2004.
CHID is profiting from another boom, that of China's manufacturing sector. Makers of batteries and electronic products are direct customers for components made by CHID's E'Jenie unit. Their own growth - fueled by exports as well as rising domestic demand -- translates into higher sales for CHID. China's entry into the World Trade Organization and the continued privatization of its industrial base will continue to fuel this expansion. State-owned enterprises are continually being reborn as private firms, adding to the market for companies, such as CHID, that supply parts and materials to manufacturers. While these firms have been mismanaged in the past, they also retain strong connections to government buyers, which give them a leg up as they venture into capitalism. CHID expects to be supplying more and more of these companies in coming months and years.

SUBSIDIARY:

Shenzhen E'Jenie
Shenzhen E'Jenie Development Co., Ltd. was formed in May 2002 as a privately held company specializing in manufacturing and distribution of square battery shells (steel and aluminum) and aluminum battery caps for lithium-Ion batteries, the power source of today's ubiquitous digital mobile devices such as camera, MP3 players, cell phones, laptop computers and PDAs.

E'Jenie has continued to expand its operations following its November, 2004, acquisition by CHID. It has recently announced a move to new factory of 6,000 square meters (64,580 square feet), a 50% increase in production space. It now uses over 100 pieces of testing equipment and production machinery, and its highly skilled workforce now numbers over 500. The company owns its own research and development arm, which has just recently developed a proprietary technology of preventing air leaks on aluminum battery caps.

Product Lines and Capacities:
Variety of Shells/Number of Lines/Models/Sizes/Production Capacity
Square Battery Shells (Steel)/14/10/30/300,000 units/day
Square Battery Shells (Aluminum)/5/10/20/200,000 units/day
Aluminum Battery Caps/2/10/20/200,000 units/day

CHID PRODUCTS:

I had to get in.  Wish I had set a limit buy at .44 like I should have. didn't though, chased it, filled at .55.   Nice end of the day action.  Thanks for the heads up on this one Dave.  I don't think I could got in this one without your reccomendation.  Flame on.  Waiting for the afterburners to kick in. >:D >:D

David, nice call, applaud !

Quote

The candlestick below on 2 million shares traded at this time of the day will make many people notice CHID.OB over the weekend. When they see the kind of fundamentals this company has, they'll push it higher more than 100% next week.

This is my believe, hold on to those shares.

Quote

David, excellent pick!  I was getting a little worried and impatient with this stock (my bad). I am very glad now I didnt sell it, and glad I bought it when you said to!  :-)

Now I havent traded penny stocks very much, so I would like to ask your clarification on what you mean by "higher more than 100% next week"?  Are you thinking it may double from its current price, or that the gain since you first bought it will reach 100%? 

In either case I will hang on to my current shares, but am wondering if its worth putting in some more capital to work on this bad boy ;D

hi Michael,

;)

Applaud David for this call... applaud a lot, you are the Angel of 3SOF.. are you? ;) ha, ha, ha CHID is definitely on fire ;)

Quote from: Terlisa on February 04, 2006, 11:31:30 PM

The best time to use a trend-following method is when ADX is rising and is above the lower directional line. Those are two signs of dynamic trends ;)

The second chart below is an example of a Dynamic Trends. This is what we would like to see on a chart, this is the best signal of the directional system comes after ADX falls below both directional lines. It "rings a bell" on a new trend...
Like what happening now on CHID.OB ;)

GIGM also an example ;)
FYI this is also happened on DIET ;)

Hmmmmm...... I guess I am not the only one who are waiting for comments about the opening this morning so let me break the silence  ;)

I have to say that I had expected to open up after the strong performance on Friday. Instead we opened down.

The day is still young (at least in US) and I would expect there is a lot of traders that are waiting to see where the bottom is before they buy. I at least was ready to buy at higher prices than Friday but after the weak opening I have decided to sit on the sideline for the time being.

I am not a great momentum trader (EliteG are you out there!) but fundamentally this stock is worth a lot more than it is trading now so I will sit on the shares I bought on Friday and supply later when I think the profit taking is over.

Mike

Hi Michael, I am also waiting to buy the other half of my position after reading your post over the weekend. thanks a lot for your analysis! applaud!
looks like 0.50 is providing support. i already asked the wizard G  ;) , let's see what he says.

Good luck!

Sitting on .48

This is on Scottrades restriction list so I was unable to purchase at .50


Good luck to the holders.

Well it seems like 0.48 is a solid bottom. As I am already in I have put my bid in at 0.48.

As said in my first post in this thread I normally don't invest in penny stocks but sometimes there are penny stocks that I wouldn't mind to own long term.

I am happy with my investment in CHID (be carefull when pronouncing this - only chinese could have choosen a ticker like that  ;D). This is going to contribute to my retirement but I might not retire today!

Mike

Hey Eags and Mike, CHID looks fine to me, especially since you have David backing up the fundamentals  ;).  Remember that the market is weak today.  In fact the market looks ready to dive but CHID is holding above 50 cents.  Would like it to close above 50cents to show short-term strength.  The market diving might actually be good for CHID.  Traders flock to pennies when things are souring in the markets.  I am not in but I'll watch and learn.  I'm looking for higher lows in the next few days ;)

-g

Looks good to me, I think I will buy tomorrow ;)

Oh boy, I'm so glad to see friends entering CHID.OB. The stock came down yesterday, but still closed above the previous day's midpoint, which was $0.51 (Michael, you say you're not very good with momentum stocks, and then you buy right at the low of the day - any day trading experience? You don't believe, at all, in day trading, right? Has it always been like this? Just curious !).

This is a perfectly normal pullback (an healthy pullback), and CHID.OB will probably shoot higher over the coming sessions.

The whole thing seems to be just starting ... the problem is the stock may run so fast that it goes to very overbought levels, and then it pullbacks a lot. Since the market cap is so small ($27.78M) volatility may be very high.

I'm not willing to let go of CHID.OB without some bags of profit. Good luck  :)

(yet, be careful and don't invest too much, say, just 5% or less of your portfolio, you know how OTCBB companies can deceive investors by selling many shares in the open market or providing false information, specially a Chinese company)

Is it still "Looks good" ???Today -9.8%
If it will break 0.45 (61.8% Fibonacci retr. level), I'll sell  :'(

Any thoughts, suggestions?

Hi Gri,

Well I guess the answer to your question depends on how you look at shares.

It is a little like looking at women. For some people a beautiful sexy woman with nice curves can be a dream woman. Other prefer women with strong arms that can wake up at 6am to milk the cows and then of course there are those who prefer a woman with experience and a fat bank account.

Well for me CHID is a sexy young woman with a nice bank account who are ready to go out and work to pay her own bills. Now that is a dream woman for me - sorry that is a dream stock for me  ;)

Now if you are a technical trader probably you are starting to look around for the next big love.

David, I am not a day trader and I will never be a day trader. I guess I am a bit too slow (read old). I would never run the 100 meter sprint but I am still hoping to complete my first marathon. Just to set the record straight I didn't buy at the low of the day and in fact I haven't added to my position yet. That might however only be a matter of time.

Mike

Hi Michael,

Thank you VERY much - for your answer and for all your posts.

How I look at shares - it's a great question!  :)
It depends...
in breakdown:  :'(  ???
in pullback or in channel:  ???  ???
in wild rally:  ;D  :o

Good luck

Quote from: Michael on February 07, 2006, 02:23:14 PM
It is a little like looking at women. For some people a beautiful sexy woman with nice curves can be a dream woman. Other prefer women with strong arms that can wake up at 6am to milk the cows and then of course there are those who prefer a woman with experience and a fat bank account.

Well for me CHID is a sexy young woman with a nice bank account who are ready to go out and work to pay her own bills. Now that is a dream woman for me - sorry that is a dream stock for me  ;)

As my high school history professor used to say: "One man's fox is another man's dog. Either way, they're both canines." ;)  For me CHID is a worn out looking "working girl" with 5 teeth in her mouth and needle tracks all over her arm LOL!! :D 

why do men always use women for their analagies and think its ok ??? ??? ::)

not very respectful and we are also members of this board. 

thanks

julia

Maybe this will help CHID a little today.  Looks like they hope to have a bigger stake in the worldwide battery industry.


Press Release Source: China Digital Communication Group


China Digital Communication Group Executes a Letter of Intent With Shenzhen Zhuo Tong
Wednesday February 8, 7:30 am ET


LOS ANGELES, CA and SHENZHEN, CHINA--(MARKET WIRE)--Feb 8, 2006 -- China Digital Communication Group (OTC BB:CHID.OB - News), one of the fastest growing battery components manufacturers in China, announced today that it has entered into a Letter of Intent to acquire Shenzhen Zhuo Tong Power Supply Industry Co., Ltd. ("Zhuo Tong"), a specialty manufacturer and distributor of high-frequency power supply products to the global communications industry.

Mr. Changchun Zheng, CEO and Chairman of China Digital, stated, "Zhuo Tong is well-established in the Chinese power supply market and offers China Digital an experienced leadership team, global distribution partnerships, and a strong revenue base that could more than double our annual revenues. Their high frequency power supply products can provide power required for plasma generation, induction heating, and numerous radar and communications applications, which would significantly broaden our core capabilities. Their products are well suited to power computers, computer peripherals, medical devices, magnetic devices, and test equipment, where reliability and quality control are of paramount importance to both the manufacturer and consumer."

About Shenzhen Zhuo Tong Power Supply Industry Co., Ltd.

Shenzhen Zhuo Tong Power Supply Industry Co., Ltd is specialized in manufacturing and distributing high frequency power supply products, reversible power supply products and other power supply products to the global, communications equipment industry. Shenzhen Zhuo Tong partners include Germany Phoenix Electric Co. and American Luminous Network Co. Shenzhen Zhuo Tong's customers are the communication equipment producers for the IT, power, radio and television broadcast industries.

About China Digital Communication Group

China Digital Communication Group, through its Shenzhen E'Jenie subsidiary, is a rapidly growing manufacturer of battery shells and related technology for use in electronic products, primarily mobile phones. Since December 2003, the Company has adopted the approach of using licenses, joint ventures, mergers and acquisitions to bring battery and telecom equipment makers in China to markets overseas. The Company's products now power digital cameras, camera phones, PDAs and laptop computers in East Asia and beyond. China Digital is continuing its expansion across China, while also seeking distribution partners in the United States. For more information, visit www.chinadigitalgroup.com.

Forward-looking statement: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may differ materially based on a number of factors, including, but not limited to, uncertainties in product demand, risks related to doing business in China, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products, and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.

Wonder if this explains the jump?

Sounds good though-

"Zhuo Tong is well-established in the Chinese power supply market and offers China Digital an experienced leadership team, global distribution partnerships, and a strong revenue base that could more than double our annual revenues."

Wonder what the terms are?

Quote from: gmarc66 on February 08, 2006, 12:15:05 AM
why do men always use women for their analagies and think its ok ??? ??? ::)

not very respectful and we are also members of this board. 

thanks

julia

Sorry Julia :-[ 

Thanks Lucas :)..i appreciate that :)

julia

and as with Fousc, i'd like to also congratulate u on the contest win you had! Excellent! ;D

No volume at all - I don't like it...  Any thoughts?
I'm still holding a double position, but may be I'm wrong in the short term...  ???

PS: Respect to Julia  :)

thanks very much gri64  :)

julia

Everyone still liking CHID to go higher. I took a 40% profit on IMNR, which is great since i was down 50% just a few days ago. Here's another canine analogy, One mans bitch is my wife. Just kidding Julia. seriously, dont tell her, she'll kill me. and dont tell her about my IMNR profits, or all the rest of my losses, and we know theres a ton of those.
Bob

Ok....Let's analyze the chart for CHID.ob by using Trend-Following system..

I may add some more shares on monday... goodluck traders!!! ;)

Terlisa, you look so enthused about CHID ;D..Its on my radar. U think its going to have a nice run soon?

Supergeek, Supergeek...what am i going to do with you :) Better be good or i'm gonna put my voodoo hex on u...trust me, you don't want to mess with an Italian womans temper...lol, but,  i'm going to let u get away with that comment this time.  Next time i'm telling ur wife! :)...then you can deal with her wrath, and i'm sure it won't be pretty...lol
Glad u made out on IMNR...darn i almost got into that too...too bad i didnt dive in..missed it.

Well, Terlisas making me keep an eye on CHID, his/her excitement is rubbing off on me.

goodluck to all :D

julia

News on CHID.OB: China Digital Communication Group Completes Initial Due Diligence on Shenzhen Zhuo Tong (http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B0C296CF3%2D8C0F%2D47DB%2DBD14%2D92E976BB0E4F%7D&siteid=mktw&sid=1832998&symb=)

Good news  :) If the company has the money or power to make acquisitions of this kind it sure is worth more than $29M  8)

fyi:
CHID: Completes Initial Due Diligence on Shenzhen Zhuo Tong
Monday , February 13, 2006 10:36 ET

China Digital Communication Group (CHID) announced that it has completed its initial due diligence on Shenzhen Zhuo Tong Power Supply Industry Co., Ltd., a specialty manufacturer and distributor of high-frequency power supply products to the global communications industry. China Digital found that Zhuo Tong has advanced, high-quality 3G power supply products, R&D expertise, global partnerships and an established customer base.

Changchun Zheng, CEO and Chairman of China Digital, stated, "In a short period of time, Zhuo Tong has become one of the leading developers and distributors of 3G power supply technologies in China. As a result of our due diligence, we believe Zhuo Tong's expertise in 3G power supply equipment technologies is synergistic with China Digital's new focus to acquire leading companies in the global electronic power resource sector. Zhuo Tong has a very good business operating record with strong marketing channels and revenues. We expect specializing in 3G power equipment can provide a tremendous platform for China Digital's future growth."

I was wondering if G's pick PTSC.OB could be a candidate for Pennies portfolio.

Chid on fuego!
;D ;D ;D

What a beautiful close.

I started to get a little concerned. It is nice to see that they are capable of taking over another company but It is hard for me to see the synergies with CHID's business. I would like to know a little more about the deal with Zhuo Tong.

Are they paying in cash or are we being diluted? Is Zhuo Tong profitable or are we going to see earnings drop? Essential questions which I believe/hope would put more fuel to the bonfire if answered.

Until we get clarity we can only believe in the chart and even though I started to get concerned it seems like the deal makes sense.

Mike

Dilution   :-\

http://biz.yahoo.com/iw/060215/0110043.html

but profitable

BREAKOUT!!! BREAKOUT!! BREAKOUT!!![/b] :D ;D
That's what  i'm talking about.. ;) Did you buy Julia?
That's a strong close right there ;)  Goodluck Holders ;) :D ;D

Quote from: gmarc66 on February 12, 2006, 11:05:14 PM
Terlisa, you look so enthused about CHID ;D..Its on my radar. U think its going to have a nice run soon?

Supergeek, Supergeek...what am i going to do with you :) Better be good or i'm gonna put my voodoo hex on u...trust me, you don't want to mess with an Italian womans temper...lol, but,  i'm going to let u get away with that comment this time.  Next time i'm telling ur wife! :)...then you can deal with her wrath, and i'm sure it won't be pretty...lol
Glad u made out on IMNR...darn i almost got into that too...too bad i didnt dive in..missed it.

Well, Terlisas making me keep an eye on CHID, his/her excitement is rubbing off on me.

goodluck to all :D

julia

Looking to add some more shares tomorrow ....for the 3rd time ;)

just beautiful  ;D >:D
China Digital Communication Group Executes Agreement to Acquire Shenzhen Zhuo Tong
Wednesday February 15, 4:05 pm ET

Brings Unaudited Revenues of $5.4M and Unaudited Net Income of $1.9M to CHID

LOS ANGELES, CA and SHENZHEN, CHINA--(MARKET WIRE)--Feb 15, 2006 -- China Digital Communication Group ("China Digital") (OTC BB:CHID.OB - News), one of the fastest growing battery components manufacturers in China, announced today that it has entered into an agreement to acquire UPE (Far East) Limited ("UPE"), which operates through its wholly owned subsidiary company, Shenzhen Zhuo Tong Power Supply Industry Co., Ltd. ("Zhuo Tong"). Zhuo Tong is one of the leading power suppliers to the domestic market (China) and is a pioneer of third generation (3G) power supply technologies and equipment. In 2005, Zhuo Tong had unaudited revenues of $5.4 million USD, and unaudited net income of US$1.85 million. The closing of the acquisition is subject to various conditions, including the completion of an audit of Zhuo Tong's financial statements, the completion of financial due diligence on UPE and Zhuo Tong by China Digital and the receipt of customary consents, approvals and opinions.

Pursuant to the acquisition agreement, China Digital will acquire 100% of UPE in an all stock transaction valued at approximately US$11.1 million. China Digital will issue 18.5 million shares to the shareholders of UPE in exchange for all of the shares UPE. Upon completion of the acquisition, the shareholders of UPE will own approximately 25% of China Digital.

Changchun Zheng, CEO and Chairman of China Digital, stated, "The acquisition of Zhuo Tong is a pivotal step in transforming China Digital from a mobile phone components manufacturer into a 3G technology and equipment system provider. Zhuo Tong leads the 3G power supply market in China with an impressive customer base and technological intellectual property, and will be immediately accretive to our earnings. The combination of Zhuo Tong and our battery shell manufacturing subsidiary Shenzhen E'Jenie provides a synergistic platform to drive aggressive future growth."

Zhuo Tong provides power supply technology and equipment to China's "Big Four" -- China Mobile, China Unicom, China Telecom, and China Netcom. Zhuo Tong serves large-scale commercial and industrial telecommunication operators; electrical power supply system providers, electricity utilities and other ancillary service providers. Zhuo Tong is ISO9001 quality control certified; holds a TLC license for producing telecommunication equipment and components in China; and is a member of the Chinese Power Source Academic Society.

Thanks Oliver and bw.

I think this was released at the same time I was complaining about the lack of details on the deal  ::)

It seems to be an excellent deal. CHID is buying Zhou Tong at a PE of 6, which really is a steal.

I will sit tight on my shares for the time being!

Michael

I've been looking and looking for more penny stocks with attractive fundamentals to buy and they seem so hard to find ... CHID seems to be of another league  :)

Profitable and making profitable acquisitions, immediately accretive to earnings.

After this deal is complete, CHID will be with a market cap of about $46M and annual earnings of about $4.8M, so the earnings multiple is still about 10 and growth is and will probably continue to be exponential.

I'll continue holding CHID.OB, I wonder if it will make it to the Nasdaq over the medium term, it sure deserves it (the stock needs to go over $1 for that - I believe that's the way going forward).

Still just 2 stocks on the Pennies on Fire Portfolio, and only one of them is truly a sound pick, I'll continue looking for more on the Penny Stock Picking Board.

fyi:
Stock Watch: Small Public Company Looks to Take Position in Chinese 3G Power Supply Market! February 16, 2006
Thursday , February 16, 2006 09:47 ET

WESTON, FL, Feb 16, 2006 (MARKET WIRE via COMTEX) -- Wall Street News Alert's "stocks to watch" this Thursday morning are: China Digital Communication Group (OTC BB: CHID), Cisco Systems, Inc. (NASDAQ: CSCO), Verizon Communications Inc. (NYSE: VZ), and Nokia (NYSE: NOK).

China Digital Communication Group (OTC BB: CHID) will likely get the attention of investors as the markets begin trading this morning. Yesterday after the stock markets closed, the company, one of the fastest growing battery components manufacturers in China, issued a press release announcing that it has entered into an agreement to acquire one of the leading power suppliers to the domestic market (China) and that is a pioneer of third generation (3G) power supply technologies and equipment.

The company is UPE (Far East) Limited ("UPE"), which operates through its wholly owned subsidiary company, Shenzhen Zhuo Tong Power Supply Industry Co., Ltd. ("Zhu Tong").

This is big news for China Digital and likely will appeal to investors! In 2005, Zhuo Tong had unaudited revenues of $5.4 million USD, and unaudited net income of US$1.85 million.

Wall Street News Alert is putting aggressive investors on high alert to continue watching this company! Changchun Zheng, CEO and Chairman of China Digital, stated, "The acquisition of Zhuo Tong is a pivotal step in transforming China Digital from a mobile phone components manufacturer into a 3G technology and equipment system provider. Zhuo Tong leads the 3G power supply market in China with an impressive customer base and technological intellectual property, and will be immediately accretive to our earnings. The combination of Zhuo Tong and our battery shell manufacturing subsidiary Shenzhen E'Jenie provides a synergistic platform to drive aggressive future growth."

Zhou Tong provides power supply technology and equipment to China's "Big Four" -- China Mobile, China Unicom, China Telecom, and China Netcom. Zhuo Tong serves large-scale commercial and industrial telecommunication operators; electrical power supply system providers, electricity utilities and other ancillary service providers. Zhuo Tong is ISO9001 quality control certified; holds a TLC license for producing telecommunication equipment and components in China; and is a member of the Chinese Power Source Academic Society.

Aggressive investors need to watch this company VERY closely! Pursuant to the acquisition agreement, China Digital will acquire 100% of UPE in an all stock transaction valued at approximately US$11.1 million. China Digital will issue 18.5 million shares to the shareholders of UPE in exchange for all of the shares UPE. Upon completion of the acquisition, the shareholders of UPE will own approximately 25% of China Digital. The closing of the acquisition is subject to various conditions, including the completion of an audit of Zhuo Tong's financial statements, the completion of financial due diligence on UPE and Zhuo Tong by China Digital and the receipt of customary consents, approvals and opinions.

Prior to yesterday's press release, the stock closed yesterday at Sixty-Four cents a share.

link:
http://www.knobias.com/individual/public/news.htm?eid=3.1.bd34b518e0cd5a64df3a8e0dff174dde258fb21a120ed91dd06b00df60039671

&

CHID LINK:

http://www.thenewssvc.com/CHID021506.html

enjoy the ride  >:D >:D >:D


cheers
Oliver

consolidation after big run.... IMO

I agree la-onda, after a gap up traders are taking profits on CHID.OB. $0.58 was the previous high, so now it may provide support.

After the current consolidation the stock will probably continue to trend higher since its business is growing fast, through organic growth and acquisitions, and the price is attractive (an earnings multiple of about 10).

Although CHID.OB is a Chinese company, it provides all the information an investor may require, with all the SEC Forms filed on schedule. That's important to create investor awareness (for example, XING also seems to be a great investment, but it fails when providing information to the investor community).

For me CHID.OB should have a multiple of at least 30, so the price should triple to about $1.8.

I'll continue holding this penny stock.

Hi all,
We have a news:
http://biz.yahoo.com/e/060221/chid.ob8-k.html

"... China Digital will issue 18.5 million shares of its common stock..."
I'm not an expert in this field, but usually, new shares isn't good...
Any thoughts?

Quote from: gri64 on February 21, 2006, 04:35:11 PM
Hi all,
We have a news:
http://biz.yahoo.com/e/060221/chid.ob8-k.html

"... China Digital will issue 18.5 million shares of its common stock..."
I'm not an expert in this field, but usually, new shares isn't good...
Any thoughts?

That's old news from Feb.15th due to the recent aquisition.

Sold at .598-  ;D

Quote from: boatguy on February 22, 2006, 02:55:50 PM
Sold at .598-  ;D

Dear Boatguy,

Why would you sell?

