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IBDvalueinvestin (99.66)

March 2010

Recs

3

Chinese drought putting upward pressure on Chinese coal stocks.

March 30, 2010 – Comments (0) | RELATED TICKERS: YZC , RTP.DL , BHP

Ok lets see China gets 80% of its electricity thru Coal.
That makes both YZC & LLEN in the right place at the right time. You know they say location is everything in business.

Demand of Coal is currently outstripping Supply in China and even more so with the current drought.
Note the massive importing of coal by China.

China’s Stocks Rise to Two-Month High; Commodity Producers Gain
March 30, 2010, 4:22 AM EDT
http://www.businessweek.com/news/2010-03-30/china-s-stocks-rise-to-two-month-high-commodity-producers-gain.html

March 30 (Bloomberg) -- China’s stocks rose, sending the benchmark index to the highest in two months, as signs of a faster global economic recovery and rising coal demand overshadowed concerns the government may increase interest rates.

Jiangxi Copper Co., China’s biggest producer of the metal, climbed 1.4 percent on higher U.S. consumer spending. China Shenhua Energy Co. and China Coal Energy Co., the nation’s top two coal producers, gained at least 0.7 percent as a drought in the south spurred coal demand for electricity generation. China Cosco Holdings Co., the world’s largest operator of dry-bulk ships, led shipping lines lower after freight rates dropped.

The Shanghai Composite Index rose 4.67, or 0.2 percent, to 3,128.47 at the close, after changing directions at least 10 times. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, added 0.2 percent to 3,366.71.

“The broader market is still in a fluctuating pattern,” said Zhang Kun, a strategist at Guotai Junan Securities Co. in Shanghai. “There’s no big catalyst for it to break out of the current level as the tightening concern is still lingering.”

The Shanghai gauge has lost 4.5 percent this quarter, the fourth-worst performer globally among 93 benchmark indexes tracked by Bloomberg, after China twice ordered banks this year to set aside a larger proportion of their deposits as reserves and re-imposed a sales tax on property sales to avert an asset bubble. China’s central bank advanced record 9.59 trillion yuan ($1.4 billion) of new loans last year to boost domestic demand amid shrinking exports due to the global financial crisis.

‘Break Out’

China’s stocks may “break out” in the second half, buoyed by easing tightening concerns and a possible appreciation in the yuan, Morgan Stanley said.

“Because we think growth will remain robust and inflation will ease in the second half, the market could break out with tightening concerns easing with lower inflation,” analysts led by Jerry Lou wrote. “Given the strong momentum in China’s domestic economy and the already recovering export sector, we think even a double dip in developed economies in 2010 would not derail China’s growth.”

China’s consumer prices are expected to rise 2.6 percent from a year earlier in March, Citic Securities Co. said in a note yesterday. The official data is due on April 15.

The nation’s policy “normalization” will carry on as the government raises banks’ reserve ratio requirements and interest rates, Citic said.

Coal Stocks Gain

Shenhua, the nation’s largest coal producer, gained 1 percent to 29.33 yuan. China Coal Energy Co., the second largest, added 0.7 percent to 11.91 yuan. Datong Coal Industry Co., the third largest, climbed 1.9 percent to 37.43 yuan.

Prices for coal rose 0.7 percent to between 675 yuan and 685 yuan a metric ton as of today compared with a week earlier, data from the China Coal Transport & Distribution Association showed. That’s the first increase since January 11. A drought in the south cut hydropower generation and raised demand from coal- fired plants.

A measure of six industrial metals traded in London gained 3 percent yesterday, the most since Feb. 16. Crude oil rose 2.7 percent in New York and gold added 0.6 percent.

Jiangxi Copper rose 1.4 percent to 35.98 yuan. Tongling Nonferrous Metals Group Co., China’s second-biggest copper producer, added 0.9 percent to 19.38 yuan.

Shippers Drop

China Cosco dropped 0.4 percent to 12.88 yuan. China Shipping Development Co., a unit of China’s second-biggest sea- cargo group, slid 0.6 percent to 12.95 yuan. China Shipping Container Lines Co., the country’s second-largest carrier of sea-cargo boxes, fell 0.6 percent to 4.75 yuan.

The Baltic Dry Index tracking transport costs on international trade routes fell 2.5 percent yesterday, according to the Baltic Exchange. That’s a 10th straight drop and brings the current decline to 15 percent.

The CSI 300 utilities index slipped 0.4 percent, the most among 10 industry groups. China Yangtze Power Co. fell 0.9 percent to 12.59 yuan. Zhongshan Public Utilities Science & Technology Co. slid 0.333 percent to 28.42 yuan.

The months-long dry spell in southwest China has affected 61.3 million residents and 5 million hectares of crops in the area, according to Xinhua News Agency. The drop in hydropower also caused less electricity transmission from the west to the eastern regions and led to higher output from coal-fired plants along the coast, the China Coal Transport & Distribution Association said in a separate report.

The following companies were among the most active in China’s markets. Stock symbols are in brackets after companies’ names.

