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goldminingXpert (28.83)

Why does CAPS like Wuhan Blower? (WUHN.ob)



June 09, 2008 – Comments (5)

This company is a marginally profitable manufacturer of machinery. It has a P/E of 28, and has shady management. I know it is Chinese, but geez, what on earth explains the valuation? Yet, 5 all-stars have outperforms on it, while only 4 all-stars are bearish on it. I closed my 4th sucessful underperform of it today, and will re-open the pick again tomorrow. I don't get some smart CAPS players with ratings over 99 such as hall9999 are giving a green thumb to Wuhan (their unofficial motto, of course, being "The only thing we blow is your money.")

5 Comments – Post Your Own

#1) On June 09, 2008 at 5:14 PM, GNUBEE (< 20) wrote:

Because under the guidance of the Gza, and the Rza the company has done quite well, and once the ODB left, forecasts looked simply rosy.

Wuhan Blower aint nuttin to         wit.

 (Sorry nothing of value to add, but I did make myself laugh)

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#2) On June 09, 2008 at 8:35 PM, hall9999 (93.14) wrote:

  I don't know if you can say "CAPS" likes Wuhan since it gives them a 2-star rating.  The reasons I like the company are: 1) their products are good for the environment (reduce pollution from China's coal plants), 2) the company is profitable and operating in an industry where there should be plenty of demand for some time, 3) a P/E of 28 isn't unreasonable for a company growing at nearly 50%, 4) I'm not aware of any evidence that the management is shady.

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#3) On June 11, 2008 at 3:15 AM, mindmuse (30.44) wrote:

It is interesting that about half of the picks on it have been by high ranking All-Stars.

I've had three small success red thumbs on it, but haven't felt comfortable picking it to underperform again from present level. It's too much a mystery to me at this point.

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#4) On June 11, 2008 at 7:32 AM, goldminingXpert (28.83) wrote:

mindmuse---I commend your brave and foolhardy long position on AE Bilefuels (AEBF)... While I'm not totally positive WUHN gets blown to 0, I think the hot-air blowing company is a better short here than even, say, a YTBLA or BFRE.

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#5) On June 12, 2008 at 2:21 AM, adventurerneil (< 20) wrote:

Haha, way to stand up for your pick, hall9999.

GoldX, I'm gonna agree with him - the only rec'd pitch is a bear one, and barely anyone is rating that stock. I wouldn't say CAPS favors that stock much at all!

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