CMTP.OB)

[gmarc66]

I'll give it a shot Snowcat, thanks for your advice ..although i doubt they will do anything about it..i  had called them a couple of times last week because of other similarly related problems..they dont care..they just tell me that its my risk if orders are already filled out...whatever....they are a bunch of creeps.

But, I'm waiting for a  manager to call me back..i will be getting a bit nasty..lets see what they do.

Lets just hope this is a big pullback today.
glta


julia

[Lucas Scott]

CHID reminds me of MOBL in that their plan is growth through acquisition. The jury is out on that strategy. For the last two years MOBL has been a good stock for traders, but not for investors.

[Loffigus]

Well, no matter how you slice this one, it just sucks to have held it.  I had a 44% profit about a week ago, and today I am not at at 3% loss, with no end in sight.  I usually sell with less profit than that, but I had a feeling about this one... not so sure about that feeling now. 

[netfishmademerich]

Can someone who has studied this please comment on the earnings announcement this morning?  How can it go down 18% on the day earnings is announced?  This appears more like earnings was bad rather than anything else.

[wisebuys]

Heck Loffigus, I not only held it thru this mess, but added at 1.00 AFTER selling in my IRA at .72.
Bad day, sure hope things change for the better.

[snowcat]

Julia - don't get nasty.  they will screw you account more.

This is a penny stock.  Most of these are manipulated and someone has to be left holding the bag.  They go up.  You sell it and say thank you. 

In my years of investing, I have lost a lot more on penny stocks than I have ever made. 
Most of my money has been made on IBD 100 type stocks - MED, IFO, FIX......

Look at your own trading history and see if it is the same.

[Ramsburg]

Not a good day for CHID after releasing the quarterly report, not that the report was bad (was probably as expected), but because of massive profit taking on the news. CHID is still up about 100% since the recent base @ $0.40, and unfortunately that by itself is always an explanation for waves of panic selling like this especially on penny stocks.

A stock from our Portfolio falling 18%, its really not a nice thing to see... but we are confident that CHID is under value, and we see this dip as a good buying opportunity, since we are already on the last consolidation range (a level with sure buying pressure).

A few quotes from David Randolph (aka César Borja) on OTCBBcoverage.com today about CHID behaviour:
http://www.otcbbcoverage.com/stocks/index.php?topic=12.msg396#msg396

Comparing with the previous quarter, revenue was $3,183,547 for 1st quarter 2006 and $3,113,000 for the 4th quarter 2005.

Net income for this quarter was $736,783 versus $449,000 for the prior quarter.

Revenues are stable for the last 4 quarters. If nothing happens on the acquisition front in 2006,  I estimate the company will earn 5 cents a share this year, so it stands at about fair value at 16 times earnings.

But, if they can achieve those two acquisitions, internal estimates are for $0.13 in earnings. If you apply the same 16 earnings multiple (it should be more, given the growth), the stock will be trading around $2.08.

I believe the stock will reward anyone with some patience. I consider current levels as a buy zone, not a sell. The market is just stopping out some weak hands, I believe.

Good luck   

I hate to be the "party pooper" Wink around here but with these mild reports, what prevents this stock to break down even more? (to 0.7 and lower)

Value.

Doesn't our TA become irrelevant once this type of news is out?

Yes, most of the short term technical signals are false. That's why you need to know the fundamentals on occasions like this.

Do you still think it would bounce back after these kind of reports?

Well, yes, everything stays on track and as expected. CHID is still consolidating the upward move it had from $0.40. Stocks don't go up on a straight line, unfortunately.

This is my current opinion, but I can be wrong or missing something. I'm not buying anymore CHID, but I'm a long term holder of the stock since the low $0.40's. Not thinking of selling below $2.

Trading Plan:
Hold CHID

Best regards,

[la-onda]

updated CHID fact sheet:

[tokyopua]

Havent seen this hit Yahoo yet, but this news should help the stock, looks like its already helping a little bit.  If the president is underwater, you can be sure he is going to work to get the stock back up over a buck!
---------------------------------------------------------------------------------------------------------------

SOURCE: Form 4

ISSUER: CHINA DIGITAL COMMUNICATION
SYMBOL: CHID

FILER: SUN YU XI
TITLE: President

DATE               TRANSACTION             SHARES       PRICE            VALUE
5/12/06            Purchase               530,000       $0.97         $511,450

OWNERSHIP: 560,000 (Direct)

  The Form 4 is filed with the Securities and Exchange Commission by insiders
  to report transactions in their companies' shares.  Open market purchases
  and sales must be reported within two business days of the transaction.

Insider Data Source: The Washington Service
                     ([email protected] or 301-913-5100)


  (END) Dow Jones Newswires

  05-16-06 1408ET

[buddjas1]

If anything, from CHID and GV, I have learned to set a reasonably close trailing stop after a run up.  Letting CHID, in particular, fall $0.38 from its high of $1.18 is not a mistake that I will make again.  

The issue now is should we set a stop from here.  

Did CHID issue a press release that set the date for announcing earnings?  I would have never held through earnings had I known.  Was I the only person taken by surprise?

And, by the way, CHID's President is female, no?

[tokyopua]

If anything, from CHID and GV, I have learned to set a reasonably close trailing stop after a run up.  Letting CHID, in particular, fall $0.38 from its high of $1.18 is not a mistake that I will make again.  

The issue now is should we set a stop from here.  

Did CHID issue a press release that set the date for announcing earnings?  I would have never held through earnings had I known.  Was I the only person taken by surprise?

And, by the way, CHID's President is female, no?

The CEO was a woman, but I believe she resigned.  The interim CEO is the current President who is the one buying up to $1M on the open market.  Some of the price increase may have been due to his buying, but is also a bullish sign for the company.  I was hoping for more of a bounce on the news below, but then I have been hoping for a lot of things in this market for the last week... 

[Lucas Scott]

I think the 3Stocks team should add an exit strategy to replace "no stop for now, potential Multi Bag play." The pullback from the 1.18 high was too steep. There are way too many bagholders who would eat a sock to get out a dollar right now. There might be a bounce to sell into -- that's a more likely scenario.

In general I wish 3Stocks would avoid the "potential Multi Bag play" wording. There are too many inexperienced traders who get caught up in that. Since 3Stocks started using that designation, I think the best return on a listed "Multi Bag" play has been GSHF, which gained 20% or 1/5 of a bag. Multi Bag is not realistic. It's nice when it happens, but it cannot be expected.

[rickjust]

lucas scott,
i second that emotion.
maxi

[hermanpu]

I'd eat my boxers to get out at 1$

[winner919]

I would partially agree with Locus. it is true that most of the traders here are inexperience but if you follow the plan of 3stockonfire, i.e. buy CHID and GV at 0.67 and 1.47. you are still up about 20% each. you can not blame 3stockonfire if you enter the market at a price i.e CHID for 1.1 and GV at 2.80. what I am sayiing is that your money you decide. may be a lot of us earned 80% each on GSHF, CHID and GV if they sell early. 80% for a few weeks, what can you expect?
BTW, may be CHID and GV will rebound, maket will decide

winner