3SOF

I know I am late with this Pick but DD takes time. I was looking for the perfect investment for my wife on Valentine Day. (Yeah I am actually a very romantic soul even though Julia might think otherwise).

Now I could obviously just have bought some nice jewelry. My dear wife always tries to convince me that it is a much better investment than shares but when I found Charles & Colvard Ltd. I knew that I had found something that was more valuable than even diamonds!

CTHR is releasing their earnings today. So I will write more about this pick in the coming days. For now I just ask all 3SOF's  to cross their fingers. I really can't afford to be disappointed. After all I love my wife and disappointing earnings could lead to a speedy divorce 

Mike

Wish u happy love........
May CTHR shine like your love...!!!

Bye
YUNUS

 Charles & Colvard Reports Fourth Quarter and 2005 Operating Results; Record Sales
Tuesday , February 14, 2006 16:05 ET

MORRISVILLE, N.C., Feb 14, 2006 (BUSINESS WIRE) -- Charles & Colvard, Ltd., (NASDAQ:CTHR) the sole source of moissanite - a created jewel available for use in fine jewelry - today reported operating results for the fourth quarter and year ended December 31, 2005.

Business Expansion Update

Bob Thomas, President and Chief Executive Officer of Charles & Colvard stated, "We are pleased to announce that moissanite jewelry will be in 90 Helzberg Diamonds stores by the end of the first quarter, an increase of 50 stores over the previous announcement. In addition Zales Corporation has expanded its testing of our jewel to include 20 stores within their 105 store Zales Outlet chain and will begin testing during the second quarter in Zales-Canada, People's Division, a 160 store chain."

Fourth Quarter & Year End Results

Mr. Thomas said, "Revenue in the fourth quarter and full year of 2005 were at record levels. We are delighted with the success of the sale of moissanite jewelry during the recent Holiday season".

The Company reported fourth quarter sales of $11.7 million resulting in operating income of $1,393,000 and net income of $884,000 or $.05 per diluted share. This represents a 34% increase over last year's fourth quarter sales of $8.7 million, a 139% increase versus last year's fourth quarter operating income of $584,000, and a 90% increase versus last year's fourth quarter net income of $465,000.

The $809,000 increase in operating income in the fourth quarter was primarily the result of the increase in gross profit resulting from increased sales and a 11.1 percentage point increase in gross profit percentage partially offset by a $2,093,000 increase in marketing and sales expense and a $156,000 increase in general and administrative expense.

Sales for the year ended December 31, 2005 aggregated $43.5 million on shipments of 255,000 carats. Net income for 2005 was $5,875,000 or $.31 per diluted share. Sales for 2005 were 82% ahead of 2004 sales of $23.9 million on shipments of 136,000 carats. The 2005 net income was 264% above 2004 net income of $1,612,000 or $.09 per diluted share.

A comparison of key operating results for the fourth quarter and year ended December 31, 2005 are as follows (in thousands, except for per share data):

Fourth Quarter            Year
                             -------------------  -------------------
                                 2005      2004       2005      2004
                             --------- ---------  --------- ---------
Net Sales                     $11,672    $8,718    $43,544   $23,917
Operating Income               $1,393      $584     $9,130    $3,038
Net Income                       $884      $465     $5,875    $1,612
Net Income per diluted share    $0.05     $0.03      $0.31     $0.09

Share and per share data for all periods presented have been adjusted to reflect the effect of the 5% stock dividend distributed on July 15, 2005 and the one share for every four shares owned stock split, effected in the form of a 25% stock dividend, distributed on January 30, 2006.

U.S. sales, which represent 93% of total sales, were up 39% for the quarter (46% in carats), primarily attributable to sales to our largest distributor to the independent jeweler and to a lesser extent the rollout to jewelry departments leased to Finlay Enterprises that began in the first quarter of 2005. International sales for the fourth quarter decreased 10% (16% in carats) primarily due to decreased sales to Thailand, United Kingdom, and India offset by higher sales to Italy, Vietnam and Hong Kong. Total Company shipments of 69,000 carats for the fourth quarter were 39% above the 50,000 carats in the same period of 2004.

Gross profit as a percentage of sales was 66.8% for 2005 and 71.9% for the fourth quarter, an increase of 2.6 and 11.1 percentage points when compared to the same periods in 2004. These increases were primarily caused by lower production costs in the FIFO period that the relieved inventory was produced partially offset by slight decreases in average selling price per carat, due to a decrease in the size of the average stone sold.

