Tuesday, September 29, 2009

More color on RINO (Rino International) and why this monster may just be getting started

This is a blurb from briefing.com - a great info tool you should think about paying for

"RINO is a small cap name we have been following for a while. We initially wrote it up on Jun 24 at $8.75, when it was still trading on the bulletin boards (see InPlay archive). The stock is up 130%, but since then, the co has reported strong Q2 results and the Chinese government has announced tougher pollution controls, so we wanted to revisit the story.

Rino makes environmental protection equipment for the steel industry in China. Specifically, Rino makes wastewater treatment, flue gas desulphurization (FGD) equipment, and high temperature anti-oxidation systems, which are all designed to reduce industrial pollution. To provide some quick background, the sinter at a steel plant contains equipment where powdered iron-ore is mixed with coking coal. This results in significant amounts of air pollution, including SO2 (sulphur dioxide), NO2 (nitrogen dioxide), dust and metal particles. Rino was the first company in China to develop an FGD system specifically made for the sinter. It curbs pollutants and reduces SO2 emissions by up to 99%. As a result, Rino has a first mover advantage and a dominant market position (of the 40 sinter FGD installations in China thus far, Rino accounts for 28 of these.)

As part of China's pollution reduction initiative, the Chinese government recently announced a plan which calls for the number of sinters to be equipped with FGD systems to double annually through 2011. China is estimated to have about 500 sinters, less than 10% of which have been equipped with FGD systems. Rino anticipates its growth will accelerate over the coming year as the government mandate creates an impetus for steel cos to become compliant. Rino has seen new bidding activity pick up and is currently pursuing a couple of very large sinter projects. If you run the numbers, that's a lot of potential growth. There are currently 40 FGD installations, which should double to 80 next year, then 160 in 2011.

A quick look at the financials shows the company is doing well. The co is profitable and 1H09 revenue rose 42% yr/yr to $76.3 mln and EPS more than doubled to $0.89 on nearly 30% operating margin. The balance sheet is solid with $52 mln in cash/inv, or about $2 per share, and no LT debt. Looking ahead, Rino expects to soon begin construction on a new production facility that should be operational next summer. This will significantly expand Rino's production capacity and allow the co to take advantage of the new FGD regulations.

On a final note, we think Rino is still below many radar screens as it only recently came over from the bulletin boards. Also, even after its strong run, it trades at a forward P/E of just 9.6x (one estimate), so it's still attractively valued. However, it made its debut on the IBD 100 at #2 today, so we expect that will raise its profile. Mkt cap $504 mln, float 7.2 mln, avg vol 512k."

I have been in since the 11-14 range and think RINO has $25-$30 potential in 2009

Monday, September 28, 2009

RINO roars, RCON posts $1.04 EPS

RINO rips up over $20 after entry into the IBD 100.

RCON posted their year end numbers today which were $1.04 basic EPS and .99 diluted. Stock trades under $10 with 1.7 million float. Company has a conference call tomorrow morning which will be worth listening to. It only has a 1.7 million share float, so if the momos want to run it they certainly could easily. That said, it needs to get more exposure to really get going...

Saturday, September 26, 2009

RINO (Rino International) goes into the IBD 100 at #2

As I said it would a month or so ago if it closed above $15 on any upcoming Friday. RINO will get huge exposure from the IBD (Investor Business Daily) and I see over 700,000 short and its debut is at #2. This could be interesting on Monday expecially if the overall market stabilizes. You can search the blog (mid-right of the page) for more color on RINO.

This has momo, but it's not just a momo stock as its fundamentals indicate higher prices that are substantiated.

The IBD 100 defined:
The IBD 100, which runs every Monday in the IBD newspaper and can be found in the Screen Center on Investors.com, is a computer-generated ranking of leading companies trading in the U.S. Rankings are based on a combination of each company's recent profit growth record; IBD's Composite Rating, which includes key measures such as return on equity, sales growth and profit margins; and relative price performance in the last 12 months.

Thursday, September 24, 2009

Market down - but watch for a quarter end markup?

I would think the funds might put a little buy pressure into the end of the quarter, but they have put a lot of buy pressure over the last 3 months so let's see how they close September?

Not a lot of buying enthusiasm today.

Tuesday, September 22, 2009

Big Day for The Honest Trader

Gold, silver and metals stocks up big... and my small caps were up big again. RINO broke out on all time high volume and RCON could be on it's way to running into its earnings release next week. Daddy got paid today, but tomorrow is a new day.

Dollar down again and the market is up again - what else is new?

Dollar seems to be driving the market everyday.

Check this chart of the S&P versus the $ over the last 6 months... apparently the plan is make the dollar worth"less" and other assets can shoot up and make people feel better... that is until consumers start seeing the pain of inflation.

