Joining the party in CHME.OB

[Garoh]

If this thing goes up 50% today or tomorrow ...

I see several bags of profit in CHME.OB and I'm not going to be shaken out by any short term volatility coming from the exercise of warrants. The holders of warrants certainly know how undervalued the company is and they won't let go of all their shares at current market prices, just some to satisfy their short term needs.
Will CHME.OB rise 50% today? It should, it should ...
I'll keep holding CHME.OB.

It could be David 

I put a limit order to buy this stock at $3.40 from the first day you recommanded it and it Filled a few minutes ago 

The chart says something will happen soon , probably will be the 50% rise 
Anyway , it's a good pick david

Hi tokyopua

The chart looked excellent 2 days ago with possible of new high 

[David Randolph]

HELLO 3STOCKSONFIRE`S SPACESHIP CONTROL CENTER

CHME SPACESHIP CALLING
We have a liftoff
All of us on board so far so goooood

Hope calling you again from the moon

Good work David

Lol Rmagos, I hope CHME.OB travels to the moon at the speed of light.

For anyone who follows STEPS/G-Spot from EliteG/AussieTrader, today marked the reversal candle you would like to see to make a position entry expecting a Gspot breakout above the original level.  I am doubling my position at the open tomorrow.

Yeah, we need a close above $3.9 for a G-Spot pattern. I believe it will happen and CHME.OB will make a double from then on, towards $8 a share. At $8 it would still be cheap, trading at 10 times this year's earnings

Anyway, even if we don't get the type of momentum buying we're expecting, there's no doubt the 2nd half will bring very good news (mainly because of seasonality, but that's not priced in) and this time investors will be watching, because CHME.OB got some volume and definitely entered some people's radar.

I'll keep holding CHME.OB.

[bourbonstreet_crawdaddy]

Stock looks terrific!

Breakout from Cup and Handle should be Outstanding!

Stage 2 Boosters ready to fire!

Great job David!

Bourbon 

[buddjas1]

Put in my order for $3.90. 

[David Randolph]

Put in my order for $3.90. 

Nice fill buddjas1

People are putting all Chinese stocks in the same bag, and trading them with momentum. I don't care about that, the next couple of days or weeks don't tell me anything about CHME's future share price. I'm pretty sure that almost nobody knows this company made $0.63 EPS in 2006 and that the 2nd half is much, much stronger than the 1st, because in 2006 the company wasn't public. But I have the data in my fundamental data service from www.alphatrade.com.

When people see, what, something like $0.8 - $1 EPS for CHME.OB in 2007 they will undoubtedly put the stock in the $10 - $15 range. Less than six months to go for the full year 2007 results, so ... nobody has anything to worry about this stock.

I'll continue holding CHME.OB with strong hands, ignoring short term volatility, focusing on the share price six months from now.

[Terliso]

I Jumped in today, bought on the pullback...

[David Randolph]

I Jumped in today, bought on the pullback...

Cool, always nice to have you on board Terliso

CHME.OB had $0.63 EPS in 2006, you can confirm that at the following for 10-KSB:

FORM 10-KSB

Now, the current # of shares outstanding is much higher, at 13,306,738 shares on August 10, 2007, mainly as a result of the company entering the public market in November 2006, but also because of warrants being converted into common shares at $1.25 and $2.5. I think this conversion is over or almost over after the volume we've had over the last couple of weeks.

CHME.OB will probably average about 15 million shares outstanding in the 2nd half of 2007. With the share count doubling, net income needs to at least double for EPS to stay the same, and I think that's what will happen:



I'm looking at about $0.6 - $0.8 EPS in 2007. With the stock trading at $3.8, it is being valued at about 5.4 times earnings, which is incomprehensibly cheap. It should trade at least at 20 times earnings, that is, about $14 a share.

I'll continue holding CHME.OB. 

[Dracull]

My broker is IB...And I'm beginning to think seriously in changing as I also can't buy this one.

If this thing goes up 50% today or tomorrow you'll sure want to put some money in another broker too Draccul. IB's problem is that it is a professional trader's broker, not very well suited for investors.

It's good for those who day trade stocks or futures, but to buy and hold stocks for the long term ... there are better alternatives. This issue with OTCBB stocks is a pain in the ass.

