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Today I sold CAAS at 19.01. That's a 16.7% gain over my purchase price of 16.29 back on November 18th. That's a 16.7% gain in only 12 days. That's an annualized gain of 508%.
Did you buy any CAAS? You? Some?? Now?? That makes 24 consecutive profitable trades of 15% or better.
I hope you were able to profit from a purchase of CAAS. If yes, I would like for you to take a look at this website: www.dereksdreams.com It is a very special website about a very special person.
More profits ahead...I am cooking up a pick right now!
I am HUGE!!
$$$MR. MARKET$$$
===========================================
11-18-2009, 11:34 PM
mrmarket 
Administrator
Join Date: Sep 2003
Posts: 3,327
CAAS ==> The Ocktoberfest Winner!
Now you must be wondering, what is $$$MR. MARKET$$$ doing picking an Ocktoberfest stock in November? Well, it was the middle of football season and the Little Tigers were in the playoffs so I wasn’t thinking about investing. Now the season is over and it’s time to make money to pay for college. How do you find a stock which will go up in price? The name of the game is earnings earnings earnings.
I never understood why power steering was so important. I mean it’s really easy to turn a steering wheel when you are driving a car and if you can’t turn a steering wheel when you are parking a car then you’re probably too weak to fix a flat tire so you shouldn’t be driving anyway.
But no one listens to me and now EVERYONE has to have power steering. There is so much demand for power steering that they have to make all the power steering for cars in China. Well, they don’t HAVE to make it in China, it’s just when they made it in Detroit it was too expensive and GM went bankrupt.
Today I bought CAAS (China Automotive Systems) at $16.29. I will sell it in 4 to 6 weeks at $18.78. Here is why I like CAAS:
Look at this ridiculous chart. All this stock does is go up in price.
Why does the stock go up in price? That’s easy. Because the company makes money. Lot’s of money. Look at the sales growth year to year:
2004 – 58 MM
2005 – 64 MM
2006 – 96 MM
2007 – 134 MM
2008 – 163 MM
And of course with this sales growth is profit and more satisfied customers and more profit.
Just last week they reported 3rd quarter income:
-- Net sales increased organically 75% YoY to a new quarterly sales record of $64.7 million;
-- Net income rose 210.2% YoY to a quarterly record $8.6 million;
-- Diluted EPS were a quarterly record $0.28 versus $0.09 in the third quarter of 2008;You sees?
Based in Hubei Province, People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through eight Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers 4 separate series of power steering with an annual production capacity of over 1.8 million sets, steering columns, steering oil pumps and steering hoses. Its customer base is comprised of leading Chinese auto manufacturers such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd., etc. . It has more than ten years experiences in power steering manufacturing. In 2008, the Company sold approximately 1.3 million systems and components compared with 1.1 million in 2007.
Its product offering encompasses a full range of auto parts incorporated into steering systems for both passenger automobiles and commercial vehicles. It currently offers four separate series, 307 models of power steering including rack and pinion power steering, integral power steering, electronic power steering and manual steering, steering columns, steering oil pumps and steering hoses.
Guess what..more people are driving in China. You know how many actually live in China? Billions of people. That’s a lot of power steerings.
The Company expects its revenue to increase by approximately 40% for the year 2009. This target is based on the Company's current contracts from existing customers. China’s economy is coming back strong and as more people in China benefit from the economic recovery, this should be a huge money maker. ANAL-ysts project 37.5% annual profit growth over the next five years. Second, the free cash flow.
Over the last 12 months, China Automotive has generated some $18.4 million in free cash flow, nearly 60% above reported earnings. Even though its PE is high, the stock's price-to-free cash flow ratio down to a much more reasonable-sounding 19.5. Paired with the rapid growth rate mentioned above, this makes for a pretty good value, and a stock that's has lots of upside..
CAAS has strong technology and R & D capabilities, pursuing aggressive strategies in technology to maintain a competitive edge within the automobile industry. It has three technology and R & D centers, more than 200 technical expertise devoted in R & D, testing, production and process improvement, and new material application.