Monday, September 21, 2009

RINO mentioned and recommended on CNBC

at about the 4:17 mark our RINO was mentioned on CNBC... link below


not often that my smallcaps get on CNBC...

Been awhile since I posted some music

All this guy plays is chill music... relaxing, with a weird name Donavon Frankenreiter and a killer "stache".

Sunday, September 20, 2009

Ken Fisher is a F'ing Idiot

This guy is an f'ing idiot and a permabull. Does he really believe what he is saying? People let this guy manage $35 billion of their money?

I heard this guy speak directly a few years ago before everything went to hell and he was preaching pretty much the same thing.

Friday, September 18, 2009

Paycheck to paycheck

Interesting blurb from Agora Financial.

30% of Americans making $100,000 or more each year are living paycheck to paycheck, reports a CareerBuilder study this week. That’s up from 21% last year -- a number that still seems awfully high.

61% of all Americans say they are in a similar bind… making just enough to finance their lifestyle every month. Just a year ago, 49% were living paycheck to paycheck.

The No. 1 way to make ends meet on a tough month? Cut savings. Check out these quick stats:

· 21% of correspondents have reduced or eliminated 401(k) contributions in the last six months
· 36% don’t put any money toward retirement
· 33% don’t save at all
· 30% that do put some away save less than $100 a month.

Puts an interesting twist on the much belabored rising savings rate, doesn’t it? The personal savings rate as reported by the government has nearly doubled from this time last year -- from roughly 2.5% to 5%. But to what end?

Thursday, September 17, 2009

Hot stock of the day is TRIT (Tri-Tech Holding), some similarities to our Recon (RCON) and RINO

Tri-Tech Holding, a Chinese company that designs systems to manage and monitor China's municipal sewer systems, natural waterways and resources is up big again today. This is based a newsletter recommendation from what I gather. The company looks interesting. It has aspects of one I really like and have mentioned here - RINO (and also DGW). You can search the blog for that commentary (search box is on the right of the blog about halfway down).

As you know we have owned RCON (Recon Technology) from the $6's and while not in the same business there are a lot of similarities that could spill more momo over to RCON. The companies both have a 1.7 million share float and were both brought public by the same underwriter, both are Chinese. So in a sense RCON may turn into a secondary momo play on TRIT and possibly vice versa eventually. RCON is slightly smaller with less total shares outstanding.

Also, RCON earnings will be out within the next week and a half and I expect north of $1 in EPS.

Tuesday, September 15, 2009

Gold to $4,000? Peter Schiff says so...

The Greatest Sucker's Rally of All-Time?

Ron Paul on the Fed

Back from Vacation

Was a good vacation and my positions moved mostly in my favor as I was gone.

Especially RCON and the precious metals were rolling.

Dollar continues to go down and the market continues to go up.

I'll be back to more regular updating later this week.

Tuesday, September 8, 2009

RCON (Recon Technology) & RINO (RINO International) with good news today

Recon Technology Secures $971,000 in New Equipment Orders for Chinese Oil and Gas Fields

RINO International Corp. Introduces New DXT Desulphurization System

I still am long these stocks and think both have more to go on the upside. RCON should have earnings shortly and remember the float on RCON is 1.7 million.

China alarmed by US money printing - Daily Telegraph

Daily Telegraph reports the US Federal Reserve's policy of printing money to buy Treasury debt threatens to set off a serious decline of the dollar and compel China to redesign its foreign reserve policy, according to a top member of the Communist hierarchy. Cheng Siwei, former vice-chairman of the Standing Committee and now head of China's green energy drive, said Beijing was dismayed by the Fed's recourse to "credit easing". "We hope there will be a change in monetary policy as soon as they have positive growth again," he said at the Ambrosetti Workshop, a policy gathering on Lake Como. "If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said. China's reserves are more than -- $2 trillion, the world's largest. "Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets," he added. The comments suggest that China has become the driving force in the gold market and can be counted on to buy whenever there is a price dip, putting a floor under any correction.

lots more stuff on gold I will be posting but on VACA so might be slow.

Sunday, September 6, 2009

Going on Vacation

be back in a week.

Where will gold be? Where will the market be? We will see.

Wednesday, September 2, 2009

Gold/Silver/Gold Stocks Breakout

As mentioned before here I have been long precious metals for the whole year and it my be breakout time. If you are not long buying a pullback might be the way to go.

It could get interesting...

Tuesday, September 1, 2009

Market Dump...Precious Metals Pump!

Must say I am not surprised, but could see some back and forth but I think medium term we are probably headed south in the market.

Of note - gold and silver outperforming and breaking the recent correlation with the stock market. Do the precious metals soon breakout. I do believe seasonality is on their side.

None of my content is a recommendation to buy or sell any securities.

Please do your own research or consult an advisor before making any investments.