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tdoodler (24.52)

Albatross or Canary?

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November 12, 2009 – Comments (2) | RELATED TICKERS: CPSL

CPSl (China Precision Steel) is a 5 star caps stock.  It is followed by 682 members including 144 All-Stars.

CPSL is by all accounts a growth stock in China.  They produce steel in the biggest emerging country on Earth. 

On the surface its sounds like a no-brainer.  Thus, 97% of the members following CPSL rank it as an Outperform.  Only 22 (out of 682) fools have red thumbed the stock.  The numbers are similar for the All-stars follwing the stock. 

But here is something I find very interesting:  The only members that have gotten ANY cap points on the stock (again they produce steel in China) are the red thumbs.  In fact 100% of the red thumbs are positive on points and (as of this blog) NONE of the 660 green thumbs have gotten any points from the emerging market steel play.

Is it an albatross or a Canary?  Hmmmm... 

 

2 Comments – Post Your Own

#1) On November 12, 2009 at 4:21 PM, Teacherman1 (58.03) wrote:

PE is outrageous. Upside is limited. Size is small.

None of this means it can't pay off in the long run, but not something to make me want to jump in with both feet.

Of course, I am not high on Chinese stocks like a lot of CAPS members, so maybe I am biased.

What do you think of it?

Have a nice day. 

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#2) On November 12, 2009 at 5:52 PM, MikeBobulinski (< 20) wrote:

I have followed this one for some time and it has a lot of volatility with it.  I am one of the green thumbs and am playing it long.  Will it make me rich or score me huge points, I don't know.  What I do know is that China has a huge market for just about everything.  CPSL is in a niche market making precision steel stuff (for a lack of a better term).  Once the global economy starts picking up, CPSL will climb out of the gutter it finds itself in.  How far will it climb?  Can't say.  All I do know is that there are literally billions of potential uses for their stuff and there are literally billions of potential clients.  So yes, this is a bet...but then again, so is most of the market right now with the economy where it stands.

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