CPSL - Sector: Basic Materials - Industry: Iron & Steel

[setravis]

Friday's closing chart....

52wk Range: 1.50 - 8.97

Volume: 383,886
Avg Vol (3m): 294,106

Technicals
Percentage Gainer

Last Price Quote is:
22.92%above 13-day MA
38.75%above 50-day MA
RS Rating: 99 

Fundamentals
Key Data:
Market Cap (M): $30.17 
P/E Ratio: 33.42 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

[setravis]

OLAB on the move today.....
+35.19%......Volume @ 464,178

[kslifka]

CPSL had a huge day after news.

http://biz.yahoo.com/prnews/061228/cnth005.html?.v=8

Anyone know anything about this deal.

[kslifka]

OLAB is now CPSL

REVERSE MERGER....A cheaper route than doing an IPO.

A little info on a reverse merger:

Reverse Mergers: An Alternative for Going Public

In its simplest form, a reverse merger refers to the process whereby a private company merges into and with an existing public company to establish itself as a public company. Typically, the public company, with which the private company merges while it may have shareholders and some assets is no longer a functioning business; hence it is often called a "public shell."

Still, it is typically a full reporting company to the Securities and Exchange Commission (SEC) and a public company for financing and trading purposes. A public company shell can take many forms a company that trades over the counter to companies listed on NASDAQ, AMEX, or even the NYSE.

In years past, reverse mergers were associated with penny-stocks, which were viewed as subject to manipulation. The marketplace frowned upon them because of their high potential for risk and abuse. ( For an Entrepreneur's Story about reverse mergers, read this article by Terry Bruggeman.)

The image of reverse mergers as a legitimate vehicle to go public has improved measurably in the recent years for several key reasons:

    * IPOs have become tougher, riskier, and more expensive.

    * New laws and regulations specifically dealing with penny stocks and reverse mergers have increased marketplace comfort with these transactions.

    * PIPEs (or private investments in public entities) have become an increasingly popular vehicle for equity investments.

First and foremost, there are several reasons entrepreneurs desire to reap the benefits of a public company: access to public markets, increased liquidity for shareholders, and increased transparency and attractiveness as a company with which other companies want to do business. Reverse mergers are especially effective for companies seeking access to the PIPE market, comprised of investors who buy shares in earlier-stage companies only through public vehicles.

Entrepreneurs who take their companies public via a reverse merger can also expect to encounter fewer barriers. A well-structured, well-advised company should be able to close a reverse merger in about four to six months at a cost significantly less than a traditional IPO. Major costs include professional fees and the consideration paid for the public shell, which may include consulting fees, repayment of debt, and a percentage ownership of the public entity surviving the merger. The ownership interest can range from as little as 1 to 10 percent, depending on the relative bargaining strengths of the parties.

It's important to consider that following the reverse merger, the only shareholders typically able to trade in the open market will be the original shareholders of the public shell. If the private company acquires too much of the public entity or there are too few shareholders with freely tradable shares, there may be an inadequate public float and little, if any, trading activity. In addition to significantly lower costs and more predictable timeframes, the reverse merger is less subject to risk of derailment than an IPO due to changing political, economic, or market conditions.

[kslifka]

Found China Precision Steel fundamentals on TheLion.com message board.

From: salukis1 score (93)
Reply To: None    
Date: Thu December 28, 2006 06:32:37 PM
Message #: of 1723
China steel still seems undervalued even after the increase in outsanding shares.  $11 million per year earnings, .41 eps,  Puts the PE only at 12.2 for a CHINA company growing rapidly

120% income growth the last 2 years.

All this before they have supposedly quadrupled production at this point.

It still seems like a steal here.

I'm sure the new CEO will not be dumping his shres at these prices.  Tradeable float will stay around 1.3 million for now.

ANY OPNIONS APPRECIATED

[kslifka]

Got CPSL up on stockcharts now. 

Big first day for this faux IPO.

I believe it could be a big gainer.  From today's closing, the market cap is 13.3 million and according to theLionshare.com message board, China Precision Steel had 11 million in earnings last year and 120 income growth the last 2 years.

I'm not great with fundamentals, so I would appreciate if someone with better fundamental knowledge would dig a little and post their take on CPSL prospects.

Thanks in advance.

Chart of fib retracements for the first day of trading for this reverse merger with OLAB

[goldieboox56]

http://biz.yahoo.com/prnews/061228/cnth005.html?.v=8

[cwiswee]

Yeah, this ones a monster following in the footsteps of efut and ffhl.  Consider the fact that they should report around 11m net income for 2006 on 27m shares (0.41 eps) - so currently only at 26 EPS.  Yet, they announced in filing that production goes up 4 fold as of August 2006.  Imagine the numbers to be reported in the 2007 fiscal! 

Now also, based on the trading Friday, I believe the float is still around 1 million.   Consider the fact that ffhl float is 4x higher, but trading 50% higher.  Sector much more attractive then ffhl as well.

I think $15 is a given, and the low float, momo, fundamentals, and squeeze along the way could certainly put it above $20.

JMHO

Another CHNR, but better looking!

[kslifka]

Gapping up strong this morning.  But I will wait

[goldieboox56]

On it's way to 20.

[setravis]

"CPSL" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders.                       
All history on a stock pick in 1 thread is awesome.                      
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock.
Thank You....and good luck with all your trades....make some $$$       

[kslifka]

CPSL ended up with a black candle.  Now it should give me an opportunity to jump on board. 
New fib retracements: 50% around $11.00 and 61.8% fib at $9.70.  This may take another day before a bounce happens.

[elliemae]

Ready to run again, up a $1.30 pre-market

[elliemae]

Something is up with this stock, up big again PM with no news

[kslifka]

Getting close to or die time with CPSL.  We have a small triangle and today was the first day without ending up with a black candle

If we can get a close abovve $15...may be a nice white candle to follow.  We'll see.