Posts Tagged ‘CAAS’

China Automotive Systems Q2 08 Results

By: ispeculatornew | Date posted: 08.17.2008 (2:04 pm)

CAAS – China Automotive Systems (NASDAQ) – (Closing Price on Friday 8/15/08 – $6.03)

China Automotive Systems announced second quarter results on August 12 and reported sound results.

The company came in with revenue of 46.51 million and diluted EPS of 0.18. Revenue improved 28% year over year and 12% sequentially. Diluted EPS improved 80% year over year and was flat sequentially.

China Automotive Systems had given preliminary results in June for revenue over 52 million and EPS between 0.18 and 0.22. While the company met the low end of their EPS guidance they came in well below their revenue guidance. An analyst asked about this shortfall in the conference call. The company responded that when they gave guidance they were only two months into the quarter and there was a slowdown in the final month. They also stated that a related party transaction between the company’s subsidiaries had an impact on results. (more…)

Free Stock Picks – July Report

By: ispeculatornew | Date posted: 07.05.2008 (2:29 pm)

AIXG – Aixtron (NASDAQ) 

Aixtron has sold off considerably since my last update and I have not found any definitive reason for the sharp decline. However, I do have a theory about what might have happened.

Aixtron had been mentioned as a possible acquisition target of Applied Materials (AMAT). However, on June 6 Applied Materials announced it made a nonbinding proposal to acquire parts of ASM International (ASMI). The stock price of Aixtron dropped considerably in the days following the announcement. I believe some institution or hedge fund had taken a position in Aixtron solely because of its buyout potential and when the AMAT announcement came out they decided to bail. Since Aixtron has a low float this institutional selling caused a significant decline in the share price.

I think Aixtron is a good company to own regardless of a buyout and I think the institution or hedge fund that decided to dump Aixtron made a foolish decision. I still like the company and I am going to recommend buying some more and averaging down (I will use Friday’s closing price for calculation purposes). (more…)

Free Stock Picks – June Report

By: ispeculatornew | Date posted: 06.02.2008 (8:02 pm)

AIXG – Aixtron (NASDAQ)
Aixtron reported Q1 results on May 8 and reported flat results. However, the company reaffirmed guidance which means the company should report considerable improvement in future quarters. I would continue to hold your shares.

CAAS – China Automotive Systems (NASDAQ)
The stock price of China Automotive Systems had a big jump after the company released impressive Q1 results but has sold off since. I think the stock price of CAAS has the potential to go much higher so I would be patient and continue to hold.

DTLK – Datalink (NASDAQ)
There has not been any major news released about Datalink. A positive article was written about the company though. I still rate the company a hold. (more…)

Free Stock Picks April Update

By: ispeculatornew | Date posted: 04.02.2008 (10:27 pm)

I usually don’t write about my stock recommendations unless they report quarterly earnings or some other important event happens (press release, news event, etc). However, I am going to start updating all my recommendations at the beginning of each month to keep you better informed on how each stock is doing and report on any important news.

Buy/Hold Recommendations:
CAAS – China Automotive Systems:
China Automotive Systems reported sound Q4 results on March 25 and the stock price has rebounded quite a bit from its lows. Today, the company announced that it completed its 35.5% acquisition of Henglong Automotive Parts and the transaction will be immediately accretive to earnings. China Automotive Systems is trading at a nice valuation and the company’s fundamentals should continue to improve in the coming year. I still think the company is a good buy. (more…)

CAAS Plans to Acquire 36.5% of Henglong Automotive Parts Company

By: ispeculatornew | Date posted: 12.26.2007 (5:44 pm)

CAAS – China Automotive Systems (Nasdaq) – (Closing Price – $8.28)

China Automotive Systems announced that it has started discussions with Hubei Wanlong Investment Co. to acquire an additional 36.5% of Henglong Automotive Parts Company.

China Automotive Systems currently owns 44.5% of Henglong Automotive Parts Company. In 2006 Henglong posted sales of USD$54.54 million, representing 57% of China Automotive Systems’ total net sales and net profit of USD$9.75 million, while CAAS’ net profit was USD$4.81 million. Acquiring a bigger portion of Henglong will obviously be beneficial.

I don’t see any reason to sell China Automotive Systems and I would continue to hold your shares. According to Yahoo Finance the insider sells that were weighing on the stock price have stopped and there was even an insider buy on Dec. 3. (more…)

CAAS – Still a Buy

By: ispeculatornew | Date posted: 11.21.2007 (3:42 pm)

CAAS – China Automotive Systmes (Nasdaq) – (Closing Price – $6.40)

China Automotive Systems has posted a couple of strong quarters since my initial buy recommendation but the stock price has been inconsistent.

In Q2 of 2007 China Automotive Systems reported revenue of 36.31 million and earnings per diluted share of 0.10. CAAS’s revenue and earnings in Q2 were considerable improvements both sequentially and year over year.

In Q3 of 2007 China Automotive Systems reported revenue of 31.20 million and earnings per diluted share of 0.11. Revenues were up year over year but down sequentially due to seasonality of the Chinese passenger vehicle market. Earnings per share however improved both sequentially and year over year. (more…)

CAAS – Initiation of Buy Recommendation

By: ispeculatornew | Date posted: 07.07.2007 (12:00 am)

CAAS – China Automotive Systems (Nasdaq) (Closing Price – $7.39) 

China Automotive Systems (CAAS) is a company that has decent fundamentals and a potentially huge market. Its share price has also had some interesting movement the last few years.

China Automotive Systems engages in the manufacture and sale of automotive systems and components in China. Needless to say the potential of the Chinese automotive market is considerable. Furthermore, it was recently announced that one of CAAS’s customers, Chery Automobile Co, and Chrysler were moving ahead with a plan under which Chery will build cars for export under the Chrysler name. This will benefit CAAS’s results in the future. (more…)