CXTI can run up HUGE

[Gzapper]

WOOOOW CXTI looks like it can run up HUUUUGE within the next few days/weeks imo! what do u guys think?? 8O

[chinaman711]

CXTI now on the pink sheets so be careful. Nice so far as it was .15 last week. Do some research on this 1 as the contracts have not beed verified. If they do have contracts then it goes alot higher imo if not could go to ZERO. Well woth trading cxti imo. Good luck

[microhedge]

Gzapper... CXTI(E) been followed in the Penny Stocks forum

[Luc1Grunt]

WOOOOW CXTI looks like it can run up HUUUUGE within the next few days/weeks imo! what do u guys think?? 8O

Why do you think it will go up?

[Gzapper]

imo, I feel it has to go up do to the natural progression of the Lopus One Act from my uncle Tim.. he has nice sheep that he eats omelettes with in the back fields of Zooloo so the idea is that CXTI will have many chances to make a move the next few weeks.. i guess we will hope for the seashells to disperse from the Interdepleratory of the Gift :!:

[takemtx]

8O Drugs can do terrible things to a mind

[chinaman711]

Interesting read on CXTI, guess we will know soon if its a scam or not. By: valuehunter49
10 Oct 2007, 09:22 PM EDT
Msg. 12029 of 12029
Jump to msg. #
Anatomy of an Overcorrection

Markets tend to overcorrect. If people see something climbing in value, they will try to be a part of it -- as when JDSU jumped to over $1000/sh. Even though it had no earnings, people bought because they thought it must be really desirable because others had bought. Excesses happen in the opposite direction as well. If people see others don’t value something highly, they will run away and invent wild explanations to convince themselves what is wrong even if there is no strong evidence whatsoever. People often are not good at evaluating the value on what they have and they usually rely on others. This is what allows others for $200 to buy $100,000 paintings at garage sales: http://www.thestar.com/News/article/214389
This is likely at the root of the recent overcorrection of China Expert Technologies, Inc. (CXTI). Here is recent the history of the overcorrection in CXTI:

In July 2007, CXTI was trading at $7/sh. Reported revenues were strong, profit margins were 20%, giving net profits of over $10 million per year. The company had been filing detailed financial reports since 1999: http://sec.gov/cgi-bin/browse-edgar?company=china+ex&CIK=&filenum=&State=&SIC=&owner=include&action=getcompany
Using these audited income statements and balance sheets, things appeared reasonably valued at 12*(annual income) + current assets – total liabilities = 12*($10 million) + $61 million = $181 million.
With 32 million shares, an intrinsic valuation of $5.70/sh was reasonable.
CXTI was ramping up and in the process of building up employees in mainland China where their orders and backlog have grown (as opposed to Hong Kong where their original headquarters have been).

On July 20th, 2007, CXTI had announced that Simon Fu, their CFO had resigned during the move to Shenzen and the company had thanked him for the extensive efforts in managing the company’s public financial reports. CXTI also pre-announced $16.3 million in revenue for the Apr-Jun 2007 quarter (+16% growth) and announced a +$5.1 million net profit for the quarter. The CFO resignation, however, began a chain of events in shareholder confidence that has led to a perfect storm in CXTI’s stock price.

On July 24th, 2007, Jeffery L. Feinberg pulled the trigger (stopped his accumulation of 6.8 million shares both in combined JLF Offshore Fund and Feinberg’s own personal account and began selling hundreds of thousands of shares at $3.80-$4.10). The liquidation became viewable in the SEC filings on July 26th, 2007 and of course is extremely difficult for a microcap stock to absorb.

On July 27th, CXTI’s chairman hosted a conference call about the company’s results and financial situation, and sounded optimistic about both, however, Feinberg continued to sell hundreds of thousands more shares of CXTI stock. The continued selling pressure caused further price drop on good news and caused concern for additional investors and drove the stock down well below $4/sh. Chairman Michael Huang Tao undoubtedly realized that all his good efforts to update shareholders were only assisting Jeff Feinberg liquidate all his holdings at a higher price. It was useless to try to support the stock under rapid dumping from Feinberg who has desperately needed to shore up margin accounts in mortage-related debt and in falling small cap stocks and within his fund. There has also been massive selling from a separate hedge fund, Pike Capital (another 3 million shares sold) and from retail investors who were spooked and also shorting shares. It is not the Chairman’s job—to hold up the price as fickle investors sell. The company had hoped to file their new SEC 10-Q during the last half of August, but had been moving, changing accountant, and hiring additional staff in Shenzen.