Just got a reply from my cumplaint at IB:
"Response to your Trouble ticket #462770 created on 2007/10/12 15:57 EST. 
Subject: I want to buy CHME.OB but IB doesn't allow
Initial Description:
Response from lackey at 2007/10/15 12:34 EST:
Upon further inquiry with the clearing department CHME's clearing status has been changed. You should be able to place opening transactions by tomorrow 10-16-07"

Who said that cumplaining doesn't pay? >

[David Randolph]

Just got a reply from my cumplaint at IB:
"Response to your Trouble ticket #462770 created on 2007/10/12 15:57 EST.
Subject: I want to buy CHME.OB but IB doesn't allow
Initial Description:
Response from lackey at 2007/10/15 12:34 EST:
Upon further inquiry with the clearing department CHME's clearing status has been changed. You should be able to place opening transactions by tomorrow 10-16-07"

Who said that cumplaining doesn't pay?   

And you'll be buying lower than myself, you can thank IB for that

CHME.OB is trading at about 5-7 times earnings while it grows revenues by 105% from the year ago levels on a weak part of the year in seasonal terms, and this undervaluation won't be here for long. When the company reports 3rd quarter earnings I expect it to shoot 100% higher at the very least.

I'm totally confident on CHME.OB and I'll keep on holding the stock for the long term.

[kpunarc]

when's 3rd quarter earnings out? (and where do you typically find these?)

[la-onda]

 BUYINS.NET: CHNR, MNKD, CHME, CMNN, NWGN, BGTH Have Been Added To Naked Short List Today
Tuesday , October 16, 2007 09:25ET

Oct 16, 2007 (M2 PRESSWIRE via COMTEX) -- BUYINS.NET, www.buyins.net, announced today that these select companies have been added to the NASDAQ, AMEX and NYSE naked short threshold list: China Natural Resources Inc. (NASDAQ: CHNR), MannKind Corp. (NASDAQ: MNKD), China Medicine Corp. (OTCBB: CHME), Communicate.com Inc. (OTCBB: CMNN), NewGen Technologies, Inc. (OTCBB: NWGN), Bridgetech Holdings International Inc. (OTC: BGTH). For a complete list of companies on the naked short list please visit our web site. To find the SqueezeTrigger Price before a short squeeze starts in any stock, go to www.buyins.net.
......
China Medicine Corp. (OTCBB: CHME) through its subsidiary, Guangzhou Konzern Medicine Co., Ltd. distributes pharmaceutical products in the People's Republic of China. It sells and distributes approximately 1,500 pharmaceutical products that include prescription and over the counter pharmaceutical products, traditional Chinese medicines, dietary supplements, and medical instruments. The company also engages in the sale of medical formula and development of new products. It purchases its products from drug manufacturers and sells those products to wholesale pharmaceutical product companies, hospitals, and retail drug stores. China Medicine Corporation's distribution network reaches approximately 300 hospitals, 500 pharmaceutical companies, and 1700 drug stores throughout China. The company is based in Princeton, New Jersey. With 13.31 million shares outstanding and 8,000 shares declared short as of September 2007, there is a failure to deliver in shares of CHME.

[Michael]

BUYINS.NET: CHNR, MNKD, CHME, CMNN, NWGN, BGTH Have Been Added To Naked Short List Today
Tuesday , October 16, 2007 09:25ET

Hmmm.... I am wondering if 8000 shares is enough to create a short squeeze but I like the fundamentals so I am trying to buy a few shares at 3.58.

That should be enough to make David and Terliso green of envy if I succeed 

[David Randolph]

BUYINS.NET: CHNR, MNKD, CHME, CMNN, NWGN, BGTH Have Been Added To Naked Short List Today
Tuesday , October 16, 2007 09:25ET

Hmmm.... I am wondering if 8000 shares is enough to create a short squeeze but I like the fundamentals so I am trying to buy a few shares at 3.58.

That should be enough to make David and Terliso green of envy if I succeed 

It feels great to have you on CHME's board Michael, the stock is so cheap I was starting to wonder if it were too good to be true.

And you're not the only one joining the CHME's crusade, there was an SEC form filed yesterday, just before the close, saying Capital Ventures International, which seems to be an hedge fund, recently bought 1.1 million CHME's shares, or 8.3% of the company:

Form SC-13

If 1.1 million shares is 8.3%, it means there are 13.25 million shares outstanding, so the market cap is $48.6 M, in line with what I've been thinking. No surprises here.

This isn't the only institution holding CHME's shares, we also have First Willshire Securities Management, holding 1,071,500 shares:

Form 13

Nice to have two institutions on our side holding significant stakes.

I'll keep holding CHME.OB for the long term.

[David Randolph]

The only explanation I have to why CHME.OB trades at 5 times earnings is that the Chinese holding warrants don't know how to value a company.

But, when the company reports 3Q earnings and investors see what I see, I believe they'll push CHME.OB shares 200% higher.

I'll patiently continue holding CHME.OB.

[sctrben]

Alright guys, now in on this one with you.  Only 1k shares at 3.40, it's a start

Funny, hey Dave these were the profits from INSM, still looking for more from them as well.