Monday, June 30, 2008

Great Charts re: Nasdaq and SPX 500

A few observations. The SPX 500 is testing lows from March whereas the Nasdaq hasn't. This is primarily due to the financials weighing down the SPX 500 quite heavily vs. the Nasdaq. It will be interesting to see if the SPX 500 breaks resistance and goes lower in the upcoming sessions.

Oh, and in case anyone didn't know. BAC (Bank of America) now has a 10.4% dividend yield as of today with the stock trading at $23 and change, well off its 52 week high of $52. Ken Lewis says he will leave the dividend unchanged but apparently investors aren't believing that right now.

Dan Ross

Chinese Demand for Oil vs. their own supply of oil

The bottom line is that their supply isn't keeping pace with their demand and, as this is happening, oil is spiking. They've basically sent people throughout the world to approach companies about purchasing their supplies + they are aggressively pursuing oil themselves via CNOOC, a nationalized Chinese oil company listed on the NYSE.

Dan Ross

Why to invest in micro/small caps

Rolf Banz made a famous study back in the early 1980s, called “The Relationship Between Return and Market Value of Common Stocks.” In this report Banz found that over the 50-plus years he studied, the smaller the company, the larger the average return. This held true for all the years he studied, regardless of whether the market ended the year up or down. If you had invested in the smallest companies over that period, you would have made nearly five times what you would have had you invested in the blue chips.
Dan Ross

Consumer Spending is slowing.....

Nearly two-thirds of Americans surveyed in April 2008 say their households have cut back on spending in the last 12 months, according to the MarketTools May/June 2008 Insight Report on American Spending.

The nationwide survey of 1,000 US adults also reveals that cutbacks are not limited to those with lower incomes. Among affluent consumers with household incomes of $75,000 or more, 54% indicate they too have cut back spending.

Source: and

Dan Ross

Friday, June 27, 2008

PR firms for Chinese Based Stocks

There are some good ones in here.....

CCG Elite is a PR firm for many leading-edge, profitable and fast growing Chinese companies

Dan Ross

Thursday, June 26, 2008

Interesting Facts I learned today

From Louis Navallier.....

  • Americans drove 4.5 billion fewer miles in April compared with April 2007. This was the fewest number of miles driven in five years!

  • Americans are planning their spending much more carefully, such as making a single trip to Costco or Wal-Mart to fill the SUV with cheaper gas and deeply discounted items. Alot of folks I know don't drive their car now on the weekends unless they have multiple errands to run to minimize their gas usage.

  • The Dow finished down 358 points today to close at 11,453. It was the poorest monthly performance for the index since September 2002 and the worst June since 1962. Both corn and soybeans also jumped to record highs.

  • GM was downgraded by Goldman Sachs today and the shares just hit their lowest price since 1955! By contrast, the Dow is up by 25-fold since then even with today's setback.

From The US Department of Energy:

Nuclear power costs 1.72 cents per kilowatt-hour (including operations and maintenance costs). Now compare that to:
Coal at 2.37 cents per kilowatt-hour;
Natural gas at 6.75 cents per kilowatt-hour; and
Oil at 9.63 cents per kilowatt-hour

But how does that compare to solar or wind power? I' ll have to get back to you....I'll update this post in a few weeks and change the date posted accordingly.


Here are two easy ways to play the trend by buying shares of these two exchange traded funds:
Market Vectors-Nuclear Energy ETF (AMEX:NLR)-This fund is down off of its uranium based highs in 2007. But with uranium prices now projected to go as high as $90 a pound this heavily materials weighted EFT is rising.

PowerShares Global Nuclear Energy (NYSE:PKN) - A relative new fund, PKN allocates 47% to industrials, 24% utilities, 15% to mining along with an almost 10% weight to technology. That makes this less susceptible to uranium prices than NLR, which devotes 33% of its holdings to mining.