Mike

Michael,

I should explain, I believe CHID has more upside and wish I could hold long.

I have been lucky the last few months and have have some nice gains.

It is now time to spend it! ;D

I have taken a 2 months off and will be taking my boat to the Abacos in the Bahamas. I will hold a couple stocks but think CHID and a couple others will need attention I won't be able to provide.

No fundemental or technical reasons, just going sailing!

Quote from: stocky on February 14, 2006, 09:35:37 PM
I was wondering if G's pick PTSC.OB could be a candidate for Pennies portfolio.

Just wish that David had read and picked up G's No. 1 pick for the Pennies Portfolio. The above quote is when PTSC was trading around 0.26

Quote from: stocky on February 23, 2006, 12:07:50 AM

Quote from: stocky on February 14, 2006, 09:35:37 PM
I was wondering if G's pick PTSC.OB could be a candidate for Pennies portfolio.

Just wish that David had read and picked up G's No. 1 pick for the Pennies Portfolio. The above quote is when PTSC was trading around 0.26

I know, I know, that was an astounding pick from Elite G (one more  :D). When I took a serious look at it the stock was already up 200% ... but probably still a nice play.

Nice explanation boatguy, good sailing  8)

CHID.OB is still extremely attractive, both on a fundamental and technical basis. I'm not selling this stock near current levels, not at all, since this is the best pick on the Pennies on Fire Portfolio.

I am not an expert in Momentum stocks but from my experience you normally get a second chance to buy in. I have been waiting a long time to add to my position but today I got my second chance.

Even though the price this time around is a bit higher than my first purchase I think it is fully justified by the fundamentals of this stock.

Now I can just sit back and wait for the rest of the market to discover the value of CHID!

Mike

Quote from: Michael on February 28, 2006, 12:58:44 PM
I am not an expert in Momentum stocks but from my experience you normally get a second chance to buy in. I have been waiting a long time to add to my position but today I got my second chance.

Even though the price this time around is a bit higher than my first purchase I think it is fully justified by the fundamentals of this stock.

Now I can just sit back and wait for the rest of the market to discover the value of CHID!

Mike

The man did it again  :)

Exactly when technicals fail, Michael comes in with his fundamental expertise and he buys, against all technical logic, that says sell.

I'll just leave the annotated chart and wait for the outcome of this episode (the more I look into penny stocks, the more I know CHID.OB is quite unique and attractive as an investment).

China Digital Communication Group Announces Preliminary Year End Results

Better than expected and great guidance for next year.  Wow!  Michael, you and I agree wholeheartedly on fundamentals this time!   ;)  Highlights:

LOS ANGELES, CA and SHENZHEN, CHINA--(MARKET WIRE)--Mar 6, 2006 -- China Digital Communication Group (OTC BB:CHID.OB - News), one of the fastest growing battery components manufacturers in China, today announced its preliminary results for the year ended December 31, 2005 that exceeded its previously announced guidance issued on April 25, 2005.

China Digital reported preliminary total revenues of $12.7 million for the year ended December 31, 2005, an increase of 145% from total revenues of $5.2 million for the year ended December 31, 2004, and 11% greater than its previously announced revenue guidance of $11.4 million. China Digital reported preliminary net income of $2.7 million, or $0.05 per fully diluted share, for the year ended December 31, 2005, an increase of 517% from net income of $440,496, or $0.008 per fully diluted share, for the year ended December 31, 2004, and 4% greater than its previously announced net income guidance of $2.6 million.

***

Guidance for the Year Ending December 31, 2006

The following projections are on a consolidated, pro-forma basis and include the acquisition of Zhuo Tong, which is expected to close in the second quarter of 2006. In order to present an accurate picture of revenue and profit trends, the results stated for 2006 consist of sales and profit from Zhuo Tong, as if China Digital had owned the subsidiary for the entire year.

For fiscal year 2006, China Digital projects total revenues of $26.5 million and net income of $7.6 million, or $0.10 per fully diluted share.

****

Good numbers. That gives CHID a current PE of 11.4 and a forward PE of 5.6. CHID should be trading north of a dollar.

Did anyone ever figure out why it dropped from $1.80 to .40 between Jul 05 and Sep 05?

Wall Street News Alert: Aggressive Stocks for Traders! March 7, 2006
Tuesday , March 07, 2006 03:33 ET

Weston, FLA., Mar 07, 2006 (M2 PRESSWIRE via COMTEX) -- Wall Street News Alert's "stocks to watch" this morning are: China Digital Communication Group (OTCBB: CHID), Brocade Communications Systems, Inc. (NASDAQ: BRCD), Savvis, Inc. (NASDAQ: SVVS), One Voice Technologies, Inc. (OTCBB: ONEV), and Global Signal Inc. (NYSE: GSL).

China Digital Communication Group (OTCBB: CHID) may be another stock that shows some potential as the markets begin trading this morning. Yesterday after the stock markets closed, the company, one of the fastest growing battery components manufacturers in China, issued a press release announcing that its preliminary results for the year ended December 31, 2005 have exceeded its previously announced guidance issued on April 25, 2005 and furthermore, issues guidance for accelerated growth in 2006.

The company's impressive numbers may have the attention of investors! According to the company's press release, China Digital reported preliminary total revenues of $12.7 million for the year ended December 31, 2005, an increase of 145% from total revenues of $5.2 million for the year ended December 31, 2004, and 11% greater than its previously announced revenue guidance of $11.4 million. China Digital reported preliminary net income of $2.7 million, or $0.05 per fully diluted share, for the year ended December 31, 2005, an increase of 517% from net income of $440,496, or $0.008 per fully diluted share, for the year ended December 31, 2004, and 4% greater than its previously announced net income guidance of $2.6 million.

Wall Street News Alert continues to place aggressive investors on high alert to monitor China Digital Communication! The company's guidance for the year ending December 31, 2006 was reported as follows: The following projections are on a consolidated, pro-forma basis and include the acquisition of Zhuo Tong, which is expected to close in the second quarter of 2006. In order to present an accurate picture of revenue and profit trends, the results stated for 2006 consist of sales and profit from Zhuo Tong, as if China Digital had owned the subsidiary for the entire year.

For fiscal year 2006, China Digital projects total revenues of $26.5 million and net income of $7.6 million, or $0.10 per fully diluted share.

Watch this company for more breaking news! Chang Chun Zheng, CEO and Chairman of the Board of China Digital, said, "We have created a scalable operating platform that allows our two subsidiaries, E'Jenie and Zhuo Tong, greater access to shared resources, as well as provide significant cross-marketing and referral opportunities, which we believe can increase revenues by 100% year-over-year in 2006. If 3G systems are readily adopted in China, as we anticipate they will be, our initial projections for 2006 could be significantly higher due to increased demand for 3G components to power various telecommunicatons equipment and lithium ion mobile phone batteries. In addition to new markets, China Digital will continue to pursue business opportunities with a focus on achieving profitability through additional mergers and acquisitions within the telecommunication equipment and new energy industry fields."

Prior to yesterday's press release, the stock closed yesterday at Fifty Six cents a share.

To view a detailed, in-depth profile of China Digital Communication, visit http://www.thenewssvc.com/CHID030606.html To view all of Wall Street News Alert's special early morning trading alerts for this morning, visit www.WallStreetNewsAlert.com, where you may also sign up to receive free email alerts in advance of our press releases being issued.

In case you are not familiar with the company: Through its two wholly owned subsidiary companies, China Digital Communication Group is one of China's leading manufacturers and developers of advanced telecommunications equipment. Its Shenzhen E'Jenie Science and Technology Co., Ltd. ("E'Jenie") subsidiary sells advanced high-quality lithium ion battery shell and cap products to all major lithium ion battery cell manufacturers in China. E'Jenie's products are used to power mobile phones, MP3 players, laptops, digital cameras, PDAs, camera recorders and other consumer electronic digital devices. China Digital's Shenzhen Zhuo Tong ("Zhuo Tong") subsidiary specializes in manufacturing and distributing high-frequency power supply and reversible power supply equipment for communication equipment producers in the IT, power, and radio and television broadcast industries. Zhuo Tong is also a leading developer of third generation (3G) power supply technologies and equipment. China Digital is continuing its expansion across East Asia, while also seeking distribution partners and acquisitions in new global markets including the United States.

http://www.knobias.com/individual/public/news.htm?eid=3.1.0aa0817dba4a2df913600dd34f843b0d8aa59c48cf5a042a1caab8106e4ea097

CHID Gap-up @ open ... it's a huge one ;)

I will sell now from here & come back later, or is it a breakaway GAP?

Hi Terlisa and Oliver,

This is one of the reasons I love 3SOF. You really see both sides of the coin. Oliver (I think) and I see a share that is growing earnings with 517% and is trading at a forward PE of 6.3.

You see a stock that has a gap up and decide to take profit.

The beautiful thing is that I am sure all three of us will earn money on this stock even though our trading philosophy is soooo different!

Mike

Quote from: Michael on March 07, 2006, 02:48:17 PM
Hi Terlisa and Oliver,

This is one of the reasons I love 3SOF. You really see both sides of the coin. Oliver (I think) and I see a share that is growing earnings with 517% and is trading at a forward PE of 6.3.

You see a stock that has a gap up and decide to take profit.

The beautiful thing is that I am sure all three of us will earn money on this stock even though our trading philosophy is soooo different!

Mike,

Don't worry... i will join with you soon again ;) :D ;D 

QuoteCHID Gap-up @ open ... it's a huge one Wink

I will sell now from here & come back later, or is it a breakaway GAP?

Well, it wasn't a breakway gap since those are the ones that gap up over a resistance level. You did well taking profits, are you back in again Terlisa? I hope so, because CHID.OB really looks like a great opportunity.

Even if it doubles now it would still be cheap ... and they say their estimates of $0.10 in EPS for 2006 still don't take into account 3G in China, and shawFund, who goes to China regularly, says they will most probably adopt 3G.

Well, I'm glad to own this one ...

Quote from: Lucas Scott on March 06, 2006, 07:11:06 PM
Good numbers. That gives CHID a current PE of 11.4 and a forward PE of 5.6. CHID should be trading north of a dollar.

Did anyone ever figure out why it dropped from $1.80 to .40 between Jul 05 and Sep 05?

Still don't know why ... perhaps it was because of fear those 7 shareholders which have shares at $0.05 would dump them when they can. I don't know, but certainly they won't sell, or even if they do, someone will gladly take their shares, since the stock is so cheap (at least if these reports are all true, we hope there's no fraud here).

I'll continue holding CHID.OB.

GREAT NEWS
China Digital Communication Group Obtains US$6 Million Secured Credit Facility
Monday March 13, 8:00 am ET


LOS ANGELES, CA and SHENZHEN, CHINA--(MARKET WIRE)--Mar 13, 2006 -- China Digital Communication Group (OTC BB:CHID.OB - News), one of the fastest growing battery components manufacturers in China, announced today that it has obtained a US$6 million bank line of credit from United Private Equity Ltd., a venture capital firm. The credit facility is for a term of three years and will be used exclusively for merger and acquisition activities of businesses in the 3G communications industry. The credit facility will bear interest at a rate of 7.7% that will be paid annually beginning on December 20, 2006. The credit facility will be secured by US$9 Million of stock of certain of the Company's major shareholders.

http://biz.yahoo.com/iw/060313/0112823.html

They put up their own holdings for collateral for the financing. a good sign.

update CHID:

Again a penny that both David and Michael find very attractive fundamentally and CHID has gotten us to a 38% return at this point!

CHID is hanging around its 200sma deciding what it wants to do but meanwhile the 20ema and 50sma are catching up and this should create buying pressure.  I see CHID lying in a symmetrical triangle and I consider this very nice penny volume(normally a symmetrical triangle consolidation shows lowering volume, CHID shows steady or even rising volume).  Look for a nice breakout with volume if you are planning on entering.. this stock remains undervalued and very buyable as it has found support at the gap and the bottom of the symmetrical triangle.

update CHID:

We need a clear stop on CHID which has not been able to make much headway from this area.

We will sell CHID if it hits our stop @ 0.52.

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/03-22-2006/0004324966&EDATE=

CHID seems very serious about 3G recently (despite being mainly a battery company), and the market seems to be liking this acquisition so far, the stock is up 2.4% (OK, maybe its better to say the market isnt disliking this, as 2.4% gain is a usual range for CHID recently).

Anyway, I forget if ShawFund has been tracking this stock at all, but I would be interested in his take on this.

Quote from: eliteG on March 19, 2006, 12:00:01 PM
update CHID:

We need a clear stop on CHID which has not been able to make much headway from this area.

We will sell CHID if it hits our stop @ 0.52.

CHID hit .526 today, which was pretty close to hitting our recommended stop.  With 4 times average volume and a weak recovery at the end, I took the opportunity to bail and sold my 2300 shares at .56.  This stock may come back tomorrow...but, too often I let the profits slip away.  I decided to take my 41% profit and move on.

Michael,

I am hoping this stock is just filling its gap from March 7th and can now go back up.  Of course, hope never makes you money so I will monitor closely.  I dont have a stop on this right now.

You had a fairly positive fundamental view on this stock if I recall correctly, is there any sense in considering it a candidate for the 3SOV portfolio if it hits the stop (i.e. not sell it)?  There is a spot open there given the sell off of TRAD according to plan, so just wondering if this makes sense instead of selling it outright.

We sold our position on CHID today @ $0.51 following the trading plan.

regards,

Quote from: tokyopua on March 24, 2006, 06:12:18 PM
Michael,

I am hoping this stock is just filling its gap from March 7th and can now go back up.  Of course, hope never makes you money so I will monitor closely.  I dont have a stop on this right now.

You had a fairly positive fundamental view on this stock if I recall correctly, is there any sense in considering it a candidate for the 3SOV portfolio if it hits the stop (i.e. not sell it)?  There is a spot open there given the sell off of TRAD according to plan, so just wondering if this makes sense instead of selling it outright.

Hi Toky

CHID is technically very weak at present and from a technical perspective it was the right decission to sell the stock today. I still like the stock and I certainly will not rule out that this is a candidate for 3SOV. For now it need to find a new base, which hopefully will be around this level (disclaimer: I am still invested in CHID  ;))

Quote from: Michael on March 27, 2006, 03:44:58 PM

Quote from: tokyopua on March 24, 2006, 06:12:18 PM
Michael,

I am hoping this stock is just filling its gap from March 7th and can now go back up.  Of course, hope never makes you money so I will monitor closely.  I dont have a stop on this right now.

You had a fairly positive fundamental view on this stock if I recall correctly, is there any sense in considering it a candidate for the 3SOV portfolio if it hits the stop (i.e. not sell it)?  There is a spot open there given the sell off of TRAD according to plan, so just wondering if this makes sense instead of selling it outright.

Hi Toky

CHID is technically very weak at present and from a technical perspective it was the right decission to sell the stock today. I still like the stock and I certainly will not rule out that this is a candidate for 3SOV. For now it need to find a new base, which hopefully will be around this level (disclaimer: I am still invested in CHID  ;))

Michael,

Thanks very much for that logical answer and for letting me know you are still holding it, I will feel in good company then in the meantime :-) 

sold too early  ???

China Digital Communication Group Reports Year-End Revenue Gain of 146% to $12.7M
Thursday , March 30, 2006 17:30 ET

LOS ANGELES and SHENZHEN, China, March 30, 2006 /PRNewswire-FirstCall via COMTEX/ -- China Digital Communication Group (OTC Bulletin Board: CHID), one of the largest and fastest growing battery components manufacturers in China, today reported financial results for the year ended December 31, 2005.

Revenue for 2005 totaled $12,742,088, compared to $5,182,122 for 2004, an increase of $7,559,966, or approximately 146%. Cost of sales for 2005 totaled $8,971,859, or approximately 70.4% of net sales, compared to $3,629,238, or approximately 70% of net sales, for 2004.

The company reported 2005 net income of $2,624,279, or $0.05 per fully diluted share, up from $453,041, or $0.01 per fully diluted share, in 2004.

Chang Chun Zheng, CEO and chairman of China Digital Communication Group, said, "This was an important year for the development of our company. The strong increases in revenue and net income were attributable to the successful expansion of our product lines to meet the needs of existing and new customers. These results exceeded our guidance issued last April. Revenue was 11% greater than our previously announced revenue guidance of $11.4 million. This growth reflected the continued demand for our lithium-ion battery shell and cap products from the lithium-ion battery cells manufacturers, as well as expanded production capacity, which increased by more than 40%, resulting from the relocation of our wholly owned manufacturing subsidiary Shenzhen E'Jenie to a larger plant in the Xing Lian Industrial Zone. This resulted in increased manufacturing efficiencies and new customer orders. The corresponding increase in cost of sales as a percentage of revenue was attributable to increases in material costs due to the introduction of new product lines."

Zheng also said, "We are optimistic about the year ahead. As previously reported, we have two pending acquisitions that, if completed, we expect will place us strongly into the component market for new 3G telecommunications devices. In addition, our battery component business, currently our core business, is quite robust and we fully expect to realize continued good results from that business in 2006. We intend to update our 2006 forward guidance in the near future."

In for 5,000 shares at .557

Very Nice looking numbers

Note to self:  anytime CHID gaps up, even on good earnings, sell and buy back lower that same day.  Of course I didnt do that today, but it seems to be a pattern with this stock...

Anyway, great to be up again in CHID, congratulations to those of us still holding and good luck to those who bought in today as well! ;D

I agree CHID should go into the Value Portfolio.

Michael?

Hi KCScott,

I second that - CHID should indeed be in 3SOV. It is just a matter of getting the timing right  ;)

E-MAIL ALERT ABOUT CHINA DIGITAL COMMUNICATIONS GROUP, INC.

China Digital Communication Group CEO Chang Chun Zheng Steps Down

Company Appoints Yu Xi Sun as Temporary CEO


For further details, go to
http://www.hawkassociates.com

Click on the company headline to read the complete story. Be sure to "refresh" or "reload" your browser to view today's headline.

If a scrolling headline does not appear on your browser after a few seconds, click on the company logo, then select the "press releases" link.

If the link above is not active, copy and paste the entire link from start to finish into the address window on your browser.

Yahoo has a direct link to the story of the CEO resigning:

http://biz.yahoo.com/iw/060404/0121278.html

This caught me off guard, I didnt see the news but had added to my position at the lows today.  I can never predict where CHID goes on news, its got such erratic price action.

After hours news today.

Will this boost the pps.

Tuesday, April 04 2006 6:15 PM, EST

China Digital Communication President To Purchase Up To 1 Million Shares in Open Market

LOS ANGELES and SHENZHEN, China, April 4 /PRNewswire-FirstCall/ -- China Digital Communication Group (OTC Bulletin Board: CHID), one of the largest and fastest growing battery components manufacturers in China, announced today that Yu Xi Sun, president of China Digital, will purchase up to 1 million shares of the company in the open market between April 20 and June 20.

Quote from: gmarc66 on April 04, 2006, 06:22:23 PM
After hours news today.

Will this boost the pps.

Tuesday, April 04 2006 6:15 PM, EST

China Digital Communication President To Purchase Up To 1 Million Shares in Open Market

LOS ANGELES and SHENZHEN, China, April 4 /PRNewswire-FirstCall/ -- China Digital Communication Group (OTC Bulletin Board: CHID), one of the largest and fastest growing battery components manufacturers in China, announced today that Yu Xi Sun, president of China Digital, will purchase up to 1 million shares of the company in the open market between April 20 and June 20.

In most cases this would be considered a positive thing.  The float per thestreet.com is 54,461,008 shares, so this means he would purchase UP TO 1.84% of the float if he buys the maximum amount stated.  All things being equal then this could conceiveably drive the share price up a comensurate amount.

It is also bullish becuase he is the man designated to serve as interim CEO now that the current CEO has stepped down, and this statement would indicate he has a bullish feeling about the company now that the current CEO is stepping down.  It is interesting to note how a CEO stepping down can often be considered a positive.  Take for example FEIC, whose CEO stepped down after hours yesterday, and the stock was up 10% today. 

As I said below, despite all normal analysis like this, its hard to say with CHID.  They reported great numbers only a few days ago and did nothing but go down after they popped up since then.  I bought more this morning as I said, but that extra is meant as a very short term trade for the next little pop, I will sell it if the stock hits .57 or so again, then wait for the next drop, buy some more, etc. as this stock seems to channel fairly often.  I will keep my core position for the long term though.

Excellent news from CHID - if correct, we have a forward 2006 P/E of 4.  glad I am still holding!!!   ;D


LOS ANGELES and SHENZHEN, China, April 18 /PRNewswire-FirstCall/ -- China Digital Communication Group (OTC Bulletin Board: CHID - News), announced today its revised projections for the current fiscal year.

For fiscal year 2006, China Digital Communication Group has projected total revenues of $30.4 million and net income of $10.5 million, or $0.13 per fully diluted share assuming the acquisitions of Zhou Tong and Galaxy View International are successful.

Yu Xi Sun, Interim CEO and President of China Digital Communication Group, said, "These are our most recent projections for fiscal year 2006. We are optimistic about the year and expect strong sales based on exciting upcoming activities from our acquisition candidates. We are confident we will close both acquisitions in the near future."

As per my note to self below, I went ahead and sold all my shares at .585 and if it drops down a bit I may get back in.  Its a great stock but has such strange price action!

Quote from: tokyopua on April 19, 2006, 10:14:16 AM
As per my note to self below, I went ahead and sold all my shares at .585 and if it drops down a bit I may get back in.  Its a great stock but has such strange price action!

Spoke with Hawkassociates last week about CHID.  They agree that it is not a popular trading stock at this time.  They were not given much information on the departure of the CEO's.

It sure seems undervalued.  For some reason, the market does not like this company.  Perhaps the original private placement people (5 cents) are selling.  Who knows.  I have it on the radar each day, but the trading action certainly is not appealing.

Quote from: fill_the_gap on April 19, 2006, 08:23:28 PM

Quote from: tokyopua on April 19, 2006, 10:14:16 AM
As per my note to self below, I went ahead and sold all my shares at .585 and if it drops down a bit I may get back in.  Its a great stock but has such strange price action!

Spoke with Hawkassociates last week about CHID.  They agree that it is not a popular trading stock at this time.  They were not given much information on the departure of the CEO's.

It sure seems undervalued.  For some reason, the market does not like this company.  Perhaps the original private placement people (5 cents) are selling.  Who knows.  I have it on the radar each day, but the trading action certainly is not appealing.

You could be right about the private placement.  I was in another Chinese stock AOB (around October last year I think it was) and the stock was dropping without any apparent reason.  I held on and later found out that something was similar was going on, some warrant holders had a deadline for excercise (that nobody knew about).  After that news came out that they had all excercised the warrants the stock rebounded immediately.

Anyway, I agree about the valuation, so for the moment I am back in at 0.53  ;) May trade it again if it pops too fast, or hold it if it gradually rises.

The chart is starting to look good.  I said I would sell if it popped too fast, but it popped up this time two days after the news, maybe because others are realizing the low valuation.  MACD had its first uptick into positive daily territory, looks like 50dma is set to cross 200dma, prices again above 13 ema...

After selling CHID for short term technical motives, we are now buying back this penny for the 3SOF Portfolio. We made a mistake selling CHID too early, and the only way to correct this mistake is opening a new position on this stock.