China CSSC Holdings Ltd. (600150 CH), the unit of the nation’s biggest shipbuilder, dropped 3.1 percent to 70.13 yuan after saying 2009 net income fell 40 percent to 2.5 billion yuan on sales that dropped 8.7 percent.

Harbin Air Conditioning Co. (600202 CH) slid 8.1 percent to 20.80 yuan, the biggest drop since Aug. 31. It’s the biggest decliner on the Shanghai Composite Index. Net income for 2009 dropped 49 percent from a year earlier to 141.7 million yuan, Harbin Air said in a statement.

Offshore Oil Engineering Co. (600583 CH), the unit of the country’s third-largest oil producer, dropped 1.5 percent to 9.98 yuan. The company had its stock recommendation downgraded to“outperform” at Citic Securities Co., which cited lower- than-estimated 2009 profit and declining margins.

Shaanxi Baoguang Vacuum Electronic Apparatus Co. (600379 CH) jumped by the 10 percent daily limit to 18.57 yuan. The company will sell its low-voltage switch operation to an affiliate for 58.4 million yuan to avoid competition with the group company, Baoguang Vacuum said in a statement.

Zijin Mining Group Co. (601899 CH), China’s largest gold producer, lost 1.1 percent to 8.26 yuan after the company said it was notified today by the China Securities Regulatory Commission that it is being investigated in relation to “the violation of law and regulations of information disclosure.”

--Zhang Shidong. Editor: Allen Wan, Linus Chua

To contact the editor responsible for this story: Linus Chua at lchua@bloomberg.net   [more]

Recs

1

CAGC repeating yesterday;s move when it turned a 5% gain into a 1% loss.

March 26, 2010 – Comments (1) | RELATED TICKERS: CAGC.PK.DL

China Agritech, with no base or buy point in sight, turned a 5% gain into a 1% loss.

Recs

1

LLEN revenue up 280% year over year

March 24, 2010 – Comments (0)

LLEN revenue up 280% year over year Date: 3/24/10 3:54 PM
! Per Yahoo stats: Profitability
Profit Margin (ttm): 25.61%
Operating Margin (ttm): 41.58%

* Quarterly revenues increased by approximately 280% year-over-year to $37.9 million.
* Quarterly Net income increased by 440% year-over-year to $9.5 million.
* Nine month revenues ended January 31, 2010 increased by $44.3 million to $75.2 versus $30.9 for the same period a year ago.
* Nine month net income increased by $12.5 million to $19.2 million versus $6.7 million for the same period a year ago.

"Successful execution of our expansion plan in China resulted in outstanding sales and net income in the quarter," said Dickson Lee, Chairman and CEO of L&L." As planned, we will continue to expand production at our coal operations taking advantage of the China coal consolidation policy."

Results of Operations

Coal revenues for the third fiscal quarter of 2010 were derived entirely in China, from coal mining, coal washing, coking, and coal wholesale operations. The Company expanded its coal (energy) operations from Yunnan province into Guangzhou province and Guizhou province. As a result, the company operates in 3 provinces in south China, including KMC coal wholesale, DaPuAn Coal Mine, SuTsong Mine, and Ping Yi Mine, Hon Shen Coal Co, and TNI operations.

Business Outlook

L&L will continue to execute its expansion in coal mining operations and coal related business. It also plans to increase coal sales and gain access to higher margin markets.

About L & L Energy, Inc.

Founded in 1995 and headquartered in Seattle, L&L (http://www.LLEnergyInc.com) focuses on serving the energy market in China. Through its subsidiaries, it operates profitable coal mines, coal wholesale, coking, and coal-washing facilities.   [more]

Recs

4

"Bond Market bubble"

March 24, 2010 – Comments (0)

Bears were out hunting last night and this morning they started shorting stocks after the stock market posted its first 3 digit point gain in quite some time. Does that mean the wall of worry Rally is over? Of course not , there is always going to be down days, but the path to least resistance currently still is up.   [more]

Recs

7

Bad news keeps hitting the bears and they keep denying it.. Great contrarian play.

March 23, 2010 – Comments (5)

San Francisco Fed's Yellen sees U.S. economic growth of 3.5 pct this year, 4.5 pct in 2011 - Reuters

 

 

 

Says Fed's accommodative policy is 'currently appropriate', inflation subdued.

Recs

1

Needham saying ISSI higher margins are permanent

March 23, 2010 – Comments (5) | RELATED TICKERS: ISSI , INTC , AMD

Needham is reiterating their Buy on ISSI after the co raised guidance on strong
demand and pricing, particularly in DRAM. More importantly, firm says ISSI
raised gross margin guidance to range of 34-38%, which supports their belief
that company is expanding its margin profile. By focusing on specialty memory,
they believe ISSI's margin expansion over the last few quarters should have a
permanent effect on its business model. With higher margins and earnings, firm
believes shares will see further multiple expansion, resulting in a higher share
price.  [more]

Recs

3

ONP could turn into Chinese version of IP

March 22, 2010 – Comments (0) | RELATED TICKERS: IP


Date: 3/22/10 12:11 PM

ONP starts production on Digital photo paper as orders have already been received for the paper.