CAAS has business relations with more than sixty vehicle manufacturers, including FAW Group and Dongfeng Auto Group, two of the five largest automobile manufacturers in China; Shenyang Brilliance Jinbei Co., Ltd., the largest minivan manufacturer in China; Cherry Automobile Co., Ltd, the largest state owned car manufacturer in China, and Zhejiang Geely Automobile Co., Ltd., the largest private owned car manufacturer. In 2007 and 2008, the Company has supplied power steering pumps and power steering gears for the Sino-Foreign joint ventures established by General Motors (GM) and Volkswagen.
In 2008, although the international economy showed depression and the growth rate of Chinese economy showed the dropping trends, generally speaking, Chinese automobile market kept a certain growth, and the domestic automobile sales reached to 9.38 million at a year on year growth rate of 6%. With large foreign automakers increasing their purchase of auto parts and components in China, CAAS is expected to continue to grow. It will focus on brand recognition, quality control, decreasing costs, research and development and strategic acquisitions to carry out both domestic and international market expansion.
CAAS' broad spectrum, high quality and reasonable price products, strong R & D capabilities and leading position will support it for continuous growth and to become an international power steering system supplier in the future.
The Chinese government made a strategic change in 2009 to entice consumers to spend more. A number of stimuli, subsidies and incentives were implemented to re-ignite the Chinese economy. A RMB 4 trillion (US$590 billion) spending program was established, the sales tax was reduced to 5% from 10% to encourage sales of more affordable and environmentally friendly cars with small engines, and a RMB 5 billion (US$732 million) subsidy was granted to help farmers replace 3-wheel vehicles and outdated trucks.
The company believes the worst is over and they look forward to the rest of 2009 as the Chinese Association of Automobile Manufacturers (CAAM) increased its vehicle sales projection from 5% to 8.7% for this year. Key customers such as Chery Auto Ltd., Zhejiang Geely Automobile, ChangAn Auto Co. Ltd., and BYD have experienced accelerated demand for their small, fuel efficient vehicles in early 2009. Given this growth, they expect revenue growth to be over 20% in 2009.
Despite a drop in exports due to the West's financial woes, China's economy expanded by 8.9% in the third quarter (on top of a 7.9% second-quarter gain). Chinese retail spending -- spurred by sharp increases in both urban and rural income levels -- rose by 15% and is now growing faster than spending in the U.S., Japan and the euro zone combined. That income growth has created a new Chinese middle class that now totals roughly 330 million -- more than the entire population of the United States -- and they are hungry for goods and services, especially high-end items. In fact, the Chinese luxury goods market recently passed that of the U.S. and is now second only to Japan.
Also CAAS substantially increased their R&D capability, also expenditures in the third quarter 2008. That’s part of their plan to prepare for global expansion. So, they are working hard on the quality improvement in R&D.
Exports; in the past they haven’t done much exports, but in 2009, CAAS already received 80,000 to 90,000 units of power steering orders for the commercial vehicle OEMs overseas.
They de-bottlenecked their capacity in 2008. Now CAAS can definitely increase sales into some of the markets they hadn’t really focused on. Now, they can aggressively expand in through these areas.
2008 has been a difficult year for U.S. and European auto markets and a transition year for the Chinese auto industry. However, tens of millions of Chinese are not going to stop the dream of owning a car just because foreign auto makers are in trouble. With the Chinese Government support, the Chinese auto market may likely recover in 2009.
CAAS is more attractively priced in relation to its true value than all but a few of the stocks in its sector. ANAL-ysts project $0.83 per share in 2010 on revenues of $265 million. Lucy…don’t be ridiculous! $$$MR. MARKET$$$ projects revenues of $295 million and earnings of $1.03/share. If you use the modest forward PE of 20 (I’m not even using the inflated existing PE of 39), that means that the share price will grow to: 20 x $1.03 = $20.60/share which is well past my price target.
Now go parallel park to your heart’s content. Power steering is here, I am going to drink some beer!