CHID's Fundamental background is very appealing, technicals had improved in the last sessions with a pattern breakout, volume has increased and CHID may now be ready for new highs. We don't want to lose our position on this penny brought by David Randolph some time ago.

We'll buy CHID.OB for the 3SOF Portfolio today, at or near the open.

Best regards !

Very happy to see this move.  3SOF picks some great stocks but sometimes seems a bit too impatient with pennies that have good fundamentals (I only buy those that seem value plays and have no opinion on others).  Pennies react differently than larger caps and technicals give false reads, particularly breakouts, when discovered by new folks.  A couple of big white candles on a penny may just mean that a handful of folks found it and bought for a couple of days.  CHID is a great pick and I have held it from the 30s since you guys found it.  Find some more of these penny gems - real sales and real earnings!!!!!   ;D

Quote from: bigdogs99999 on April 25, 2006, 09:45:58 AM
Very happy to see this move. 3SOF picks some great stocks but sometimes seems a bit too impatient with pennies that have good fundamentals (I only buy those that seem value plays and have no opinion on others). Pennies react differently than larger caps and technicals give false reads, particularly breakouts, when discovered by new folks. A couple of big white candles on a penny may just mean that a handful of folks found it and bought for a couple of days. CHID is a great pick and I have held it from the 30s since you guys found it. Find some more of these penny gems - real sales and real earnings!!!!! ;D

Nice move today... we should never had sold it before  :-\

Rams,

Thanks for this one. I saw it late since it went out after I read my 1st email and jumped in at .68 and nice bump from there. You all are doing a great job helping to make us all some green!!

The weekly chart is magnificent. Like they say, CHID has numbers to show. I don't know what that means exactly, but I'm guessing it's a reference to the number of bags we might make on this trade.

Its an awesome pick and gave me confidence in my analysis and yesterday's pick.

I went in yesterday @.62 and jumped today morning to see it become 3SoF pick.

Also, I am an avid reader of bloomberg.com ( Market/business news leader). Couple of days ago, I saw CHID advertising it on bloomberg website as full screen front page ad. ( It gave message as a click on link "skip ad" to go directly to news page). That brought my attention to this company being serious to grow. I have never seen an OTC company advertising on that scale on bloomberg. I dont think even bloomberg will also allow that. Other than that technicals from 3Sof always speak for the picks.

- Dhiraj

Quote from: basanlas on April 25, 2006, 03:59:49 PM
Rams,

Thanks for this one. I saw it late since it went out after I read my 1st email and jumped in at .68 and nice bump from there. You all are doing a great job helping to make us all some green!!

I'm sorry for having sent a separate email on this one a bit later than usual... the truth is that we were considering CHID during the night (before the regular newsletter), we step back a little just because we had already 2 pennies on the main portfolio...
During the morning, David Randolph gave me extra confidence on this pick (the credits must go to David in first place), and we just had to buy it today ;) (I'm glad we did)

Quote from: Lucas Scott on April 25, 2006, 04:05:48 PM
The weekly chart is magnificent. Like they say, CHID has numbers to show. I don't know what that means exactly, but I'm guessing it's a reference to the number of bags we might make on this trade.

It's always very hard to predict our best trades, and sometimes things go the wrong way... but CHID is for sure a multi-bag candidate!

Quote from: dhiraj19 on April 25, 2006, 04:18:02 PM
Its an awesome pick and gave me confidence in my analysis and yesterday's pick.

I went in yesterday @.62 and jumped today morning to see it become 3SoF pick.

Also, I am an avid reader of bloomberg.com ( Market/business news leader). Couple of days ago, I saw CHID advertising it on bloomberg website as full screen front page ad. ( It gave message as a click on link "skip ad" to go directly to news page). That brought my attention to this company being serious to grow. I have never seen an OTC company advertising on that scale on bloomberg. I dont think even bloomberg will also allow that. Other than that technicals from 3Sof always speak for the picks.

- Dhiraj

Yep... I saw some ads on Bloomberg too... and that's great, because they are a completely undiscovered / unknown company, and seeing them investing in visibility and at the same time a big price boost like today can only be a good mix ;)

Best regards !

CHID has been threating me quite well this week and last, I sold once at when it popped on news and picked it back up the next day at .53  so I have a tidy 50% gain in 4 days  :D

I saw that the chart was starting to look good so kept my shares, but I really could not have guessed it would be quite this good so soon.  The 3SOF timing is like magic to watch sometimes.

Also very glad to hear that David is still working the magic behind the scenes and encouraging this pick!  Looks like at the current rate a 250% annual profit is within reach for this blockbuster team, its quite mind boggling  :o   

You guys rock!!!  8)

CHID is finally trading above $0.70 which was the last relative high, even with this significant advance, CHID is just 100% above its lows, and that's «peanuts» on the OTC market, considering this is an undiscovered gem, excepting a triple digit growth (http://biz.yahoo.com/prnews/060418/netu059.html?.v=1) (Earnings, Revenues, etc) inside a hot market.

It's very difficult to design a trading plan for CHID, most likely the volatility will be there, huge advances followed by profit taking and consolidation periods, followed by even bigger advances is what we should expect here.
We should also expect this to be a multi-bag play, taking in consideration the high of July 2005, which was $1.81, the current fundamental figures and current expectations, this new move should at least have the same potential.

So our plan will be very simple for the moment:
- Hold CHID

Best regards !

I also missed this one yesterday – my fault, really – and I'll watch it today, hopefully to buy it substantially below yesterday's close.

Ramsburg had awesome timing with this one!!  Luckily I got to buy some yesterday and this morning.  >:D

Wow CHID is taking off as I write this!  :o  8)

Hi eliteG:

I missed chid, what a pity!

I wonder if it is still good to buy @ above $0.8? thanks!

Quote from: learnstock on April 26, 2006, 10:59:46 PM
Hi eliteG:

I missed chid, what a pity!

I wonder if it is still good to buy @ above $0.8? thanks!

Great question learnstock.. with an easy answer.  ;)

CHID is incredible!  With awesome fundamentals and now finally I can say an awesome chart.  This volume rise is a textbook setup for bursting through $1(I think 2 is very doable).

So my answer is yes.. bigtime!

Its always great to buy a great stock as cheap as possible but sometimes you risk not having a position if you are afraid to pull the trigger.  As days go by CHID just increases its exposure.  In its discovery phase right now.  A well-timed news/pr piece and its gone.

I'm sure Ramsburg will have more to say in his update  ;)  Perfect pickup by him! :o  Glad to have this in the portfolio.

It's difficult to predict the short term developments of such an incredible play, CHID lost some momentum during yesterday's session, but that's completely normal taking in consideration the recent price advance.

I see some support on the $0.80 and $0.70 levels, volume is still high (and I expect it to get even higher), although its normal to watch some short periods of consolidation during the move.
The move itself should place CHID above its previous highs (most likely above $2.00), our job now it to ignore all short term «noise», and Hold CHID.

Best regards,

This is my very first OTCBB stock!  I bought some at 75 cents this morning on a limit order!  ;D  It made a correction to the 5-EMA and bounced higher (like GV is doing today, too).  I figured my safest bet for an OTC stock would be one that's in the 3SOF portfolio!

Leaira

Quote from: Leaira on April 27, 2006, 12:42:18 PM
This is my very first OTCBB stock! I bought some at 75 cents this morning on a limit order! ;D It made a correction to the 5-EMA and bounced higher (like GV is doing today, too). I figured my safest bet for an OTC stock would be one that's in the 3SOF portfolio!

Leaira

Thats the way I feel too -- I don't ever touch these unless the 3SOF group does.  Got burned too much before.  I took today's opportunity to increase my position in both GV and CHID.   I usually start out with a 1/2 position in all their recommendations, and then try and finish the position on a pullback.  So far, that strategy has worked well for several of their recent picks.

Well, it looks like some people took the day off to sell some CHID ;)

No big deal, I've just bought a few more shares to my private portfolio, I believe this price level near $0.70 will be the short term support, and I expect to see CHID above 1$ at any moment.

On Topic: Just found this crazy animation about CHID:
http://mm.dfilm.com/mm2s/mm_route.php?id=2912613

Enjoy ;)

China Digital Communication Group CHID · News · Profile, announced today that an interview with President Yu Xi Sun by Wall Street Reporter is available at http://www.wallstreetreporter.com.

Sun, who also serves as the interim CEO, updates shareholders on the status of the company and answers questions in the interview.

Link:

http://www.wallstreetreporter.com/PDFTranscript/ChinaDigitalCommunicationGroup.pdf

Thanks La-onda,
Here it goes the full transcript:

QuoteTRANSCRIPT OF INTERVIEW
We are speaking today with Yu Xi Sun, President, Director and acting CEO of China Digital Communication Group. Ms. Sun, thank you for joining us today.

For our first question, please describe China Digital's Business

China Digital is one of the two largest lithium ion battery component makers in China. We make battery shells and caps for Chinese companies that produce finished batteries and electronic products. The batteries are used in millions of mobile phones, PDAs and other mobile electronic devices. We also manufacture and assemble complete lithium-ion batteries for small portable devices such as iPods although this is still a small part of our business.

This business operates through our wholly owned subsidiary E'Jenie, which is based in Shenzhen adjacent to Hong Kong. We acquired E'Jenie in late 2004 just after China Digital was formed by a group of Chinese investors.

In fiscal year 2005, exclusively from E'Jenie operations, we had revenue of $12.7 million and net income of $2.7 million with EPS of $0.05 per share.  We operate in a 65,000 square foot facility in Shenzhen.

The company has been profitable since it was founded in 2002 and now has a work force of 591 people with a capacity of 600,000 battery shells and caps a day.

What is the near term outlook for this business?

We believe the future of this business is very strong because we are gaining profitable market share in the world's fastest growing major market.

China's mobile electronics business including mobile phones and PDAs is exploding. The 2005 demand for lithium-ion batteries for mobile phones and portable electronic devices was 570 million units, roughly one-quarter of the global market. This was up significantly from 450 million units sold in China in 2004.

In addition, with 10% market share, we currently have the second largest market share of this highly fractured small battery component market and we fully expect our market share to continue growing substantially. So we are benefiting from growth of the market and growth in market share.

I also should mention that we benefit from a number of competitive advantages in terms of product quality, financial stability, an outstanding on time delivery record and a strong R&D team.

The company has announced the intention to buy two companies in the 3G communications space. Please explain the strategy.

We have agreements to purchase two companies that make high tech products for the rapidly emerging 3G telecommunications market in China. As you probably know, 3G refers to third generation communications devices representing the next technological evolution in mobile telephones and consumer electronics.

The first of these two companies is UPE Far East Limited, which owns Shenzhen Zhou Tong Power Supply Company, one of China's leading power suppliers to the domestic market and a pioneer of 3G power supply technologies and equipment.  In 2005, Zhou Tong had $5.4 million in revenue and reported net income of $1.85 million.

The second company we are acquiring is Galaxy View International, which owns Sono Digital, a leading supplier of 3G communications technology and equipment. Sono reported 2005 sales of $6 million and net profit of $2 million.

Both of these companies will be a great fit for China Digital and will not only help expand our company significantly but will also significantly expand our market opportunities. As the fastest growing major economy in the world, we believe China's demand for 3G communications as well as portable electronics will be enormous. China is certain to become the world's largest wireless society and user of portable electronic products.

Can you be more specific on how these businesses will impact the results of China Digital?  When do you expect to close them?

With the successful completion of the two acquisitions, we are now projecting revenue of $30 million and net income of $10 million or $0.13 per fully diluted share.  We expect to close both acquisitions during the summer.

As a Chinese company, why did you list on the OTCBB?

The American listing is valuable to us in China. It provides us with credibility in dealing with other Chinese companies and helps distinguish us from other companies that we are competing with.  It makes us more attractive to potential acquisition candidates and also exposes us to new sources of capital as we build our business in the rapidly growing Chinese market.

Please discuss your plan to purchase shares in the open market.

I have now announced my intention to purchase up to 1 million shares of the company in the open market between April 20 and June 20. This is because I believe that our stock does not currently reflect the true value of our company. We are trading at only 10 times trailing EPS.  Even at a multiple of 20 times our already reported $0.05 a share, this suggests we are substantially undervalued even without the acquisitions. You can make your own judgment of a proper valuation when we reach $.10 a share with an even higher run rate by year-end.

What are your plans for the future?

We have a number of new products in our development pipeline as we continue building the E'Jenie brand in China's secondary battery market. We have an aggressive acquisition strategy in the area of profitable telecommunications equipment manufacturers. And we continue to develop our international distribution channels that will enable us to expand sales outside of China.

Why should the investment community be interested in China Digital as a long-term investment?

China Digital is exceptionally well positioned to benefit from China's growth over the next 10 years or more. We will continue to build and strengthen the E'Jenie battery brand as we seek to become the price leader in international markets. We have already sold a small test order of batteries for iPods to a U.S. retail consumer electronics chain and we expect that to lead to new business.  In the meantime, China's market for rechargeables is worth $500 million and is growing at a 20% annual rate.

Through acquisitions, we will gradually diversify into the telecommunications industry, which had revenues of $121 billion in 2003 and is expected to grow 23% a year in the next five years.

Thank You.

Very interesting interview, especially this part:

QuoteThis is because I believe that our stock does not currently reflect the true value of our company. We are trading at only 10 times trailing EPS.  Even at a multiple of 20 times our already reported $0.05 a share, this suggests we are substantially undervalued even without the acquisitions. You can make your own judgment of a proper valuation when we reach $.10 a share with an even higher run rate by year-end.

At 3SOF we already made our own judgment... and we believe it's ridiculous to see CHID at present prices... This stock should be trading at least 2 or 3 bags above current prices.
The stock market sometimes has inefficiencies, this is clearly the case, the main reason was lack of public exposure, things have changed, and CHID is slowly entering on the market's radar, so its only a matter of time before the market corrects this «mistake».

Like said before, we expect volatility for the short term, but one clear direction for the mid-term.

Our trading Plan for the moment will be just: Hold CHID

Best regards,

CHID had a selling deep during Friday's morning, retesting the breakout zone but recovering quickly.

As stated, we expect a lot of volatility but therefore we'll be holding CHID as we think this stock is far bellow its fair price.

Our trading Plan for the moment will be just: Hold CHID

Best regards,

this one gaped up today at 0.78.....got this crap 0.745 then saw that this is going to close the gap around 0.69/0.70.....sold this 0.735.....got in again finally at 0.702 ....better sell and rebuy sometimes. I saved money :) 

Quote from: ket1390 on May 02, 2006, 12:38:16 PM
this one gaped up today at 0.78.....got this crap 0.745 then saw that this is going to close the gap around 0.69/0.70.....sold this 0.735.....got in again finally at 0.702 ....better sell and rebuy sometimes. I saved money :) 

Smart moves there ket1390.  CHID in particular has some strange price action and today is a great example.  There was no clear reason I could find that the stock opened higher that I could tell, though I am certainly not complaining.  Maybe the president was buying some of the shares he said he would in the PM?

Anyway, the valuation is so low that the stock is worth holding, but it sure drove me crazy for awhile before I got used to the way it moves.

 tokyopua

QuoteSmart moves there ket1390

. Thanks !!

0.75 looks like a bigger resistence...hope we break this wall :)

Today CHID has come to play.  :o  That volume rise is the most important thing in pennies.  It was not a sure thing to me until that volume came in today.. now CHID looks hot and I had to buy for my personal account.

Excellent timing Ramsburg!!  Glad to have this in the 3SOF portfolio!

Yep... A lot of crazy volatility like expected  ;)

Lets just hodl it and forget this price «noise», CHID could be jumping above 1$ at any moment.

best regards,

Thanks to all at 3 Stocks on Fire.  Bought more CHID today at .70 ;D  Sometimes I actually get it right.

Alien

Nice session for CHID, terrific intraday performance, interesting volume suggesting continuation for today's session.
CHID's short term volatility is high as predicted, and should continue for the short run.

We believe it's only a matter of time before we see CHID trading at MUCH higher prices...

Our plan:
Hold CHID (and forget about it)

Best regards !

Finally some action ;)  >:D

Took profits on half my position here at $1.09. Does CHID have higher numbers to show tomorrow? Good call 3StocksOnFire!

I still have all my shares!  This is now my second best stock I currently hold.  My 3 best are GV (62%), CHID.OB (50%), and NXXI (47%).

Leaira

Quote from: Leaira on May 03, 2006, 04:53:08 PM
I still have all my shares!  This is now my second best stock I currently hold.  My 3 best are GV (62%), CHID.OB (50%), and NXXI (47%).

Leaira

:o very nice Leaira!!  I recommend a tight stop on NXXI... weakness in the pattern.

This sure has been a good one for me, along with GV.   :)
Does anyone think maybe this might pull back some tomorrow with the hope of loading up?

G and Ramsburg,

I just want to thank you for the great work. CHID put me back on the green  in my entire portfolio. This past couple of months I've learned so much thanks to you guys. I am still a newbie on this game but look forward improving my skills as a trader and be able to add helpful information to this team.
THANK YOU
======================================================

Great performance today. Eventhough it passed through the 1.00 phsycological resistance, don't you think we could see a healthy retracement above the dollar support to keep on going up? In my Telechart screener it showed today an exhaustion pattern in the volume, 8 out of 10 times when I see this sign a retracement happens the following day. What such a great stock as CHID, it is just an opportunity to add more to the current position. 

We'll find out in the following sessions. Once again, thank you very much for bringing CHID to the plate.

rafael ;)

After a few days of consolidation CHID is now showing the way ;)

It's always difficult to hold this kind of penny plays during consolidation periods, last week CHID had a 25% retrace from the previous highs in just two days, it was painful... but worthy ;)
With CHID breaking the psychological dollar barrier over record high volume (above 7M), we have reasons to trust the «multi-bag» scenario we stated before.

It's difficult to predict the short term on this kind of plays, but taking in consideration 2005's high of $1.87, I can see only a target above $2.00 to make this move logical, especially over this kind of volume and exposure. Probably we'll watch another consolidation period before that (or maybe not), but we are willing to hold this stock (not a penny anymore) for a while.

In case of correction, we have now $0.90 acting as a support level.

The plan:
Hold it with a chill face ;)

Psychological behaviour instructions:
- Stop screaming out loud if CHID is up another 30% tomorrow... just hold it !
- Ignore pain if CHID is down tomorrow... just hold it !
;)  >:D >:D >:D

Best regards !

Weheeeee.... Applaud Rams ;) good pick...

Applaud Ram.

This has been one the best OTC picks for me this year!  :D

I think I sold my first 1/2 a day early. One more white candle to form the 3 Soldiers, and I expect it will happen. I'll look to buy that 1/2 back plus a few extra shares near the open, and likely will sell them just before the close.

Great pick! once again.

I'm so happy a got in a day later for $ 0,10 more... ::) ::) ::)

Thanks,
Amarens

I've just read the transcript of the interview, and I thank you for posting it.  I've been curious how many shares are outstanding, and based on the math available in the interview, there are currently 54Mill shares outstanding (based on .05 profit/share, $2.7mill).  Based on his estimation of post acquistions profit of $10million and .13/share, I believe we can conclude a post acquistion total shares outstanding of 77million shares.  Therefore, the acquistions will result in 23 million additional shares being issued. I don't think this changes the fundamentals that we're excited about, but thought this is worth noting, assuming my math, and the presidents statements are accurate.  I'd be interested in having someone double check on my calculations, if interested. Thanks to all for sharing their opinions and insights. This certainly seems like a potential multi bagger as the board has been suggesting.

Ramsburg/Elite,

Aren't you planning to put a LIMIT price for stocks like GV and CHID?
If not, when are you planning to sell? Only when you will notice it does not get higher anymore?

Thanks!
Ohad

(i meant to ask if you are having a target price for these stocks, in which you will sell them)

hi,
great pick g and r,
sold half my position at 1.15 bought brvo at .80 for about the fifth time in a year ;D
gotta make some green on it this time

I'm trying to learn the charts and signs, so any comments and suggestions are very welcome.

Does the low volume experienced today with a doji indicate a correction is coming.  And, if so, should we be considering a stop limit?

Ramsburg, no buyback for BRVO for the portfolio?... BRVO is bullish again price back above 50(SMA) with rising volume ;)

CHID is consolidating the recent gains, some selling pressure after a big move like this is always normal (short term traders on profit taking).

We strongly believe that CHID will not stop here, we'll probably watch a few more days of ranging between $0.95 and $1.15, and after that a new rally to much higher prices.

The Plan will be the same: Hold

Best regards,

Quote from: Ramsburg on May 08, 2006, 01:21:39 AM
CHID is consolidating the recent gains, some selling pressure after a big move like this is always normal (short term traders on profit taking).

We strongly believe that CHID will not stop here, we'll probably watch a few more days of ranging between $0.95 and $1.15, and after that a new rally to much higher prices.

The Plan will be the same: Hold

Best regards,

Absolutely... I have to say this is a great pick ;)

Quote from: Terlisa on March 07, 2006, 09:53:41 AM
CHID Gap-up @ open ... it's a huge one ;)

I will sell now from here & come back later, or is it a breakaway GAP?

Quote from: Terliso on March 07, 2006, 06:07:33 PM

Quote from: Michael on March 07, 2006, 02:48:17 PM
Hi Terlisa and Oliver,

This is one of the reasons I love 3SOF. You really see both sides of the coin. Oliver (I think) and I see a share that is growing earnings with 517% and is trading at a forward PE of 6.3.

You see a stock that has a gap up and decide to take profit.

The beautiful thing is that I am sure all three of us will earn money on this stock even though our trading philosophy is soooo different!

Mike,

Don't worry... i will join with you soon again ;) :D ;D 

I'm happy that i'm back on CHID ;)

Quote from: Terlisa on May 06, 2006, 12:50:22 AM
Ramsburg, no buyback for BRVO for the portfolio?... BRVO is bullish again price back above 50(SMA) with rising volume ;)

About BRVO, ....  :-\ we had it on our radar few weeks ago, but due to so many other picks we were involved we missed that one  :-\   We are watching it, and possibly we'll test a re-entry on this one ;)

Quote from: Terlisa on May 08, 2006, 01:32:56 AM
Absolutely... I have to say this is a great pick ;)

;)

I just doubled my position....   :o
This bad boy is ready to shoot up somemore....:P great pick...


Muahahah 8)
cheers
B

Last session and a half I've had an order to buy at 1.045 but it hasn't filled despite the fact that it's printed 1.04 on both days after I placed my order. C'mon MM's - give me a piece of chid!

I'm sure you already know but, the one thing I've learn abt BB stocks is that you gotta give it more margin ;)

Cheers...
B

I hate to say it, and I hope I'm wrong but our two pennies CHID and IVHG do not look very healthy right now.

I can't speak for IVHG but CHID is still looking good.  It is bouncing around in a symmetrical triangle started 3 days ago and as long as it doesn't do a big break to the downside, we are good.  Volume is also decreasing as it should....

Why dont you think CHID looks healthy.....
The volume is dryin up plus there is no significant selloff's????still within healthy $ range, hasn't even touched teh 5EMA.....
no questions abt it, this puppy has a high chance of going up - up - up.... 8)....

Hum I'm confused.. ???
B

I'm only referring to short term, like today.  Sorry for the confusion.  I don't know how opening prices are determined but these stocks opened too high and profit taking just takes over.  In the end, they are unlikely to end green for the day.  I think if they opened at the pervious days' closing price then we'd be better off by the end of the day.

