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China Auto Logistic Inc. Message Board

  • neil_willoughby neil_willoughby Mar 14, 2013 11:48 AM Flag

    CALI's pre-earnings announcement pattern....

    So let me get this straight: A Chinese company importing luxury cars, growing revenues at over 100%, book value at less than 25%. No long term debt. Stock tripled from November. If I take ALL of their liabilities and subtract them from only their current assets, I'm left with $56 million. Because they have no long term debt, the common stock is free and clear.

    It's rare to get business opportunities like this. To me, the worst case is that management decides to take it private or relist on an Asian exchange. If they do this, they will borrow a few hundred million, and buy the shareholders out. You'll at least double your money from here because book value is so low. So you can't lose. (Unless of course, you let these shorts scare you into selling at these levels).

    To all the shorts, On November 6th, 2012 one week before earnings announcement, the stock shot up before retreating slightly over the next few days. Then, when they announced, it went nuclear and was NASDAQs biggest gainer for the day. four months later....the same thing seems to be happening. The stock shot up last week and was Nasdaq's biggest gainer - we're waiting for the announcement. Will it go nuclear again? We'll see soon enough.

    And remember: when you roll up in a Benz, doesn't matter which country you're in. Everyone understands and wants a hot car. Even in China...

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