3SOF

ksflika:

From Marketwatch:

Shares outstanding: 26.98M
Market Cap: $382.33M

Because of this reverse merger, it is a little difficult to figure out the financials on this one, but I think it is worth looking into in more detail.

Technically, because of the lack of data, its probably worth looking at an intraday chart.  The 15 min chart paints a slightly mixed picture.  Yesterday CPSL drifted down below the ascending trendline that has been supporting its recent consolidation.  However, this breakdown was not really confirmed by price or volume action.  At the end of the day yesterday, CPSL had a sharp little rally.  It is a little hard to see on this chart, but it looks to me like the gap after the first says trading is providing the current price support.  Key support right now comes in at 13.55-60.  A break below this level would be decidedly bearish and would probably determine the next trend for this stock.  Resistance looks to come in at 14.50.  If it breaks this to the upside, it could begin a significant run.  I think we could see resistance above this at 15.25 and the recent high around 16.60.

When you put the recent chart pattern into context with the Fibs, you can see clear and positive bounces off the 50% and 61.8% levels.  This leads me to think that CPSL should act well technically.  I think this one will decide which way it wants to go today, so I'll be watching closely, especially at the PM action.  CPSL seems to trade heavily PM right now.

Hope al this helps, lets make some green 

Stock took a beating with the rest of the China plays last week. Had a nice run up yesterday, and I think it still has some room.

In today at 7.3993 

Out at 6.65 for an 11.1% loss. This is turning out to be a painful 

Business Summary   

          China Precision Steel Inc. sells high precision cold-rolled steel products in the People's Republic of China. It offers cold-rolled and hot-rolled precision steel products and plates for down stream applications in the automobile industry, kitchen tools, and functional parts of electrical appliances. The company's products are primarily used in the manufacture of automobile parts and components, food packaging materials, saw blades, textile needles, microelectronics, packing, and containers. China Precision Steel also engages in the provision of heat treatment and cutting of medium and high carbon hot-rolled steel strips and chrome series stainless steel. The company was founded in 2002 and is based in Hong Kong, Hong Kong.

Business Outlook

          China Precision Steel has been increasing its production capacity for cold-rolled precision steel as demand in China outpaces domestic supply. The company began production of its second cold-rolled mill with 150,000 metric tons of capacity in October 2006 and has plans to add a third mill with 150,000 metric tons of capacity by the end of calendar year 2007. Each mill takes approximately two to three years to ramp up in order to ensure smooth operations and optimal quality results before achieving full production. Currently, the new mill is operating at 30% capacity and is expected to reach 50% capacity by the end of calendar year 2007. For fiscal year 2007, the company currently anticipates revenue to be approximately $50.5 million, gross profit to be about $15.6 million and net income to be about $10.9 million. For fiscal year 2008, the company anticipates revenue to be approximately $62.5 million, gross profit to be about $20.3 million and net income to be about $14.1 million.

          ''We are currently a dominant producer in China of cold-rolled precision steel with 50% of the domestic production market and 5% of the total market in China. We have developed a state-of-the-art, patent-protected process that enables us to produce high quality precision steel at competitive prices both domestically and internationally,'' commented Mr. Li. ''Moreover, the market demand in China for high quality precision steel has grown 20% annually for the past five years, and we expect it will continue expanding as our target industries, such as the automotive and appliance industries, benefit from China's robust economic growth.''

Recent News

China Precision Steel Announces Third Quarter Fiscal 2007 Results

[video] China Precision Steel CFO: No Demand Slowdown In Sight

Making a nice run today up 11% already. I hope some of you bought this.

Just now got the time to check the thread out.
I was out of my trading office today.
Very nice find indeed.....I do Applaud your work ! Wake up call 
Yes, I agree a nice trend reversal.I will be watching for a pullback for a buy.
The 13-day Ma has crossed over the 50-day MA...Nice move !

Recent CandleStick Analysis
Bullish
Jul-09-2007 Bullish Engulfing 

Support @ $3.72...2.63
Resistance @ $5.08...5.77...6.30

Float (mil) 5.70 Shares Outstanding (mil) 35.36

52wk Range: 2.58 - 16.58
Volume: 1,326,912
Avg Vol (3m): 519,740

Technicals
Last Price Quote is:
28.96%above 13-day MA
23.06%above 50-day MA
RS Rating: 7
MACD is Bullish...
Stochastic is Bullish...

Fundamentals
Key Data:
Market Cap (M): $144.98 
P/E Ratio: 9.17 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

Business Overview.......

