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!!!

Future Hot China Stocks - TMI, TMI+ and others

TMI - TM Entertainment & Media, Inc – TM Entertainment and Media, Inc. does not have significant operations (Not True Anymore since it acquired CME (China MediaExpress), not the Chicago Merchentaile Exchange…lol. TMI’s profile says it intends to acquire one or more operating businesses in the entertainment, media, digital, and communications industries, which create, produce, deliver, own, distribute, or market entertainment and information content and it just did acquire China MediaExpress, which is China’s largest television advertising operator on inter-city express buses. The Company generates revenue by selling advertisements on its network of television displays installed on over 18,000 express buses originating in twelve of China’s most prosperous regions, including the four municipalities of Beijing, Shanghai, Tianjin and Chongqing and eight economically prosperous provinces, namely Guangdong, Jiangsu, Fujian, Sichuan, Hebei, Anhui, Hubei and Shandong which generate nearly half of China’s GDP.

Coming to DD, one of the members of Yahoo Message Board saved my time doing a great job posting the numbers and his thoughts on TMI. Please read it here.

TMI management owns 2.1M warrants that are locked for 2 years. Please follow the discussion threads and you will find more information regarding the strike price etc..The ticker symbol for TMI warrants varies from broker to broker. Ameritrade has it as TMI+, Scottrade as TMI-WT, Yahoo as TMI-WT etc. Please check with your broker if you can not find the symbol.

TMI closed at $8 on 10/16 and TMI+ (warrants) closed at $1.81. TMI ‘s projected Net Income is around $40 M and Projected EPS for 2009 is around $1.20. AMCN, VISN, and FMCN are its direct competitors. AMCN closed at $7.80 with .20 EPS and an estimated PE of 70. VISN closed at $9.73 with .55 EPS and an estimated PE of 15. FMCN closed at $13…No EPS and PE info available

Coming to TMI, Based on their projections for 2009, if they can make $1.27 per share at a PE of $15, the stock would be trading around $19 and the warrants that are currently trading at $1.80 will sky rocket…..Keep in mind how TXIC and TXICW moved in the last few weeks. You do the remaining math!

Also there are similar picks like TMI and they all are SPACs(Special Purpose Acquisition Company) that uses It intends to acquire one or more operating businesses through a merger, capital stock exchange, asset acquisition or other similar business combination.

More DD will be provided soon...

2020 ChinaCap Acquirco Inc - TTY
Warrants – TTYWW
Target company: WINDRACE INTERNATIONAL COMPANY LIMITED
IDI - IDEATION ACQUISITION
Warrants – IDI-WT
Target company – SearchMedia

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!!!

Is Gold going to $1500 soon?

Jordan Kotick, global head of technical analysis at Barclays Capital, wrote in a note e-mailed today that Investors should hold onto long positions in gold as bullion has “significant upside potential” to reach as high as $1,500 an ounce, read it here.

Another interesting article from Seeking Alpha says “Gold to $3000”
Here are some Gold and Silver stocks, ETFs and ETNs if you are interested…

Stocks – GG, SLW SLV AEM EGO AUY THM GORO KGN (THM, GORO, and KGN are under $10 and are not discovered that much yet!)

Long Leveraged –
SPDR Gold Shares – GLD – Closing Price - $102.36
PowerShares DB Gold ETN – DGL – Closing Price - $37.54
PowerShares DB Gold ETN – DGP – Closing Price - $24.71

Short Leveraged –
PowerShares DB Gold Short ETN – DGZ – Closing Price - $21.47
PowerShares DB Gold Double Short ETN – DZZ – Closing Price - $16.61
Ultrashort Gold Proshares – GLL – Closing Price - $11.75
Ultrashort Silver Proshares – ZSL – Closing Price - $4.70

History
The idea of gold ETF was first officially conceptualized by Benchmark Asset Management Company in India when they filed a proposal with the SEBI in May 2002. However it did not receive regulatory approval and was only launched later in March 2007. The first gold exchange-traded fund actually launched was in March 2003 on the Australian Stock Exchange under Gold Bullion Securities (ticker symbol "GOLD"). Gold Bullion Securities (GBS) are fully backed by gold which is both deposited and insured. GBS was launched to give financial institutions and private investors the ability to own gold and gain exposure to the price, without the inconvenience of storing physical bars or opening a futures trading account.

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!!!

What will drive SPDE's stock price up again?

I think it is time for SPDE's management to release 10K for 12/12/2008 and 2 10Qs (period ending 03/31/09 and 06/30/09) as they announced earlier, read it here. I do not think the 10K will look pretty but the latest 10Q should talk something about their new deals and I also guess that they would provide outlook for 2010 and hope we will hear some positive comments about their new products, contracts and deals that they recently achieved in the investor conference. If all these things happen then there is no reason why this stock will not sky rocket once again!

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!!!