I am HUGE!!
$$$MR. MARKET$$$
__________________
Did you buy any CAAS? You? Some?? Now?? That makes 24 consecutive profitable trades of 15% or better.
I hope you were able to profit from a purchase of CAAS. If yes, I would like for you to take a look at this website: www.dereksdreams.com It is a very special website about a very special person.
More profits ahead...I am cooking up a pick right now!
I am HUGE!!
$$$MR. MARKET$$$
===========================================
11-18-2009, 11:34 PM
mrmarket Administrator
Join Date: Sep 2003
Posts: 3,327
CAAS ==> The Ocktoberfest Winner! Now you must be wondering, what is $$$MR. MARKET$$$ doing picking an Ocktoberfest stock in November? Well, it was the middle of football season and the Little Tigers were in the playoffs so I wasn’t thinking about investing. Now the season is over and it’s time to make money to pay for college. How do you find a stock which will go up in price? The name of the game is earnings earnings earnings.
I never understood why power steering was so important. I mean it’s really easy to turn a steering wheel when you are driving a car and if you can’t turn a steering wheel when you are parking a car then you’re probably too weak to fix a flat tire so you shouldn’t be driving anyway.
But no one listens to me and now EVERYONE has to have power steering. There is so much demand for power steering that they have to make all the power steering for cars in China. Well, they don’t HAVE to make it in China, it’s just when they made it in Detroit it was too expensive and GM went bankrupt.
Today I bought CAAS (China Automotive Systems) at $16.29. I will sell it in 4 to 6 weeks at $18.78. Here is why I like CAAS:
Look at this ridiculous chart. All this stock does is go up in price.
Why does the stock go up in price? That’s easy. Because the company makes money. Lot’s of money. Look at the sales growth year to year:
2004 – 58 MM
2005 – 64 MM
2006 – 96 MM
2007 – 134 MM
2008 – 163 MM
And of course with this sales growth is profit and more satisfied customers and more profit.
Just last week they reported 3rd quarter income:
-- Net sales increased organically 75% YoY to a new quarterly sales record of $64.7 million;
-- Net income rose 210.2% YoY to a quarterly record $8.6 million;
-- Diluted EPS were a quarterly record $0.28 versus $0.09 in the third quarter of 2008;You sees?
Based in Hubei Province, People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through eight Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers 4 separate series of power steering with an annual production capacity of over 1.8 million sets, steering columns, steering oil pumps and steering hoses. Its customer base is comprised of leading Chinese auto manufacturers such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd., etc. . It has more than ten years experiences in power steering manufacturing. In 2008, the Company sold approximately 1.3 million systems and components compared with 1.1 million in 2007.
Its product offering encompasses a full range of auto parts incorporated into steering systems for both passenger automobiles and commercial vehicles. It currently offers four separate series, 307 models of power steering including rack and pinion power steering, integral power steering, electronic power steering and manual steering, steering columns, steering oil pumps and steering hoses.
Guess what..more people are driving in China. You know how many actually live in China? Billions of people. That’s a lot of power steerings.
The Company expects its revenue to increase by approximately 40% for the year 2009. This target is based on the Company's current contracts from existing customers. China’s economy is coming back strong and as more people in China benefit from the economic recovery, this should be a huge money maker. ANAL-ysts project 37.5% annual profit growth over the next five years. Second, the free cash flow.
Over the last 12 months, China Automotive has generated some $18.4 million in free cash flow, nearly 60% above reported earnings. Even though its PE is high, the stock's price-to-free cash flow ratio down to a much more reasonable-sounding 19.5. Paired with the rapid growth rate mentioned above, this makes for a pretty good value, and a stock that's has lots of upside..
CAAS has strong technology and R & D capabilities, pursuing aggressive strategies in technology to maintain a competitive edge within the automobile industry. It has three technology and R & D centers, more than 200 technical expertise devoted in R & D, testing, production and process improvement, and new material application.