End of August, 2007, CXTI’s stock was at $2/sh as the investors listed above continued trying to liquidate on rash decisions, fears, and wild rumors.

On Sept 10, 2007, Feinberg continued to transfer shares out of JLP and into his personal account and was selling even more rapidly. Feinberg has sold all of his beneficial ownership of the original 6.8 million shares, driving the stock under $1 per share and even well below $0.50/sh as he wanted to complete his exit before the end of the September. At this point, most people following the CXTI situation have concluded, basically over a couple weeks, that the company’s prior 8-year history of SEC filings must have been a fraud. The consensus opinion of the hearsay has been that the company must have been “making fake press releases”. “After all, why else would the stock drop so far?” The company would “completely cut off all communication with investors and never be heard from again”, posts said. This would not be the first time such distrustful US investors have claimed that a Chinese stock was a fraud. Some companies such as AOBO have been delisted and traders in the stock have immediately cried fraud. That stock dropped from $5 to $1 in a matter of weeks. Nine times out of ten, these complaints have turned out to be false. AOB has since listed on the AMEX and next on the NYSE and is trading over $12/sh. CXTI had continued to drop to $0.20/sh (proof no doubt of the rumors), but begun to level off and rise as many have realized that the consensus view is far beyond what the facts currently show.

There have been numerous attempts to account for the drop in CXTI by bloggers, by an article in the NY Post and then a delayed article restating the same fears by a writer from the NY Times no less [more about this below]. Many have claimed that CXTI’s auditor had quit since they had caught the company redhanded in fraud. These have all helped CXTI’s stock fall further. Many people on both sides have complained to the SEC and other organization that there is rampant manipulation of CXTI’s stock. Some have complained that the company has defrauded shareholders because they appear to have lost a lot of money during the rapid dumping of CXTI stock, or have imagined the worst-case scenarios or read them on the internet. Others have contacted the SEC because these doomsday bloggers and posters have manipulated the already beaten-down stock so they could accumulate shares at an even lower price.

On Sept 27th
CXTI had proved both the “you’ll-never-hear-from-CXTI again” bashers wrong and also proved the “CXTI’s-auditors-have-quit” bashers wrong with one filing. CXTI had filed an update about their auditor. Truth has a way of coming to the top and B.S. dropping to the bottom. As most followers of CXTI had known, China Expert was moving from their prior Wanchai, Hong Kong site to its new Shenzen PRC mainland site Aug-Sept 2007. As expected CXTI has changed auditors from BDO McCabe Lo (the arm of BDO Seidman which audits companies within Hong Kong) to the appropriate accountant which provides services in Mainland China Dahua Tiancheng.
http://sec.gov/Archives/edgar/data/1039726/000113705007000191/0001137050-07-000191-index.htm
With the SEC filing, one can see that BDO McCabe Lo, the Hong Kong Division of BDO Seidman has affirmed the balance sheet, profits, cash flow and orders of CXTI during their auditing period for CXTI: “There have been no disagreements between BDO and CXTI on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.” Purveyors of misinformation were proven wrong. That is when in stepped the SEC.
On October 1, 2007, due to the above mentioned complaints on both sides, the SEC announced a 10 trading suspension in CXTI. This has served to help investors gather more accurate information while putting a damper on the wild speculation and further manipulation on CXTI’s stock and allowed the SEC to track who has been spreading misinformation and who has been trading. The SEC will allow trading to commence on Oct 15, 2007. It is likely that CXTI will continue to file information with the SEC and the shroud of wild speculation, manipulation and doom will further abate. The stock price may then more accurately match public financials.

On October 10, 2007 NY Times writes a derogatory article trying to summarize the speculation of bashers. The article talks about orders not being easily confirmed by contacting CXTI’s customers directly. [A note to the naive, you will not be able to verify most of IBM’s orders by calling up their customers. This is privileged information.] Most of the quotes come from Jeff Feinberg, the window dresser who has lost huge amounts of money for his duped clients. He had bought ISAC.ob at $4-$5/sh and it is now at $1.60/sh. He bought into FLOW at $12-$13/sh and it is now at $8.50/sh. He bought into CXTI at $4-$5/sh and recently sold most of his shares at $1/sh. Feinberg’s fund is now down below $0.5 billion, but was over $1 Billion a few years ago. The article rehashes most of the posted information from bashers and from Jeff Feinberg and a small fraction of balancing information.

In my opinion, this is the textbook example of "Anatomy of an overcorrection". Do your DD and watch for excesses. CXTI will possibly be back to a reasonable P/E. With $60M in net assets and profits of $10 million per year, I believe you will find CXTI back over $6/sh very soon.

