CMTP.OB)

[hermanpu]

I like how you said its too late to fix the mistake of buying in the .80's and .90's. How about my $1.05 haha. I bought all the way down too, in the 70's and 60's. I guess that averages me in the 90's. GL longs. june-july is blast off for CHID for reasons I am not sure about, but looking at every year they have been in business, 300% gains in 1 month.

[Terliso]

In a choppy market, short term traders are not looking at fundamentals but more looking for momentum plays, plays that follow the trend, probably with tight protective stops....
Having said that, because chid is more of a fundamental play/hold in a bearish/choppy market, we are not going to see any upward movement unless one of two or both of the following happens
1) bullish reversal of the overlall market
2) Positive PR.

Thats all folks....
B

Applaud you that

I like how you said its too late to fix the mistake of buying in the .80's and .90's. How about my $1.05 haha. I bought all the way down too, in the 70's and 60's. I guess that averages me in the 90's. GL longs. june-july is blast off for CHID for reasons I am not sure about, but looking at every year they have been in business, 300% gains in 1 month.

Averaging down is too risky, not in my strategy.... I'd rather do pyramiding than averaging down

[bgoodman]

What is pyramiding?

[dbryan98]

NEWS for CHID:


China Digital Communication Group Board of Directors Appoints Ran Liang as CEO
Tuesday May 30, 4:15 pm ET


LOS ANGELES, CA and SHENZHEN, CHINA--(MARKET WIRE)--May 30, 2006 -- China Digital Communication Group (OTC BB:CHID.OB - News) announced today that Ran Liang, CEO of Shenzhen Lan Ke Electronic Co., has been appointed CEO of the company.
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After graduating from JiangXi University of Finance and Economics with a bachelor's degree in accounting and international business, Ms. Liang began her career as the audit project manager at Shenzhen Zheng Feng Li Fu CPA firm. In 1998, she was certified as a CPA in China, then became director of the finance department at Zhong Wang Assets Management Co., Ltd., in 2001. Ms. Liang became the customer manager at Hua Xia Bank, Shenzhen Branch in 2002. In 2003, she held the position of chief financial officer of Shenzhen Lan Ke Electronic Co., Ltd., then was promoted to CEO.

China Digital Communications Group President Yu Xi Sun, who has served as temporary CEO since Chang Chun Zheng stepped down in early April, said, "Ran Liang is a talented individual who we believe will successfully lead our company through two important acquisitions this year. She has quickly risen to the top of all of her ventures. The board is confident she is the best person for the job and help establish China Digital as a recognized leader in our industry."

Ms. Liang said, "I thank the China Digital Board of Directors and shareholders for this opportunity. I will immediately begin working to complete the two previously announced acquisitions on schedule. Under the leadership of this management team and the company's business strategy, I believe we will achieve our goal of becoming a leader in the field of energy and telecommunications, especially 3G areas, through mergers and acquisitions and attaining our objective of maximizing shareholder value."

[Terliso]

What is pyramiding?

A method of increasing a position size by using unrealized profits from successful trades to increase margin.
http://www.investopedia.com/terms/p/pyramiding.asp

[buddjas1]

Good numbers. That gives CHID a current PE of 11.4 and a forward PE of 5.6. CHID should be trading north of a dollar.

Did anyone ever figure out why it dropped from $1.80 to .40 between Jul 05 and Sep 05?

Finally stumbled on the reason or at least I think.  See http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/10-12-2005/0004166544&EDATE=

Notice that the purchaser of the CHID shares was Galaxy View International Ltd., which I believe is the parent company of one of CHID's acquisition targets.

[Stocky2000]

chid touched 0.60 support a couple of times in the last days a sign for me to reenter seems the bottom...i am in again 0.625 (a very nice white candle today swallowed the last 3 red ones; thats nice)

[Loffigus]

We just have to be patient here -- but remember this:

China is the largest Cell Phone using country in the world.
CHID is the leading maker of batteries for China, and is also entering US markets.

Cell phones are not going away, if anything they are becoming a staple appliance for every person. 

