albaitis (98.41)

albaitis's CAPS Blog

ORSUS XELENT...

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March 30, 2010 – Comments (4) | RELATED TICKERS: ORSX.PK , UUU , DXR

ORS could really blow up. I know there is some risk involved. What I see is:

-a company trading for 1/4 book value with serious positive earnings

-a market cap of 15M, but accounts receivable for almost 90M. (the risk here is that most of the receivables are from one customer, and if that company goes under, ORS could be out that cash.)

-a P/E of only 1.3

-a company involved in the cell phone market in china. Only 35% of Chinese people have cell phones. 85% of Americans do. Rising middle class will continue to increase demand

-25% insider ownership (unfortunately mostly from 1 man, and he's sold a substantial amount of his shares)

I won't say there isn't risk involved in purchasing this company, I'm merely stating that this company is at trading at a sufficient discount to negate that risk and cause this stock to pop. Don't forget... "be greedy when others are fearful, be fearful when others are greedy"

UNDERVALUED

also, I like UUU, DXR, and PRLS as small caps that I can't give green thumbs too :-(. I'll be writing about them shortly.

4 Comments – Post Your Own

#1) On March 30, 2010 at 1:50 PM, TMFBabo (100.00) wrote:

There's definitely a decent amount of risk, but I'd say the risk/reward ratio is favorable. I currently hold ORS and see value as well. My concerns are mainly that there's only one main customer and the liberal receivables policy, which I've seen with other Chinese companies as well.

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#2) On March 31, 2010 at 5:45 PM, albaitis (98.41) wrote:

Yeah I agree something is wrong with 6 times the market cap in receivables. I don't think the underground cellphone market in the PRC will get much more market penetration than they already have (estimated 20%). What do you think about HAST? I wrote about them here:

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=363295&t=01006294384777025321

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#3) On April 15, 2010 at 6:22 PM, Bays (99.24) wrote:

Bullishbabo,

What drew you towards ORS? The fact it's trading at less than half it's NCAVPS???!!!

I haven't really dug into this one, but judging by the numbers, this stockis getting no respect at all.

These are some serious valuations.

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#4) On June 08, 2010 at 9:48 PM, albaitis (98.41) wrote:

DAMNIT ORS! start collecting those receivables! 10% drop again today, may pose a great buy opportunity, but this company is worth very little if they don't collect any of those receivables. I'm hoping for 1/2 of the owed receivables in the next 2-3 years, should still be a 2-3 bagger if they at least collect half.

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