Yeah Netfish the gap ups are not helpful when there's no serious buying power behind it. I was also thinking CHID is looking bearish short-term on the daily chart, but Rams' 5-day intraday chart is a perspective I hadn't looked at. CHID is going to have to make a move one way or the other in the next day before the triangle squeezes it out. 

Quote from: Lucas Scott on May 09, 2006, 01:41:25 PM
Yeah Netfish the gap ups are not helpful when there's no serious buying power behind it. I was also thinking CHID is looking bearish short-term on the daily chart, but Rams' 5-day intraday chart is a perspective I hadn't looked at. CHID is going to have to make a move one way or the other in the next day before the triangle squeezes it out. 

Am I being compared to the great and powerful Ramsburg?!? ;D ??? ;D  Haha, I don't think I have the stock picking talent that he has in his little finger but I still try to contribute when I can.  ;)

Looks like the supply line is holding for now.  There was a slight uptick in volume as it was approached but so far not enough to push it through.  Patiently waiting....

hey Bas - my bad, I thought that was Rams' post. Nice chart!

No problem, Lucas.  It gave me a chuckle.  Now if CHID would rocket up, we would all be happy!

Hi guys !

Thanks for all the inputs ;)

Well, my view on CHID is simple: There's a short term Consolidation, leading me to a complete «no stress» mod on this stock ;)  >:D
Since it is holding pretty well these levels, we should expect a new breakout at any moment... We are up about 75% on this trade, so we are cool about any short term volatility.

We cant do the normal TA on this penny plays (MA, momentum indicators, etc), since they work on a different way, the short term chart may suggest some correction now, some drop of momentum, etc..., the same way it was suggesting a correction last week just before the recent breakout... But what I see now, is an interesting consolidation, plenty of buying pressure above the support, and some magnetic forces on the resistance ;)

A new breakout could put CHID above 2005's highs, and the beauty of that, is that could happen in just a few days. So I think it's a great danger to even think about selling CHID right now and be away of this great position  ;)

Best regards !

Chid...weakening? ? ? ?

I don't think so....breakout is just happening ... I'll hold this baby just below $2 bucks or maybe even higher ;)

Quote from: Terliso on May 09, 2006, 05:03:34 PM
Chid...weakening? ? ? ?

I don't think so....breakout is just happening ... I'll hold this baby just below $2 bucks or maybe even higher ;)

;) Terlisa(o), we have the same expectations... CHID is holding pretty well these high levels and this short term consolidation is now showing some signs of ascending triangulation... A bit more of volume and a breakout of $1.18 could easily lead to extreme «panic» buying...

Plan B: A bit more time of consolidation, strong support on the $0.90/$1.00, area with the same final result: breakout of the $1.18 resistance.

There are too much eyes looking into CHID right now, a lot of people have already sold their positions, and are «afraid» of being out of the boat... A correction was expected, and it didn't happened yet so far, so there are a lot of potential buyers asking: «when do I have the chance to pick CHID again below $0.90 ?»... I'm not a futurologist, but the perfect answer to this question would be another question: «For how long would be possible to buy CHID below $2.00 ?» ;)  >:D

The plan:
Hold CHID and ask questions later ;)

Best regards,

CHID had some selling yesterday, but still closed inside the higher trading range.
We expect support and buying pressure on the $0.90 / $1.00 range, which we believe is a good entry / accumulation zone.

Trading Plan:
Hold CHID

Regards,

Hi,

Another sell off, we are now at .90 support. Should with a stop in case soemthing doesn't act right??

thanks
rafael :)

Quote from: mexirafa on May 11, 2006, 11:52:44 AM
Hi,

Another sell off, we are now at .90 support. Should with a stop in case soemthing doesn't act right??

thanks
rafael :)

Hi Merixafa,

We are using no stop on this trade. We believe this selling is normal behavior for this kind of moves, and we expect to see CHID going much higher than the recent highs.
A stop price on such a volatyle stock could just compromise our position like happened before (XING for example).

Patient will be the key factor for this trade ;)

Ok, no stop.  Anyone have any idea where it will reverse?  My guess is $0.87 is short term bottom.  I expect stock to move up tomorrow, if not... then probably we really really need to think of a stop, whatever that level maybe.

I think $0.85 - $0.90 should provide some support, below that and it could be as low as $.70 before we find support.

I would like to see a reverse here and a close above $.90 today.

CHID has broken every support indication that I could reason.  I would hate to see all of the profit evaporate.  Should not we place a stop here in the $0.80s to protect what profit we have left?

Got out...can't stand the pain of seeing profits evaporate. I'll wait until next week to see about getting back in at a lower support level.

Quote from: Ramsburg on May 11, 2006, 12:32:12 PM

Quote from: mexirafa on May 11, 2006, 11:52:44 AM
Hi,

Another sell off, we are now at .90 support. Should with a stop in case soemthing doesn't act right??

thanks
rafael :)

Hi Merixafa,

We are using no stop on this trade. We believe this selling is normal behavior for this kind of moves, and we expect to see CHID going much higher than the recent highs.
A stop price on such a volatyle stock could just compromise our position like happened before (XING for example).

Patient will be the key factor for this trade ;)

Now we are at .84-.85. Is this still a normal behavior?

please update.
Thanks
Rafael :)

Thomas Andrews: The pumps will buy you time, but minutes only. From this moment on, no matter what we do, Titanic will founder.
:(

i have stops placed at .82

Quote from: Ramsburg on May 10, 2006, 12:57:37 AM

so there are a lot of potential buyers asking: «when do I have the chance to pick CHID again below $0.90 ?»... I'm not a futurologist, but the perfect answer to this question would be another question: «For how long would be possible to buy CHID below $2.00 ?» ;)  >:D

So, all these buyers can now buy CHID under $.90 now -- of course, I would expect to see a surge in volume soon, if there really are a lot of buyers wanting in at these low prices.

I think the general market woes and the fact it's friday and we just had a huge run, has caused the depression on CHID -- I would say that when/if optimism resumes (hopefully next week) Chid will be back over a dollar.  (god I hope so!)

Yikes, if it goes to .82 I'm out too.  At the risk of going down with the Titannic, I'll have to find a life raft, dress as a woman, and call myself Charlotte.

LOL

Hello,

It's always hard to see nice profits going down like this... But its all part of this activity, and we should look at this naturally.

But the General market is weak... Everyone must play their risk accordingly, but for us at 3SOF Portfolio with 6.66% per stock we wish to hold CHID further as we believe this is just a side effect of this dip on the market and general short term pessimism.
Some stocks are not for monitoring every little movement... that is how we feel on CHID right now. CHID started to go up because it was under valuated, and the market noticed about that, nothing has changed on CHID's expectations and under valuation, so we look this big dip as an excellent buying opportunity (not selling signal, I actually bought a few more shares to my private portfolio at 0.86 few minutes ago).

We were looking to $0.90 as the perfect support, but with this general pessimism, especially on a Friday, many traders decided to closed positions before the weekend, making this $0.90 barrier to be moved to the .81/.82 level.

Off course, this is our opinion, we may be wrong, and anybody uncomfortable with our current strategy on CHID is free to disagree and take profits out of the table ;)

Best regards !

thank god i wasn't stopped out, 6% gain today!

Nice rebound today!   Let's hope we can close near the HOD.  Having a nice white hammer on a down friday could be considered bullish.

Quote from: Loffigus on May 12, 2006, 03:16:41 PM
Nice rebound today!   Let's hope we can close near the HOD.  Having a nice white hammer on a down friday could be considered bullish.

Yep... this candle reminds me the one in 2/May... ;)

yesturday and today reminds me of the scene from braveheart... HOld Hold..... Now......

Lets see some william wallice actions!!!

Quote from: beroznikmal on May 12, 2006, 03:29:55 PM
Lets see some william wallice actions!!!

From Wikipedia, "On 23 August 1305, following the trial Wallace was removed from the courtroom, stripped naked and dragged at the heels of a horse to Smithfield Market. He was drawn and quartered, strangled by hanging but released near death, emasculated, eviscerated, beheaded, then divided into four parts (the four horrors) at the Elms in Smithfield. His head was placed on a pike atop London Bridge, which was later joined by the heads of his brother, John, and Sir Simon Fraser. His limbs were displayed, separately, in Newcastle, Berwick, Stirling, and Perth."

beroz - You must have shorted CHID ;)

I was talking abt before he died.....
Very funny Lucas.....
Cheers
B

Nice Off-Topic ;)

Braveheart is also one of my favourite movies, few years ago I had the opportunity to visit Scotland, and I was in all of the major places of Wallace history (Falkirk, Stirling, etc).  I think I remember to see a T-shirt, saying «If Wallace was a trader, he would be holding CHID».

;)

Regards !

Quote from: Ramsburg on May 10, 2006, 12:57:37 AM

Quote from: Terliso on May 09, 2006, 05:03:34 PM
Chid...weakening? ? ? ?

I don't think so....breakout is just happening ... I'll hold this baby just below $2 bucks or maybe even higher ;)

;) Terlisa(o), we have the same expectations... CHID is holding pretty well these high levels and this short term consolidation is now showing some signs of ascending triangulation... A bit more of volume and a breakout of $1.18 could easily lead to extreme «panic» buying...

Plan B: A bit more time of consolidation, strong support on the $0.90/$1.00, area with the same final result: breakout of the $1.18 resistance.

There are too much eyes looking into CHID right now, a lot of people have already sold their positions, and are «afraid» of being out of the boat... A correction was expected, and it didn't happened yet so far, so there are a lot of potential buyers asking: «when do I have the chance to pick CHID again below $0.90 ?»... I'm not a futurologist, but the perfect answer to this question would be another question: «For how long would be possible to buy CHID below $2.00 ?» ;)  >:D

The plan:
Hold CHID and ask questions later ;)

Best regards,

Terliso - added more at $.82? Two cents below the low of day? You'll have to show me that trick sometime. >:D

Quote from: Lucas Scott on May 14, 2006, 05:37:28 PM
Terliso - added more at $.82? Two cents below the low of day? You'll have to show me that trick sometime. >:D

Well, there is no trick... just call that a luck baby!!! ;) :D

What to say about CHID on Friday?
CHID was able to move on a difficult market session, buyers were happy to see CHID below $0.90 and went all shopping it (I did).
We were wrong about the $0.90 support, but it's difficult to be accurate on these technical values for OTCBB stocks, we were considering to use a stop last week, but I'm glad we didn't.

Friday's candle reminds me the candle on 02-May, just before a new breakout, the volume was different, but the fact of being a Friday and the general market in really bad shape is a good sign for CHID.

CHID has a resistance level near $1.20, but as we stated before, we expect to see CHID at much higher prices (soon). This move takes time to develop, it is difficult to predict with accuracy, but we are willing to wait since we are very comfortable with this position (even with this extreme price volatility).

The Trading Plan:
We must HOLD CHID

Best regards,

China Digital Communication Group Reports First Quarter Revenue Up 9.5%
PR Newswire - May 15, 2006 08:40

LOS ANGELES and SHENZHEN, China, May 15, 2006 /PRNewswire-FirstCall via COMTEX/ -- China Digital Communication Group (OTC Bulletin Board: CHID), one of the largest and fastest growing battery components manufacturers in China, today reported revenue for the first quarter of 2006 increased 9.5% to $3,183,547, compared to $2,907,512 in the first quarter of 2005. Net income was $736,783, or $0.01 per fully diluted share, compared to $725,799, or $0.01 per fully diluted share in the first quarter a year ago.

Interim CEO and President of China Digital Communication Group Yu Xi Sun, said, "We are continuing to grow our core business organically and expand our product lines. With about 10% of China's highly fractured lithium-ion battery component market, we currently have the second largest market share in the world's fastest growing major market.

"We are also moving forward with our plans to close the acquisitions of Galaxy View International and Shenzhen Zhuo Tong Power Supply Industry Co. We expect to close both acquisitions during the summer. We believe that these two acquisitions would position China Digital Communications for future profitable growth opportunities in China's fast-growing telecommunications market.

"We continue to project revenue of $30 million and net income of $10 million, or $0.13 per fully diluted share, based on the successful completion of the two acquisitions. We believe the future of our business is very strong, and as I have stated previously, I intend to purchase up to 1 million shares of the company in the open market by June 20. I have already begun to buy shares," Sun said.

About China Digital Communication Group

China Digital Communication Group, through its wholly owned subsidiary, Shenzhen E'Jenie Science and Technology Co., Ltd. (E'Jenie), is one of China's leading manufacturers and developers of advanced telecommunications equipment. E'Jenie sells advanced high-quality lithium-ion battery shell and cap products to all major lithium-ion battery cell manufacturers in China. E'Jenie's products are used to power mobile phones, MP3 players, laptops, digital cameras, PDAs, camera recorders and other consumer electronic digital devices. China Digital Communication Group is continuing its expansion across East Asia, while also seeking distribution partners and acquisitions in new global markets, including the United States. For more information, visit http://www.chinadigitalgroup.com. To contact the company, call Roy Teng, China Digital Communication Group, (310) 461-1322, e-mail: [email protected].

An investment profile on China Digital Communication Group may be found at http://www.hawkassociates.com/chinadigital/profile.htm.

For investor relations information regarding China Digital Communication Group, contact Frank Hawkins or Ken AuYeung, Hawk Associates, at (305) 451- 1888, e-mail: [email protected]. An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.com.

Forward-looking statement: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may differ materially based on a number of factors, including, but not limited to, uncertainties in product demand, risks related to doing business in China, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.

CHINA DIGITAL COMMUNICATION GROUP AND SUBSIDIARIES
                         (FORMERLY JASMINE'S GARDEN)
                          CONSOLIDATED BALANCE SHEET
                                March 31, 2006
                                 (Unaudited)


                            ASSETS


    Current Assets
      Cash and cash equivalents                     $3,610,109
      Accounts receivable, net                       1,297,433
      Inventory                                        243,142
      Prepaid expenses                                 235,466
      Other receivables                                 10,462
        Total Current Assets                         5,396,612

    Property & equipment, net                          641,522

    Other Assets
      Deposits                                           3,100
      Cash advance for business acquisition          3,000,000
      Goodwill                                       1,865,067
        Total Other Assets                           4,868,167

    Total Assets                                   $10,906,301

               LIABILITIES AND STOCKHOLDERS' EQUITY

    Current Liabilities
      Accounts payable and accrued expenses           $785,582
      Income tax payable                                56,215
      Loan payable to related party                    174,600
      Advances                                           1,965
      Short term note payable                          249,600
        Total Current Liabilities                    1,267,962

    Long-term debt, net of current portion           3,000,000

    Stockholders' Equity

      Common stock, $.001 par value,
       140,000,000 shares authorized,
       72,960,626, issued and outstanding               72,961
      Additional paid in capital                    12,514,614
      Advance for business acquisition             (9,620,000)
      Statutory reserve                                128,784
      Other comprehensive income                       203,030
      Retained earnings                              3,338,950
      Total Stockholders' Equity                     6,638,339

    Total Liabilities and Stockholders' Equity     $10,906,301



              CHINA DIGITAL COMMUNICATION GROUP AND SUBSIDIARIES
                         (FORMERLY JASMINE'S GARDEN)
                      CONSOLIDATED STATEMENTS OF INCOME
          FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2006 AND 2005
                                 (UNAUDITED)

                                                2006            2005


    Sales, net                                $3,183,547     $2,907,512


    Cost of sales                              2,209,267      1,967,596

        Gross profit                             974,280        939,916


    Selling expense                                7,194         10,552

    General and administrative expenses          164,773        165,958

        Income from operations                   802,313        763,406


    Other (Income) Expense
        Interest income                          (5,115)           (50)

        Miscellaneous expense                        268        (8,791)

        Interest expense                          29,840          5,335

        Total Other (Income) Expense              24,993         (3,506)


        Income before income taxes               777,320        766,912


    Provision for income taxes                    40,537         41,113


    Net income                                  $736,783       $725,799


    Other comprehensive income

        Foreign currency translation              91,346          2,580


    Comprehensive Income                        $828,129      $ 728,379


    Net income (loss) per share:
        Basic & diluted                            $0.01          $0.01


    Weighted average number of shares
     outstanding:
        Basic & diluted                       63,710,626     54,460,626

Once again I got sucked in at a high price.  I bought at 1.04 and the report today (9% increase??) does not seem that great.  That must mean Q3Q4 will require humungous increase in sales of 26 million???

Quote from: garym on May 15, 2006, 09:42:22 AM
Once again I got sucked in at a high price. I bought at 1.04 and the report today (9% increase??) does not seem that great. That must mean Q3Q4 will require humungous increase in sales of 26 million???

They just reported 1Q06. They have 3 quarters to make 26 Milllion, not 2 qtrs. with the two new high growth acquisitions closing in the summer. I believe they will easily make their goal. The CEO is even betting about a $1M of his own dollars on achieving their goal.

Quote from: garym on May 15, 2006, 09:42:22 AM
Once again I got sucked in at a high price.  I bought at 1.04 and the report today (9% increase??) does not seem that great.  That must mean Q3Q4 will require humungous increase in sales of 26 million???

Sorry to hear about your purchase given today's action, but things may not be as bleak as they seem longer term.  CHID projections for revenue include completing two acquisitions of companies that will add to their earnings.  I think if you read all the posts in this thread and some of the news you will see how that works in more detail.

i thought that we are not holding through earnings after the Diet case....if i knew the date yesterday i would have sold yesterday i never hold through earnings...i am back to daytrading

Is CHID safe to hold long term? (aprox 1 year). I know a lot of these OTCBB stocks can be very volatile, but CHID seems to have quite a high dollar amount and has increased revenue. Should this set back be shrugged off for a longer term holder?

hi,
after today's action ( just broke 80) it will be a long time before chid sees 1.00,
no buyers at these levels supporting it.
jmho
maxi

I had picked some up friday at $1..i was actually trying to cancel my order ...but once again my TD Waterhouse acct takes way too long to execute an order...and so, i had found out after close that my order to buy CHID at $1 did go thru.....i hate that broker.

glta

julia

Julia -

call up Ameritrade and complain.  Tell them that you want it reversed - that you canceled the order and it did not go through.

If they do not give it to you, speak to the manager.

At least get them to give you a month of free trades.

(I do that at least twice a year - I trade way too much).

And take any profits fast on penny stocks.  Most of them crumble.

   Man, I feel your pain between chid and gv today is just absolutely aweful. You would think that chid would have an opposite effect if the US markets are down but i guess not.  if this closes below .80 where is the next support i don't see anything strong until the upper .60s...dang..... i don't know about anyone else but i feel like at this point i am stuck and need to just weather it out.  I believe in the fundamentals and Ramsburg hopefully still feels strongly about the future....

I'll give it a shot Snowcat, thanks for your advice :)..although i doubt they will do anything about it..i  had called them a couple of times last week because of other similarly related problems..they dont care..they just tell me that its my risk if orders are already filled out...whatever....they are a bunch of creeps.

But, I'm waiting for a  manager to call me back..i will be getting a bit nasty..lets see what they do.

Lets just hope this is a big pullback today. :)
glta


julia

CHID reminds me of MOBL in that their plan is growth through acquisition. The jury is out on that strategy. For the last two years MOBL has been a good stock for traders, but not for investors.

Well, no matter how you slice this one, it just sucks to have held it.  I had a 44% profit about a week ago, and today I am not at at 3% loss, with no end in sight.  I usually sell with less profit than that, but I had a feeling about this one... not so sure about that feeling now.  :'(

Can someone who has studied this please comment on the earnings announcement this morning?  How can it go down 18% on the day earnings is announced?  This appears more like earnings was bad rather than anything else.

Heck Loffigus, I not only held it thru this mess, but added at 1.00 AFTER selling in my IRA at .72.
Bad day, sure hope things change for the better.

Julia - don't get nasty.  they will screw you account more.

This is a penny stock.  Most of these are manipulated and someone has to be left holding the bag.  They go up.  You sell it and say thank you. 

In my years of investing, I have lost a lot more on penny stocks than I have ever made. 
Most of my money has been made on IBD 100 type stocks - MED, IFO, FIX......

Look at your own trading history and see if it is the same.

Not a good day for CHID after releasing the quarterly report, not that the report was bad (was probably as expected), but because of massive profit taking on the news. CHID is still up about 100% since the recent base @ $0.40, and unfortunately that by itself is always an explanation for waves of panic selling like this especially on penny stocks.

A stock from our Portfolio falling 18%, its really not a nice thing to see... but we are confident that CHID is under value, and we see this dip as a good buying opportunity, since we are already on the last consolidation range (a level with sure buying pressure).

A few quotes from David Randolph (aka César Borja) on OTCBBcoverage.com today about CHID behaviour:
http://www.otcbbcoverage.com/stocks/index.php?topic=12.msg396#msg396

QuoteComparing with the previous quarter, revenue was $3,183,547 for 1st quarter 2006 and $3,113,000 for the 4th quarter 2005.

Net income for this quarter was $736,783 versus $449,000 for the prior quarter.

Revenues are stable for the last 4 quarters. If nothing happens on the acquisition front in 2006,  I estimate the company will earn 5 cents a share this year, so it stands at about fair value at 16 times earnings.

But, if they can achieve those two acquisitions, internal estimates are for $0.13 in earnings. If you apply the same 16 earnings multiple (it should be more, given the growth), the stock will be trading around $2.08.

I believe the stock will reward anyone with some patience. I consider current levels as a buy zone, not a sell. The market is just stopping out some weak hands, I believe.

Good luck  ;) 

Quote

QuoteI hate to be the "party pooper" Wink around here but with these mild reports, what prevents this stock to break down even more? (to 0.7 and lower)

Value.

QuoteDoesn't our TA become irrelevant once this type of news is out?

Yes, most of the short term technical signals are false. That's why you need to know the fundamentals on occasions like this.

QuoteDo you still think it would bounce back after these kind of reports?

Well, yes, everything stays on track and as expected. CHID is still consolidating the upward move it had from $0.40. Stocks don't go up on a straight line, unfortunately.

This is my current opinion, but I can be wrong or missing something. I'm not buying anymore CHID, but I'm a long term holder of the stock since the low $0.40's. Not thinking of selling below $2.

Trading Plan:
Hold CHID

Best regards,

updated CHID fact sheet:

Havent seen this hit Yahoo yet, but this news should help the stock, looks like its already helping a little bit.  If the president is underwater, you can be sure he is going to work to get the stock back up over a buck!
---------------------------------------------------------------------------------------------------------------

SOURCE: Form 4

ISSUER: CHINA DIGITAL COMMUNICATION
SYMBOL: CHID

FILER: SUN YU XI
TITLE: President

DATE               TRANSACTION             SHARES       PRICE            VALUE
5/12/06            Purchase               530,000       $0.97         $511,450

OWNERSHIP: 560,000 (Direct)

  The Form 4 is filed with the Securities and Exchange Commission by insiders
  to report transactions in their companies' shares.  Open market purchases
  and sales must be reported within two business days of the transaction.

Insider Data Source: The Washington Service
                     ([email protected] or 301-913-5100)


  (END) Dow Jones Newswires

  05-16-06 1408ET

If anything, from CHID and GV, I have learned to set a reasonably close trailing stop after a run up.  Letting CHID, in particular, fall $0.38 from its high of $1.18 is not a mistake that I will make again.  

