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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (36916)	3/9/2010 11:43:21 PM
From: Charshay	Read Replies (3) \| Respond to of 78748

Gravity GRVY I am holding this one at present. PE 7 Current share price $2.00 Loads of cash $1.95 p/s on cash G/P steady over 8 years in the 50% mark op income 20% as been up to 40% in the past book value $2.50 Background. South Korean Online Gaming company produced Ragnarok, became extremely popular in South Korea, China, Japan (were it is the most popular on multi player role play game), SE Asia. That is were the good news ended and the CEO was caught with his hand in the cookie jar, subscuantly they were sued by an investing parter due to profit payments, they paid the investor, this lawsuit was ended in Dec and no other lawsuits are pending. A new ceo and management team have now been put in place and released the long awaited Ragnarok 2 this took about 8 years, because of problems mentioned above and re-writes of the game. The Nintendo DS version shipped about 2 weeks ago, online will come out in the summer. If the game captors it's fan base like the first one then value could be released if it does not then they will have to got back to the drawing board, so will the stock price! They do have steady income from the 1st game and other games, but Ragnork 2 is the hopeful catalyst si.advfn.com gravity.co.kr 2009 questions to new CEO here news.mmosite.com here shows Ragnork 2 release on DS. ds.ign.com amazon here amazon.com Rag 2 for sale, you can see customer reviews, though bear in mind this is a online Mulit player rather then a DS game (hand held one player unit) the Online game coming out is key

To: Paul Senior who wrote (36916)	3/10/2010 11:27:10 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78748

China small caps. Okay, I looked at the first 20 on the list. rodm.com I see two new possibles for me: BSPM: Pharma stock where one otc drug accounts for 70% of rev. (obviously, a risk for investors) P/e might be $3.50/.45 = 7.8 for the year when 4q report come out. Acquisitions in '09 could/should add to earnings in '10. I've no position yet. CADC: I'm partial to cement/aggregate companies, and CADC is one serving Beijing. P/e 7; roe over 20%. D/e looks to be small. Here's a positive article from a Seeking Alpha writer that was published yesterday: seekingalpha.com So, okay, it's partly (predominantly?) a play on the build-out of China's high-speed railway. One operating assumption I've had is that because aggregates are heavy and shipping costs are high, plant location tends to be a moat that dissuades outside competitors from transporting into the area and gaining business. However, this may not be so for CADC, I see now: From the Mar 2 pr: "Mr. Xianfu Han, Chairman and Chief Executive Officer, stated, "We are pleased with the steady flow of railway projects that we have been awarded since we began focusing on the railway infrastructure construction area. Our investments in portable plants and implementation of our ready-mix concrete services have proven to be a successful strategy. Our railway operations are structured so that as earlier projects wind down, we are in a position to win additional contracts along the same high-speed rail lines. This tactic allows us to achieve the desired utilization levels and high margins. We remain committed to playing a significant role in the Chinese government's mandate to add 41,000 kilometers of railway track by the year 2020 and we believe that the strong demand for our services will help drive shareholder value in the future." IF these guys can build and use mobile plants successfully, not only should they be able to move along a railroad's path, building the railroad itself, but they might also win contracts if adjacent area has construction projects too. Summary (jmo): Profits are there. Price looks right. Possibilities look good. I am in for a position a/o this a.m. Aside: One of the better Chinese small-cap websites I've seen. ir-site.com Somebody seems attuned to investors: They are associated with ROTH, and present there as well as at Redman.