[Ramsburg]

News:
China Digital Communication Group Board of Directors Appoints Ran Liang as CEO

Finally some action on CHID...
After testing the $0.60 support for the third day on a role, selling pressure seems to be faded away for now, and CHID had the chance to make a move, even with low volume... This is not a big inversion signal yet, but it's already something, maybe a start ... Like said before, we think CHID is a bargain at these prices, therefore any move on the upside is expected.

The Plan:
Hold CHID

Best regards,

[la-onda]

quotation from http://www.hawkassociates.com/chinadigital/profile.php :

RECENT DEVELOPMENTS AND OUTLOOK
The company has quickly grown to be known as the strongest and fastest growing battery component maker in China. The business is expected to continue to generate solid revenue, profit growth and cash flow. The company said it expects its market share in a splintered market to continue to grow to a significant double-digit share by the end of 2006.

China Digital Communication Group is at an important pivot point in its history. Recognizing the worldwide technological shift in the wireless communications industry to 3G technologies, China Digital Communication Group is seeking to make a strategic transformation to become a leading manufacturer of high-tech products and technologies to 3G communication systems wireless providers. 3G communications refers to third generation communications devices representing the next technological evolution in mobile telephone and consumer electronics technology.

The company has announced agreements to acquire two Chinese telecommunications equipment and technology companies that could propel China Digital Communication Group profitably into the 3G telecommunications space in Asia. The company said it plans to acquire Galaxy View International, which owns Sono Digital, a leading supplier of 3G communications technology and equipment. It reported approximately $6 million in revenue and $2 million in net earnings (unaudited) in 2005.

The company also said it has an agreement to acquire UPE (Far East) Limited, which operates through its wholly owned subsidiary company, Shenzhen Zhuo Tong Power Supply Industry Co. Zhuo Tong is one of the leading power suppliers to the Chinese domestic market and is a pioneer of 3G power supply technologies and equipment. Zhuo Tong said it produced $5.4 million in 2005 revenue and $1.85 million in net income (unaudited).

The successful closing of these two acquisitions would position China Digital Communication Group for strong and profitable growth and open further opportunities in the exploding Chinese telecommunications market. The closing of both agreements is pending subject to completion of customary audits, financial due diligence and receipt of normal consents, approvals and opinions.
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. If 3G systems are readily adopted by China, the company said its initial projections for 2006 could be significantly higher due to increased demand for 3G components to power various telecommunications equipment and lithium-ion mobile phone batteries. The company said it will continue to pursue business opportunities with a focus on achieving profitability through additional mergers and acquisitions within the telecommunication equipment and new energy.

&

nice video  http://www.hawkassociates.com/chinadigital/CHID.wmv

[dbryan98]

I believe the CHID's revenue growth results were disappointing. 

If I recall correctly, their earnings release indicated a 9% year over year revenue growth in a market as large as China - disappointing to say the least (as is the pps dive from over $1.00 to .62).  Acquisitions seem to be the only way they'll get to "double digit" growth as I don't expect the current management can drive it there organically.

I'm hoping for a jump in the stock price so I can bail - which I don't see happening without acquisition news.

[dbryan98]

I stand corrected.  The 9% was quarter over quarter growth.

[Ramsburg]

Friday CHID traded again at $0.60, and once more the buying pressure pushed CHID a little higher.
The ascending support is now located at $0.58, limiting the expected technical downside for CHID, and creating a good technical setup for position traders.

CHID will be presented in an investment conference on June 15th in New York, to an audience of fund managers, analysts, investment bankers, brokers, Media, etc:
http://www.archconferences.com/ArchConferenceSchedule.htm
This kind of event is always good to increase the exposure and credibility of an unknown company like CHID to the investment community, especially because CHID is under valuated.

Our Trading Plan for now:
Hold CHID

Best regards,

[jorgegr]

It seems the conference will be on June 15th (not July 15th)   
Am I right???
The CEO had annouced some days ago about a PR around June 20th

Which is it then?

jorgegr

[alien41]

jorgegr,

I believe you are correct, the conference is scheduled for June 15, in NYC.  Regarding June 20, the acting CEO stated that she would purchase one million shares on the open market by this date.  She purchased 560,000 in May.  She should be purchasing 440,000 sometime within the next two weeks.  Also the aquisitions are to take place some time this summer.  I assume it will be after June 20.

GLTA....Alien