3SOF

I really don't have any time before the opening bell to explain why, but I'm buying $1,000 of HQSM.OB for the 3 Pennies on Fire portfolio around today's open.

In a extremely fast glance I can say just this: the company's market cap is $28.78M and they've earned $1M in the last quarter. If this continues I see the company with a PE Ratio of 7 and rapid growth.

The chart is a succession of white marubozus with higher and higher volume.

I will go deeper inside this stock on my first update after today's market close.

(This recommendation was made by David Randolph from 3 Stocks on Fire, and he will update this analysis everyday after the close until he sells the stock. 3 Stocks on Fire is a Community of stock traders and investors. Our 2987 members exchange trading ideas and strategies on our message boards everyday. We welcome you as a new member of the 3 Stocks on Fire Community, please take 10 seconds to register and receive our free newsletter)

Just 4 minutes for the opening bell and I have a decision to make, buy or hold HQSM.OB?

I see price up, volume up, so no reason to sell. I'll continue to hold this powerful penny stock, I hope after the bell there's no technical problem with the website and I can update all stocks held on the 3 Stocks on Fire Portfolio and the 3 Pennies on Fire Portfolio with some more time.

Thank you for reading, God bless you.

I was a little startled to see the pullback, but I figured it was profit taking, and entered at .35. The fundamentals certainly don't belong at this level! Besides, tilapia is very tasty -- I like to poach it in a littlle orange juice with onions & cracked peppercorns, takes a couple minutes, great with rice, yum!

Hope you'll take the time to share your TA take on this one soon, I can't tell a cup from a saucer, or a trendline from a clothesline. 

Quote from: robt on August 26, 2005, 07:11:36 AM
I was a little startled to see the pullback, but I figured it was profit taking, and entered at .35. The fundamentals certainly don't belong at this level! Besides, tilapia is very tasty -- I like to poach it in a littlle orange juice with onions & cracked peppercorns, takes a couple minutes, great with rice, yum!

Hope you'll take the time to share your TA take on this one soon, I can't tell a cup from a saucer, or a trendline from a clothesline. 

Thanks for the info about the product robt !

You're right, and the title of this thread is right, HQSM's fundamentals are awesome:

«HQ  Sustainable  Maritime  Industries,  Inc.  (HQ) (OTC BB:  HQSM),  a  Delaware

corporation  engaged in integrated  aquaculture and aquatic product  processing,
announced  today its financial  results for the second quarter ended June 30th ,
2005,  as reported in its Form 10-QSB  filed with the  Securities  and  Exchange
Commission on August 12th, 2005.

With net profits of USD  1,080,290,  revenues  for the three month  period ended
June 30, 2005  increased  by  $6,054,836,  to  $6,515,755  from  $460,919 in the
corresponding  period of 2004. In the first half of 2004,  HQ's fish  processing
activities were shut down for  reconstruction  that resulted in the expansion of
plant capacity from 2 to 6 production  lines.  The  acquisition of Jiahua Marine
was  completed in August 2004 and has added  $2,450,940 to sales for the current
quarter and $1,199,512 to its profit.

The full text of Form  10-QSB for the three  months  ended June 30,  2005 can be
reviewed at www.sec.gov. An extract is provided below.

Said Norbert  Sporns,  CEO of HQ, "The second  quarter  shows the strong  growth
potential in the company's products.  This growth will continue in the months to
come,  as the  Company  executes  the  Chairman's  roadmap.  Demand for the HQ's
highest  quality  products has continued very strong.  As marketing  initiatives
proceed in the United States and Europe we expect to see profitability and sales
increase further."»

Even without growth the trailing 2005 P/E of this company would be 8. But sales and profits are growing rapidly. With a market cap of just $36.09M I think we got a sure thing here.

There's not enough price history to do some reliable technical analysis, the long term chart was an erratic thing without any volume. Yesterday the stock fell a bit on profit taking, but nothing to worry about, this is a fundamentally backed advance.

I'm not selling this stock with less than 100% profit.

Hi David;
lt took awhile to free up a position to buy up some of this tasty HQSM but l am in at .35, and hoping for a bit of a retracement on Mon. and l will buy a bit more.
This companys fundimentals sure look good, as long as we can trust the Chinese reporting system, though with offices in the U.S. they should have to play fair.