The issue now is should we set a stop from here.  

Did CHID issue a press release that set the date for announcing earnings?  I would have never held through earnings had I known.  Was I the only person taken by surprise?

And, by the way, CHID's President is female, no?

Quote from: buddjas1 on May 16, 2006, 02:32:05 PM
If anything, from CHID and GV, I have learned to set a reasonably close trailing stop after a run up.  Letting CHID, in particular, fall $0.38 from its high of $1.18 is not a mistake that I will make again.  

The issue now is should we set a stop from here.  

Did CHID issue a press release that set the date for announcing earnings?  I would have never held through earnings had I known.  Was I the only person taken by surprise?

And, by the way, CHID's President is female, no?

The CEO was a woman, but I believe she resigned.  The interim CEO is the current President who is the one buying up to $1M on the open market.  Some of the price increase may have been due to his buying, but is also a bullish sign for the company.  I was hoping for more of a bounce on the news below, but then I have been hoping for a lot of things in this market for the last week...  :-\

I think the 3Stocks team should add an exit strategy to replace "no stop for now, potential Multi Bag play." The pullback from the 1.18 high was too steep. There are way too many bagholders who would eat a sock to get out a dollar right now. There might be a bounce to sell into -- that's a more likely scenario.

In general I wish 3Stocks would avoid the "potential Multi Bag play" wording. There are too many inexperienced traders who get caught up in that. Since 3Stocks started using that designation, I think the best return on a listed "Multi Bag" play has been GSHF, which gained 20% or 1/5 of a bag. Multi Bag is not realistic. It's nice when it happens, but it cannot be expected.

lucas scott,
i second that emotion.
maxi

I'd eat my boxers to get out at 1$

I would partially agree with Locus. it is true that most of the traders here are inexperience but if you follow the plan of 3stockonfire, i.e. buy CHID and GV at 0.67 and 1.47. you are still up about 20% each. you can not blame 3stockonfire if you enter the market at a price i.e CHID for 1.1 and GV at 2.80. what I am sayiing is that your money you decide. may be a lot of us earned 80% each on GSHF, CHID and GV if they sell early. 80% for a few weeks, what can you expect?
BTW, may be CHID and GV will rebound, maket will decide

winner

I think that everyone needs to plan their own exit strategy when they don't agree with the 3SOF strategy.  I know we pay for a service, but that does not mean we do not have a choice on when to sell -- It is possible to outperform 3SOF and to underperform 3SOF.  It all depends on how closely you follow their plan.  For example, I bought 12% of my portfolio in CHID and the rest of my positions were 6.66%, so the past few days I have seen a steeper decline in my value than the 3SOF portfolio has seen.   I admit, I have a hard time following the 3SOF recommendations to the letter, so I have adopted a new strategy for my trading in the coming weeks. I always hold the same stocks in the 3SOF portfolio, but I develop my own exit strategies that don't always match the 3SOF strategy.

1)  I will always take 50% off the table when I have a profit of 30% or more.  (you can always rebuy your full position back on a new breakout or on a pullback if you want to)
2)  When you sell a full position, Rebuy the position only on a pullback to a support (or near) level.
3)  Give OTCBB stocks at least 20% wiggle room.
4)  Set trailing stops when your profit reaches excessive amounts.
5)  Instead of placing a STOP order, I place a trailing stop of 1% at the stop level.  That way, if 3SOF gets stopped out, but the price recovers (like WDPT did today), You may get out at a better price.  The risk is you may lose 1% more.  In any case, I will usually sell it by the end of day.  

Quote from: winner919 on May 16, 2006, 05:12:03 PM
I would partially agree with Locus.

Winner you must mean "Lucas".

yes, net. I mean Lucas. sorry for the error.

winner

[quote author=Loffigus link=topic=4246.msg62276#msg62276
5)  Instead of placing a STOP order, I place a trailing stop of 1% at the stop level.  That way, if 3SOF gets stopped out, but the price recovers (like WDPT did today), You may get out at a better price.  The risk is you may lose 1% more.  In any case, I will usually sell it by the end of day. 

Quote

I find your strategy interesting, but do not quite understand point 5, the part that goes "trailing stop of 1% at the stop level... risk is you may lose 1% more". How would this work on this hypothetical example:

Bought at $10.00
Yesterday's close: $11.46
Today, 3SOF recommends stop of $9.90
What trailing stop do you place?

Hi Maestro,
Let me explain in more detail:

Quote from: Maestro on May 17, 2006, 06:56:24 AM
[quote author=Loffigus link=topic=4246.msg62276#msg62276
5)  Instead of placing a STOP order, I place a trailing stop of 1% at the stop level.  That way, if 3SOF gets stopped out, but the price recovers (like WDPT did today), You may get out at a better price.  The risk is you may lose 1% more.  In any case, I will usually sell it by the end of day. 

Quote

I find your strategy interesting, but do not quite understand point 5, the part that goes "trailing stop of 1% at the stop level... risk is you may lose 1% more". How would this work on this hypothetical example:

Bought at $10.00
Yesterday's close: $11.46
Today, 3SOF recommends stop of $9.90
What trailing stop do you place?

It is only possible for me to do this because I have access to a computer during the day, so I can monitor my portfolio regulary.  What I do is this:
-- when the price of the stock hits the 3SOF stop price (in your example, $9.90) then I place a trailing stop at that point that trails the market by 1% (sometimes 2%).  So if I place it at $9.90, that gives the stock about 10 cents room to wiggle.  If the price drops to around $9.80, it sells, but if the price climbs I may end up getting out at 10.00, $10.15, $10.25 -- etc...  In any case, I will sell it on the same day as 3SOF if my trailing stop was not triggered.

I used this strategy on the following stocks:
IO - my exit was $10.15, 3SOF exit was $9.90 (outperform by 2.25%)
CRUS - my exit was $9.10, 3SOF exit was $8.95 (outperform by 1.67%)
IMOS - my exit was $7.13, 3SOF exit was $7.20  (underperform by 1%)
TOMO - my exit was $24.55, 3SOF exit was $24.80 (underperform by 1%)
DEIX - my exit $16.15, 3SOF exit was $15.88 (outperform by 1.7%)

So, so far the strategy has paid off.   I don't like the idea of dead stops if I can help it, because often when a stock drops to a new low, it will rally temporarily -- the trailing stop lets you take advantage of that rally.

China Digital Communication Group President Purchases Over 500,000 Shares @ .965$

http://sec.gov/Archives/edgar/data/1144320/000091068006000409/xslF345X02/f4sun051206_ex.xml

So I guess this is a good thing right... Im sure he does not want to losse anymore money and try his best to rais the PPS :o

Quote from: Loffigus on May 17, 2006, 10:20:10 AM
Let me explain in more detail:...

Thank you, Loffigus. Now I got it.

CHID rallying a bit now, hope it lasts.  Any stock that can close green today is likely a keeper.  If only IVHG and GV would do the same, I will have escaped this crazy day relatively unhurt because I sold about half my positions near the open.  Should have sold them 5 days ago, but I never would have guessed the market would slide so far so fast?  ??? :o :-[

I think GIGM CHID AND IIP ARE GOOD....
GIGM is GREEN
CHID IS GREEN
and IIP did nt shift that much the last 4 days....

Cheers..
B

Thanks for all your inputs ;)

Update:
After this ugly sell off, CHID may have found a base, the last 3 candles had higher lows above $0.75 and CHID is now consolidating in the $0.80's.
From a Fundamental point of view we have strong expectations about CHID like stated before and we rate it as a completely under value stock. And from a Technical perspective, even with this big sell, CHID is still holding a bullish pattern with consecutive higher lows and highs.

A little quote from David Randolph in OTCBBcoverage.com yesterday:
http://www.otcbbcoverage.com/stocks/index.php?topic=12.msg507#msg507

QuoteA form 4 just came out saying the CEO of the company bought 530,000 shares, on May $0.12, at an average price of $0.965. She bought $511,450 at a price higher than the current price, why shouldn't you buy now?

You know more than her about the company's prospects? Of course not.

I still rate CHID as the best !

Trading Plan:
Hold CHID

Best regards,

The words like these --

...I intend to purchase up to 1 million shares of the company in the open market by June 20. I have already begun to buy shares," Sun said.

isn't serious for  respectable management

Quote from: voova99 on May 18, 2006, 04:16:16 AM


The words like these --

...I intend to purchase up to 1 million shares of the company in the open market by June 20. I have already begun to buy shares," Sun said.

isn't serious for  respectable management

Well, he followed it up by buying at least half that, so it seems he has been sticking to his word.

I may be wrong but I believe the person purchasing these shares is a woman.  Please let me know if I am wrong.  After some thought I am assuming that the acquisitions will occur after June 20.  I do not think she wants to pay more than is necessary for her shares.  I believe by the end of the summer those still holding should see significant increase in their share value if all goes as planned.

GLTA......Alien   

Yes She is a female...
;)

Chid is continuing to decline - I bought in higher and am looking to exit in the .70's if it continues to slide.   

I would like to be in when the first acquisition is announced, but CHID could be much lower before that happens. 

Any thoughts on CHID's TA?

Thanks!

dbryan, here is my take on CHID's action.  I wish I would have seen this earlier but the chart below shows the recent high of $1.185 was no fluke, it was a bounce off of overhead resistance and validated the descending trendline.  CHID has pretty much just gone down since that bounce.

The last few trading sessions has seen CHID either gap up at the beginning and fade the rest of the day or move up quickly in the morning and fade.  This tells me that people are looking to get out of the stock when they have the chance.  Yesterday printed a low of .74 - the lowest price in 13 trading sessions and resulted in a candlestick that engulfed the previous 2 day's gains.  Not a bullish outlook.

On the brighter side, CHID closed at the 50% fib retracement level yesterday (.77) and if it can produce some strength today, could result in a good bounce point.  The fact that CHID violated the .77 point and came back to close at it is bullish but it will have to stay above it to still be in good shape.

The big difference between the last upward move and this one is a huge increase in volume but unfortunately, it wasn't enough to push us past that descending TL.  Will it return and move us higher?  Where will support be established?  Those are the million dollar questions.  It probably would have taken some knockout numbers on their last report to take out that TL but maybe it will come soon.  I'm watching this morning for weakness and if I see any, I'm out.

Forgot to mention that this is the weekly chart.  ;)

Hello guys,

I believe CHID may find strong support at .68-.70 area. I attached a pdf of the chart, (sorry but for some reason I cannot save it as png files). CHID is still in a short term down trend, with lower lows and lower highs.

Currently I am out of the position, but I will jump back in if it triggers my target zone (.70) if it jumps back up on fire on any news, I rather pay the premium.

Good trading to you all,

rafael :)

Found this on siliconinvestor.com - post from someone named Don Hand. Check the links out  >:D

China Digital shows up in a search of CompUSA.

http://www.compusa.com/products/product_info.asp?product_code=337346&pfp=SEARCH

http://www.compusa.com/products/product_info.asp?product_code=337345&pfp=SEARCH

Customer review:

Customer Reviews Rate this product

(No title) February 16, 2006
David (Chicago)
Gender: Male
How do you typically use CompUSA products?: For Fun
Technology awareness: Proficient User
Overall
5



My iPod battery hasn't been able to fully charged ... this one is very easy to use, a lot cheaper than changing with Apple, and my iPod works as new now!

Wow - that hurt.  CHID dropped like a rock thru the .68 level.  I was hoping it would reverse after last weeks close - but no such luck.

Looking to buy back in sometime next week.

wow, using this site has cost me a bundle.  I bought 10K worth at $1.04 in my RETIREMENT account.  I only hope the DD is good and this eventually goes back up.

I sold today in my regular account another pile I bought at $0.98. 

I never should have bought above the SOF price but the posted reviews have been so positive. 

Market really doesn't trade based on fundamentals but technicals and momentum I suppose.

if you're short term chid, focus on the momentum and speculation news. If you're long term, focus on the fundamentals. I am long-term so I buy a little more every time it goes down a few percentages. I believe the chinese market has a long ways to grow.

Good goley moley an 80% gain has completely evaporated. It's got another 8 cents to drop to hit the bottom of the channel in this chart: http://tinyurl.com/n3x93  Hopefully that trendline will hold, but it could overshoot like it did on the top side.

Below 0.60 would be a good buy again for CHID .... :D

CHID

Quote from: Terliso on May 22, 2006, 04:37:54 PM
Below 0.60 would be a good buy again for CHID .... :D

If you are currently holding CHID @ the moment around this level, I think there is no point of selling now because the buying opportunity is maybe waving now just around the corner ;)

I'll put CHID on my watchlist for the 3rd time ;)

Goodluck Traders!!

Well... this one hurts... :(

CHID closed on our entry price, and like said before by someone, we just evaporated a +80% profit opportunity here... It's easy to see that we should have used a trailing stop level at some point, but our strong Fundamental outlook on CHID made us hold CHID all the way.

The market has been severe with Chinese stocks (and all the others too), even under-value stocks like CHID didn't survive this selling massacre. The truth is that we were really not expecting this behaviour on CHID.

We don't believe CHID has much downside further, the breakout level is here, and the ascending support is near $0.60, so there is no point to stop this position now, taking in consideration that we would be certainly buying it now again.

Hold CHID

Best regards,

Never thought I would be so happy to see CHID at $0.70!  Good decision to keep holding it, seems to be mostly upside potential from here.

Quote from: tokyopua on May 23, 2006, 01:58:16 PM
Never thought I would be so happy to see CHID at $0.70! Good decision to keep holding it, seems to be mostly upside potential from here.

Yea, it's amazing how context affects our perceptions.  Baby steps...  let's get to $.80 CHID, c'mon you can do it!  :D

Has anyone seen this
inside purchase 12-May-06   SUN, YU XI.
President   530,000   Direct   Purchase at $0.965 per share.   $511,450
http://finance.yahoo.com/q/it?s=chid.ob

ya i believe its been mentioned. I bet the same guy loaded up on the way down. I'll be watching the insider trading page for the next few days. don't know if otcbb has to report it immediately.

Nice bounce. I hope all longs entertain the idea of taking profits (or cutting losses) in the .80 - .85 range if it gets there. I'd be shocked if CHID sees .90 again anytime soon, just based on the chart. My guess is .80 - .85 and then it turns down to complete a head & shoulders top. Not sure what 3Stocks will do. This is just my .02 T2T opinion.

Another day of pure frustration with this stock - with it ever go up?  Any idea's where the bottom is for CHID?

Thanks in advance.

Quote from: dbryan98 on May 24, 2006, 12:39:04 PM
Another day of pure frustration with this stock - with it ever go up?

Well, the market died and went to hell.  I really think your best bet is to stay out of everything.  This downtrend seems to have no end.

you're all gonna regret buying Vonage (VG) in 10 years when telephones no longer exist! just kidding, i don't know why anyone does the VO IP thing, i don't think its ever going to catch out. CHID is weeding out the weak hands who just want to get out, and after a nice pop yesterday people sold throughout all of today. As the price goes down, new money will come in, as well as the rest of my savings hehe. I hope to see this great company become a true multibagger in the near future.

It looks like many people decided to take Tuesday's gains out of the table... CHID went down today, closing again at our entry price (most Chinese stocks were down today).
The last 3 candles almost made a «stick sandwich» pattern (which is a short term bullish pattern), but today's low was above 0.62 (the short term relative low).

Nevertheless, I believe we don't have much more downside to go on CHID, the breakout level was at $0.60, and the ascending support is near $0.57, taking in consideration its strong fundamentals, its value and the recent public exposure, a lot of buyers are now looking to CHID at these levels (this recent white candle didn't triggered an up move, the market didn't help either, but its only a matter of time in my opinion).

Hold CHID

Best regards,

.60 looks like its gonna hold. I'm loading up aggresively at .64

Quote from: hermanpu on May 25, 2006, 10:22:38 AM
.60 looks like its gonna hold. I'm loading up aggresively at .64

Not to sound condescending but I hope you are because all I see from todays actions in aggressive selling....

anyone know a good long target, say in 1 year? Is 1$ attainable?

Its at .60 now.... will it hold???? ???

I have made many bad trades in my life, but this is the worst trade I have ever made.  Let a 50% profit turn into a 26% (and counting) loss...  Hopefully this drop will cause some buying pressure, people rushing to buy this super-discounted stock! (let's see a run back to $1.00 by June 20!!!

haha same here Im in the same boat... I litten up but still have enough to futher break my account.... >:(

Its true that there is a strong selling pressure but I am sure there will be people interested in buying near support at 0.6 and 0.58. I am one of them.

Infact bought right now at 0.62. If CHID breaks 0.58 then its going to be concern but till then I will be holding.

I agree stocky -- I think were going to linger in this zone for a while.  except for good news coming out, it will most likely be a slower climb now back up.  Since my average price is $0.79, I am not as comfortable as the 3SOF portfolio, but I am confident we will climb above that soon.

CHID reminds me of NMKT, another OTC stock with ok fundamentals that for whatever reason can't hold onto gains in its share price. Vexing and perplexing.

For some reason I think 99% of otcbb and pink traders don't hold long term. Most people like to buy stocks with explosive momentum and then ditch it. Don't think they have the patience to wait for chid and igii to do well. Traders who are willing to hold long term are probably buying NYSE and Nasdaq stocks.

Quote from: hermanpu on May 26, 2006, 11:39:59 PM
For some reason I think 99% of otcbb and pink traders don't hold long term. Most people like to buy stocks with explosive momentum and then ditch it. Don't think they have the patience to wait for chid and igii to do well. Traders who are willing to hold long term are probably buying NYSE and Nasdaq stocks.

Hi hermampu,

That's probably right, when some OTCBB start showing some technical signals, a lot of short term traders show up and start trading it without interest on its fundamental basis or real prospects, sometimes this leads to some erratic behaviour, especially when some weak hands are buying at the momentum peaks. This kind of event slows down the natural course of a value movement. I'm not sure if that's the case on CHID or not... But despite other cases, we believe CHID was undervalued at $1.20 and certainly is a bargain at the $0.60s.

Update:
CHID made a new low on this dip ($0.60), showing some buying pressure at those levels. The ascending support is now at $0.57, so we don't expect much more downside here. The overall volume during this correction has been significantly high, and we expect it to continue above average near the low $0.60's, that would show some distribution and give strength to the support level.

We expect a positive reaction on CHID at any moment, so the plan for our position is: Hold CHID

Best regards,

I have noticed a trend where CHID's stock price spikes every June until July. Is there a reason for this?
Heres a chart of 2004 and 2005 both ranging from March to August. The patterns look very much the same, and 2006 is also very similar so this is getting me excited. Not sure if they love putting out new PR during June or something. but here at the charts, just something to look at. Both years the company has been running, June-July has a 300% stock price increase, and last year the run up started at .60 - .70 area so we are still in relatively good shape. GL everyone

I am not sure why it has spiked in June both years -- and I hope the spike we just had in April/May is just pre-buying before a nice PR.

I still think there is going to be some kind of run up prior to June 20th -- (the date the president referred to when buying her $1,000,000 worth of shares)

Quote from: hermanpu on May 30, 2006, 11:34:12 AM
I have noticed a trend where CHID's stock price spikes every June until July. Is there a reason for this?
Heres a chart of 2004 and 2005 both ranging from March to August. The patterns look very much the same, and 2006 is also very similar so this is getting me excited. Not sure if they love putting out new PR during June or something. but here at the charts, just something to look at. Both years the company has been running, June-July has a 300% stock price increase, and last year the run up started at .60 - .70 area so we are still in relatively good shape. GL everyone

Very interesting.  I wonder if the Chinese are on a different fiscal cycle?  Like in Japan the fiscal cycle for companies begins in April.  So if its June/July for Chinese companies maybe they try to release PRs etc. in order to make the year end numbers look better.  I figure ShawFund might know, just saw him back today after 2 months of not posting.  Anyone else have any idea?

Is it not time to think of a Plan B?  I like CHID, but what if it breaks through 0.57?  Should we not have a stop in place?

I think 3sof mainly likes to give us quality stock picks. Their entry and exits don't seem to be very well planned. I think you should make your own entry and exits and not rely on 3sof. I think they post good candidates as soon as they finish doing the research. The entry point is usually after a small bullish run has already occured. I just like getting stock pick ideas from 3sof, i don't mimic their exit strategies because often they don't have an exit strategy posted. It all depends on your own risk tolerance I guess. Just my opinion

OUCH!!!

CHID just printed a .597.  This is too painful to watch.

Quote from: Terliso on May 22, 2006, 11:39:48 PM

Quote from: Terliso on May 22, 2006, 04:37:54 PM
Below 0.60 would be a good buy again for CHID .... :D

If you are currently holding CHID @ the moment around this level, I think there is no point of selling now because the buying opportunity is maybe waving now just around the corner ;)

I'll put CHID on my watchlist for the 3rd time ;)

Goodluck Traders!!

Quote from: buddjas1 on May 30, 2006, 12:48:14 PM
Is it not time to think of a Plan B?  I like CHID, but what if it breaks through 0.57?  Should we not have a stop in place?

Quote from: hermanpu on May 30, 2006, 01:18:37 PM
I think 3sof mainly likes to give us quality stock picks. Their entry and exits don't seem to be very well planned. I think you should make your own entry and exits and not rely on 3sof. I think they post good candidates as soon as they finish doing the research. The entry point is usually after a small bullish run has already occured. I just like getting stock pick ideas from 3sof, i don't mimic their exit strategies because often they don't have an exit strategy posted. It all depends on your own risk tolerance I guess. Just my opinion

I agree.  I just want to prevent my nightmare scenario of what happened in IVHG--no stop but then a sell recommendation over night.  3SOF is large enough now that the sell recommendations actually move the stock.  My point is that I would rather see a stop in place instead of an overnight change of mind for CHID. 

"THEIR IS NO REASON TO SELL CHID.OB NOW"

Yes, but if CHID breaks 0.57, CHID could fall to 0.50 quickly.

Terliso, are you trying to tell us not to sell CHID  ;)

If this site is enough to move stocks, we should all team up and manipulate stocks hehe. Its kind of like Jim Cramer and how all the stuff he mentions pop 5% in afer hours. Happy to hear this site is making its way up to that magnitude.

I'm sure 3sof is well aware of chid being capable to fall to .50 very quickly. I don't know if their portfolio is "paper trading" or if its really their money. It makes a big difference if real money is on the line. This stock has been over 3$ and under .30
The 3sof members are confident enough in the fundamentals and outlook to hold it until bankruptcy. They only have 6.66% max of their portfolio in CHID anyway. The risk/reward for them is good enough to hold as long as need be. I don't depend on 3sof to make my exit points for me, its good to have your own mental exit and stick to it.

 
In a choppy market, short term traders are not looking at fundamentals but more looking for momentum plays, plays that follow the trend, probably with tight protective stops....
Having said that, because chid is more of a fundamental play/hold in a bearish/choppy market, we are not going to see any upward movement unless one of two or both of the following happens
1) bullish reversal of the overlall market
2) Positive PR.

Thats all folks....
B

The mini rally last week did almost nothing for CHID. I think people have grouped CHID with the emerging international market group which has been hit pretty hard. I'm sure CHID buyers will be pouring in at or before the .57 level to rocket this thing into July like it did the past 2 years. Some more insider buying or aqusition PR would be sweet too.

