APWR ... Chineese wind power play. Dirt cheap.

Started buying yesterday. 5.7 dollar stock. 3 dollars in cash. No debt. 190 mil market cap. Backlog 800 mil. Projected EPS next year $1.9. 2 main lines of business... installs equipment to convert heat generated by factories into energy, that can be used localy or sold back into the power grid, and starting to ramp up production of wind turbines. They had some delay with parts supply for the turbines and had to push out production to Q4. The stock got crushed on the news along with the rest of the China stuff. With coal prices unstable and 3/4 of Chineese power production dependant on coal the push into wind power in China will continue. Nothing beats the fixed cost of wind power production. And energy and cost savings from heat conversion is a nice kicker for manufacturers. APWR's business should be booming no matter what the global economy will do, as the transition to cheaper power is vital. On top of that Chineese government is also considering infrastructure spending during the current downturn with power grid upgrade on top of their priority list. I figure, if they will make the projected earnings for next year, and there should be no reason why they wouldn't with the current backlog, you get the stock for just about free a year from now. 3 bucks in cash + 2 bucks earned next year.

Edited by ogm, 23 October 2008 - 05:03 AM.

i'll look into it. i'm probably going to get some KOOL today. so, is APWR a company IN china - probably a dumb Q? i'm nervous about buying stock in a communist country but that is probably just ignorance on my part. thanks for these ideas! i'll be pretty busy with good family stuff for a few days but will be lurking and checking in a lot. regards to you, sir ... H1

i'll look into it. i'm probably going to get some KOOL today. so, is APWR a company IN china - probably a dumb Q? i'm nervous about buying stock in a communist country but that is probably just ignorance on my part.

thanks for these ideas! i'll be pretty busy with good family stuff for a few days but will be lurking and checking in a lot.

regards to you, sir ...

H1

yes, its in China. I share the political concerns, however I think its well positioned for the next bull market. The country is financialy very strong. They are on top of technology and have built up a great manufacturing base with abundant cheap workforce that is getting educated.

Chineese small caps got obliterated lately. Take a look at JRJC too. 8.7 dollars, 4 of them in cash, growing fast. Financial information services provider. Something like Morningstar, as I understand it. Their 2 websites combined number 5 most trafficed sites on the internet in China. I think they now have brokerage going too. Aside from ad revenue they are subscription based, which is good.

China is contemplating allowing margin trading. Should be a good boost for future growth.

I think Jim Rogers is bullish on China for the next 100 years or so

China is more capitalist than US now even though the central government is still communists. They don't seize companies without compensation like we do here with FRE/FNM. XIN has $1.9 cash with $2.40 stock price. XIN is buying back $10 million stocks back. CHNG growing earnings 70% every year with PE less than 5. Natural gas play, not affected by economy. CNOA got new CEOs bought two companies recently PE is less than 2. GRRF just shoot up 100% in one day. CHLN holds land worth 8 times its market cap and its earnings should grow significantly starting next quarter.

i'm really tempted. but, what happens if poop hits the fan? i know how they acted after they took over hong kong. and the tibet thing wasn't/isn't real pretty. they cheated at the olympics. they put lead in kids' toys and poison baby's milk. and if we really get into "buy america" here and demand fair trade they might get excited. these things weigh on my mind.

Edited by humble1, 23 October 2008 - 07:58 AM.

well, i put in 5000 of the KOOL @ 1.12 before the open to start my buying today - haven't had a chance to check yet. i like the chart and the fundamentals. nice bottom action on the chart.

Edited by humble1, 23 October 2008 - 08:44 AM.

Take a look at VDSI .. blew out earnings estimates. It was one of the small caps I bought, considering buying more. They are still talking 15-25% growth, trading at less then 10 P/E, no debt, good cash position. Would be an attractive target for many software companies.

thanks, ogm. nothing done on the KOOL. it is up 10% today! oh, well. i have a jumbo cd's cash in my account from october '07 which i need to spend. lots of family stuff here today and i like to concentrate on this when i am doing it. i am not a multi-tasker!

and if a 5000 share pre-market open order can scare this dog up 10% i don't know WHAT to think ... LOL!