On another matter, l still am long END, l will hold until the   news on their drilling results come in, this could be a big boom or bust stock. The market seeems to be my friend so far. Another oil that l am totally in love with is OIL on the Canadian, l am up near double in 6-8 months and the party is yet to begin.
Virg

Quote from: imvirginot on August 26, 2005, 05:31:19 PM
Hi David;
lt took awhile to free up a position to buy up some of this tasty HQSM but l am in at .35, and hoping for a bit of a retracement on Mon. and l will buy a bit more.
This companys fundamentals sure look good, as long as we can trust the Chinese reporting system, though with offices in the U.S. they should have to play fair.

On another matter, l still am long END, l will hold until the   news on their drilling results come in, this could be a big boom or bust stock. The market seeems to be my friend so far. Another oil that l am totally in love with is OIL on the Canadian, l am up near double in 6-8 months and the party is yet to begin.
Virg

Nice trades Virg, congrats 

HQSM.OB is based in the US, Delaware State (so is Stocks on Fire LLC), so I think the earnings report is reliable.

This is a great time for investors and speculators. Never in the world history there has been this possibility to turn a small company into a big one in a few months. Now, if you have a good product, in a few months you can be selling it worldwide and make a ton of money.

When I was looking through the company's website (http://www.hqfish.com) I was thinking that I could import their products and sell them here in Portugal ... Portuguese people love shrimp 

But I don't know anything about fish or sea food, in fact, I don't know much of anything, beside speculation     ... so I'm glad I hold the stock and this way I'm able to benefit from the company's growth.

The stock was dead until the last earnings report. That was a big surprise for the market, sales rose 14 fold, from $460,919 to $6,515,755 and earnings attributable to shareholders rebounded from a loss of $ (1,292,936) to a profit of $1,080,290 (from the second quarter of 2004).

Sales were up 116% quarter on quarter and earnings came from a loss of $437,968 in the first quarter to a profit of $1,080,290 in the second. If this kind of growth keeps up during the entire 2005, this company will deliver 2005 profits of $7,357,682.

With 99,320,179 shares outstanding the market cap is $34,265,462, so the trailing P/E would be $34,265,462/$7,357,682 = 4.65

This can't be true, at least a trailing P/E of 12 should be warranted. So I'm not thinking about selling HQSM.OB with less than 200% profit.

Another possible accelerator for US growth: the Louisiana wetlands have been providing 28% of U.S. fisheries' annual catch, a figure likely to change radically after hurricane Katrina.

Quote from: robt on August 29, 2005, 03:15:13 AM
Another possible accelerator for US growth: the Louisiana wetlands have been providing 28% of U.S. fisheries' annual catch, a figure likely to change radically after hurricane Katrina.

Thanks for this input robt 

HQSM.OB is retracing a bit over the last 3 sessions, on low volume. Given the company's fundamentals I don't expect the stock to retrace much more than the 38.2% Fibonacci retracement level or for much longer.

I'm confortably holding HQSM.OB.

David,

The acquisition of Jiahua Marine was completed in August 2004 and has added $2,450,940 to sales for the current quarter and $1,199,512 to its profit.
---------------------------------------------------------------------------------------------------------------------

The concern is that the deal gave the profit.  Without it, the valuation is much lower.
How does this affect the fundamentals ?
Thoughts ?   

Quote from: fill_the_gap on August 30, 2005, 11:55:23 PM
David,

The acquisition of Jiahua Marine was completed in August 2004 and has added $2,450,940 to sales for the current quarter and $1,199,512 to its profit.
---------------------------------------------------------------------------------------------------------------------

The concern is that the deal gave the profit.  Without it, the valuation is much lower.
How does this affect the fundamentals ?
Thoughts ?   

I will analyze your comments on the next update fill_the_gap, thanks a lot 

Technically, HQSM.OB came down to close the minor gap on the chart below, nothing to worry about, I believe. I will continue holding this penny stock.

THis was the news at 3pm that gave HQSM the little spurt near end of session.

