GC China Turbine (NASDAQOTH:GCHT)

CAPS Rating: No stars

Recs

2
Player Avatar TSIF (99.96) Submitted: 2/8/2010 1:20:45 PM : Outperform Start Price: $2.72 GCHT Score: -76.64

I've had a tough time working a pitch in for GC China Turbine knowing that top fools are still downthumbing it in this $2.30 trading range. Some of these downthumbers are my favorites with 80%+ accuracy. I've played a few of these relatively unknown OB stocks up as speculative high risk, potentially high gain short term plays, gaming the system. Almost always to a loss, so I'm trying to avoid this strategy.

I'm calling GC China Turbine up, however, as a real long term play. That Smashy, Hall999, aracer, and other 99.9x's who typically play the pump and dumps down very accurately have recently downthumbed it should give me cause for concern, (which it has)! Yes, I see the data on them as an uplist is thin and questionable. Yes, I see they only have $10 Million, all from a recent equity offering. Yes, I see they have very little real product. They have one "experimental" wind farm at only 1MW. Anyone who touts their technology as superior, is usually a suspect. I've ridden Helix wind and others down on valuation. The technology they developed with $50 Million in European research and funds could be full of hot air, (or cold air, I guess I mean the kind of air that won't spin wind turbines but that really stinks!).

GC China Turbine signs many contracts that have no metal behind them. Their goal, openly, is to get the choice contracts, which are mostly paper, while they are available, then come back and build the wind farms and spin them off to small regional utilities. The contracts, as paper, and not revenue, have some value, but until they are executed, it's not bookable. I think, howver, that the $10 Million they have now will get them to market on some of their projects. I believe they have a good business plan, (if you add $3 to it, you can get a cup of coffee with it, just not a latte). So, so far, my pitch is wishy wash, and full of thin air. My upthumb, however, is my thoughts above, and my faith in China to be the first, biggest, best at alternative energy. Few permitting requirement that kill off the projects here in the US. Real governement support, not just lip service. I don't know if thier 2-blade turbines are as technologically advanced as they claim, but if they work then they are cheaper to build and therefore carry an advantage.

Speculative play, against the grain, and in agreement that on a valuation level, they look overly hyped. I think they will pull this off, if not, the ignore my hot air!

Featured Broker Partners


Advertisement