.

Good man, and two I'll have a look at now myself, but as I say always thought you were an addicted shorter from postings I've read

Initial quick research

RCG - Serious concerns on the corporate governance side for this one. Interesting to note that to address these the company is seeking a HK listing, given the more stringent conditions imposed in the Far East. Says a lot about the weakness and risks of investing in AIM companies imo

In terms of other initial thoughts - this one doesnt grab me, and the instinct from what Ive read so far suggests that the company will ultimately delist off AIM. Board chatter suggests that the institutions have ignored this one, but that can work both ways of course, and should they discover what youve seen then the SP should re-rate.

Seems to have won various awards, and contracts with blue-chips, so maybe theres something to this one.

Is there, and why have you bought this one ?

AST - location of fields bodes well for extraction. Director purchases at 2.75p. Board changes last year - Cant initially see why, but do like the option price for the new FD

Funding clearly an issue for this company - what has happened to this Netherlands sale which seems crucial to their funding ? And the VAT reclaim.

Again, my initial gut feel is that there seems to be a lot of bad news coming out from this company - delays, board changes, funding concerns etc

Appreciate the reasons to invest in both

RCG - yes, there are concerns, and they are addressing them. The issue still is the Nina Wang holding, see my post on the RCG thread.

CHNS - yes, its been ignored, however that might stop now. They should be starting to generate cash again, and a decent full year dividend will reassure people. They also are not reliant on exports, and lucky for them are benefitting from the government stimulus plan via the continued expansion of the Chinese Mobile Networks. They are also into Wind and Solar power. A good dividend and defensive properties should see people move into this one after results.

AST - yes funding is an issue, and why the SP is where it is. However the upside is big, and the downside very minimal at 3p, so its a minimal risk/big reward scenario.

As for me, normally bullish, but been bearish since mid 2008.......and rightly so. Now there are bargains to be had, a few, and so this is reflected :)

The reason the company and the broker are confident of a strong order book is the ongoing expansion of the Chinese 3G network, and all the new base stations being installed. This gives CHNS a strong base revenue stream excluding their wind/solar/car/bicycle sides.

http://intech-group.com/?q=china-mobile-seek-bids-3g-work-expansion

http://www.newsgd.com/news/guangdong1/content/2009-03/03/content_4954339.htm


This article looks for US companies that will benefit from the 3G expansion in China.

http://seekingalpha.com/article/124031-which-u-s-companies-will-benefit-from-china-s-3g-expansion

However, there is one UK AIM listed company that will benefit, and they are China Shoto, with all the new backuo battery needs for the expansions planned and in progress in China. The government wants the rollout to continue, they want to spend money to create jobs and keep people employed, and so the outlook for CHNS looks very rosy, ignoring all the other stuff they do and just looking at the backup battery market for mobile base stations. Add in the bicycle, golf cart, car batteries, and then the wind/solar power side and well, the outlook does seem good.

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Wonderful news, potentially 40,000 base stations needing back up battery installations too.......

http://www.tradingmarkets.com/.site/news/Stock%20News/2225939/

China Mobile Purchasing Equipment for Third-stage TD Net

Tue. March 17, 2009; Posted: 08:24 AM

Yesterday China Mobile officially kicked off wireless telecoms equipment procurement for its third-stage TD-SCDMA network by sending out the bidding documents to telecoms equipment makers such as Datang Mobile, ZTE, Ericsson, and Nokia Siemens.

This time China Mobile will procure about 40,000 wireless base stations for its TD wireless networks in more than 200 Chinese cities.

Since it got the third-stage project off the ground in January 2009, China Mobile so far has put an end to the initial exploration for installation of base stations in 31 provinces across the country.

China Mobile procured CNY 5.38 billion worth of wireless telecoms facilities for its TD networks in 28 Chinese cities, which included 23,000 base stations under the second-stage project. Based on that, China Mobile this time is expected to purchase CNY 8.6 billion worth of wireless equipment for the third-stage project.

Latest numbers from China Mobile show that it had built up TD wireless networks in ten major cities last year. Now it is extending the networks to another 28 cities under its second-stage project. And it is slated to kick off 3G services in these 38 cities this June.

An executive from China Mobile discloses that the TD networks so far have covered 95% of the first ten cities. And integration between China Mobile's 2G and 3G networks has been carrie.................................

http://www.cn-c114.net/583/a395851.html

China's Operators Prep Next 3G Wave

Updated:2009/3/17 14:40

China's 3G rollout machine is pumping on all cylinders, according to the latest reports from local media and analysts.

With some urban 3G networks already up and running, China Mobile Ltd. (NYSE: CHL) is reported to have initiated a mobile infrastructure tender process for the third round of its TD-SCDMA rollout.

Meanwhile, China Telecommunications Corp., which received a CDMA 2000 3G license in January, has begun trial 3G services in Shanghai.