[takemtx]

I believe you will find CXTI back over $6/sh very soon.

I sure hope so I'm stuck holding a bag on this one :lol:

[Gzapper]

Drugs Do A Lot Of Damage Lol U Are Crazy And Dreamin On This One

[englishman26]

I sure hope so I'm stuck holding a bag on this one :lol:

I still think it'll go to 0.01 first! Monday will be a wild day or this one!

[fon338]

so what do yo think is the best way to play this one..by the way , im new and love the forum..

[aiki14]

8O Drugs can do terrible things to a mind

But it takes eating paint chips and huffing Freon to be gzapper. :wink:

[chinaman711]

I would be surprised if it were to open on monday. If it does open on monday and it was a scam then the stock will be worthless but if it was a scam then it will not open imo. If it does open on monday i will be all over it if everything they have said in the last 3 years is true. I was in cxti about 3 years ago when it was around 1.60 and it was a nice little trader. It would go from 1.60 to about 2.10 and right back to 1.60 and did this for months. I traded it and would make .25 to .30 and then wait for it to hit 1.60 again. I remember selling it at 2.05 and thought this is great as i made .40 on this trade but this time it did not drop back to 1.60. It just kept going up for the next 2 years to around 8.50. Stick with china but never put all your eggs in 1 basket, play several chinese stocks as it seems like they are taking turns on which 1 runs today. Good luck

[englishman26]

What you just said C-man is kind of illogical and misses a large piece of the facts in these cases. That is, that irrespective of the length of the trading halt, it will take the SEC months to come to a conclusion. Sometimes they never do! They always state their intentions as to protect investors but always do these halts without providing any useful information thereby bascially just screwing investors (if anyone is really an "investor" in a stock like this.) So whether the stock starts trading or not has no relevance on whether it's a valid business or not, at this point. Hence why fear will grip the trading and it will drop to 0.01 within seconds of it's open. Whether it ever goes higher is open for debate but the SEC will not be interested in helping it to, unfortunately.

[spanky]

Bump.

Anyone want to venture a guess on this one? I fear that the shs I still have in hand are worthless, but I would love to be wrong.

[netwrangler]

Why do you think it will go up?
:wink: A straight line if I ever read one.

[Gzapper]

ok lets use some common sense u fu%$#n guys.... the yotellit of the hogit will penitrate thoroughly until the vertilinty of the grass of colort for the graphoty of seams. its obvious due to the gytort in heriferus. Aiki can tell you more about this point of view. So in my wisest advice ask him.. hes the one with gratitudanle justiginity

[Billionaire Boy]

gzapper, you do shrooms?

[none9999]

http://www.otcbb.com/dynamic/marketwatch/mwsubhome.stm

[none9999]

Trading started!! Somebody actually bought it at 2 bucks!!

[takemtx]

Yeah too bad they didn't buy mine at $1.50 lol.

[englishman26]

I'm scared that I'm digging up a gzapper post but it seems CXTI was getting a bit of a pop on friday and came up on a screen. Maybe a trade here??

[takemtx]

Nice call it ran allright :D

[chinaman711]

Only up 200% today, got a long way to go. Love that chat room T

[piggybank]

Wow .... wow ... am i to late to jump on this speculative bandwagon now? Or can this actually bounce back to it's previous heights now?

[chinaman711]

I would be careful with cxti as it was .045 friday and hit .32 monday. I have followed cxti for about 3 years and thought it was a good little chinese company until last year when it tanked. They have not put out any news since the stock was halted last year and then resumed trading and went to .02. I loaded up yesterday but will be selling real quick if this move higher does not continue. If it continues higher today i might add a little more, who knows maybe they will finally put out a pr and let everyone know whats going on with the company. See what happens today

[aiki14]

ON oct 12 it gapped down from .58 to .35, maybe the gap gets filled?
Gonna be interesting to watch.

[chinaman711]

CXTI filed an 8k on 2-6-08 hmmmmmmmmmmmmm could be another interesting day for cxti UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K


Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934


Date of Event: November 20, 2007


CHINA EXPERT TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)


Nevada 000-30644 98-0348086
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

31/F Development Center 2010
Renminan Road
Shenzhen, PRC 518005
(Address of Principal Executive Office)


Registrant’s telephone number, including area code: 86-755-82209555


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





--------------------------------------------------------------------------------




Item 5.01 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain officers; Compensatory Arrangements of Certain Officers.


Mr. Huang Tao, resigned as Chairman and Director of China Expert Technology, Inc. (the “Company”) effective November 20, 2007. Mr. Tao’s resignation was due to health problems and not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.