BRIEF: For the nine months ended 31 March 2007, China Precision Steel, Inc.'s revenues increased 42% to $37.1M. Net income from continuing operations decreased 17% to $6.6M. Revenue reflects higher sales volume and increased average selling price per ton. Net income was partially offset by higher cost of goods sold due to increased raw material consumed, an increase in selling expenses, higher administrative expenses and increased interest expense.

thanks setravis 

the float is only 5.7 million shares which is awsome. the volume has been over a million shares the past week of trading so its turned that float over a couple times in the past 2 weeks.  i think it can go much higher. the volume is a tell.

Quote from: WallStreetnBio on July 10, 2007, 09:03:15 PM
thanks setravis 

the float is only 5.7 million shares which is awsome. the volume has been over a million shares the past week of trading so its turned that float over a couple times in the past 2 weeks.  i think it can go much higher. the volume is a tell.

So true.......Volume don't lie !
Good trading to you on this one...make some $Green$

Quote from: WallStreetnBio on July 10, 2007, 09:03:15 PM
thanks setravis 

the float is only 5.7 million shares which is awsome. the volume has been over a million shares the past week of trading so its turned that float over a couple times in the past 2 weeks.  i think it can go much higher. the volume is a tell.

WallStreetBio, I applaude you too.
I remember trading this one at $10 but got out breakeven before it started going down. Got into this again at $4 only after you started updating. good call. 

Quote from: njshiva on July 10, 2007, 10:53:29 PM

Quote from: WallStreetnBio on July 10, 2007, 09:03:15 PM
thanks setravis 

the float is only 5.7 million shares which is awsome. the volume has been over a million shares the past week of trading so its turned that float over a couple times in the past 2 weeks.  i think it can go much higher. the volume is a tell.

WallStreetBio, I applaude you too.
I remember trading this one at $10 but got out breakeven before it started going down. Got into this again at $4 only after you started updating. good call. 

Thanks buddy.  I don't like to post on this board unless I know I found a sure winner but it seems like no one has listened.  It's good to hear someone else is actually buying this stock.  I plan on adding to my position all the way to $10.  This will be a long term holding for me.

Nice posts....been following and buying dips on this for for a couple months now.  I hope this hits the teens again....I like this in the long run also as stell demand reamains strong.

One risk to keep in mind is the Share Dilution of the Stock:  CPSL will issue and sell approx. 8 million shares at $3.  I think this news was the reason the stock dipped below $3 bucks recently.

Copy of May 10-Q statement with this news:

Stock Purchase Agreement. On February 16, 2007, the Company entered into a Stock Purchase Agreement with the investors named therein (the "Stock Purchase Agreement") pursuant to which the Company agreed to issue and sell in a private placement (the "Private Placement") up to 7,451,665 new shares of its common stock, par value $.001 per share (the "Common Stock"), at a price of $3.00 per share. The Private Placement was made to accredited institutional and other investors in the United States and elsewhere in reliance upon available exemptions from the registration requirements of the Securities Act of 1933, as amended (the "Act"), including Section 4(2) thereof and Regulation D and Regulation S promulgated thereunder. On February 21, 2007, the Company received gross proceeds of $20,805,000 upon the initial closing of the Private Placement. A further closing occurred on or about February 23, 2007 with respect to the receipt of additional proceeds of $1,549,995. The Company intends to use the proceeds from the Private Placement for expansion of its production capacity, to repay certain of its outstanding debt and for general working capital purposes. Under the Stock Purchase Agreement, the Company's officers and directors, as well as the U.S. and International placement agents, entered into lock-up agreements with respect to their shareholdings in the Company. The foregoing summary is qualified in its entirety by reference to the Stock Purchase Agreement and the form of lock-up agreement, both as incorporated herein by reference to Exhibits 10.4 and 10.5 attached hereto. The securities sold in The Private Placement have been registered for resale under the Act on a registration statement on Form S-3, File No. 333-141588, which was declared effective by the U.S. Securities and Exchange Commission on April 4, 2007.

i am in 3.80 ...looks like support 3.75

earnings next week i expect run into earnings started yesterday today retraced a bit....

very nice long term chart!

Great run for this stock. It is going up like a rocket. Why is no one following this stock??
The P/E is still very low. it has space to go up.

Quote from: guledh0 on September 24, 2007, 05:52:12 PM
Great run for this stock. It is going up like a rocket. Why is no one following this stock??
The P/E is still very low. it has space to go up.

Should have been following it, still going strong.

Shortin' time, huh?