Quote from: echo on May 30, 2006, 01:51:43 PM
Terliso, are you trying to tell us not to sell CHID  ;)

It depends on u echo ;)

1) Price of CHID still trading within the ABB... ABB Pattern always act like that
2) if you bought CHID between 0.80 - 0.90 why would u sell now your mistake is already too late fix it.
3) But keep it in mind that a break of that trendline would be ugly to watch
4) CHID is now sitting @ 50(SMA) weekly scale it may found support here ;)

Goodluck Boys!!!

I like how you said its too late to fix the mistake of buying in the .80's and .90's. How about my $1.05 haha. I bought all the way down too, in the 70's and 60's. I guess that averages me in the 90's. GL longs. june-july is blast off for CHID for reasons I am not sure about, but looking at every year they have been in business, 300% gains in 1 month.

Quote from: beroznikmal on May 30, 2006, 02:06:26 PM

In a choppy market, short term traders are not looking at fundamentals but more looking for momentum plays, plays that follow the trend, probably with tight protective stops....
Having said that, because chid is more of a fundamental play/hold in a bearish/choppy market, we are not going to see any upward movement unless one of two or both of the following happens
1) bullish reversal of the overlall market
2) Positive PR.

Thats all folks....
B

Applaud you that ;)

Quote from: hermanpu on May 30, 2006, 03:25:47 PM
I like how you said its too late to fix the mistake of buying in the .80's and .90's. How about my $1.05 haha. I bought all the way down too, in the 70's and 60's. I guess that averages me in the 90's. GL longs. june-july is blast off for CHID for reasons I am not sure about, but looking at every year they have been in business, 300% gains in 1 month.

Averaging down is too risky, not in my strategy.... I'd rather do pyramiding than averaging down :)

What is pyramiding?

NEWS for CHID:


China Digital Communication Group Board of Directors Appoints Ran Liang as CEO
Tuesday May 30, 4:15 pm ET


LOS ANGELES, CA and SHENZHEN, CHINA--(MARKET WIRE)--May 30, 2006 -- China Digital Communication Group (OTC BB:CHID.OB - News) announced today that Ran Liang, CEO of Shenzhen Lan Ke Electronic Co., has been appointed CEO of the company.
ADVERTISEMENT


After graduating from JiangXi University of Finance and Economics with a bachelor's degree in accounting and international business, Ms. Liang began her career as the audit project manager at Shenzhen Zheng Feng Li Fu CPA firm. In 1998, she was certified as a CPA in China, then became director of the finance department at Zhong Wang Assets Management Co., Ltd., in 2001. Ms. Liang became the customer manager at Hua Xia Bank, Shenzhen Branch in 2002. In 2003, she held the position of chief financial officer of Shenzhen Lan Ke Electronic Co., Ltd., then was promoted to CEO.

China Digital Communications Group President Yu Xi Sun, who has served as temporary CEO since Chang Chun Zheng stepped down in early April, said, "Ran Liang is a talented individual who we believe will successfully lead our company through two important acquisitions this year. She has quickly risen to the top of all of her ventures. The board is confident she is the best person for the job and help establish China Digital as a recognized leader in our industry."

Ms. Liang said, "I thank the China Digital Board of Directors and shareholders for this opportunity. I will immediately begin working to complete the two previously announced acquisitions on schedule. Under the leadership of this management team and the company's business strategy, I believe we will achieve our goal of becoming a leader in the field of energy and telecommunications, especially 3G areas, through mergers and acquisitions and attaining our objective of maximizing shareholder value."

Quote from: bgoodman on May 30, 2006, 04:11:43 PM
What is pyramiding?

A method of increasing a position size by using unrealized profits from successful trades to increase margin.
http://www.investopedia.com/terms/p/pyramiding.asp

Quote from: Lucas Scott on March 06, 2006, 07:11:06 PM
Good numbers. That gives CHID a current PE of 11.4 and a forward PE of 5.6. CHID should be trading north of a dollar.

Did anyone ever figure out why it dropped from $1.80 to .40 between Jul 05 and Sep 05?

Finally stumbled on the reason or at least I think.  See http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/10-12-2005/0004166544&EDATE=

Notice that the purchaser of the CHID shares was Galaxy View International Ltd., which I believe is the parent company of one of CHID's acquisition targets.

chid touched 0.60 support a couple of times in the last days a sign for me to reenter seems the bottom...i am in again 0.625 (a very nice white candle today swallowed the last 3 red ones; thats nice)

We just have to be patient here -- but remember this:

China is the largest Cell Phone using country in the world.
CHID is the leading maker of batteries for China, and is also entering US markets.

Cell phones are not going away, if anything they are becoming a staple appliance for every person. 

News:
China Digital Communication Group Board of Directors Appoints Ran Liang as CEO (http://biz.yahoo.com/iw/060530/0132026.html)

Finally some action on CHID...
After testing the $0.60 support for the third day on a role, selling pressure seems to be faded away for now, and CHID had the chance to make a move, even with low volume... This is not a big inversion signal yet, but it's already something, maybe a start ;)... Like said before, we think CHID is a bargain at these prices, therefore any move on the upside is expected.

The Plan:
Hold CHID

Best regards,

quotation from http://www.hawkassociates.com/chinadigital/profile.php :

RECENT DEVELOPMENTS AND OUTLOOK
The company has quickly grown to be known as the strongest and fastest growing battery component maker in China. The business is expected to continue to generate solid revenue, profit growth and cash flow. The company said it expects its market share in a splintered market to continue to grow to a significant double-digit share by the end of 2006.

China Digital Communication Group is at an important pivot point in its history. Recognizing the worldwide technological shift in the wireless communications industry to 3G technologies, China Digital Communication Group is seeking to make a strategic transformation to become a leading manufacturer of high-tech products and technologies to 3G communication systems wireless providers. 3G communications refers to third generation communications devices representing the next technological evolution in mobile telephone and consumer electronics technology.

The company has announced agreements to acquire two Chinese telecommunications equipment and technology companies that could propel China Digital Communication Group profitably into the 3G telecommunications space in Asia. The company said it plans to acquire Galaxy View International, which owns Sono Digital, a leading supplier of 3G communications technology and equipment. It reported approximately $6 million in revenue and $2 million in net earnings (unaudited) in 2005.

The company also said it has an agreement to acquire UPE (Far East) Limited, which operates through its wholly owned subsidiary company, Shenzhen Zhuo Tong Power Supply Industry Co. Zhuo Tong is one of the leading power suppliers to the Chinese domestic market and is a pioneer of 3G power supply technologies and equipment. Zhuo Tong said it produced $5.4 million in 2005 revenue and $1.85 million in net income (unaudited).

The successful closing of these two acquisitions would position China Digital Communication Group for strong and profitable growth and open further opportunities in the exploding Chinese telecommunications market. The closing of both agreements is pending subject to completion of customary audits, financial due diligence and receipt of normal consents, approvals and opinions.
For fiscal year 2006, China Digital Communication Group has projected total revenues of $30.4 million and net income of $10.5 million, or $0.13 per fully diluted share assuming the acquisitions of Zhou Tong and Galaxy View International are successful. If 3G systems are readily adopted by China, the company said its initial projections for 2006 could be significantly higher due to increased demand for 3G components to power various telecommunications equipment and lithium-ion mobile phone batteries. The company said it will continue to pursue business opportunities with a focus on achieving profitability through additional mergers and acquisitions within the telecommunication equipment and new energy.

&

http://www.hawkassociates.com/chinadigital/CHID.wmv

I believe the CHID's revenue growth results were disappointing. 

If I recall correctly, their earnings release indicated a 9% year over year revenue growth in a market as large as China - disappointing to say the least (as is the pps dive from over $1.00 to .62).  Acquisitions seem to be the only way they'll get to "double digit" growth as I don't expect the current management can drive it there organically.

I'm hoping for a jump in the stock price so I can bail - which I don't see happening without acquisition news.

I stand corrected.  The 9% was quarter over quarter growth.

Friday CHID traded again at $0.60, and once more the buying pressure pushed CHID a little higher.
The ascending support is now located at $0.58, limiting the expected technical downside for CHID, and creating a good technical setup for position traders.

CHID will be presented in an investment conference on June 15th in New York, to an audience of fund managers, analysts, investment bankers, brokers, Media, etc:
http://www.archconferences.com/ArchConferenceSchedule.htm
This kind of event is always good to increase the exposure and credibility of an unknown company like CHID to the investment community, especially because CHID is under valuated.

Our Trading Plan for now:
Hold CHID

Best regards,

It seems the conference will be on June 15th (not July 15th)   
Am I right???
The CEO had annouced some days ago about a PR around June 20th

Which is it then?

jorgegr

jorgegr,

I believe you are correct, the conference is scheduled for June 15, in NYC.  Regarding June 20, the acting CEO stated that she would purchase one million shares on the open market by this date.  She purchased 560,000 in May.  She should be purchasing 440,000 sometime within the next two weeks.  Also the aquisitions are to take place some time this summer.  I assume it will be after June 20.

GLTA....Alien

Thx  Alien 41

jorgegr

Quote from: jorgegr on June 05, 2006, 09:47:02 AM
It seems the conference will be on June 15th (not July 15th)   
Am I right???
The CEO had annouced some days ago about a PR around June 20th

Which is it then?

jorgegr

Yes, June 15th (not July) sorry ;)

Another «difficult» session for CHID, following most of Chinese stocks for the day...
From a technical point of view, today's low ($0.588) was a first test of the ascending support line, CHID recovered a few ticks and closed above $0.60 again.

Hold CHID

So was the CHID run-up just a pure pump & dump?  The move has totally evaporated now, with high volume.

I got out this morning so it should turn and run to $3 tomorrow (that's the way my investment luck has been running lately).

Interesting move for NMKT today. 

Quote from: Loffigus on June 07, 2006, 04:03:29 PM
So was the CHID run-up just a pure pump & dump?  The move has totally evaporated now, with high volume.

No, I don't think so, CHID had a huge run, and a huge correction, but was not a «pump & dump», CHID suffered from really bad market conditions and general pessimism. But I still believe CHIDs potential is a real thing and the stock is very attractive from a fundamental point of view (although, technicals are not in good shape).

Update:
CHID made a new low on this move, closing below the ascending support level. This is not good from a technical point of view, but we are willing to give a little more room to this trade, since this could be the last exhaustion selling drop before the upside move we are expecting.

Hold CHID

Regards,

Wow, no posts in 3SOF portfolio today, maybe a sign of capitulation?  I know today was rough on me...  I sold half my CHID today, then it went back up...

Looks like emerging markets everywhere got hit today, all the ETFs dropped and I have notiiced a correlation to CHID as well on days where they drop.

The Japan ETF has dropped over 20% since its peak last month, and that ETF holds stocks that are major Japanese corporations.  So it only makes sense that a Chinese penny stock is going to get punished even worse over that time as China is an emerging market.  It was all over CNBC today about how investors are scared and want to bring their money closer to home.

Seems like only news about the acquisitions or the president buying shares is going to stop this slide IMO.

CHID was down again to new short term lows... The All market went down heavily during the morning, and CHID was no exception. I'm looking to this move bellow the support line as signal of final capitulation and a bottom, but we need a confirmation soon...
If the market goes up from here, CHID should start the expected upside reaction, and if it doesn't then we may have to revise this position strategy.
(Please read my last comments on the market: A Key Reversal Day? (http://www.3stocksonfire.org/trading/index.php?topic=5772.msg64862#msg64862))

News (already posted here, but now from a news source):
- Arch Investment Conference Thursday, June 15, 2006 in New York for Small and Micro-cap Companies (http://biz.yahoo.com/bw/060608/20060608005788.html?.v=1)

We are looking forward for this Conference, as CHID is trading at very attractive prices from a Fundamental point of view.

Trading Plan:
Hold CHID

Best regards,

Rams,
I noticed u tend to use the log scale alot.
I personally like to refer to both as they both give me different prespectives, similar to the weekly and daily charts... ;)
Well anyway... make a long story short.. I see CHID.ob bouncing off its long term support nicely Thursday and once again Friday....

Pls comment if u disagree...

Cheers
B

There is a lot TA on the OTCBB board made by Carlos Borja that clearly explains
volumes and trends of this stock. ;)

jorgegr

yes i know...
thanx ;)
who is ceasar but David himself.... ;D

Quote from: jorgegr on June 11, 2006, 11:08:23 PM
There is a lot TA on the OTCBB board made by Carlos Borja that clearly explains
volumes and trends of this stock. ;)

jorgegr

Not Carlos Borja... It's César Borja ;)
Yes, that Topic has a lot of great inputs about CHID:
http://www.otcbbcoverage.com/stocks/index.php?topic=12.0

Quote from: beroznikmal on June 11, 2006, 10:48:57 PM
Rams,
I noticed u tend to use the log scale alot.
I personally like to refer to both as they both give me different prespectives, similar to the weekly and daily charts... ;)
Well anyway... make a long story short.. I see CHID.ob bouncing off its long term support nicely Thursday and once again Friday....

Pls comment if u disagree...

Cheers
B

Hi beroznikmal,

Me too, I use both the log scale and the regular one ;) Both give us different indications and key values, as they are both valid for TA. I opted for the semi-log scale on CHID updates, just because of the significant price amplitude on the chart.
And that's right, CHID didn't break the support on the regular scale yet (I'm using it today on this update). Nevertheless, I think CHID may have already found a bottom for this sell off.

Trading Plan:
Hold CHID

Best regards,

www.streetinvesting.com: China Digital Communication Group Shareholder Update
Wednesday, June 14, 2006 04:50 ET

Jun 14, 2006 (M2 PRESSWIRE via COMTEX) -- Streetinvesting.com is the author of this release. Our goal is to educate, inform and initiate a creative philosophy of investment tactics. This release is a result of China Digital Communication Group's (0TCBB:CHID) latest corporate developments and their recent trading activity, up approximately 1.47% on Tuesday, with 869,802 shares traded by 145pm ET. Streetinvesting.com strives to help investors seek a diversified portfolio by introducing techniques to help grasp a better understanding and concept of the market and the daily activities that a company experiences. To learn more and become part of the acclaimed online financial newsletter community, visit www.streetinvesting.com for a complimentary subscription.

China Digital Communication Group, through its wholly owned subsidiary, Shenzhen E'Jenie Science and Technology Co., Ltd. (E'Jenie), is one of China's leading manufacturers and developers of advanced telecommunications equipment. E'Jenie sells advanced high-quality lithium-ion battery shell and cap products to all major lithium-ion battery cell manufacturers in China. E'Jenie's products are used to power mobile phones, MP3 players, laptops, digital cameras, PDAs, camera recorders and other consumer electronic digital devices. China Digital Communication Group is continuing its expansion across East Asia, while seeking distribution partners and acquisitions in new global markets, including the United States.

Streetinvesting.com wishes to update its members on the latest news surrounding China Digital Communication Group.

On June 9th, 2006, China Digital Communication Group, or, "CDCG," announced that Director Alfred Simon and Vice President of Corporate Development Roy Teng will be presenting at the Arch Investment Conference in New York City at the Hotel Plaza Athenee on Thursday, June 15.

Simon and Teng will discuss the company's latest financial status, two upcoming strategic acquisitions, market opportunities and growth initiatives. A webcast of the presentation will also be available to parties which are interested and it will be available for viewing at http://www.investorcalendar.com/IC/CEPage.asp?ID=105701&CID.

The aforementioned Arch Investment Conferences was founded in 2005 by German de la Roche. The June conference is one of nine such conferences being held in New York during 2006. Since its inception and through January 2006, more than 1,200 investors, primarily institutional, have attended or been part of the conference webcast audience.

La-Honda:

Your permanent daily  follow-ups in several boards I'm sure is highly appreciated
by the current  6870 subscribers particularly, during the last few days when we
needed some company to share our worries.  Applaud and keep them coming.

During these difficult days people like yourself that don't hide under the rug
is what we expect and care for . Applaud

K Rgds

jorgegr

Quote from: jorgegr on June 14, 2006, 11:33:41 AM
La-Honda:

Your permanent daily  follow-ups in several boards I'm sure is highly appreciated
by the current  6870 subscribers particularly, during the last few days when we
needed some company to share our worries.  Applaud and keep them coming.

jorgegr

Wow, is that 6780 paying members, or total members?  In any case, quite a big community here!

If the candlestick today had closed a bit higher, we would have ourselves a Morning Doji Star reversal formation, but I think for these purposes its close enough.  Makes sense that a reversal would coincide with the analyst meeting tomorrow in NY that CHID will present at. 

I sure hope we get a real reversal, the last 2 weeks with CHID has been like Chinese water torture...

To me, it seems that it can reverse here.
Adding to the conference call tomorrow and the reversal candle patern seen today (more or less), we can see that we have just underneath the 200sma. And it seems to be anging on...
Aditionaly there are  positive divergences, since late May, betwen ROC, MACD histogram and price.

What do you think?

So from a TA perspective, should we buy more shares into this potential move up?

Quote from: bgoodman on June 14, 2006, 08:05:07 PM
So from a TA perspective, should we buy more shares into this potential move up?

Ooh! A white candle! what a pleasent surprise  :) Price made a small bounce today on the 200ma though on significantly low volume making this possible move not very powerful. Though todays candle formation was one of the most powerful bottom reversal patterns you can ask for in the theory of candlesticks (morning doji star). This  candle pattern bouncing off the 200sma, price divergence,  and the investor conference tomorrow could be a recipe for  a good steak dinner courtesy of a well fed bull  ;) So this may be a key place to find the bottom bgoodman, but there always poses a risk when trying to pick out a bottom. The safest route would be to wait for confirmation of this reversal tomorrow, but then you may miss out on profits. This is why i hate buying in the midst of things, i primarily only buy breakouts and breakdowns.

A strong white candle tomorrow on decent volume will confirm a reversal for CHID.ob. Lets hope for the best  >:D i have my stop set on a close below .50 in from .84 and .60.

Morning Doji star
(http://**********.net/forum/index.php?action=dlattach;attach=229;image)


Significance: bullish

Indication: reversal

# of candles: 3

Previous Trend: Bearish

The Morning Doji Star pattern is characterizes by 3 candles. The fisrt day is a long black candle reinforcing the already bearish downtrend. The second is gaps down and forms a doji candle, indicating confusion in the market and a reversal could be upon us. And finally the 3rd day forms a white candle whose closing price pushes well into the real body of the first black day that occurred in this pattern. A gap up on the 3rd day is preferred for an ideal bullish Morning Star pattern though is not required. Confirmation of this pattern is provided by a higher close on the 4th day.

Note: Candlestick reversal patterns are significantly more potent when occuring near areas of support and resistence.

Tokyopua:

Yes, this is what it says in the home page:

63758 Posts in 5750 Topics by 6870 Members
Latest Member: raus0046

But don't know how many are paying.

Regarding today's white candle let's all make a wish for higher volume to confirm
the reversal.  Meanwhile I fully agree with FOUS comments, put a stop loss slightly
under .50 just in case

jorgegr

Quote from: jorgegr on June 14, 2006, 09:49:58 PM
Tokyopua:


But don't know how many are paying.

I actually took the time to count a while back. I beleive its in the vicinity of 300 members paying :)

jorgegr, fous,

Thanks to both of you for your replies and satisfying my curiousity.  The numbers make sense, if there are 300 paying members, that is about a 5% subscription rate out of all signups, not bad actually for net metrics.  And the Alexa.com rankings indicate the site is getting more popular recently, so that is good news as well. 

Go 3SOF and go CHID!

Thanks a lot for your inputs ;) (Tokyopua, fous, jorgegr, Lusitano)

Today's session was nice, the current candlestick pattern is bullish and suggests a reversal, but it still needs a final confirmation, and that would be a close above $0.60 with a significant increase in volume (lets say, above 2M shares traded). With that setup in place, I would have few doubts of a new major rally on CHID.

The technical «pre-signals» are in place, now we only need a catalyst for price and volume... And could that be tomorrows Investment Conference?  Well, CHID is still unknown to most of the trading community, and its current share price is at least «very attractive» not to say a complete bargain. Unless we are missing something here, CHID should be flying away from these depressed levels very soon.

Trading Plan:
Hold CHID

Best regards,

Good God!
Can't CHID hang on to any gains, just once!  Every single rally this stock tries to have dies a horrible (and very fast) death.  It will spend all day inching up, then fall all the way down in 10 minutes.  Anyone hear any word on how the conference went in NY?

Listening to the replay right now.  The gentleman presenting is not the most stellar speaker. :P  It also appears that the aquisitions are going to take a little longer to close. 

Alien

Well, the first aquistion(Sono Digital) is to take place in one month to six weeks.  The second is to take place during the 3rd. Qtr.  They are still predicting $30 million in sales and $10 miliion in income with $.13 EPS.  Do not see any problems with the aquisitions, are still waiting for the audits to be completed. 

Alien

fous,

What is the TA for todays action?

Today's conference can be listened here:
http://origin.vcall.com/CustomEvent/conferences/arch_investment/061506/index.htm

In fact, like was already said, the gentleman who was leading CHIDs presentation was not much of a good speaker... and it doesn't looked he prepared for it... :( Despite that, we had some news about the acquisition front, and most of the numbers were re-confirmed (and they were good numbers). The only problem, in terms of exposure and «promotion», was that if their goal on the conference was to really promote their visibility, they should have first fired that speaker and hire any of us here at 3SOF ;) I think CHID has such a good potential that it was really disappointing to listen such a «non-commercial» presentation, by this I mean with a chance of exposure like this, CHID could have hired a better speaker (in the other hand, this is a proof that CHID is for SURE not a pump and dump ;))

CHID had a good reaction today, the volume has increased but we don't have the technical confirmation we need yet to validate the big move we're expecting. We'll continue to Hold CHID, and wait for that move for a while, no stop for now, but we are on alert, as we don't want to become bag holders here.

Trading Plan:
Hold CHID

Best regards,

Quote from: bgoodman on June 15, 2006, 11:25:20 PM
fous,

What is the TA for todays action?

Hey Bgood,

as Masterchief ramsburg stated we havn't recieved confirmation yet. We didn't revcieve the candle we were looking for which would be a white real bodied candle, maybe it was because of the idiot speaking for CHID ;) i havn't heard it yet the broadcast wouldn't play when i just tried it out. Even though we are up on the day. Todays doji candle doesn't really suggest any bullish move or confirm the morning doji star candle bottom reversal formation. Price tested resistence today near .60 only to retrace back to its opening price. For things to start looking like the bulls are back in town were gonna need to see some above average volume and a break of .60.

lets hope for a good market today :)

-fous

Ramsburg,

Do you have a stop loss on this one? We are down to 0.49 today.

It is now at "support" at $0.49 so lower risk buy point as tight stop if it does not hold.

The 50-200-EMA are next to each other so could cross or move back apart but often this makes for a bigger move. Stochastics moving above 20 would be a good sign

Well, they have another 'conference' to hopefully get things moving with this stock.

I think they had better get a better speaker though, or we don't stand a chance of any movement upward until they release their earnings.

Next support: 0.43.
Next resistance: 0.5

Market is merciless, may reward strong hands but only if they can withstand the pain. I am not long CHID but would like to buy it if the market stabilizes.

Cesars update:
http://www.otcbbcoverage.com/stocks/index.php?topic=12.new;boardseen#new

Press Release Source: Wall Street Reporter Magazine, Inc.


