3SOF

COMPANY DESCRIPTION

China 3C Group sells and distributes consumer and business products including cell phones, notebook and laptop computers, fax machines, cameras, camcorders, MP3 players and other electronic products through retail outlets in Eastern China. The company's business model, similar to that of Best Buy in the United States, is bolstered by an increasingly prosperous population with a voracious appetite for consumer electronics.

Just gonna copy and Paste some research done by other analysts:

Founded as an electronics distributor, China 3C has rapidly transformed itself into a major retailer and now owns and operates over 800 of its own retail outlets as well as maintaining its role as a major supplier to other top consumer electronics chains such as Guo Mei Appliance and Su Ning Appliance. Serving over 800 retail outlets, China 3C has a rapidly growing presence in the consumer electronics market- in Eastern China and has ambitious plans to expand to other parts of the country, particularly Beijing and Guangzhou.

Over the past four years, China 3C has built market share while establishing a reputation among its customers for superior customer service and product prices. Products distributed include those manufactured by Samsung, Motorola, Apple, NEC, Nokia, Ericsson, Brother, Philips, Panasonic, Feng Da, CJT, DaXian and KeJian. China 3C has "Outstanding Dealer" status with Panasonic, Samsung and Brother, and is a major partner of Philips, CJT and Feng Da for fax machine distribution. The company's distribution centers work 24/7 and are able to fill requests for products from inventory within 24 hours.

KEY DEVELOPMENTS

03/12/07    
Taglich Brothers, Inc., a broker dealer, initates research coverage on China 3C Group.

02/26/07    
FY '06 revenue up 355% to $148.2 mil. vs. $32.6 mil. in FY '05. FY '06 net income $11.3 mil. or EPS $0.24 vs. $1.5 mil. or EPS $0.04 in 2005. Gross profit rose 435% from $4.3 mil. in '05 to $22.8 mil. Q4 revenue up 685% from $8.1 mil. in '05 to $63.6 mil. Q4 net income $4.9 mil. or $0.09 diluted EPS.

02/01/07    
Ludlow China initiates research coverage on China 3C Group.

01/30/07    
China 3C Group announces 2006 year- end earnings Feb. 26 after market and conference call Feb. 27 at 11 a.m. Eastern Time.

01/22/07    
China 3C Group signs with Amoisonic Electronics to sell new products.

11/06/06    
CHCG reports third quarter revenue of $42.6 mil., net income of $3.2 mil. or $0.07 per share. Company exceeds previously announced guidance.

THE OUTLOOK

China 3C says that it plans to sell products through its corporate website www.china3cgroup.com. This will initially include cell phones, fax machines, personal computer and digital products. Web-based sales are expected to add to revenue and further enhance profitability as the company will be able to reach consumers throughout China beyond its retail markets. The company expects revenues from website sales will account for 20% of its total revenue in 2007.

China 3C introduced new products in the second half of 2006, which it expects will contribute $87 million to its revenues in 2007 and $700 million in 2010 as the company expands its retail footprint in China.

China 3C plans to expand significantly within its core markets, increasing the number of its stores to 2,000 by 2008, and 4,000 by 2010.
...

I really like this CHCG's current financials and future outlook for the company. Looks like there shooting to be the Circuit City or Best Buy of China. The grow in revenue and income from 05 to 06 was huge as well is suspected to nearly double in 2007. The current P/E ratio for CHCG is at 30x earnings compared to the industries 25x though forward P/E is only at 8x so i think considering CHCG's growth rates and that there expanding from todays 800 stores to 4000 by 2010 this could be a $20 stock in the future. Of course many are expecting a large correction in the chinese market so we should be weary of this play and be disciplined with our stop losses. CHCG is looking healthy with a current ratio 2.16 compared to the industries 1.5 and carries no long term debt. All in all i think this is a great stock to own, so lets own it

Bought CHCG at 6.50

up 20% now breaking through heavy resistance, looks like $10 could be next in line 

Hi Fous,

CHCG is on fire just now.
I would like to know, are you going out of CHCG after earnings next week?
Thanks
nexta

CHCG had some rough behavior after its EC and 07' guidance were released on may 14th and 16th respectively. I still like the companies huge growth potential here and it looks like its a great time to pick up some cheaper shares as price made a great looking hammer candle at double support(horizontal and ascending) within the ascending channel. Fundamentals here still look great and so does future outlook with a very attractive low forward P/E of 7.36, clean balance sheet, strong growth moving forward, and is expected to be listed on a major exchange towards the end of this year.  I'm still a believer here and this chart looks like its ready for another go, lets keep our stops tight though near this support level

Buying CHCG tomorrow.

QuoteChina 3C Group Reports First Quarter Revenue $84.5M; Net Income $6.5M or $0.12 per Basic and Diluted Share
Monday May 14, 4:30 pm ET

ZHEJIANG PROVINCE, China, May 14 /PRNewswire-FirstCall/ -- China 3C Group (OTC Bulletin Board: CHCG - News), a rapidly growing retailer and distributor of consumer and business products in China, announced today that revenue for the first quarter of 2007 was $84.5 million versus $13.4 million in the comparable quarter last year, an increase of 530%. Net income for the quarter was $6.5 million, or $0.12 per basic and diluted share, up 607% from $913,548 or $0.02 earnings per share for the same quarter last year.

