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Strategies & Market Trends : Fatty's Donut Shop -- Ignore unavailable to you. Want to Upgrade?


To: Sprintcar who wrote (472)4/7/1999 9:30:00 AM
From: Matt Brown  Read Replies (1) | Respond to of 5041
 
Club Fatt! Chooses New Stock

We have done a lot of research on this stock before choosing it.

It is TNRG (Tianrong Building Materials Holdings). But you must look on the inside to see the real value of the company.

The stock is currently trading @ .42

Over the past weeks the stocks has risen slowly with increasing volume. This is a great indicator for a long-term hold for us.

The company is working very hard to add to shareholder value. They have an Internet division that they will be spinning off to its shareholders soon. For every 4 shares of TNRG you have, you will receive 1 share of the new publicly trading Internet company. This company looks very much like SHAL, which recently spun off one of its internet divisions. The parent company is trading @ around 7 1/2, while the spunoff division traded yesterday in the 20's.
TNRG will retain 70% of the Internet division, while the shareholders get 30%.

From our best view, it appears that the MMs have been holding the stock down while accumulating. This is just the way it appears.

We think that the long-term potential for this stock is incredible.

They have assets and businesses in China, which is a currently explosive market that President Clinton will speak about today.

We think that @ .42, that TNRG is highly undervalued and could see much higher days down the road. If you look around at the other Chinese Internet stocks, you will see just how good this stock looks.

One other interesting aspect of this stock is its profitability. From its recent earnings report, from our best calclulations, the company had an EPS of .03-.04/EPS. This represents a P/E of around 10. That is almost underheard of for the businesses that this company is involved in.

Please read the full research report at:
geocities.com

FM

I hold a position in TNRG. I was not compensated in any way for doing the report. I am a private investor expressing my opinions and research. The information is presented to the best of my knowledge and resources. I am not a licnesed broker or investment advisor.
Always base your investments on your own deicions and intuition.