CAAS has business relations with more than sixty vehicle manufacturers, including FAW Group and Dongfeng Auto Group, two of the five largest automobile manufacturers in China; Shenyang Brilliance Jinbei Co., Ltd., the largest minivan manufacturer in China; Cherry Automobile Co., Ltd, the largest state owned car manufacturer in China, and Zhejiang Geely Automobile Co., Ltd., the largest private owned car manufacturer. In 2007 and 2008, the Company has supplied power steering pumps and power steering gears for the Sino-Foreign joint ventures established by General Motors (GM) and Volkswagen.
In 2008, although the international economy showed depression and the growth rate of Chinese economy showed the dropping trends, generally speaking, Chinese automobile market kept a certain growth, and the domestic automobile sales reached to 9.38 million at a year on year growth rate of 6%. With large foreign automakers increasing their purchase of auto parts and components in China, CAAS is expected to continue to grow. It will focus on brand recognition, quality control, decreasing costs, research and development and strategic acquisitions to carry out both domestic and international market expansion.
CAAS' broad spectrum, high quality and reasonable price products, strong R & D capabilities and leading position will support it for continuous growth and to become an international power steering system supplier in the future.
The Chinese government made a strategic change in 2009 to entice consumers to spend more. A number of stimuli, subsidies and incentives were implemented to re-ignite the Chinese economy. A RMB 4 trillion (US$590 billion) spending program was established, the sales tax was reduced to 5% from 10% to encourage sales of more affordable and environmentally friendly cars with small engines, and a RMB 5 billion (US$732 million) subsidy was granted to help farmers replace 3-wheel vehicles and outdated trucks.
The company believes the worst is over and they look forward to the rest of 2009 as the Chinese Association of Automobile Manufacturers (CAAM) increased its vehicle sales projection from 5% to 8.7% for this year. Key customers such as Chery Auto Ltd., Zhejiang Geely Automobile, ChangAn Auto Co. Ltd., and BYD have experienced accelerated demand for their small, fuel efficient vehicles in early 2009. Given this growth, they expect revenue growth to be over 20% in 2009.
Despite a drop in exports due to the West's financial woes, China's economy expanded by 8.9% in the third quarter (on top of a 7.9% second-quarter gain). Chinese retail spending -- spurred by sharp increases in both urban and rural income levels -- rose by 15% and is now growing faster than spending in the U.S., Japan and the euro zone combined. That income growth has created a new Chinese middle class that now totals roughly 330 million -- more than the entire population of the United States -- and they are hungry for goods and services, especially high-end items. In fact, the Chinese luxury goods market recently passed that of the U.S. and is now second only to Japan.
Also CAAS substantially increased their R&D capability, also expenditures in the third quarter 2008. That’s part of their plan to prepare for global expansion. So, they are working hard on the quality improvement in R&D.
Exports; in the past they haven’t done much exports, but in 2009, CAAS already received 80,000 to 90,000 units of power steering orders for the commercial vehicle OEMs overseas.
They de-bottlenecked their capacity in 2008. Now CAAS can definitely increase sales into some of the markets they hadn’t really focused on. Now, they can aggressively expand in through these areas.
2008 has been a difficult year for U.S. and European auto markets and a transition year for the Chinese auto industry. However, tens of millions of Chinese are not going to stop the dream of owning a car just because foreign auto makers are in trouble. With the Chinese Government support, the Chinese auto market may likely recover in 2009.
CAAS is more attractively priced in relation to its true value than all but a few of the stocks in its sector. ANAL-ysts project $0.83 per share in 2010 on revenues of $265 million. Lucy…don’t be ridiculous! $$$MR. MARKET$$$ projects revenues of $295 million and earnings of $1.03/share. If you use the modest forward PE of 20 (I’m not even using the inflated existing PE of 39), that means that the share price will grow to: 20 x $1.03 = $20.60/share which is well past my price target.
Now go parallel park to your heart’s content. Power steering is here, I am going to drink some beer!
I am HUGE!!
$$$MR. MARKET$$$
__________________
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