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The company realized $13.9 million in gross profit for the quarter, up 621% from $1.9 million in gross profit for the same quarter last year. The increase in revenue and net income was due to increased sales and the assimilation of the acquisitions made during fiscal year 2006.

The company generated $2.6 million in cash from operating activities during the quarter and had $9.1 million in cash at the end of the first quarter.

China 3C Group's Chief Executive Officer, Zhenggang Wang, said, "We are pleased to report another robust quarter with strong sequential and year over year growth. Our revenues experienced a sharp increase, buoyed by a rise in sales and our acquisitions last year. On a sequential basis, revenues increased 33% to $84.5 million from $63.6 million in the fourth quarter of 2006. First quarter 2007 net income also increased 33% on a sequential basis to $6.5 million, or $0.12 earnings per share from $4.9 million, or $0.09 earnings per share in the fourth quarter of 2006.

"Cost of sales as a percentage of revenues decreased to 83% in this first quarter of 2007 from 85% during the first quarter of 2006. Gross profit margin was up over 2% this quarter to 16.5% compared to 14.4% in the comparable quarter last year. Looking ahead, we expect continued growth for our company as we further expand our product offerings, such as with our recently announced agreements with Galanz Group, one of the largest electronics manufacturer in the world, and Huipu Electronic Co., Ltd. (HPC), a leading manufacturer of LCD and plasma TV sets, LCD and CRT computer monitors."

QuoteChina 3C Group Provides 2007 Guidance
Wednesday May 16, 1:18 pm ET

ZHEJIANG PROVINCE, China, May 16 /PRNewswire-FirstCall/ -- China 3C Group (OTC Bulletin Board: CHCG - News), a rapidly growing retailer and distributor of consumer and business products in China, announced that the company is providing additional information regarding the company's previously released first quarter fiscal year 2007 results.

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Zhenggang Wang, CEO of China 3C Group said, "We expect to record revenue in the range of $360 million to $380 million and net income of $27.0 million to $28.5 million for the fiscal year ending December 31, 2007. Earnings per share are expected to range between $0.50 and $0.54 per diluted share. As with all guidance, these statements are forward-looking and our actual results may differ materially. We also reserve the right to adjust this guidance at any time as a result of acquisitions or other strategic initiatives we may pursue.

"We are also reiterating our previous guidance regarding store openings. We expect to open 1,200 stores by the end of 2007 and anticipate opening 4,000 total stores by the end of 2010, at which time we believe we will be realizing annual revenues of $1 billion. We will also be issuing first quarter 2007 comparable-store sales data under a separate release in the next few weeks.

"The company intends to be listed on a major U.S. exchange by the end of 2007. We will update the investment community with the status of our listing as more information becomes available."

Wang added, "We are pleased with our financial and operational results during the first quarter. We thank the members of the investment community who listened to our conference call and look forward to keeping all of our shareholders updated on our progress during 2007 and beyond."

 

JMHO.. Going down,Short it...
MACD says it can still go down...

52wk Range: 1.08 - 8.00
Volume: 693,468
Avg Vol (3m): 322,489

Technicals
Close Below the 50-day MA

Last Price Quote is:
-13.10%below 13-day MA
-7.69%below 50-day MA
RS Rating: N/A 

Fundamentals
Key Data:
Market Cap (M): N/A 
P/E Ratio: N/A 
PEG Ratio: N/A 
Next Earnings: 08/13/2007
Last Analyst Rating: N/A

Double Top (Reversal) Pattern.......
The double top is a major reversal pattern that forms after an extended uptrend. As its name implies, the pattern is made up of two consecutive peaks that are roughly equal, with a moderate trough in-between.

Although there can be variations, the classic double top marks at least an intermediate change, if not long-term change, in trend from bullish to bearish. Many potential double tops can form along the way up, but until key support is broken, a reversal cannot be confirmed.

While the double top formation may seem straightforward, technicians should take proper steps to avoid deceptive double tops. The peaks should be separated by about a month. If the peaks are too close, they could just represent normal resistance rather than a lasting change in the supply/demand picture. Ensure that the low between the peaks declines at least 10%. Declines less than 10% may not be indicative of a significant increase in selling pressure. After the decline, analyze the trough for clues on the strength of demand. If the trough drags on a bit and has trouble moving back up, demand could be drying up. When the security does advance, look for a contraction in volume as a further indication of weakening demand.

Perhaps the most important aspect of a double top is to avoid jumping the gun. Wait for support to be broken in a convincing manner, and usually with an expansion of volume. A price or time filter can be applied to differentiate between valid and false support breaks. A price filter might require a 3% support break before validation. A time filter might require the support break to hold for 3 days before considering it valid. The trend is in force until proven otherwise. This applies to the double top as well. Until support is broken in a convincing manner, the trend remains up.