The latest China Mobile tender is for 39,000 base stations with TD-SCDMA systems that will provide coverage for 200 cities, about 50 percent bigger than the second-round tender, according to this ChinaTechNews report.

The vendors' role call is expected to match that of the second-round tender. According to a recent Pyramid Research report, "Capex in Asia-Pacific," Datang Telecom Technology Co. Ltd. was the biggest winner of China Mobile's phase two tender, with a 40 percent share of the spoils, followed by ZTE Corp., Huawei Technologies Co. Ltd. , Nokia Siemens Networks , Potevio Co. Ltd. , and Ericsson AB.

ChinaTechNews also suggests that Guangzhou New Postcom Equipment Co. and FiberHome Technologies Group , which use Datang's equipment, may also join the tender this time.

China Telecom is also set for a rapid rollout of its 3G services. An amendment to its articles of association that allowed for the inclusion of its CDMA 2000 3G business was agreed upon at an Extraordinary General Meeting held on March 12.

Since then, Telecom has launched trial 3G services in Shanghai and the nearby Jiangsu province, according to the China Daily newspaper.

China Telecom, which now runs the CDMA network previously operated by China Unicom, plans to expand its 3G network to more than 100 Chinese cities by the end of this month and all urban regions by mid-May, according to the report.

In China’s recent major telecom service provider restructuring process, China Telecom took over the CDMA network previously operated by China Unicom.

Still building strength, and results soon.

Should be at least a 5p cash divdend coming and its on a PER of less than times 3 (will be historic and also current year).

Good day again today.

Extract from this link :

http://www.fool.co.uk/news/investing/company-comment/2009/03/24/stocks-so-cheap-theyre-nearly-giving-em-away.aspx

"................China Shoto (LSE: CHNS) looks like another successful and growing business. The Company manufactures and supplies batteries, mainly to the Chinese market. Its recent trading statement revealed that profits in 2008 will be ahead of market expectations and 50% higher than in 2007. There is some bank debt although it looks comfortably manageable at only 23% of the value of total tangible assets. So why does the market value China Shoto at only 2.9 times 2008 earnings, especially when there is a forecast dividend yield of 4.3% on offer?............"

Don't worry about the PE ratio as this must trend towards reality over time - personally expect this to be double this SP within a year, as the market wakes up

Recent days have suggested that people are beginning to notice

They certainly needed to be sold down in the past, with their risk profile rising high with the lead price increases and also finance costs rising, however the climate has changed, order book is strong, outlook is strong and finance and lead prices are now low.

With a 5p cash dividend or more.......well, looks a strong buy as anything now.

On a nice little run today, and still on less than 3 times earnings, sooooo cheap.

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A reminder of what Seymour Pierce said earlier - and with results due April, and when people see the earnings growth, the strong outlook and the dividend (will be cash and maybe over 5p a share), for sure the potential for a significant re-rating is there.


"A summary of the recent Seymour Pierce note :

""Seymour Pierce reiterated its 'buy' stance for shares in for battery maker China shoto (CHNS) ahead of the company's 2008 results due to be released next month. It praised the resilient qualities of the business, noting that capital spending by the mobile operators is planned rather than discretionary. "More than 90% of China shoto’s revenue is sourced domestically. India is the sole overseas export market and accounts for just 10 million pounds of sales. Investors fearing a drop in China’s exports need not be concerned about China shoto," argued the broker. With the shares trading on a current multiple of just 2.6, the broker expects the publication of the firm's 2008 results to prompt a re-rating."

Its new base stations galore in China presently, tens of thousands going to be installed in 2009 and 2010 and 2011 and more........

This means massive new demand for new back up batteries (a la CHNS) and also the repeat business of course of replacements when old later down the line.

Three stories from the past two weeks which gives an idea of the frenzy to install new systems in the coming years.

http://www.unstrung.com/document.asp?doc_id=174019

http://www.unstrung.com/document.asp?doc_id=173883

http://www.unstrung.com/document.asp?doc_id=173650


An exciting period of sustained growth for CHNS going forward one sees.

would not touch anything chinese with a bargepole, why don't they list in their own country??? See this is being spammed all over advfn and the like, dodgy, leave well alone.

I do not condone spamming if someone is, however, they are not wrong if they are saying how exciting CHNS looks.

Dodgy ? If you can research the company and say they are dodgy one can only assume that you are a very dodgy person kate bates :) LOL

Cash dividend of what should be over 5p, over 40p of earnings, strong cash generation in half 2, strong outlook, sector undergoing a boom, exposed also to "green energy".

It has just about everything going for it.

bargepole stock anything chinese. Spammers everywhere trying to promote it like yourselves, no doubt another TAIH this pile of rubbish.

in fact i think i'll short this as obvious someone trying to pump the price up given all the weekend spamming.