September 1, 2005 - 3:04 PM EDT

HQSM Reveals Feedmill Construction Plans
Fishmeal-Free Enriched Feed to Produce Superior Products
HQ Sustainable Maritime Industries, Inc. (HQ) (OTC BB: HQSM), a Delaware corporation engaged in integrated aquaculture and aquatic product processing, announced today that it has approved a feasibility study for the construction of a new feedmill in Wenchang near its other production facilities.

The new plant represents an investment of USD 3.8 million producing 72,000 tons of feed annually with a total projected sales value of USD 20 million. The feed formulations will be prepared with the benefit of the latest American technologies to assure a minimum of toxicity (for example the elimination of fishmeal) and an optimum of health benefits for consumers. New floating feed formulations will reduce waste in the aquaculture reservoirs thus reducing the requirement for chemicals to stabilise reservoir health. The plant feasibility report approved by HQSM's Board, shows strong profitability especially when considered as an important component of the Group's vertically integrated strategy.

Said CEO Norbert Sporns, "The feedmill construction allows HQSM to retain important technologies it has accessed, using the feed additive fabrication capabilities of its Nutraceutical plant in formulating exceptional, toxin free feeds. This will fit well with new marketing initiatives in the United States. The Group's sales and profitability will expand considerably."

About HQ Sustainable Maritime Industries, Inc.

HQ Sustainable Maritime Industries, Inc. is an integrated aquaculture and aquatic product processing company, with operations based in the environmentally pristine island province of Hainan, in the South China Sea. HQ's activities include using renewable ocean resources, practicing cooperative sustainable aquaculture, using nutraceutically enriched feeds and conducting fish processing and sales. Its variety of farmed and ocean-harvested products -- ranging from tilapia and shrimp to squid and red snapper -- are sold around the world. The Company holds HACCP certification from the U.S. FDA and the EU Code assignment of quality, permitting its products to be sold in these international markets. It has recently acquired a nutraceuticals and health products company, which is HACCP certified, and produces and sells products subject to stringent laboratory tests certified by the China Ministry of Health. This plant produces nutraceuticals, which enrich feed used by HQ's cooperative aquaculture operations. In addition to operational offices based in Haikou, Hainan, HQ has offices in Montreal, Hong Kong, New York City, Beijing, and Shanghai. (http://www.hqfish.com)

Thanks for posting the news gmarc66 

Producing in the US is good news for this company, it will make it more visible and trustworthy.

Technically it looks like it is accumulating here, after closing the gap. Anytime we can have another white marubozu.

I'll continue holding HQSM.OB.

I'm glad HQSM.OB held $0.29 on close with volume above average. I will hold this penny stock for this session.

I am hoping to buy this stock closer to $0.20....As of 9/2/05,insider "Lucky Venture Resources Ltd"  plans to sell 936,000 shares,for an estimated $200,000....

more news, released Tues.

HQSM Reveals Expanded Sales Strategy for Seattle Offices
Tuesday September 6, 5:07 pm ET
Profit Margins to Increase

SEATTLE, WA--(MARKET WIRE)--Sep 6, 2005 -- HQ Sustainable Maritime Industries, Inc. (HQ) (OTC BB:HQSM.OB - News), a Delaware corporation engaged in integrated aquaculture and aquatic product processing, announced today that it has approved the expansion of the functions of its International Sales and new corporate offices in Seattle.
In addition to its International sales staff as well as the North American based senior management, the Company will diversify its sales strategy allowing the sale to retailers and service industry outlets of boxes of its products as opposed to the shipment of containers of products as is currently the case. Management believes that this higher margin business will add at least 15% profitability to its current sales. The Offices in Seattle will serve as well to import other seafood products so as to provide to its US clientele a more complete range of products.

Said Norbert Sporns, CEO of HQSM, "The new HQSM offices in Seattle will further vertically integrate our sales allowing our message to go more directly to important ultimate consumers of our products who do not currently accept delivery of container loads of products. This will play hand-in-hand with new branding and market education initiatives which will be announced shortly."

About HQ Sustainable Maritime Industries, Inc

[business profile, same as previous release]

Found their Investor Relations website:

http://kbk.hainan.net/english/inv_rel/inv_rel2.htm