3SOF

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!!!   


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!!!!!   

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!!!!!

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 !