The 1000 Club Stock Picks Blog
May’s Free Stock Pick: CEU

Our May’s official free stock pick is CEU.

Symbol: CEU (China Education Alliance, Inc)
Exchange: NASDAQ
Last price: $1.28
Market Cap: $41M
Net Tangible Assets: $91M
P/E: 2.67
52 Week High: $5.8

CEU’s price/book ratio is below 0.5. So if you buy this stock, you are buying the $1 net tangible assets less than $0.5. In addition, the company is profiting, with P/E as low as 2.67. 52 week high is $5.8 and currently is trading at only $1.28

CEU is definitely a great buy at this low price. Research this stock and buy before it flies.

Easylink Solutions: A buy or a scam?

Easylink Solutions Corp (ESYL.PK). According to Yahoo! Finance, the market cap is $80M at the price of $0.82. It is from 52 week low of $0.04 to a high of $1.26.

Be careful. You are not buying a high growth company. You are buying a totally scam.

First of all, this is a pink sheets stock.

Second, according to its newest filing, as of Dec 31, 2010, the company has total assets of $40,000 with totall liability of $232,000. Since then, we did not see any change on capitalization.

Third, according to company news, it repurchased 6 million shares back during 2011 first quarter. However, according to Yahoo finance, the total trading shares between that period on US market is 1.39 million shares, and 0.14 million shares on Frankfurt market. Where this 6 million shares come from?

Final words, I still found some shares to short at my broker Interactive Brokers.

Rare opportunity to double your money in 2011. Act now!

Through our research, we found a rare opportunity. We will release 3 stocks to our Elite members this weekend. If you want to double your money in 2011, you should consider to be our Elite member right now. Yes, I mean RIGHT NOW. As more and more people realize this opportunity, these stocks’ price will rise dramatically and quickly. We already saw them starting to rise last week. Of course, you could join us a month later, but you may lose this biggest opportunity in 2011.

April’s free pick $SMBC $23.7 to $25.65.

April’s free stock pick update. $SMBC picked at $23.7. Rise to $25.65 in two weeks.

Can you trust Variant View Research?

Variant View Research recently published a report
Advanced Battery Technologies: An Egregious Chinese RTO on ABAT on Seeking Alpha. A few days later, ABAT responded with this press release. Today, Variant View Research responded ABAT’s press release again here.

For those of you who are not familiar with the background, I will say that many of Chinese companies, especially RTO (reverse takeover) companies, are suspected to fraud. Short sellers are now shorting stocks in advance and then published their shorting report to collect gains. 

A famous example is Muddy Water Research's report on RINO, which admitted inappropriate actions.

How about this case on ABAT? First of all, Variant View Research is the only one who published negative report on ABAT. The stock price dropped from $3 to $2. But who is Variant View Research?

From Seeking Alpha and their own website, I concluded that this ABAT report is their first report. Further, I found that the domain is registered on 13 Jan 2011, which is quite new. In addition, the domain’s owner is guarded, so we do not know who actually registered.

We do leave an address,
   8939 S. Sepulveda Blvd. #110 - 732
   Westchester, CA 90045

which is actually a post office from Google Map.

So things becomes interesting to me. Unlike Muddy Water Research, who open their contact information, the name, the address is valid, Variant View Research chose to by anonymous. And after the company gave a clarification press release, they still attack the company that the company is a liar.

So who should you trust? On one side is a public company, and on the other side is an anonymous first time short selling analyst.

My conclusion is that Variant View Research published a false report, and their only purpose is to profit from short selling.

So do you due diligence before long or short this stock. And welcome to the new world of Dump-and-Pump.