Dan Ross

Investing in Chinese Stocks - Some great resources

How do I find out about fast growing chinese companies, listed on the AMEX, NYSE or Nasdaq (ie. they have to comply with SEC standards vs. OTCBB stocks)? A ffew folks have asked me this in recent days so I'll toss some of my tools out here since anyone can access them.

Here are two resources - Between the two of them you can find tons of info. about the companies, those that worth a darn, etc.

What do I look for in a company?
1) HUGE revenue growth - 50% + annual with 75%-100% desired. I'd like to see $25 million + in sales as well.

2) I want reasonable prices (growth at a reasonable price - GARP investing)

3) I want PROFITS. I HATE buying companies that don't make $$$. It wreaks of not managing a business/bottom line. Companies that have a profit orientation (like the $$$ were their own) have higher ROE (return on equity) and generate larger shareholder returns over the long-term (just my 2 cents/opinion from what I have seen over the years.)

Resources I use

I use that site and check growth rates, info. about the company, etc.

Another great resource for looking at Q-Q trends, Y-Y trends, key stats and income statement/balance sheet info. is

Here is what I look for <--annual income growth <--quarterly growth to look for growth or lack thereof

Balance Sheets - I don't like companies with tons of debt. Heck, I would like to see nearly no debt at all! I would also like to see positive cash flow from operations

Great stockchart websites with technical analysis capabilities and good views/snapshots.

Sometime this weekend I'll post a list of Chinese companies listed here that are growing fast and furious, by sector. Maybe I can help you find a great company to invest in. To each their own re: investment style/thesis.

Dan Ross

CPTC.OB update - sold position

The stock simply didn't continue its uptrend so I punched out at a bit over $1. Not sure re: profit/loss but it is near break-even. Until they get a turbine order I simply have conceded that there are better places to have my money parked.

Wind Farm announced today but no CPTC link......

Dan Ross

ABAT up another 12% today when market down 3%

Dow down 300 or 3+%. Nasdaq off 3.5% & ABAT was up over 12% today alone.

My take. I had a $9-$11 target for ABAT by YE and this thing is progressing as I hoped it would. I've got shares at $3.75, some more a hair above $4 and then some at $4.75 & $5.10 earlier this week.
What made me purchase more stock?
1) I saw the MACD weekly curve still nowhere near overbought
2) I saw a daily avg. bullish sign (price was approaching 8 day moving avg, which I expected it to bounce off of
3) Rusell 3000 add on Friday would cause top micro cap funds to purchase the company as they know they have to purchase this stock to keep pace with that index. By not buying "DOGS" they can outperform the index but no one wants to be underindexed on a company that is expereincing huge sales/profit growth. If they want to overindex they might purchase a % higher than the index. I am sure the Russell 3000 announcement is driving quite a bit of this.....and increasing awareness of the company's fundamentals on the street.
My goal....Hopefully $6 tomorrow as the stock went up today on HUGE volume, just like last week......I feel very good about the next few weeks with the stock. At some point it will have to take a break/breather but I am hoping it stays above the 20 day simple moving average the entire time & I would love it if it didn't drop below the 10 day moving average on a closing price basis. Doing that might cause me to lock in some prices.
Given that the company just broke through previous resistance some TA people would say that that $5.60 will now be support area (on any pullbacks) and that the new target is the prvious 52 week high of $9.11. If I do that I'll be partying it up! WOO HOO!

Dan Ross

Tuesday, June 17, 2008

ABAT (Advanced Battery) up 20% today

Rumors of Lithium Ion orders related to cars is driving up the stock price. I have also heard a rumor re: Russell 2000 add but I haven't been able to verify as of now. I haven't had time to be frank about it.

I think the company is a $9-$11 stock so seeing a breakout on ENORMOUS volume was a pleasant thing to see today. The stock closed above its 200 day moving average (another HUGE plus). We'll see if the stock gaps up again tomorrow and continues a run up. $5-$5.50 has proven to be a troublesome price ceiling in recent months. If the stock could get through $5.50 a run to $8-$9 isn't inconceivable based on historic prices.

