Trading China and Steve Reeves' track record
My fellow StockMasters, I've been getting some emails about if it's time to cash in on the stocks I've recommended since I starting writing for this ludicrous, entertaining, but always credible website. Most of the emails start with "Steve, what are you smoking and can I get some?" but I digress, quality investing and timing is everything in this day and age, so let's get to it.
My latest recommendation is China Kangtai Cactus Bio-Tech Inc. (Public, OTC:CKGT) which I wrote about on Tuesday (10/2) and it's already up 30% since then. But Steve, you recommend penny stocks, you guys are just manipulating the system. Friends, we don't have that many readers and about the only person that could make Penny stocks go up is Peter Leeds, so to call me a Flavor Flav Hype Man, is retarded.
Let's review the stocks I've recommended and how they have performed thus far (closing prices as of 10/5/2007):
Not bad huh folks. None of the recommendations are at a loss, they are all positive gains, can you say the same of your stocks? That's not to say that I'm always right because a few of those stocks have flucuated but the point is - solid research reveals promising stocks.
Now maybe a few of you will start listening to my stock picks, and if you still hate me, congratulations, I'm making money. For those of you asking me is it time to sell, my response is enjoy the ride but don't forget to take your gains. Friends, we do not get married to stocks, never do. Truth be told, I have cashed in a few shares from my recommedations, but I'm in these stocks for the long run. I write to inform the public about stocks I think are worth buying. After that, it's an Art form to know how long you should hold onto a given security. That's up to the reader, more importantly, it's up to the buyer. All the widely unknown stocks I have recommended have long-term potential with objectively low multiples, especially when compared with the known companies that compete in the same business sector. The two stocks I've had the most questions about are Deli and CREG, so here's what I think:
Deli Solar (USA) Inc. (Public, OTC:DLSL)
Based on the current and short term future plans or acquisitions of the company , I feel that $4 is a moderate target price for 2008. Investing in Solar Water Heaters seems insane, but it is a practical and efficient solution for China. Again, think about China's needs and their country, it's very different from America, Canada, or European countries. The country is packed with people and then some.
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China Recycling Energy Corp. (Public, OTC:CREG)
This company has an outstanding and very innovative business idea. They make money from garbage, it's beautiful. CREG stands alone in that there is not another company traded on the AMEX, NASDAQ, NYSE, TSE, or CVE that produces electricity in such a innovate way and trades so cheap. That is why they have high margins and although they have only one project right now, they are profitable. Consider that the company is only 7 months old, you can't bet the farm on this stock. In terms of the target price, the trend is green so this helps CREG and I think a moderate target price is $1.5 to $2 for 2008. That's a fair assessment based on all the information we have available today.
My critics have told me that I pimp Chinese stocks too much. To that I respond, look at the population, there is so much money to be made there it's Insane in the Membrane:
China Population: 1,321,851,888 (July 2007 est.)
United States Population: 301,139,947 (July 2007 est.)
United Kingdom Population: 60,776,238 (July 2007 est.)
Germany Population: 82,400,996 (July 2007 est.)
India Population: 1,129,866,154 (July 2007 est.)
All Population Stats taken from WikiTravel.org
If you think you can only make money playing American companies, you are looking in the wrong place. Yes I look there, but when you stack up the numbers, there is money and mo money to be made playing China and India. Friends, China has more smart people than America has people. How long do you think your blessed America is going to stay on top, do you really think that China and India don't want to be No. 1? Just think twice about where you put your money and what economy it's betting on.
As for my true identity? It's my choice to remain the man behind the mask and I will continue to do so. Yes I use the photo of the great and true Superman -- the late Christopher Reeves. But unlike these other Stockmasters guys, I rather not blast my name and face all over the internet because I don't want any attention. No I'm not actually Bill Gates or Steve Jobs, I'm some guy in the middle of America who spends a ton of time analyzing stocks, reading 10-K's, and sipping on Gin and Juice.
Fact: Not everyone wants fame, and I'm one of them. I just want to make money.
Just to let everyone know, I'm talking to the Stockmasters about putting a very cheap newsletter together on their up and coming website wallstnewsletters.com. Whatever the outcome is, I don't want it to sell for more than $25 a year and I plan to stay in the recommendation business and leave the selling up to you. My track record speaks for itself and if you don't think I know what I'm talking about, don't buy it. But the days of my free recommendations will be coming to a close very soon. Best wishes and thanks for reading, TGIF.
Article written by: Steve Reeves
Article posted on: October 5th, 2007
Disclaimer: The Author has held various positions in the securities mentioned and is currently long on CKGT.
Finally the Stockmasters ideal stock picks are available to you at WallStNewsletters.com. The guys at WallStNewsletters.com make up today's brightest stars of the online investment community. We are experienced traders and professionals, including multiple Series 7 investment advisors. We deliver clear and concise investment advice that will allow you to make the right choices to build a strong portfolio.
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