Operating expenses were up 48% for the quarter and 62% for the year when compared to 2004 amounts. As a percentage of sales, operating expenses for the quarter and year were 60% and 46% respectively, an increase of 6 percentage points when compared to the same quarter last year and a decrease of 5 percentage points compared to 2004.

Marketing and Sales expense for the quarter was up $2,093,000 primarily due to $1,782,000 of increased print advertising, a $420,000 increase in co-op advertising expense and $370,000 of increased direct mail expense partially offset by a $319,000 decrease in billboard advertising and a $120,000 decrease in expenses of the Hong Kong office. General and administrative expenses increased $156,000 primarily due to $117,000 of professional fees relating to compliance with section 404 of the Sarbanes-Oxley Act.

Our effective income tax rate for the year ended December 31, 2005 is lower than in the previous year primarily due to non-U.S. operating losses representing a smaller percentage of income before taxes and a reduction in state income tax expense caused by the allocation of pretax income out of taxable state jurisdictions.

Accounts Receivable decreased from $12.8 million at September 30, 2005 to $11.2 million at December 31, 2005 primarily due to increased cash collections.

Mr. Thomas noted, "2005 was an extremely successful year for Charles & Colvard. Revenue and earnings growth were fueled by our efforts to expand distribution and supported by an effective marketing campaign. Our fundamental strategy has not changed; we intend to grow revenue while remaining profitable by increasing awareness and demand for our brilliant jewel, moissanite."

In this morning at 13.19. Charts lookin like its ready for a bullish reversal backed by earnings. Stochastics completley oversold and crossing back above 30, Macd way down and about to make a bullish cross, And price action breaking out of a descending wedge along with a bullish morning star  candlestick pattern.

Thanks for the tip mike applauds

-fous

last but not least: in @ 13.99

nice link:
http://www.advfn.com/p.php?pid=financials&symbol=N%5ECTHR

nice chart:

 

CTHR: Short Interest UP 32.3% to 3.1M in Jan 2006
Wednesday, January 25, 2006 16:17 ET

According to new short interest data from NASDAQ, short interest for Charles & Colvard Limited (NasdaqNM: CTHR) INCREASED 32.3% to 3,061,637 shares for the month ended mid-January, 2006.

SYMBOL          DECEMBER         JANUARY          CHANGE       %CHANGE  DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
CTHR           2,314,256       3,061,637        +747,381       +32.29%           7

Based on CTHR's 20-day average daily share volume of 456,415, it would require approximately 7 day(s) of buying to cover this short interest.

from yahoo:
CTHR soaring on Short Squeeze & new Buy
by: redsox_is_baseball (35/M/Bean town aka Boston)
Long-Term Sentiment: Strong Buy    02/15/06 10:45 am
Msg: 30363 of 30376

CTHR soaring on Short Squeeze & new Buyers after Earnings last Night!
Prior to yesterdays earnings CTHR was crushed from $27 down to $12+
Moissanite maker more than triples profit
Tuesday February 14, 7:06 pm ET


Charles & Colvard posted a 260 percent jump in 2005 annual earnings Tuesday, but still fell short of analyst expectations.
Charles & Colvard increased its annual net income from about $1.6 million in 2004 to nearly $5.9 million in 2005, boosting earnings per diluted share to 31 cents in 2005 from 9 cents per diluted share a year earlier.

But analysts polled by Thomson Financial had projected annual earnings of 32 cents per share for the Morrisville-based producer of moissanite, a diamond-like, manmade jewel.

Charles & Colvard (Nasdaq:CTHR - News) posed $11.67 million in fourth-quarter sales, up 34 percent year over year but just under of the Thomson Financial consensus analysts' projection of $12 million.

Annual sales for Charles & Colvard reached $43.5 million in 2005, an increase of nearly $20 million over 2004 net sales of $23.9 million but $400,000 shy of the Thomson Financial estimate.

Fourth-quarter net income for the company reached about $880,000 - or about 5 cents per diluted share - compared to 2004 fourth-quarter income of about $465,000 - or 3 cents per share. Thomson Financial projected earnings of 6 cents per share.

The financial results came less than two months after shares in Charles & Colvard plunged 31 percent following news that the company was changing its marketing focus in a move that it admitted could lead to "uneven sales" in 2006.

Company CEO Bob Thomas said in December that the company would focus marketing efforts to build up moissanite sales at retailers already selling the product instead of concentrating on new retail outlets. Thomas said the shift in strategy would create difficulties in predicting revenue growth for 2006.