Wall Street Reporter Magazine Hosting 8th Annual 'Small-Cap Discovery Conference' in New York City
Tuesday June 20, 10:58 am ET


NEW YORK, June 20, 2006 (PRIMEZONE) -- Wall Street Reporter Magazine will be hosting its 8th Annual ``Small-Cap Discovery Conference'' on Wednesday, June, 21, 2006, in New York City.
Wall Street Reporter's Small-Cap Discovery Conference has developed an unparalleled reputation as the place to discover the next hot ``super stock.'' Even the recent stock market decline has not stopped more than 200 hedge fund managers, analysts, and investment bankers from registering for this sold-out event.

The conference will feature presentations from CEOs representing 15 exciting growth companies from Australia, Canada, Israel, China, and the United States.

Presenting companies will include:



--  Simulations Plus (AMEX:SLP - News)
--  Opthalmic Imaging Systems (OTC BB:OISI.OB - News)
--  Baja Mining (TSX VENTURE:BAJ.V - News)
--  Corridor Resources (TSX VENTURE:CDH.V - News)
--  TelePlus (OTC BB:TLPE.OB - News)
--  China Digital Communication Group (OTC BB:CHID.OB - News)
--  Indophil Resources (Australia:IRN.AX - News)
--  TraceGuard (OTC BB:TCGD.OB - News)
--  Orko Silver Corp (TSX:OK.TO - News)
--  Stirling Products (Australia:STI.AX - News)
--  YGC Resources (TSX:YGC.TO - News)
--  Chemokine Therapeutics Corporation (OTC BB:CHKT.OB - News)

The Small-cap Discovery Conference will also feature presentations from leading micro-cap gurus, Michael Berry, Phd., and Thom Waye.

The Conference will commence with breakfast at 7:30 a.m. and is scheduled to conclude at 2:00 p.m. Investment professionals are invited to attend the Conference, and can register at http://www.wallstreetreporter.com/sdc .

Wall Street Reporter's Small-Cap Discovery Conference offers an unparalleled opportunity to gain insight into new trends and investment opportunities in the small-cap marketplace. Research in follow-up to past Wall Street Reporter conferences indicates that companies presenting have experienced an average stock price increase of 87% within one year following their appearance.
The event will also be Webcast live on http://www.vcall.com .

Lets see, if this time goes better.

Regards
Luso

Is that last candle an engullfing bull?
The positive divergences betwen ROC, Macd Histogram and price are still there.
In fact we can see the same divergences in a significant number of titles and in NASDAQ COMPOSITE aswell.
Can that indicate a nearby reversal?
That could be good in general and would be nice for CHID.

What do you think?

L

Quote from: Lusitano on June 20, 2006, 06:49:39 PM
Is that last candle an engullfing bull?
The positive divergences betwen ROC, Macd Histogram and price are still there.
In fact we can see the same divergences in a significant number of titles and in NASDAQ COMPOSITE aswell.
Can that indicate a nearby reversal?
That could be good in general and would be nice for CHID.

What do you think?

L

Yes, good catch, that is a bullish engulfing pattern (though ideally the white body would have totally engulfed the previous candle on the low side too).  This is also looking like a hammer formation on the weekly chart presently, and that together with the MACD getting so close crossing above the zero line, all point to good things ahead for CHID.

volume was low...

CHID had a first reaction at the $0.49 support, even with low volume but it's a good technical sign. The $0.49 support worked pretty well during March and April just before the last big rally. CHID it's still trading inside the recent descending channel; it needs to breakout this channel up in order to generate a short term technical buy signal and gain consistent momentum to the upside.

A couple of new conferences are scheduled for next week (http://biz.yahoo.com/prnews/060619/clm511.html?.v=34); we expect CHID to improve its presentations, and caught investor's attention. That should not be a difficult task (well, not with the same speaker off course), and timing looks better than ever.

Trading Plan:
Hold CHID

looks better today  ;)

Quote from: la-onda on June 21, 2006, 10:56:10 AM
looks better today  ;)

Yes in deed... ;)

CHID had another white candle, managing to close near the highs of the day. The technical setup is looking better now, but we still need the technical signal, CHID closed the day at the top of the descending channel, volume has increased a bit, but was still low. All we need is to see CHID closing above yesterday's high with increasing volume and ready to break $0.60, remember that since the start of the big sell off on CHID we never watched 3 consecutive white candles (that would create an irresistible technical setup ;))

We'll continue to Hold CHID.

Best regards,

CHID is back to it's familiar pattern again.  It did this patter when it was trading in the $.60 range a few weeks ago.

It would climb up to the high $.60's and then in literally minutes crash back down to the low $.60's or high $.50's.

Now it's doing that only in the $.50's -- someone is depressing the stock price whenever it shows strength, could be naked shorting??

Quote from: Ramsburg on June 20, 2006, 11:59:37 PM

A couple of new conferences are scheduled for next week (http://biz.yahoo.com/prnews/060619/clm511.html?.v=34); we expect CHID to improve its presentations, and caught investor's attention. That should not be a difficult task (well, not with the same speaker off course), and timing looks better than ever.

Trading Plan:
Hold CHID

Well, our men Simon and Teng were at it again in NY on Wednesday (stock rose OK that day ) and again in Vegas yesterday (stock opened higher but fell).   Today is lackluster as well, though I am just happy these days when CHID manages to maintain its support above .49 or so.

But I am wondering, with these conferences done, should we expect a delayed pop?  I seem to remember NVAX getting such a delayed pop after they did presentations, though admittedly those were great presentations. 

In general, what other catalysts might be out there?   

The only catalyst is the acqusition that will hopefully happen soon....  >:D

CHID decided not to continue with the first acquisitio :-(. Mr. Simons is an idiot... I really do not see the purpose of the 3 presentations they just gave...

http://www.hawkassociates.com/chinadigital/chidpr025.php

Now what? Is this going to bottom out in the morning?

China Digital Announces Termination of Agreement to Acquire Zhuo Tong Power Supply
Monday , June 26, 2006 18:00 ET

LOS ANGELES, and SHENZHEN, China, June 26, 2006 /PRNewswire-FirstCall via COMTEX/ -- China Digital Communication Group (OTC Bulletin Board: CHID), one of the fastest growing battery components manufacturers in China, announced today that the company's board of directors has voted to terminate its previously announced agreement to acquire Zhuo Tong Power Supply Company.

China Digital CEO Ran Liang, said, "We were unable to conclude a final agreement that was favorable for our shareholders. Therefore, our board of directors has voted to not proceed with the acquisition. However, we remain on track to conclude our acquisition of Galaxy View International, Ltd., which operates through its wholly owned subsidiary Sono Digital, a leading supplier of third-generation (3G) communications technology and equipment in China. This continues to be an area of high interest to our company, and we will continue to seek out appropriate opportunities in this market segment."

As a result of the termination of the agreement to acquire Zhuo Tong, the company revised its previously announced guidance. Assuming the acquisition of Galaxy View is successfully concluded in 2006, the company said it is targeting 2007 revenue of $30.7 million and net income of $10.1 million with fully diluted EPS of $0.16 per share. Revenue and earnings in 2006 will be determined by the timing of the Galaxy View acquisition. In 2005, Galaxy View had unaudited revenues of $6 million and unaudited net income of $2 million.

The company emphasizes that the foregoing statements regarding targets for 2007 are forward-looking and actual results may differ materially. These are the company's targets, not predictions of actual performance.

I would like to see an instruction to SELL or HOLD.

Is it gonna tank todyay???  Should we bail?


Thank you...Jody

So they decided to canel the acquisition with Zhou Tong Power Supply.  Definitly not what I thought was coming.  I'll assume that this deal was really not going to benefit anyone.  After they decided to cancel they are showing an increase in EPS to .16 for FY 2007  with the closing of the Galaxy deal.  With any OTCB stock one will always wonder if this might have been some pump and dump play.

I guess we are going to have to trust the new CEO and the board of directors that this really wasn't in the best interest for anyone.  I also don't believe that the acting CEO purchased 560,000 shares of stock thinking she wouldn't be making some money down the road.

We shall see what today brings.

GLTA....Alien

 

I am a newbie at this trading thing. I have learned quite a bit early on when I first subscribed to this board. Maybe it is just me, but I feel as though the portfolios have been neglected. Even just a quick note when nothing is happening would be a positive note.....especially in a market as we have had lately. I am feeling as though there is not much different between this and a free message board.  I only write this in light of the news for this shock that might be fairly significant from last night....an no mention. Sorry....to be negative....I just enjoyed all the information early on.

I agree that someone on the team should post a word or two on the CHID action as of late.  The news obviously isn't good but this selloff could be what CHID needs to start moving up again.  It's funny but sometimes an event like this will shake out the weaker hands and end up being bullish for a stock.  We'll see.  CHID is actually recovering pretty nicely as I type....

Perhaps CHID is better placed in the 3SOV rather than 3SOF.  I cannot imagine a big gain in the short term.  Mgmt does not expect to close the Sono/Galaxy deal until closer to the end of the year (if at all).  There are no short term catalysts that I know of.

Quote from: buddjas1 on June 27, 2006, 11:10:35 AM
Perhaps CHID is better placed in the 3SOV rather than 3SOF.  I cannot imagine a big gain in the short term. 

yes, this has not been "a stock on fire" for a long time.
maxi

I wonder sometimes if there is some kind of scam going on with this stock, because fundamentals show that it should trade around $2.50 per share -- they really need better investor communication.  I had to sell my shares today, but still interested in owning once the fire is ignited again.

The stock broke the trend line 3 weeks ago but then made a try at a bounce at the horizontal support. That did not hold but now it is near a longer term support.

I see they think they could do 16 cents and at a PE of 10 that would be share price of $1.60 at some point.

There has been a death cross recently but it can change if the stock goes up in a few days.

It is generally good to buy a stock under the bottom Bollinger band unless it is just starting a correction or if there is bad news. In this case there is no bad news - they will save a ton of stock k so less dilution at this time.

We will see how it closes as some may try to take it lower at the close. But it seem it is in a buying range with a stock below the dotted line support. The market in general will likely have a decent rally for a few weeks in July.

Stochastics need to turn up but if this closes with a hammer it may turn back up shortly.

With 3SOF showing a 6% gain for the year, that 5.5 % Bank CD is looking better all the time!

Quote from: basonista on June 27, 2006, 10:13:51 AM
It's funny but sometimes an event like this will shake out the weaker hands and end up being bullish for a stock.  We'll see.  CHID is actually recovering pretty nicely as I type....

I know what you mean, but wishing I had been a "weak hand" and sold at .65 lol.  If it hits .52 again near term I am selling half again as I think that will be resistance for awhile.  Still looks good for end of year, assuming they dont cancel the other acquisition.  Man, they really toyed with investors by talking things up a week before cancelling one of the acquisitions...

Quote from: basonista on June 27, 2006, 10:13:51 AM
I agree that someone on the team should post a word or two on the CHID action as of late.  The news obviously isn't good but this sell off could be what CHID needs to start moving up again.  It's funny but sometimes an event like this will shake out the weaker hands and end up being bullish for a stock.  We'll see. CHID is actually recovering pretty nicely as I type....

Ramsburg will update the trading plan later today but let me give a fundamental view on the stock here.

It is not surprising to see a sell off after the failed take over of Zhou Tong after all there is a lot of long holders of the stock that are very disappointed right now. But does this failed take over mean that CHID fundamentally is doomed? Well I don't think so  :)

I personally like a management team that are willing to walk a way from a deal if they can't reach terms that are favorable for the shareholders. Nothing wrong in that! CHID has a very good business supplying a booming consumer electronics industry in China and they are not desperate to make acquisitions (as you too often see with other OTCBB's)

It was disappointing that they didn't update 2006 guidance but the 2007 gives PE of 2.8. Now that is ridiculously low and to be honest can only be justified if this stock is a total scam.

There is absolutely nothing I have seen that indicates that this is a scam. The fact that they walked away from the Zhou Tong deal makes me even more confident about the fundamentals. After all if it were a scam the deal would already have been concluded.

I think that it would be a mistake to sell the stock now. I could easily see it bounce from here. The way back up might be painfully slow but that kind of pain is easier to live with  :D

Thanks Michael for your comment.

Update:
Very depressive day for anyone holding CHID :(
For the past few sessions CHID was trading near the $0.49 support with some positive reactions there, but all upside attempts were followed by some selling pressure making this a «nervous» pattern of hope and fear. The news about the Termination of the Zhuo Tong's acquisition was obviously taken on an exaggerated way by many traders who simply lose their patience after all this hard time.
Like Michael said, this is not the main issue about CHID, it's not something fatal for CHID's future, and after all the recent down move, a fact like this is already discounted, it's maybe the rational explanation of the incomprehensive behaviour of CHID's price.

We obviously made a big mistake holding CHID all the way down this chart... but the mistake is already made, and we can't change that.
I'm looking to yesterday's session as an exhaustion selling day after bad news... from the classical quote «buy the rumour, sell the news» this doesn't look like the right time to sell CHID, yesterday was the day everybody sold the «news», the stock opened with a gap down, followed by extreme selling to $0.41 and a bounce after that.

CHID looks like a legit company, its fundamentals are great, and its current price looks unreasonably low. Although, we can't afford to be wrong again about CHID, so we'll set a stop below yesterday's low, if it gets triggered it means that the exhaustion selling scenario is wrong, and there is something outside the picture we are not seeing right.

Trading Plan:
Hold CHID with a stop @ $0.3990

It was nice to watch CHID recovering again from the Tuesday's lows, volume was low, but CHID managed to close a little above the $0.49 resistance. From a technical point of view, the $0.49 level is the main resistance, but at $0.50 we have the descending channel top resistance. As we can see this is a strong technical and psychological level, which means that a breakout could lead to a further move up.

It's very soon to think about this but sometimes before the big move up after a long correction period, a stock needs to have a final fake downside breakout to «clean down the house». That would be the perfect scenario for us.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,

the galaxy acquisition has closed. this is something positive that we've anticipated. let's hope for the best tommorow.

What is you source on the galaxy closing?

Quote from: soxguy on June 29, 2006, 07:21:17 PM
the galaxy acquisition has closed. this is something positive that we've anticipated. let's hope for the best tommorow.

Thanks for pointing this out!

http://biz.yahoo.com/iw/060629/0140637.html

China Digital Enters Chinese 3G Communications Market with Acquisition of Galaxy View International
Thursday June 29, 5:27 pm ET


Company Says $8M Acquisition Accretive in 2006


LOS ANGELES, CA and SHENZHEN, CHINA--(MARKET WIRE)--Jun 29, 2006 -- China Digital Communication Group (OTC BB:CHID.OB - News), one of the fastest growing battery components manufacturers in China, announced today that it has completed the acquisition of Galaxy View International, Ltd., which operates through its wholly owned subsidiary Sono Digital Electronic Technologies Co., Ltd., a leading supplier of third-generation (3G) communications technology and equipment in China, in a cash and stock transaction valued at approximately $8 million.

In 2005, Galaxy View had unaudited revenues of $6 million and unaudited net income of $2 million.

China Digital acquired all of the outstanding shares of privately held Galaxy View for $3 million in cash and 7,575,757 unregistered shares of China Digital preferred stock valued at approximately $5 million.

China Digital CEO Ran Liang, said, "The acquisition of Galaxy View and its wholly owned subsidiary, Sono Digital, positions us to become a competitor in the new rapidly evolving 3G technology communications industry. China is active in the worldwide technological shift to 3G technologies, which allows for data transmission, e-mail and instant messaging. We believe that the acquisition will positively impact our 2006 financial performance. For China Digital, this marks the beginning of a strategic transformation to become a manufacturer of high-tech products and technologies to 3G communication systems wireless providers."

Under the terms of the acquisition agreement, Galaxy View shareholders agreed to a lock-up provision restricting the resale of their shares for a five-year period. Each preferred share entitles the holder to seven votes per share on all matters to be voted on by the shareholders and will be mandatorily convertible into one share of common stock after five years.

According to U.S. GAAP rules, China Digital will report revenue and net income from Galaxy View commencing upon the closing date of the acquisition. Estimated diluted EPS, assuming that the Galaxy View acquisition closes at the beginning of July 2006, is projected to be $0.09. China Digital estimates revenues at $19.3 million and net income at $5.8 million.

Assuming that the acquisition had taken place at the beginning of the year at January 1, 2006, the pro forma diluted EPS is projected at $0.11, revenues at $21.9 million and net income at $6.9 million for the year ended December 31, 2006.

The company emphasizes that the foregoing statements regarding projections for 2006 are forward-looking, and actual results may differ materially. These are the company's targets, not predictions of actual performance.

About Galaxy View International, Ltd.

Galaxy View International, Ltd., which operates through its wholly owned subsidiary Sono Digital Electronic Technologies Co., Ltd., is a high-tech enterprise specializing in the mobile communication equipment industry. The company has a broad range of services, including mobile equipment production, technical development, product standardization, market research, equipment setup and debugging, technical support, implementation analysis and searching for merger opportunities.

The company embraces a set of highly effective and standardized systems in management, production, and quality control. It is recognized by the Science and Technology department of Shenzhen as a "high-tech, software enterprise." The company has intellectual property rights in software development and production. Sono is known throughout its industry as one of the most competitive communication equipment producers. For more information on Sono, visit http://www.sono.com.cn.

About China Digital Communication Group

China Digital Communication Group, through its wholly owned subsidiary, Shenzhen E'Jenie Science and Technology Co., Ltd. (E'Jenie), is one of China's leading manufacturers and developers of advanced telecommunications equipment. E'Jenie sells advanced high-quality lithium-ion battery shell and cap products to all major lithium-ion battery cell manufacturers in China. E'Jenie's products are used to power mobile phones, MP3 players, laptops, digital cameras, PDAs, camera recorders and other consumer electronic digital devices. China Digital Communication Group is continuing its expansion across East Asia, while seeking distribution partners and acquisitions in new global markets, including the United States. For more information, visit http://www.chinadigitalgroup.com or contact Roy Teng of China Digital, (310) 461-1322, e-mail: [email protected].

An investment profile on China Digital Communication Group may be found at http://www.hawkassociates.com/chinadigital/profile.php.

For investor relations information regarding China Digital Communication Group, contact Frank Hawkins or Ken AuYeung, Hawk Associates, at (305) 451-1888, e-mail: [email protected]. An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.com.

Forward-looking statement: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may differ materially based on a number of factors, including, but not limited to, uncertainties in product demand, risks related to doing business in China, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.



Contact:
     Contact:
     Roy Teng
     China Digital
     (310) 461-1322
     e-mail: Email Contact
     
     Media Contacts:
     Frank Hawkins
     Ken AuYeung
     Gail Collins
     Hawk Associates
     305-451-1888
     


--------------------------------------------------------------------------------
Source: China Digital Communication Group

It is a very positive news. I think they are showing their sincerity. They bought it in cash and gave some restrictive shares. I liked the following lines:


" China Digital acquired all of the outstanding shares of privately held Galaxy View for $3 million in cash and 7,575,757 unregistered shares of China Digital preferred stock valued at approximately $5 million.

Under the terms of the acquisition agreement, Galaxy View shareholders agreed to a lock-up provision restricting the resale of their shares for a five-year period. Each preferred share entitles the holder to seven votes per share on all matters to be voted on by the shareholders and will be mandatorily convertible into one share of common stock after five years."


Only thing I am worried about is the stock sell after news ( In this case there was no rumor). So I dont know how much "buy the rumor and sell the news" applies in this scenario. Also, what do they want to do move from OTCBB? As it rises short interest will rise a lot and will be negative for this company.

Good luck all.

good news, chart looks also better now  :)

China Digital Enters Chinese 3G Communications Market with Acquisition of Galaxy View International
Friday , June 30, 2006 08:58 ET

LOS ANGELES and SHENZHEN, China, June 30, 2006 /PRNewswire-FirstCall via COMTEX/ -- China Digital Communication Group (OTC Bulletin Board: CHID), one of the fastest growing battery components manufacturers in China, announced today that it has completed the acquisition of Galaxy View International, Ltd., which operates through its wholly owned subsidiary Sono Digital Electronic Technologies Co., Ltd., a leading supplier of third-generation (3G) communications technology and equipment in China, in a cash and stock transaction valued at approximately $8 million.

In 2005, Galaxy View had unaudited revenues of $6 million and unaudited net income of $2 million.

China Digital acquired all of the outstanding shares of privately held Galaxy View for $3 million in cash and 7,575,757 unregistered shares of China Digital preferred stock valued at approximately $5 million.

China Digital CEO Ran Liang, said, "The acquisition of Galaxy View and its wholly owned subsidiary, Sono Digital, positions us to become a competitor in the new rapidly evolving 3G technology communications industry. China is active in the worldwide technological shift to 3G technologies, which allows for data transmission, e-mail and instant messaging. We believe that the acquisition will positively impact our 2006 financial performance. For China Digital, this marks the beginning of a strategic transformation to become a manufacturer of high-tech products and technologies to 3G communication systems wireless providers."

Under the terms of the acquisition agreement, Galaxy View shareholders agreed to a lock-up provision restricting the resale of their shares for a five-year period. Each preferred share entitles the holder to seven votes per share on all matters to be voted on by the shareholders and will be mandatorily convertible into one share of common stock after five years.

According to U.S. GAAP rules, China Digital will report revenue and net income from Galaxy View commencing upon the closing date of the acquisition. Estimated diluted EPS, assuming that the Galaxy View acquisition closes at the beginning of July 2006, is projected to be $0.09. China Digital estimates revenues at $19.3 million and net income at $5.8 million.

Assuming that the acquisition had taken place at the beginning of the year at January 1, 2006, the pro forma diluted EPS is projected at $0.11, revenues at $21.9 million and net income at $6.9 million for the year ended December 31, 2006.

The company emphasizes that the foregoing statements regarding projections for 2006 are forward-looking, and actual results may differ materially. These are the company's targets, not predictions of actual performance.

I like the company's timing.  The bad news is first release, then the good news of both the acquisition and the updated earnings guidance.  Shareholder friendly!   ;D

Thanks for the inputs ;)

Update:
Great news for CHID, and great timing with the release of the bad news first :)
China Digital Enters Chinese 3G Communications Market with Acquisition of Galaxy View International (http://biz.yahoo.com/prnews/060630/nef002.html?.v=56)

Technical Update:
The chart changed completely with last week's price action, the $0.49 level was broken, and its now a support again, $0.51 the top of the short term descending channel was broken to the upside too, which means that the overall bearish pattern is now gone. This, by itself is not a bullish signal, but at least the chart turned from Bearish to neutral, which is a great beginning for a further move up.
Fridays close ended up at the last ascending support and near the ema-50, so we have now resistances at $0.61 and $0.64 (ema-200). From a momentum approach, CHID reached the DMI oversold territory during its plunge to the low $0.40's confirming an exhaustion selling mode at that time.

From this kind of pattern we can expect almost anything, CHID may have the strength to break through the $0.60's now, or it may need to triangulate a bit, so probably we'll have a lot of price noise on the next sessions. Our conviction is that CHID will breakout the $0.60´s and will move up again soon.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,

China/U.S. Acquisition Could Spur 3G Take-Up
Friday , June 30, 2006 17:24 ET

Jun 30, 2006 (TelecomWeb news break/Access Intelligence via COMTEX) -- Battery maker China Digital Communication Group is the proud new owner of Galaxy View International Ltd., a company that operates in China through wholly owned subsidiary Sono Digital Electronic Technologies Co. Ltd., a supplier of 3G communications technology and equipment.