CPTC.OB update

So basically there has been no information but there have been TONS of various energy reports saying 2009 will be the year of wind energy & such stocks. Jim Cramer said on Mad Money that he will highlight wind stocks likely on his Thursday show....

With the company trading at roughly $200 million today (despite being a $1 stock) I think the stock values the ACCC wire part of the business fairly. The wind turbine side of the business currently weighs down the P&L and, if they can get the CS cash infusion they can get big orders from wind farms that would require such capitalization per many banks underwriting rules.
The stock has ticked up nicely but not on huge volume. I would ideally like to see a $1 billion capitalization or a $5 stock on this thing.....But it will take CS + some turbine orders to get this stock rocking and rolling. Still a story stock for the time being, in my opinion....

Thats all for now.

Interesting Electric Vehicle Debut yesterday

Wonder why the stock may have run up so much?

Interesting.....Notice how they say they are looking for lighter lithium ion batteries? Then guess which stock went soaring....

Oh yeah, and after rumors abounded re: Toyota and their need for more Lithium Ion sources

Another stock of mine has been hijacked my rumor mongers! I'll enjoy the ride up in the shor-term, book some gains, and let the rest of it ride (hopefully)

Dan Ross

Tuesday, June 3, 2008

American Battery (ABAT) & Electric Scooters

Wonder what is driving some of the enormous revenue/EPS growth the company is posting each quarter/year? Read this article and it may amaze you :)

The one thing the article doesn't talk about enough is the ENORMOUS migration to cities in China from the rural, farming outskirts. As more folks move to the cities and travel (as they develop a middle class) this form of travel is MORE AND MORE common in China, especially when going to work!

Dan Ross

CPSL - Upturn #2 about to begin? I think so....

CPSL is trading right below the 8 day moving average. While the stock has pulled back quite a bit vs. its previous highs I would note it did that on low volume vs. what it went up on. Many ill-informed traders have taken short positions in the stock, which should lead to short covering. Todays volume, 4.5 million was nearly 2-3x what the stock has been trading down on. As the stock is now flirting with its longer-term uptrend range I am looking for the stock price to start moving up with strong volume to show that the trend is holding and that the stock is due to move MUCH higher in the next few weeks.

Dan Ross

BLSW - Investor Presentation on Thursday....

Daily charts show building momentum (Wm%R), RSI that is non directional and an MACD curve that will hopefully cross and go BULLISH. The one thing I really like to point out is that the stock moved above the 8 day moving average and is trending nicely above it. The 200 Day Moving Average at $3.29 has proven problematic on a closing basis (ie. the stock won't close above it, which is a negative. Any close above that price point would be a HUGE bullish sign from a technical analysis perspective.)
When looking at longer-term trends we can see where the stock has move above the 8 week moving average trend as well.

If Thursday's presentation goes well I think the stock could re-test prices seen in early May.
Dan Ross

CPTC.OB update

First they trim out expenses in their DeWind Energy Unit by using TECO Westinghouse (North of Austin I believe) to manufacture their products.

This was announced monday a.m.

They then headed off to an RBC Energy Conference and did this presentation, which can be downloaded from their website.

Today/Tomorrow I believe they are at the Wind Energy Conference in Houston Texas

Volume was 2.4 million today but I haven't see any breakout in the stock price. I bought $1000 more at $1.09 after selling some ABAT that I didn't think was going to move up in the short-term.

Dan Ross

Monday, June 2, 2008

HUGE returns in Micro/Small Caps - Great Article

One resource I highly utilize quite a bit, as it is really good, is:

When I go there I look at:

1) Growth Rates - EPS and Revenue. I want 50% + and valuations in the 20%-30% + area
2) I look at the basic statistics (profile info) to find out the market cap, shares outstanding, etc. in case I need to determine P/S ratios or PEG ratios based on future earnings
3) I use a stock screener to look for certain criteria. This is GREAT when trying to find FAST growing small cap stocks that are undervalued.

