CMTP.OB)

[eggman11]

GREAT NEWS
China Digital Communication Group Obtains US$6 Million Secured Credit Facility
Monday March 13, 8:00 am ET


LOS ANGELES, CA and SHENZHEN, CHINA--(MARKET WIRE)--Mar 13, 2006 -- China Digital Communication Group (OTC BB:CHID.OB - News), one of the fastest growing battery components manufacturers in China, announced today that it has obtained a US$6 million bank line of credit from United Private Equity Ltd., a venture capital firm. The credit facility is for a term of three years and will be used exclusively for merger and acquisition activities of businesses in the 3G communications industry. The credit facility will bear interest at a rate of 7.7% that will be paid annually beginning on December 20, 2006. The credit facility will be secured by US$9 Million of stock of certain of the Company's major shareholders.

http://biz.yahoo.com/iw/060313/0112823.html

They put up their own holdings for collateral for the financing. a good sign.

[eliteG]

update CHID:

Again a penny that both David and Michael find very attractive fundamentally and CHID has gotten us to a 38% return at this point!

CHID is hanging around its 200sma deciding what it wants to do but meanwhile the 20ema and 50sma are catching up and this should create buying pressure.  I see CHID lying in a symmetrical triangle and I consider this very nice penny volume(normally a symmetrical triangle consolidation shows lowering volume, CHID shows steady or even rising volume).  Look for a nice breakout with volume if you are planning on entering.. this stock remains undervalued and very buyable as it has found support at the gap and the bottom of the symmetrical triangle.

[eliteG]

update CHID:

We need a clear stop on CHID which has not been able to make much headway from this area.

We will sell CHID if it hits our stop @ 0.52.

[tokyopua]

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/03-22-2006/0004324966&EDATE=

CHID seems very serious about 3G recently (despite being mainly a battery company), and the market seems to be liking this acquisition so far, the stock is up 2.4% (OK, maybe its better to say the market isnt disliking this, as 2.4% gain is a usual range for CHID recently).

Anyway, I forget if ShawFund has been tracking this stock at all, but I would be interested in his take on this.

[stockhunter2004]

update CHID:

We need a clear stop on CHID which has not been able to make much headway from this area.

We will sell CHID if it hits our stop @ 0.52.

CHID hit .526 today, which was pretty close to hitting our recommended stop.  With 4 times average volume and a weak recovery at the end, I took the opportunity to bail and sold my 2300 shares at .56.  This stock may come back tomorrow...but, too often I let the profits slip away.  I decided to take my 41% profit and move on.

[tokyopua]

Michael,

I am hoping this stock is just filling its gap from March 7th and can now go back up.  Of course, hope never makes you money so I will monitor closely.  I dont have a stop on this right now.

You had a fairly positive fundamental view on this stock if I recall correctly, is there any sense in considering it a candidate for the 3SOV portfolio if it hits the stop (i.e. not sell it)?  There is a spot open there given the sell off of TRAD according to plan, so just wondering if this makes sense instead of selling it outright.

[Ramsburg]

We sold our position on CHID today @ $0.51 following the trading plan.

regards,

[Michael]

Michael,

I am hoping this stock is just filling its gap from March 7th and can now go back up.  Of course, hope never makes you money so I will monitor closely.  I dont have a stop on this right now.

You had a fairly positive fundamental view on this stock if I recall correctly, is there any sense in considering it a candidate for the 3SOV portfolio if it hits the stop (i.e. not sell it)?  There is a spot open there given the sell off of TRAD according to plan, so just wondering if this makes sense instead of selling it outright.

Hi Toky

CHID is technically very weak at present and from a technical perspective it was the right decission to sell the stock today. I still like the stock and I certainly will not rule out that this is a candidate for 3SOV. For now it need to find a new base, which hopefully will be around this level (disclaimer: I am still invested in CHID  )

[tokyopua]

Michael,

I am hoping this stock is just filling its gap from March 7th and can now go back up.  Of course, hope never makes you money so I will monitor closely.  I dont have a stop on this right now.

You had a fairly positive fundamental view on this stock if I recall correctly, is there any sense in considering it a candidate for the 3SOV portfolio if it hits the stop (i.e. not sell it)?  There is a spot open there given the sell off of TRAD according to plan, so just wondering if this makes sense instead of selling it outright.

Hi Toky

CHID is technically very weak at present and from a technical perspective it was the right decission to sell the stock today. I still like the stock and I certainly will not rule out that this is a candidate for 3SOV. For now it need to find a new base, which hopefully will be around this level (disclaimer: I am still invested in CHID  )

Michael,

Thanks very much for that logical answer and for letting me know you are still holding it, I will feel in good company then in the meantime :-) 

[la-onda]

sold too early 

China Digital Communication Group Reports Year-End Revenue Gain of 146% to $12.7M
Thursday , March 30, 2006 17:30 ET

LOS ANGELES and SHENZHEN, China, March 30, 2006 /PRNewswire-FirstCall via COMTEX/ -- China Digital Communication Group (OTC Bulletin Board: CHID), one of the largest and fastest growing battery components manufacturers in China, today reported financial results for the year ended December 31, 2005.

Revenue for 2005 totaled $12,742,088, compared to $5,182,122 for 2004, an increase of $7,559,966, or approximately 146%. Cost of sales for 2005 totaled $8,971,859, or approximately 70.4% of net sales, compared to $3,629,238, or approximately 70% of net sales, for 2004.

The company reported 2005 net income of $2,624,279, or $0.05 per fully diluted share, up from $453,041, or $0.01 per fully diluted share, in 2004.

Chang Chun Zheng, CEO and chairman of China Digital Communication Group, said, "This was an important year for the development of our company. The strong increases in revenue and net income were attributable to the successful expansion of our product lines to meet the needs of existing and new customers. These results exceeded our guidance issued last April. Revenue was 11% greater than our previously announced revenue guidance of $11.4 million. This growth reflected the continued demand for our lithium-ion battery shell and cap products from the lithium-ion battery cells manufacturers, as well as expanded production capacity, which increased by more than 40%, resulting from the relocation of our wholly owned manufacturing subsidiary Shenzhen E'Jenie to a larger plant in the Xing Lian Industrial Zone. This resulted in increased manufacturing efficiencies and new customer orders. The corresponding increase in cost of sales as a percentage of revenue was attributable to increases in material costs due to the introduction of new product lines."

Zheng also said, "We are optimistic about the year ahead. As previously reported, we have two pending acquisitions that, if completed, we expect will place us strongly into the component market for new 3G telecommunications devices. In addition, our battery component business, currently our core business, is quite robust and we fully expect to realize continued good results from that business in 2006. We intend to update our 2006 forward guidance in the near future."

[KCScott]

In for 5,000 shares at .557

Very Nice looking numbers

[tokyopua]

Note to self:  anytime CHID gaps up, even on good earnings, sell and buy back lower that same day.  Of course I didnt do that today, but it seems to be a pattern with this stock...

Anyway, great to be up again in CHID, congratulations to those of us still holding and good luck to those who bought in today as well!

[KCScott]

I agree CHID should go into the Value Portfolio.

Michael?

[Michael]

Hi KCScott,

I second that - CHID should indeed be in 3SOV. It is just a matter of getting the timing right 

[fill_the_gap]

E-MAIL ALERT ABOUT CHINA DIGITAL COMMUNICATIONS GROUP, INC.

China Digital Communication Group CEO Chang Chun Zheng Steps Down

Company Appoints Yu Xi Sun as Temporary CEO


For further details, go to
http://www.hawkassociates.com

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