The cash-and-stock transaction is valued at approximately $8 million. Los Angeles-based Galaxy View offers a range of services, including mobile-equipment production, technical development, product standardization, market research, equipment setup and debugging, technical support and implementation analysis. In 2005, Galaxy View had unaudited revenues of $6 million and unaudited net income of $2 million.

China Digital says it acquired all of the outstanding shares of privately held Galaxy View for $3 million in cash and 7.5 million unregistered shares of the company's preferred stock, valued at approximately $5 million.

Says China Digital CEO Ran Liang, "The acquisition of Galaxy View and its wholly owned subsidiary Sono Digital positions us to become a competitor in the new, rapidly evolving 3G technology communications industry. We believe that the acquisition will positively impact our 2006 financial performance. For China Digital, this marks the beginning of a strategic transformation to become a manufacturer of high-tech products and technologies to 3G communication systems wireless providers."

Under terms of the acquisition agreement, Galaxy View shareholders agreed to a lock-up provision restricting the resale of their shares for a five-year period. Each preferred share entitles the holder to seven votes per share on all matters to be voted on by the shareholders. The shares will convert automatically into one share of common stock after five years.

http://www.knobias.com/individual/public/news.htm?eid=3.1.3bec2e1e8449ccce5c173c39a5d27536def3384eb2ff5e536891e873446fcb05

Update:
Nothing special to had about CHID today, CHID had a negative reaction near the resistance (~$0.60) on a low volume day and after 3 strong sessions. It will probably need a little accumulation period before it gather strength for a breakout to the upside.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,

Update:
After 3 strong sessions, CHID went for 3 corrective sessions, losing some of the recent gains and approaching the support level: $0.49. CHID will probably trade the $0.50/$0.60 range for a while, consolidating this levels before a new move to the upside.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,

China Digital Communication Group Appoints CFO and COO
Monday July 10, 5:46 pm ET


New COO Su Yi Zheng to Also Serve as Director


LOS ANGELES, CA and SHENZHEN, CHINA--(MARKET WIRE)--Jul 10, 2006 -- China Digital Communication Group (OTC BB:CHID.OB - News), one of the fastest growing battery components manufacturers in China, announced today that it appointed Su Yi Zheng as Chief Operating Officer and a director and Sarah Shao as Chief Financial Officer.

China Digital CEO Ran Liang, said, "Mr. Zheng and Ms. Shao are experienced executives who will help us build our business. Mr. Zheng served as general executive officer for Sono Digital Electronic Technologies Co., Ltd, a company that we recently acquired with operations in the 3G market. He has extensive experience in the 3G telecommunications field. Ms. Shao has worked with several public companies in China and other countries and has a strong background in corporate finance. With assistance from these two talented individuals, we will continue to strive toward establishing a profitable position in the 3G telecommunications industry. In addition, we remain committed to strengthening our position in the battery components manufacturing market."

A former general executive officer for Sono Digital, Zheng was president of Shenzhen Ke Zun Tong Tech Co., Ltd. Before that, he was executive manager at American New York Asia Communication Co., Ltd. for the China area from 1997 to 2001. From 1988 to 1989, he was an electrical engineer for the China Ministry of Posts and Telecommunication -- Guanzhou Telecommunications Equipments Manufacture. He has a Bachelor's of Science degree in electrical engineering from GuanZhou Zhongshan University.

Shao was the CFO of US KXD Technology Inc. before joining China Digital. Before that, she was an accounting controller for KXD Digital Entertainment Limited, a Singapore public company. She was an accounting controller for Hainan Pearl River Holding Co., Ltd., a Chinese A/B exchange public company, and Shenzhen Guizhou Light Industry Co., Ltd. She served as an accounting director at Shenzhen Shenmao Group Co., Ltd. from 1998 to 2002. She holds a Master's of Science from the Graduate School of Trade, Economics and Finance at China Academy of Social Science and a Bachelor's of Science in business administration and international accounting from Guangzhou Foreign International Business University. She is also certified from the General Accountants Association of Canada -- China Representation Office.

Update:
A first positive reaction after 4 consecutive down sessions. CHID is still consolidating the recent price advance, a breakout of the $0.60 resistance would be the perfect trigger for a further move, anyway, we'll keep holding CHID.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,

What is up with CHID?

Up over 11% today - anyone have news?

Go Longs!

Update:
Great session for CHID, another powerful white candle, this time with rising volume, and leading CHID to close a little above $0.60. This is now a resistance area, but CHID is already starting what seems to be a bullish pattern, today's highs were above the first wave of the recent rally, momentum is still building and its far away from being overbought.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,

News: Form 8-K : Change in Directors or Principal Officers, Financial Statements (http://biz.yahoo.com/e/060713/chid.ob8-k.html)

Update:
CHID managed this market sell off pretty well so far, holding near the recent highs, and closing the day at $0.60.
We can now draw a short term ascending line with support now at $0.56. We'll keep the same plan for now, and wait for developments.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,

Update:
CHID is now touching the short term ascending support line.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,

CHID - Ludlow China Small cap Index

CHID added to this small cap China index.

http://www.ludlowcapital.com/indices/china/smallcap.html

http://biz.yahoo.com/iw/060718/0145391.html

HUGE news.   ;D

CHID is a dramatically different company now. 

 buddjas1 :

This news was expected -  you may  read  messages #4  #6  #13  #23 posted in
this thread on January this year about CHID's subsidiary

Anyway lets hope this stocks warms up again to higher values

jorgegr

I think you are confusing the CompUSA situation with this news. 

Anway, I agree; it's about time to see some higher prices.

News: China Digital Communication Group Begins Assembling Lithium Batteries (http://biz.yahoo.com/iw/060718/0145391.html)

Update:
CHID broke the short term support, the volume was extremely low (about 90% below the average). The news about the Lithium Batteries came after the close, and this should bring some buying pressure today.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,

is this "sell on the news"?

Update:
CHID has been moving erratic for the short term, always above the 0.49 support level but not able to surpass the 0.60 resistance yet. This is starting to look as an accumulation range, but with no well defined pattern for now. We'll keep holding with the same stop for now.

Trading Plan:
Hold CHID with a stop @ $0.3990

Regards,

Back in today at .53 ;D

China stocks are back, hope CHID rides along!

Quote from: boatguy on July 27, 2006, 05:07:56 PM
Back in today at .53 ;D

China stocks are back, hope CHID rides along!

Welcome to the party Boatguy.  Well, it hasnt been much of a party lately, but if you are right that will change soon!

Just curious about why China stocks are back in general, can you elaborate?

Hi Tokyopua

Check these charts: CTDC, CHNR, AOB

as boatguy says some small cap china stocks have been moving this week, some of them with volume: CAAS, CBAK, CHNR, CTDC (possible nasdaq delist and it has moved big), CYD, CHINA, AOB..

hope CHID follows them

China Digital Communication Group Added to China Small Cap Index
China Digital Communication Group (OTCBB: CHID), one of the fastest growing battery components manufacturers in China, announced today that it has been added as a component of the Ludlow China SmallCap Index.

China Digital CEO Ran Liang said, "We're pleased to be part of the Ludlow China SmallCap Index. This further enhances our visibility in the American capital markets and provides us with useful exposure to investors."

About Ludlow Capital

Headquartered in Manhattan, Ludlow Capital is a full service investment banking company that assists companies and institutional investors by arranging private equity financing and secondary public offerings.

The Ludlow Small Cap China Index is a basket of some of the top U.S.-traded OTC and small cap Chinese stocks. The index provides institutional and individual investors a gauge for tracking the day-to-day performance of small cap Chinese stocks in a diversified basket. The index is designed for investors who have a long-term bullish outlook on China's emerging market. The Ludlow China Index is owned and operated by Ludlow China Fund, Inc., based in New York City.

http://biz.yahoo.com/iw/060728/0148636.html

Lalitha

Sorry, guys, looks like we've been had here.

http://www.sec.gov/Archives/edgar/data/1144320/000091068006000793/ex99_2-f8k072606.htm

Sono is losing money.  CHID paid a lot of money for a company that apparently lost a ton of business. 

Is this not old news since the acquisition is dated June 29, 2006...
>:(
I guess net income went down from 675K in 2005 to -$112K in 2006..
Cash flow in creased to $500K mainly due to a large account receivable ~ $1M

monday will be interesting...  :-\

Quote from: beroznikmal on July 29, 2006, 03:47:59 AM
Is this not old news since the acquisition is dated June 29, 2006...
>:(
I guess net income went down from 675K in 2005 to -$112K in 2006..
Cash flow in creased to $500K mainly due to a large account receivable ~ $1M

monday will be interesting...  :-\

Maybe the accounts receiveable is part of what they were figuring into the accretive earnings numbers?  I havent looked in depth yet so I dont know.  Looks like the stock didnt get hit in after hours, so that much is somewhat encouraging.

3stocksonfire team.
Do you guys have no comments on the recent news???

Thanks
Beroz

Quote from: beroznikmal on July 31, 2006, 08:07:37 AM
3stocksonfire team.
Do you guys have no comments on the recent news???

Thanks
Beroz

Hi Beroz,

I have to say that I was very disappointed with these numbers but it is worth to note that this was known by CHID when they signed the agreement. The Galaxy financial statement does not give a lot of details about the drop in revenue and there might be reasons, which is legitimate, but I have to say that it is a bit fishy  ;)

The stock is holding up quite well this morning under heavy volume so there might be somebody with more knowledge on the deal than what can be read out of the SEC filing who is willing to buy at this level.

RIGNR 281 in another board gives a coherent explanation which I believe
is what we holders need to know - in absence of others from expected sources:

108K is a summary in 99.3 part of the 8K.
Sono is now under the guidance of CHID and there are enough receivables to
overcome that loss.
The earnings report for this past qtr has yet to be released.

NOW LETS SEE IF THE MARKET ACTS ACCORDINGLY ::).

jorgegr

Update:
The last time we heard bad news related to CHID, the stock dropped but it went up immediately after that because the news were already reflected in price. CHID went down today over increasing volume, but there is one positive point about this drop: CHID didn't break the 0.49 support, reacting there for the 3rd time this month, making this price level more important than ever (from a TA perspective we can't get much conclusions now, except the fact that 0.49 is a strong support).
As a security measure, we are now going to upgrade our stop near to $0.49 and consider this our maximum level of «pain» in case anything goes wrong from here.

Trading Plan:
Hold CHID with a stop @ $0.475

Regards,

What is going on here?  Manipulation?

Unfortunately there is a lack of interest for this stock and sales are pilling up
next support o.45 (two confirmations) and resistance 0.52 (16 confirmations) >:(

jorgegr

Zaidian CHID Zaidian.
At least I think that is how you say goodbye in Chinese. 

It is a bummer to have lost money net on this one, I have to keep remembering what David used to say "never let a winning trade turn into a losing one".  Sounds simple, but how hard it has been for me to actually put that into practice!

On one hand, CHID has great "targets" and "guidance."

On the other hand, SEC filings show (a) no revenue growth in the past 5 quarters; and (b) an $8mm deal for a company (Sono) that had $87,000 in revenue in Q1.  Roy has explained that top line E'Jenie growth is stunted because of capacity issues and CHID does not want to spend the $ to expand. 

The bottom line is that CHID may just be a no-growth penny stock after all.  At least that is what the market is telling us.  Q2 numbers will tell the story, either way.

i was reading some information David (Cesar Borja) wrote about CHID http://www.otcbbcoverage.com/stocks/index.php?topic=12.msg36 and http://www.3stocksonfire.org/trading/index.php?topic=4246.msg41014#msg41014

could some one help me to understand how CHID's  fundamental background has changed? has this stock been manipulated? it has recovered some, but its stop @ $0.475 was printed.

thanks

Does 3SOF still have CHID.ob since the low point for today is $0.461

Quote from: beroznikmal on August 03, 2006, 06:05:37 PM
Does 3SOF still have CHID.ob since the low point for today is $0.461

No, 3SOF sold today @ $0.474 after our stop was printed :(

regards,

Quote from: tokyopua on August 03, 2006, 11:23:22 AM
Zaidian CHID Zaidian.
At least I think that is how you say goodbye in Chinese. 

It is a bummer to have lost money net on this one, I have to keep remembering what David used to say "never let a winning trade turn into a losing one".  Sounds simple, but how hard it has been for me to actually put that into practice!

The bottom line here was a huge strategic mistake (and I assume the responsibility): I'm mostly a technical trader, and I decided to get back into CHID at $0.65 mainly for technical motivations, that was the plan (my initial plan), but after a few days I started to input a lot of fundamental data on the equation, and that made me change the strategy for this trade... that ended to be a strange and erratic situation of «buy because of technicals, and hold because of fundamentals».
The right decision in this case should have been «Buy technicals, Sell Technicals»... 

This one will take time to «digest»...

Regards,

hi,
applause to ramsburg for letting this trade go.  being a tech trader myself i don't take fundamentals into consideration unless :
a.)  i bought to put in the bottom drawer for long term
or b) everybody is screaming about the stocks fabulous news which goes on for a few days with a parabolic rise in the price ( and of course , then a fall ).
traders drive the stock price not fundamentals or companies >
how much is a stock worth? depending on who you talk to it will always vary.
but a stock is only truly worth what someone will pay for it and that is the bottom line.
you could say gigm is worth $20 . it may reach it it may not . but now it's $8.75 and that is what it is worth. that is the beauty of the market. if it is worth 20 and held 20  then it would just get there a sit . at 20. what is the use of that.
chid is worth .50 because that is where it is. if the technicals turn around it will go up until the technicals turn around and it will go up.
look at aapl . terlisa's tech analysis said it is time to short . low and behold news comes out to support the technicals . etc etc.
thanks for letting me ramble.
glta
maxi

One funny thing....now that we at out of CHID I saw on two different forums people entering at the stock.... ??? >:D

Lets see what happens.

The thing is, the CHID chart is looking better than it has in a while.  Yesterday ended in an above average volume hammer with a close above Wed. close.  And check out the tight grouping of the moving averages straddling .55.  If price moves above these with some volume, it very likely will be off to the races for CHID again.  At the least, I wouldn't be surprised to see a 10-20% move from here.  The STOs aren't on the chart but they have bottomed and turned up.  CHID is on my watchlist for today. ;D

FYI

I had e-mailed Hawk Associates about the Galaxy View numbers.  Here is their response.

It is an anomaly caused by a change in the rules which impacted Galaxy Views' #s for the period ending March 31, 2006.

China Digital Communication Group stands firm with its guidance that the acquisition of Galaxy View International will be accretive.

Regards,
Ken AuYeung, Hawk Associates Inc.

Alien

Quote from: Ramsburg on August 03, 2006, 10:09:30 PM
The bottom line here was a huge strategic mistake (and I assume the responsibility): I'm mostly a technical trader, and I decided to get back into CHID at $0.65 mainly for technical motivations, that was the plan (my initial plan), but after a few days I started to input a lot of fundamental data on the equation, and that made me change the strategy for this trade... that ended to be a strange and erratic situation of «buy because of technicals, and hold because of fundamentals».
The right decision in this case should have been «Buy technicals, Sell Technicals»... 

Frederick,

You are SUCH a great guy!  You have my total respect.  And, APPLAUSE.

I posted this afternoon on the Stock Picking Board, something not the same, but somewhat simiilar to your experience.  I didn't "stick with my knitting" at May earnings, shorting a DOUBLE H&S Top.  Given how CKCM has huge gaps, I was concerned that I might get blinded-sided by the promise of good fundamentals.

Like you and maxi (rickjust), I'm basically a technically trader.  I try to consider the fundamentals, but I always will defer to the technicals.  If good fundamentals seem to be a threat on a LOUSY chart, like CKCM, I often pass.  And, I did.

>:(

I've made mistakes in the market that you haven't even thought of yet!  ;D

Quote
This one will take time to «digest»...

Give it no more than about one more minute to digest, because you already understand what happened in the trade.  That's ALL the time that it deserves.  You're a human being running a stock market site. 

You aren't gawd!   ;D  >:D

If anyone has that expectation, they're going to be very disappointed, not only with you, but with just about ANY site.  I've seen most of them come and go over the years.

Hang in there, buddy!  Your honest and sincere.  You work hard.  You recognize you mistakes, and you learn from them.  Keep learning (it's a lifelong process), and keep trying to move the ball forward.

   

thanks Melf ;)

just spoke with Roy Teng at China Digital....they are coming out with 10Q after close on Monday......numbers look very good.......will also clarify Galaxy #'s which seem to have confused everyone to the downside.....all looks good for CHID...:)

http://biz.yahoo.com/iw/060814/0154001.html

Down some more?

Quote from: tonyfloyd on August 08, 2006, 02:17:14 PM
just spoke with Roy Teng at China Digital....they are coming out with 10Q after close on Monday......numbers look very good.......will also clarify Galaxy #'s which seem to have confused everyone to the downside.....all looks good for CHID...:)

I am not in the stock anymore, but the press release said they were "dissapointed" with certain aspects of the numbers.  Did this guy Roy lie to you?

Anyway seems to be making a nice recovery today, seems like maybe once all the possible bad news is reported hopefully nothing but upside is left.

Will CHID hit the .36$ low ?

fyi:
Chid has shown their numbers...
http://www.sec.gov/Archives/edgar/data/1144320/000091068006000850/f10qsb-063006.htm
1)
Revenue and income down significantly
"Net sales for the three months ended June 30, 2006 totaled $3,027,810 compared to $3,316,327 for three months ended June 30, 2005, a decrease of $288,517 or approximately 8.7%. The decrease was primarily due to increased competition in our aluminum shells and caps, sales of which decreased by 37%. The sales of our steel shells, however, increased by 9% and the Company has yet to realize significant revenue from their latest product line, lithium ion batteries. "
2)
SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO SIX MONTHS ENDED JUNE 30, 2005
Net Sales
Net sales for the six months ended June 30, 2006 totaled $6,211,357 compared to $6,223,839 for the six months ended June 30, 2005, a decrease of $12,482 or approximately 0.2%. The decrease was primarily due to increased competition in our aluminum shells and caps, sales of which decreased by 26%. Our sales of our steel shell and caps, however, increased by 14% during the six months ended June 30, 2006.

Cost of Sales
Cost of sales for the six months ended June 30, 2006 totaled $4,328,727, or approximately 69.7% of net sales, compared to $4,411,138, or approximately 70.9% of net sales, for the six months ended June 30, 2005. The decrease in cost of sales was due to the decrease in sales. The decrease in percentage was due to a more efficient and maturity production process and improvements made to increase our efficiency.

Operating Expense
Selling, general and administrative expenses for the six months ended June 30, 2006 totaled $514,105, or approximately 8.3% of net sales, compared to $307,730, or approximately 4.9% of net sales, for the six months ended June 30, 2005. This increase was primarily due to increased spending on marketing and public relations expenses. The expenses associated with public relations and conference events were $93,850. The Company also incurred additional legal, accounting, and consulting fees during the six months ended June 30, 2006.

Income From Operations
Income from operations for the six months ended June 30, 2006 totaled $1,368,524 compared to income from operations of $1,504,971 for the six months ended June 30, 2005, a decrease of $136,447.

Interest Expense
Interest expense for the six months ended June 30, 2006 totaled $95,326 compared to $14,551 for the six months ended June 30, 2005, an increase of $80,775. The increase in interest expense was due to a long-term loan of $3,000,000 obtained in connection with the acquisition of Galaxy View and Sono.

Net Income
Net income for the six months ended June 30, 2006 totaled $1,210,888 compared to $1,426,596 for the six months ended June 30, 2005, a decrease of $215,708. The decrease was primarily due to a decrease in sales and an increase in operating expenses.

3)
checkt the updated profile:
http://www.hawkassociates.com/chidprofile.aspx
&
http://www.chinadigitalgroup.com/factsheet.html

I will keep CHID on my radar  >:D

cheers
Oliver

not good.... ???
China Digital Communication Group Says It Will Not Meet Previously Announced Guidance
Tuesday September 12, 3:34 pm ET

LOS ANGELES, CA and SHENZHEN, CHINA--(MARKET WIRE)--Sep 12, 2006 -- China Digital Communication Group (OTC BB:CHID.OB - News) said today that it would fall short of its previously projected financial results.

It projected total revenues of $19.3 million and net income of $5.8 million, or $0.09 per fully diluted share, for fiscal year 2006 with the acquisition of Galaxy View International.

Ran Liang, CEO of China Digital Communication Group, said, "Based on our current internal financial models, it is clear that our financial results for fiscal year 2006 will fall short of our publicly announced guidance. We still expect our company to be profitable for the year, and because of the acquistion of Galaxy View, we expect to show an increase in revenue from our prior fiscal year. However, at this point we have insufficient information to provide more specific guidance.

"As previously reported, in the second quarter of 2006, Galaxy had revenue of $2,490,483 and net income of $1,275,885 and was a cash generator. Galaxy is growing at a rapid rate, and as we said previously, we believe our financial results in the coming quarters will benefit from its inclusion in our financial results," Liang said. "Galaxy's financials will be incorporated in our consolidated third quarter results."

I'll say  >:( >:(

Maybe next year  ;D ;D ;D  Luckely I'm in with just a little money and I will sit it out now  >:(

Amarens

minus 20%, now @ 0.29$  :-X

Is the sell-off done? It will most likely tank some more since it's not oversold yet.

Dead cat bounce or breakout  ???   
Give us some more volume PLEASE >:D 
No magic lines here but do we see a cup  ;D

It's been a long time since CHID has been above the 50dma....that's positive!

Break above $.30 could be interesting.

target: 200dma?

great and unexpected Q3 results seem to reverse the trend and investors sentiment! CHID closed above $0.4..

A message from over on the ShoutBox.Quote from Soxguy!


[Thu 15:29] <soxguy> Does anyone remember CHID? Monster move today. If you play bb stocks,keep an eye on this one.


I remember it. It was also a Previous 3SOF Play.

Here is the chart...

                What is your main conclusion in the very undervalued of CHID.OB?




_________________
Rapid Tooling (http://www.metroplastics.com/)

David,

your old friend CHID.ob   .... is at 7.85$

Hoooh! Sorry! I mean CMTP.

CMTP   is on fire since 3 months ago!

20090713 (M) CMTP.ob  <---  CHID.ob (10 for 1)
20090713 (M) CMTP.ob  <---  CHID.ob (Reverse Stock Split, Ticker Change to CMTP)
Is he still have numbers to show for the next Quarter?
What do you think?

Have a nice day!

phabrux, Thanks for letting us know about the change  ;) 8)

Ticker symbol change...
CHID.OB< is no longer valid>Has changed to CHINA DIGITAL COMM(OTC BB: CMTP.OB)


Here is the updated chart look.......

setravis,

with NEWN.ob  I keep wondering if we are finally there with a definite Ticker Symbol?

Will NEWN.ob hold for a while?(ask the CEO)

But here is his recent history:
... 20060515 CHID.ob
20090713(M) CMTP.ob<--- CHID.ob(Rev Stock Split, Ticker Chge to CMTP)
20091118(M) NEWN.ob<-- CMTP.ob

p