Bought last week around $6.14 and what a week it was, curious what today and the coming days will bring after this long legged doji.

Let's hope the bottom is near and it can start moving back up, it held up pretty well on this red day ...

http://biz.yahoo.com/seekingalpha/070710/40551_id.html?.v=1

China 3C Group: Intriguing Microcap
Tuesday July 10, 5:49 am ET

Microcap Speculator submits: Ignore the never ending stream of articles in the mainstream press about the upcoming China market crash. Yes, trading in domestically-listed issues has become quite speculative. However, many Chinese companies listed in the United States, especially Chinese microcaps, have reasonable valuations and dynamic growth opportunities. Chinese microcaps are already a prominent part of my microcap portfolio, and their weighting will likely increase in the coming months.

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One Chinese microcap I am looking at is China 3C Group . China 3C Group operates "stores within stores," mini-electronic retailers located in some of China's larger department stores. According to a a recent investor presentation, China 3C mini-stores already appear in Gome, Carrefour, Trustmart/Walmart, and Suning stores. In June it announced an expanded agreement with Best Buy (NYSE: BBY - News).

chcg

China 3C is a growth story. In the first quarter of 2007, sales grew to $84.5M versus $13.5M in the prior year quarter, an increase of over 500%. The company estimates $360-380M in sales for 2007, and $1 billion in sales by 2010. With approximately $52.7M in shares outstanding, the company has a market cap. of around $208M. The company projects that it will earn between $.50 and $.54/share in 2007.

CEO Zhenggang Wang stated:

We are also reiterating our previous guidance regarding store openings. We expect to open 1,200 stores by the end of 2007 and anticipate opening 4,000 total stores by the end of 2010, at which time we believe we will be realizing annual revenues of $1 billion. We will also be issuing first quarter 2007 comparable-store sales data under a separate release in the next few weeks. The company intends to be listed on a major U.S. exchange by the end of 2007.

This research is just preliminary, but I am intrigued enough to put China 3C on my short list of stocks to watch.

Disclosure: No position.

New 52w high close ... 

Break out above 8$ on some good volume, worth a look imo! 

CHCG: Announces CEO Purchase of 20,000 Additional Shares
Friday , December 14, 2007 13:56ET

China 3C Group (CHCG) announced that Chairman and CEO Zhenggang Wang purchased 20,000 additional shares of China 3C Group on December 13, 2007 at a price of $3.60 per share. Wang has purchased a total of 120,000 shares in the in the past month.

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China 3C Group acquires selling rights to Meizu products
Thursday , December 13, 2007 09:21ET

Dec 13, 2007 (Datamonitor via COMTEX) -- Consumer electronics retailer China 3C Group has acquired exclusive selling rights to all Meizu products in two major retail chains in eastern China. The agreement provides for a one-year right to act as a reseller for two retail chains in eastern China: Hymall, a retail chain owned by Tesco, and Auchan, a French retail chain with a large presence in China. Wang, CEO of China 3C, said: "We are very pleased with this opportunity to sell Meizu products. Meizu is a leader in portable multimedia devices, and China 3C is a leader in electronics retailing. We believe that agreements such as this show that our company is increasingly seen by electronics manufacturers as a reliable retail channel to use when selling products in China."

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CHCG: Raises Full Year EPS Guidance to 43c-47c
Thursday , November 29, 2007 08:28ET
China 3C Group (CHCG) announced that it raised full year fully diluted earnings per share to between $.43 and $.47 per share for full year 2007. Previous guidance was $.40 to $.44.

last research file:
http://www.taglichbrothers.com/equityuniverse/companies/china3c/china3c-11142007.pdf

Key Investment Considerations:
We are maintaining an investment rating of Speculative Buy and a 12-month price target of $6.50 per share on China 3C Group (OTC BB: CHCG). We believe that because of the risk and uncertainty underlying China 3C's growth prospects, the stock is suitable only for investors with a high risk for tolerance.
China 3C Group is expanding rapidly, its growth driven by organic growth, the opening of new stores, and acquisitions. But as the company's revenue base has grown, growth rates have moderated. We project revenue growth of 90% in 2007 and 35% in 2008, and, respectively, earnings per share gains of 87% and 43%.
These projections do not reflect any possible acquisitions. The company offers a broad selection of consumer electronics across a wide range of price points. A unique "stores-in-stores" organization enables the company to piggy back on other retailers' traffic, blunt the potential competitive edge of large-store broad-line retailers and avoid large capital expenditures.
Cash generated by operations is projected to increase by $10 million in 2008, providing ample funds for support of larger working capital requirements and acquisitions.
3Q results (released November 15, 2007), matched our expectations despite a significant shortfall (relative to our forecast) in revenue, as vendor bonuses to the company reduced its cost of sales. On expectations of a significant reduction in China's effective income tax rates, we have raised our 2008 earnings projection to $0.66 per share from $0.59.

http://www.knobias.com/research.pdf?id=12434