On Tuesday, Thomas announced that Charles & Colvard's moissanite jewelry will be in 90 Helzberg Diamonds stores by the end of 2006 - up from a previously announced deal to place moissanite in 40 stores. Also, Zales Corp. has expanded test sales of the jewel to as many as 180 more stores.

Published February 14, 2006 by the Triangle Business Journal

Congrats Oliver and Fous (thanks for the applauds )

I had a little discussion with my wife and we (read she) decided that "we" would rather sell at 14.87 and buy the real thing from the profit tomorrow 

Now between the three of us (and don't tell to the rest of 3SOF!). I am going to stay up late tonight and I might just buy back if I get a chance.

Here is a comparison of Moissanite and other precious stones:



More brillance than a diamond, harder than Ruby, more fire than any other stone well it seems like a no brainer!

Let me just finish with a picture of the beauty:



Mike

Thanks Michael for your timely post yesterday. I bought at 12.77 just before close and sold it today at 14.88. I believe this stock will be a good long term investment.

Mike
I sold the stock at 14.78. I'm happy to tell you that Diana thinks this is a masonite company. She's content with the $7.00 valentine's day card. Great call
Mike

really great call mike, awesome 

way to back it up with excellent TA as usual FOUS.

I'm not gonna miss that combo again 

Quote from: eliteG on February 15, 2006, 12:22:37 PM
really great call mike, awesome 

way to back it up with excellent TA as usual FOUS.

I'm not gonna miss that combo again 

Great call indeed make, after todays close i think you deserve another round of applause And thanks for the compliments G.

Most of you sold today so it looks like im a lone star still holding. I'll likely set up a .15 trailing sell order so i'll stay along for the ride if it continues tomorrow or get out if it retraces and still lock in my profits.

-fous

Todays chart:

[

Quote

.

Most of you sold today so it looks like im a lone star still holding. I'll likely set up a .15 trailing sell order so i'll stay along for the ride if it continues tomorrow or get out if it retraces and still lock in my profits.

-fous

Todays chart:

Quote

I am still invested 

fyi:
Charles & Colvard Gains 16.71% On Higher Volume
Thursday , February 16, 2006 00:08 ET

Feb 16, 2006 (financialwire.net via COMTEX) -- February 16, 2006 (FinancialWire) Charles & Colvard (NASDAQ: CTHR) gained 16.71% on volume of 1,114,884, which was twice its average 523,890, to close at $14.95.

Charles & Colvard had been enrolled in Investrend Research's unique and pioneering professional analyst program, which facilitates independent analysts to provide financial coverage for shareholders and investors in companies that otherwise would have little or no analyst following. Enrollment in standards-based research is an important measure of a company's commitment to transparency and Good Governance. There is currently no coverage by a standards-based research providerk, meaning there remains no independent professional analysis to provide the public with updates on the company's business developments and prospects. The company's research is now stale.
The Investrend Research program is the largest in the world and includes a number of safeguards to reduce or eliminate conflict. These systems, including media coverage and endorsements, may be accessed at http://www.investrendresearch.com

There is currently no independent professional analysis of the company's activities.

Investrend Research subscribes to the "Standards for Independent Research Providers" at http://www.firstresearchconsortium.com, and adheres to the Guidelines for independent providers jointly endorsed by the National Investor Relations Institute (http://www.niri.org) and the CFA Institute (http://www.cfainstitute.org).
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Slow movement over the last 2 trading session which isn't surprising after such a large gain on the day of the breakout. People arn't sure whether to buy sell or hold. Hence to doji patterns over the last 2 trading sessions which implies confusion in the bull/bear power. The Candle pattern formed a bearish abandoned baby wich is a bearish reversal pattern. Though this may correct itself over the short term ive set my profit target as the descending resistence line which has a slope of -$.038/ day. As for monday my target stands at $17.80. I will continue to hold until my target is met  unless an unexpected technical breakdown occurs.

Good luck fellers.

-fous

Still holding CTHR:

had a pretty ugly candle today though support is holding where it should, for now at least. The middle of the real body of the white marubozu is a good place to look for support so 14.95(close) - 13.08(open) is 1.87/2 =$.93. 14.95 - .93 gives us our midpoint at 14.02. The low of the today was 14.00 and rallied back up to close 14.15. Im hoping to not see a close below this support area and continue to head north towards my profit target wich stands tomorrow at 17.73.

MACD and RSI still in  bearish territorries and have plenty of room to make a nice bull run....

-fous