March 16,2010
Orient Paper Begins Production of Digital Photo Paper

Announced that its digital photo paper production line commenced production on March 10, 2010.

Since the closing of the asset acquisition, Orient Paper has begun to renovate the digital photo paper production line. The Company started trial production at the beginning of March 2010 and has received positive market feedback. In the past week, the Company has already received orders from several customers such as Langfang Jinghua Paper Sales Company, a professional paper products distributor located in Langfang City, Hebei Province; Sanhe Hongkai Color Printing Company Limited, a color printing company located in Sanhe City, Hebei Province, and Beijing Chenguang Yuchen Advertising Company located in Beijing.

"We are pleased to announce the commencement of production of our digital photo paper product line as per schedule. The positive feedback received from our customers provides us a great deal of confidence and reflects favorable market acceptance," said Mr. Zhenyong Liu, Chairman and Chief Executive Officer. "The production of digital photo paper is in line with our strategy to focus on high-margin products and increasing the Company's profitability going forward. We are very optimistic about the growth potential of the digital photo paper segment and believe it will be a strong revenue contributor in 2010."

About Orient Paper, Inc.

Orient Paper, Inc., through its wholly owned subsidiaries, Shengde Holdings, Inc., controls and operates Baoding Shengde Paper Co., Ltd. ("Baoding Shengde"), and Hebei Baoding Orient Paper Milling Co., Ltd ("HBOP"). Founded in 1996, HBOP is engaged in the production and distribution of products such as corrugating medium paper, offset printing paper, writing paper, and other paper and packaging-related products in China. The Company uses recycled paper as its primary raw material. Baoding Shengde, founded in June 2009 located in Baoding, is engaged in the production and distribution of digital photo paper. As one of the largest paper producers in Hebei Province, China, HBOP is strategically located in Baoding, a city in close proximity to Beijing where the majority of publishing houses are based. Orient Paper is led by an experienced management team committed to diversifying the Company's product offering and delivering tailored services to its customers. For more information, please visit http://www.orientalpapercorporation.com .   [more]

Recs

10

Don't let today's options witching Friday fool you.

March 19, 2010 – Comments (0)

 BULLS anticipating MARCH's : "Big Shift"

The uptrend is still intact and if you shorted today, then I will feel for you next week. Its gonna get real bloody for the shorts.   [more]

Recs

4

BULLS anticipating MARCH's : "Big Shift"

March 17, 2010 – Comments (1)

"Big Shift": U.S. Economy Poised for Jobs Growth, John Challenger Says Posted Mar 17, 2010 07:00am EDT by Aaron Task in Newsmakers, Recession Related: EEM, IXJ, XLE, XHB, XLF, ^GSPC, ^DJI  [more]

Recs

5

Technical Major breakout by BULL MARKET based on historical charts

March 17, 2010 – Comments (2)

The 2008 S&P 500 1150 level has been broken and the market has moved steadily higher to new levels.

This confirmation could cause sideline cash & tax refund money to enter the equity market as the bulls seem to have full control of the market right now.

Recs

2

3 buyout candidates CXG, HOG, KSU

March 16, 2010 – Comments (0) | RELATED TICKERS: CXG.DL , HOG , KSU

M&A will be the theme going forward.

Recs

6

Should have waited till today to buy FEED instead of at $5.21

March 11, 2010 – Comments (2) | RELATED TICKERS: FEEDQ

when it was flying on high volume and being shorted highly. Today there is low volume and down to $4.73

 

Sometimes its better to have patience than to just jump right on first thing.

Recs

5

Can someone add the ticker CHGS China GengSheng Minerals, Inc. (AMEX: CHGS)

March 08, 2010 – Comments (1)

I want to rate it ahead of presentations it will be at this month with the first one starting Tuesday.

Recs

7

FORD a 2 - Star stock poised to Rally

March 04, 2010 – Comments (0) | RELATED TICKERS: F , TM , HMC

FORD is down now after opening higher , its at $12.57 but thats extremely cheap for a stock that is about to earn .29 eps this qtr.

 

FORD is still trying to get "RESPECT" even after being the only CAR MFR not to take bailout money.

 

http://finance.yahoo.com/q/ae?s=F

Recs

3

Ford is my biggest gainer on my Up thumb picks

March 03, 2010 – Comments (2) | RELATED TICKERS: F , TM , HMC

Who would have thought that out of the big 3 in detroit it would have been Ford that survives.

Like they say, the survivor is the one that reaps the benefits and Ford is doing just that. 

Reaping the benefits of surviving on its own.

Recs

1

March 12th you get .94 eps QTR from a $10/shr stock

March 01, 2010 – Comments (2) | RELATED TICKERS: PEI

PREIT Schedules Fourth Quarter 2009 Conference Call for Friday, March 12, 2010

Featured Broker Partners


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