JRJC is uniquely positioned to gain a very strong foothold as a first mover in internet online stock trading. This advantage also makes it a very attractive takeover candidate, particularly since they are partnered with CITIC, the largest securities trading firm in China and state owned.
Sounds like the Corning CEO is the source of the Time magazine article. Exactly the same points. Corning is fighting back a lot harder than anyone thought.
Daniel, thanks for this information. Couple of questions:
1, So, are you saying they are already up and running and trading stocks?
And that would be $100m for this piece of business and their run rate that was being established for their old business and precious metals trading was also about $100m.
2. $200m, say a 70% gross margin, 25% net would be $50m with 10m shares or about $5 a share in EPS. Am I close?
China will take to on line trading like no other country in the world. There are hundreds of millions of Chinese, HUNDREDS OF MILLIONS, who will be using on line trading to grow their wealth. As JRJC's partnership with CITIC gains wider understanding and terms of the partnership come out JRJC will become one of the long term holds in many portfolios.
In the first 12 days after that partnership was announced JRJC traded more than 150m shares. That was probably more than all previously traded shares combined in their history. Clearly, this partnership is viewed as something really big and something different.
I'd be rethinking your own thought process here.
A report after TSL announced that last week says that many Chinese companies are running into shortages as orders are overwhelming supply. Solar was always the story for GTAT. Need to hope they can close on the big 4 with Merlin in the near future. Also, waiting for the Hyperion order this month.
Rough going with the stock right here. Seems quite a bit overdone, but maybe not since the buildup in the last year largely occurred because of the Apple deal. The thing to figure out now is if GTAT did not have Apple and based on what they have in the backlog and what they expect with their new products where would the price be. Would it be $13 or $8 - whatever it is, it is searching for that number. Then it will take off once Merlin gets announced.
About 5 years ago, I think, GTAT was smaller and was trading around $3. They announced 3 contracts on the same day with 3 different Chinese mfgrs. In a couple of weeks it was over $9. At first it was disbelief - how can a little company like this get such large orders. Lightening will probably strike again with Merlin. In the meantime - good luck. We all need it.
Took it down very quickly this am on small volume. With the market weak this am, NASDAQ down 38, they might try further pushes. Careful here.
Opportunity to buy is very close but...
Not only does JRJC have 10's of millions of users on its web sites, CITIC Securities, as the largest securities asset manager in China has millions of its own clients. Very big beginning here.
"Through this partnership with CITIC, the new web-based securities trading platform will enable both companies to quickly transfer their current user bases to online securities trading system as well as to expand and attract new users."
Makes sense. I'm thinking their revenue is still along the business lines reported last time with a continued increase in overall revenue based on trading in precious metals. Probably another 2qtrs before we see a substantial uptick in revenue based on the new partnership. But they did say both companies would quickly convert their data to enable the partnership. So maybe in Q3 there is some additional growth.
Overall this is where the company always wanted to be, since they bought that brokerage in Hong Kong 5 or 6 years ago. Ready to launch 400 million Chinese to own their own accounts on line and trade like crazy.
There was a comment about Merlin a couple of weeks ago that Merlin is particularly well suited for large scale solar projects like solar power plants. Those huge things that are popping up in the desert that FSLR & SPWR are selling to utilities.
Sgk, and it will be helpful to know about the split in the partnership with CITIC.
But the biggest thing to me is that they are the only one doing on line trading and with CITIC, which is the biggest securities dealer in China and state owned. A virtual monopoly.
Hey Sgk, Feel the same way about them. I have thought of them as a combination of Yahoo and Fidelity. This story will only get better. And they hit all my buying parameters:
-Low short position
-Good Price to book
-Good volume (lately)
In the last three filings 2Q earnings have been reported: 10/15/13, 9/14/12, 8/31/11
1q's filings for the last three have been: 6/24/14, 7/15/13, 6/27/12
Anyone know why?
Back over with you, Al. Too much pain in the short term. Back in at $23.75 - seems high to where we were. Last sold INVN at $21.15 so feel good about getting back in for a couple of buck more based on what Apple announced yesterday. Feels like a lot of INVN in Apple's devices. We'll know in a few weeks after they start shipping and the teardowns begin.
I absolutely do. I think the Apple food chain just takes time to get into. That's why all the rumors were there last fall, that INVN was in. They were, but not for the i5 but the i6. We'll see soon enough.
Sentiment: Strong Buy
1. Obviously sapphire is late for the iphone6s. So problems in the process - whether it's GT or another finishing vendor of Apple's - are holding it up.
2. Obviously Apple wants it in the iphones. They put Mesa into operation, the put sapphire on the watch.
3. Not so obvious is what happens next - does it come later in i6's or does it wait until next year?
4. This type of unknown is fatal for a stock as shorts and analysts jump all over it.
What to do as an investor?
1. Sell now and buy back at a lower level when confidence returns that GTAT/Apple are on track or when GTAT gets a big order on the solar/hyperion side. Some pressure may make this happen sooner depending on the use of margin.
2. Hold - weather the storm. GTAT is a terrific company.
3. Buy now. At $13.80 premarket it is about in the middle from its highs and lows this year.
I bought some more at $13.60 but I will be watching it like a hawk.
Sentiment: Strong Buy