The below article highlights some of the amazing small cap returns that have been found in the last 10 years. Are you trying to find the next hidden gem?

Anyway, I hope everyone finds the links interesting

Dan Ross

Gaming in Asia - Long-term Trends/Analysis on CNBC

At the end of the day I DISASGREE with this guy. I find it ironic that the AGA (American) is commenting on Macau. Doesn't he have a vested interest? LOL

Asians like table games and probably will move towards MORE but I think they will remain heavily table based. I personally find more women play slots/machine games vs. table games so, as that segment of the economy starts to earn more there might be greater long-term potential.

I think most Americans are TIRED of ZERO freebies in Vegas and that is one reason why Vegas will be hurt MORE this time vs. previous slowdowns. Why?

1) The middle class can't afford the "fine dining." I fine that most people I talk to just want better "normal, affordable food/selections." When I was in Vegas earlier this year I would NOT have met this demographic as I wanted my girlfriend to enjoy the experience. We ate at many nice restaurants and took in shows every night but the bill was STEEP! She noticed it and, when we went to Tahoe a month later to ski everything was a bit lower key.
2) Airfares are through the roof so, even if you give someone a free room they have to get there!
3) When people get there they can't afford as much due to higher debt levels than previous recessions/slowdowns.
4) At some pointt the American casinos will eventually figure out that people want more VALUE (bang for the buck). The way to maximize profits is to FILL IN ROOMS, which generate gambling revenues and food sales. We'll see how it plays out......

Finally, the way to play Macau gaming is Wynn Resorts (Ticker: WYNN), MGM (MGM) and Sands(LVS). I've been told that, of the three, the Sands (Venetian) is BAR NONE the most comparable to Vegas.

Dan Ross

Sunday, June 1, 2008

Speculative Stocks - ie. Penny stocks / microcraps

I am NOT a fan of these stocks, in general, as most are STORY stocks (ie. sound great but there is little actual long-term sales/profits, which generate long-term shareholder returns & they typically have VERY poor financials with potential cash flow issues. <--potential bankruptcy). Stocks trade cheap for a reason is the bottom line.....You typically get what you pay for....
Microcap stocks typically have market capitalizations < $250 million or sales that

Having said that, if you find a good company/story that ACTUALLY starts to generate actual sales early on you can make a BOATLOAD of $$$. I've seen 20 cent stocks become $10 stocks again and again, $1 stocks go to $10 to $20, etc. It DOES happen.

Here are two companies I think are worthy of me putting $1000 into them. I'll tell you why I like them over the next two days and what I am doing....

Composite Technologies

1) wind energy play <--DeWind Turbines that is currently sucking capital out of the company....losing $$$$
2) great growth in one part of their business <--wire segment, growing at ENORMOUSLY fast rates

3) Recent CS (credit Suisse injection of capital) w/ potential for more

4) Upcoming wind conference (in attendance Tues/Wed)

5) Apparently some visits to 2 analysts in the next week (RBC/Jeffries)

6) Bottom Line is that by the end of June I should know if these folks have capital and whether or not they will get any orders / sales of wind turbines. That is really the play here since that part of the business is so capital intensive. If they don't I'll sell the shares and move onto another "MICROCAP stock"


Weak financials and a high cash burn rate. If the darn wind energy side of the business doesn't start generating substantial cash in the near-future this company could go under within a few years based on cash burn rates, etc. They would still have options but.....

In order to get BIG wind turbine energy sales (which the Chinese are now exporting) you need to be WELL funded, which they aren't. If they get some funding (potentially more dilution) they may get a 2nd life, which would actually generate MORE sales for the company and probably shareholders over the long-term.

Either way, this week the company's shares may get rocking or rolling. I bought $1000 at about $1.02 and, at $1.08 I am ahead but this just gives me an uneasy feeling buying stocks like this.....kind of like gambling.....At $1.08 their market cap is significantly ahead of a valuation that their sales warrant but, if they get one big order, it is OFF the races.
Dan Ross