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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.

News coming ? A reminder when the final payment is in the bank : IPL will have : Cash (coming in a few weeks) of circa 50p a share. No liabilities or debt 50% of a few high impact exploration potentials 50% of a few other exploration potentials Lots of new seismic data. Ownership of lots of geologic data from their drills An Aim listing. Very small overheads and no committed funds to spend.

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, [b]the broker expects the publication of the firm's 2008 results to prompt a re-rating."[/b]

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

They look good imo, and paying a cash dividend helps their appeal. They were struck down by high lead prices but thats now gone, but their market is booming. I would expect around 41p EPS this year, andover 45p next year, and this on top of cash dividends should make them much more in demand. Results should be a "re-rating" point for them I hope.

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?............"

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).

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............

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

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.

This summary comment from broker Seymour Pierce earlier : ""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, [b]the broker expects the publication of the firm's 2008 results to prompt a re-rating.[/b] China shoto shares moved 4p higher on the note to 115p." ChipTech, the last cut off date for the interim dividend was 26th Sept 2008.

For those who have enjoyed the run on RCG from 30p to 60p, another one to watch now is CHNS (China Shoto). Oversold it could well be, and going to deliver exceptional results next month is the word.

Having been (and its been quite rightly) bearish on this from over 200p levels down, I have been talking to some friends and have been talked into this one being bullish now. It transpires they will be, or very close to, being cash flow positive this past year, owing to the fall in the price of lead amongst other things. They are forecast to be strongly cash flow positive in 2009, and this will be shown in the payment of a high cash dividend for the 2008 results (which are due next month). They will be doing over 40p of EPS for last year, when the results come, and after being rightly sold down, it appears to be the time to no buy back into the story. Their order book is strong for 2009 (I had feared not but it seems it is) and so there is no reason that are obvious now, given the info I have been told, not to be buying in as the PER is less than times 3. All IMHO !! DYOR !!

Broker Forecasts PTP 2008 = 10.5 million pounds EPS 2008 = 41 pence PTP2009 = 11.5 million pounds EPS 2009 = 43.5 pence After speaking with a friend I have been talked into a change of heart on this one, and there should be a nice cash dividend coming shareholders way. The company is outperforming and it appears they will be cash flow positive for last year, and also strongly cash flow positive in 2009. Strong buy ? Some might say so.

The link to the results presentation and questions is : http://www.investorcalendar.com/IC/ClientPage.asp?ID=142280 Well worth listening to.

In basic you get a cash generative growing business with cash in the bank of 12m pounds and all for a PER of under times 3. Not many of them about in the current climate. Given the results and looking into the details I remain very bullish about RCG, and especially into the short term, I think that there will be perhaps a stunning performance from Vast Base in the 1st half of 2009, and the interims are really going to be special, thats just my opinion.

PDF format here as released to the Hang Seng market, the AIM announcement will be at 7am UK time today. http://www.hkexnews.hk/listedco/listconews/sehk/20090312/LTN20090312005.pdf Looks fine, dividend has been put up 200%, and rightly in my view in this enviroment in scrip. Cash generation from operations is strong. EPS works out at over 25p. Still growing strong. Cash generated from operations is sufficient to fund the expected growth for the year ahead. Larger amount of enterprise/solutions revenues in the second half as they reduce reliance on the consumer market. Ended the year with net cash in the bank of around 12m pounds (thats after the new office and plant in Malaysia costs, buying the remaining stake in Chance Best and the increased stake in Vast Base). Going forward 2009 should see : Major contribution from Vast Base in 1st half and 2nd half - this should be the proof in the pudding of the purchase cost. Major cost savings from the new Malaysian base kicking in in the 2nd half. On the downside an increase in tax rate will happen due to the Hang Seng listing. On the downside the move into higher weighting of enterprise/solutions will see higher demands on working cap, as is already being seen, but they remain confident that the cash generated from operations is sufficient, on the upside of that should of course be higher margins.

Good proactive move by the board. http://www.rcg.tv/html/eng/investor/investor_news/2009_details_15.jsp Letter to Shareholder Q&A session on the day of results announcement 9 Mar 2009 Dear Shareholder, In our effort to further improve communication with our shareholders, we would like to propose a Q&A session to be added into the preliminary results presentation on the day of results announcement. Similar to last year, we will be audiocasting the preliminary results presentation, and will allocate a slot for Q&A at the end of presentation. If you send us your top few questions on email to ir@rcg.tvon or before 8 am on 12 March 2009 UK time, we will select and combine the frequently asked questions (FAQs) from the questions received on a no-names basis, read-aloud and answer them during the audiocasting. You will be able hear our answers from the audiocast which we will publish in the investor relations section of our website within one week from the results date. Due to limited time and the possibility of receiving a large number of questions, we can not guarantee that we can answer all of your questions however we will carefully select questions repeated by many shareholders. We are looking forward to receiving your email and thank you for your continued support of our Company. Yours truly, Anita Chau Deputy Chairman and COO

Well its results week, and the week starts well on the Hang Seng, impressive volume and rising fast on the Monday morning in Hong Kong, lets hope this is due to more "outsiders" becoming aware of the potential in the results as they go through their approval process prior to release. Roll on Thursday, lets see what Raymond has to say.

A search today shows a jump on the Hang Seng from 12% of the 40% free float, to now 12.5%, so another 0.5% of the total shares in issue was moved from AIM to Hang Seng yesterday (or lets say the process completed yesterday, the transfer would have happened some time ago). At this rate we should hit 20% Hang Seng / 20% Aim in a few weeks time (taking it that 60% are locked away with the big holders Veron/FF/Offshore). People are saying "classic bullish pennant" on the charts, soon to be "golden cross" etc... but there is reason behind the TA. A seller is selling and buyers are buying, creating a "pennant" at a higher value than the share previously was. When the seller is cleared then yes, the SP should zoom upwards, so the "golden cross" could be completed. Also we have results on the 12th March which could signal the buying to complete the bullish pennant and also the golden cross by clearing out the seller (who appears to be ML). Once results are out, Asian investors have figures and outlook to base a decision to invest or not, directors and insiders can, if they want to, buy, and the company too can resume their share buy back programme. All in all, fingers crossed and something not going wrong, yes, the outlook short and mid term is quite bullish for RCG.