Thursday, October 22, 2009

Incredible Gains on TMI, TMI+ and IDI+ (Other new picks!)

High of the day - TMI - $11.35, TMI-WT - $3.30, IDI-WT - $3.14. Congratulations to those who bought TMI at $8, TMI-WT at $1.30 and IDI-WT at $1.30 after reading my post about these SPAC companies. That would have been an incredible gain if you had bought it right after you received my email. TMI-WT is still undervalued as it is trading below its strike price of $5.50 when the common stock is at $10.65. The fair price of these warrants is $ 5.15 (Today’s closing $10.65 minus Strike Price $5.5). Same in the case of IDI-WT. It could be because the merger between IDI and SearchMedia has not been closed yet. But things are looking very positive from both the sides and I think the merger will happen soon. Once it happens, the warrants of IDI will move faster than TMI.

Upcoming mergers –

China Holdings Acquisition Corp. (HOL)

Company to acquire - Jinjiang Hengda Ceramics Co., Ltd - Acquisition of Jinjiang Hengda Ceramics Co., Ltd. (Hengda), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings From 2005 through 2008 Hengda achieved a Revenue compounded annual growth rate (CAGR) of 25.1%, a Net Income CAGR of 23.9% and an EBITDA CAGR of 27.2%; assuming Hengda achieved all of its earn-out targets, the Net Income CAGR from 2009 to 2011 would be 36.8% .

Ticker Symbol – HOL
Warrants – HOL-WT or HOL+ or HOL/WS (varies from broker to broker)
HOL closing price - $9.70
HOL-WT closing price - $0.35
HOL-WT Strike Price - $7.5
Warrants will expire on – 11-16-2012

Now do the simple math: If the merger is a success, then the warrants, HOL-WT will be trading at $2.20 ($9.7 minus $7.5) even if the common stock stays where it is today. Warrants seem like a steal at the price of $0.35! Do some DD before you jump on it!

Asia Special Situation Acquisition Corp (CIO)

Company to acquire - White Energy Technology Company Limited ("WET"). Based in Sydney, Australia, White Energy is a public company traded on the Australian Stock Exchange (ASX:WEC.AX - News). WET is a wholly owned subsidiary of White Energy. Under the terms of the Agreement, ASSAC has agreed to acquire from White Energy, through an exchange of shares, 100% of the share capital of WET and the equity shares of the direct and indirect subsidiaries of WET. The resulting entity will be listed on the NYSE Alternext.

Ticker Symbol – CIO
Warrants – CIO-WT or CIO+ or CIO/WS (varies from broker to broker)
CIO closing price - $9.86
CIO-WT closing price - $0.40
CIO-WT Strike Price - $7.5
Warrants will expire on – 01-16-2012

Now do the math: If the merger is a success, then the same calculation applies to CIO-WT as it was for HOL-WT. We don’t have to see this just as a SPAC play but it is worth to add to your watch list a “clean coal” company, and in general the future seems to be very bright for such companies in China because it is putting lot of efforts to reduce the pollution problems of coal-based energy.”

A general Caution and Advise -As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!


  1. Regarding HOL/WS undervaluation...Description of warrants in public filings says they are "subject to adjustment in the event of...combinations and similar events..." I wonder if the warrants are a steal or if there will be a strike repricing due to the buxiness combination? Considering your knack of nailing these types of trades I shouldn't question you. :)

  2. No problem :) HOL-WS is still a steal at the current price of .50 provided there are not wrinkles in the strucutre of warrants after merger is done. Anyway you would have made 40% profit if you had bought it at .35 yesterday! Good luck.

  3. Strange drop at the end of the day today. Now all your readers are under water

  4. Sorry you are wrong! They would have made 300% if they had bought it at .35 (this is the price when I posted my blog)


Who is Mr.Incredible?

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Mr.Incredible is a Momentum/Technical Breakout player who trades small/micro cap plays and who saw a 600% Growth since 2006, Yes even in this down market. I am going to post my real trades (including profits/losses) soon...As a general caution and advice Please start with a small position and always keep your stop losses in place just in case....As usual Do your DD before investing. Thank me for your profits and don't blame me for your losses because you are the one who pulled the trigger!!!