When searching for that rare yet hidden opportunity among penny stocks, you want to look for several key qualities. Ideally you want to find a the convergence of several qualities. First you want  a company that has a product that is capable of having a major impact on an industry. Second, you want that industry to be in a high growth phase and third, you want governmental initiative to furthering the transformation represented by this new technology. Finally, you want to find a company that is still a virtual unknown to the market but stands a very good chance of being discovered once your position is established. That's exactly what we have with Chang-On International.

Transformational Product - The flagship of Chang-On's product line are their architectural formworks constructed from recycled plastic and flyash, a byproduct of burning coal. Not very exciting sounding till you realize how important  architectural "formworks" are. "Formworks" are molds you pour material like concrete or plastic into in order to make something used in building. This means pallets, pipes and tubes, floor boards, water tanks and concrete sections used in construction. These formworks cost less, last longer, provide superior finished products and, in many cases replace steel which is badly needed in other areas of manufacturing and construction. In other words, it's a better mouse trap and the construction industry in China is starting to beat a path to Chang-On's door to get it. With 9 patents on their proprietary technology, the other key is, there aren't any other doors like Chang-On's out there for the Chinese construction world to beat a path to.

Booming Industry - According to China Daily, China uses 43% of the worlds concrete. According to our own government, "Construction spending in China increased 165% in the last four years, according to the National Bureau of Statistics of China, and is still expanding at 25% annually."  We may be in an economic slowdown but in China construction is booming and with Chang-On making superior formworks for concrete construction and other areas of high growth, CAON is uniquely positioned to profit from this rapid growth.

Governmental Focus - China is in the middle of its "11th 5 Year Plan." One of the focuses of this latest plan is "green" construction.  This applies to both making buildings more energy efficient as well as making the construction process more environmentally friendly. Chang-On is right in the heart of this initiative.

Stock Still Not Discovered - One look at the charts tells us this stock is still a virtual unknown within the speculative community. It's near the bottom of its trading history and we think once the market gets wind of this incredible company, it could move back up on very little volume indeed.  With the company having recently shifting from an R&D company to a revenue generator, I think we are about to see a breakout as announcements confirm that industry is, in fact, embracing this breakthrough technology. Revenues tripling in the past 12 months certainly suggests that has already happened.

 

 

            

Recent Company Milestones - Road Signs of Success

 

• June 07 - CAON establishes shift from R&D to revenues with $310,000 contract

• July 07 - CAON obtains new certification of Proprietary SF Composite Material

• July 07 - CAON establishes 2 new distribution channels in key NE China

• Aug 08 - CAON announces plans to increase production capability

• Aug 08 - CAON refines focus toward serving $208 Billion construction industry

• Sept 08 - CAON confirms international market potential in fly ash study.

• Sept 08 - CAON secures fly ash supply to enable launching next development stage

 

HUGE GROWTH POTENTIAL - YET METHODICAL AND CERTAIN IN EXECUTION

The Chinese can be incredibly efficient in the development of a business. They demonstrate focus, discipline and frugality and an amazing work ethic in order to achieve success. The influence of this kind of steady and unwavering commitment to building this company into a market leader is demonstrated in everything from their website to their announcements. It can be seen most clearly in their EDGAR filings as well. It's seldom we see a company like Chang-On International demonstrate such frugality.  Salaries since inception in 2004 are only $98,174!  They have effectively bootstrapped this company from inception in 2004 to now on just slightly more than $700,000 cash. TALK ABOUT PROTECTING THE SHAREHOLDER'S INTERESTS!  We hear people using the phrase that a person who is all talk has "a lot more hat than he does cattle." Well this is one company that's got a lot more cattle than it does hat.  Since they're too busy working to brag, we've been asked to do a little of that for them.  We're glad to do it because this is one company we think deserves a lot more attention than it's getting.

 

Don't wait for the market to discover this hidden gem. Before the next big announce, the one that will alert the market and drive this stock higher still; start acquiring CAON now.

 

This is a real company that has just launched products and entered its revenue and profit making phase... yet its stock is still amazingly undervalued.  These kinds of opportunities don't come along every day; establish your initial position today then add as news warrants. If there was ever a speculative Chinese stock you must have in your speculative portfolio, this would be it.

 

 

 

"The construction market is a major driver of China’s economy. During the 11th Five Year period (2006-2010), the plan for total construction is estimated to reach 2 billion square meters each year."  US Commercial Service -  buyusa.gov

"[China] urgently needs to erect 100 million more homes, and huge numbers of office blocks are in the urban pipeline, it’s obvious that new construction will have to go green in a big way if these targets are going to be realized." Asia Times Online

 

 

 

 

We like CAON for a number of very solid reasons. Our reasons are simple and they're the kind of reasons that make investors and traders a lot of money with a stock. The smart money will get in now and continue to add for the long term ride.

To win with penny stocks you need buy the right stock at the right time. When certain conditions come together, you can substantially increase your opportunity for profit while greatly reducing your exposure to loss. Smart investors and successful traders all agree, timing is everything. Knowing when to buy is the key to having an opportunity to sell at a profit. Today, right now, is the time to buy CAON to lock in the opportunity for profit down the road. Don't wait till it doubles and is headed higher. Get positioned now, strap yourself in and get ready for the market ride of a lifetime. We think this stock is about to explode. Establish an initial position then add as news and developments warrant.

HERE IS OUR RECIPE FOR PROFIT ON PENNY STOCKS

• Very competent management drawing low salaries

• Low market cap

• Reasonable to low float

• Solid company - (reduced downside risk)

• Stock at or near the bottom of its trading range and showing upward momentum

• Volatile when active

• Positive news on the horizon

• Rapidly expanding industry, Chinese green construction. Explosive growth, in high favor with the government.

 

CAON has them all!!

 

The basics 

• Outstanding shares - 67,307,366 (Aug 13, 2008 and unchanged since March 2007)

• Market capitalization - $6,730,737 (Sept 26, 2008)

• Float - 1+- Million shares

• Shareholders - 5,908

• Fully developed and launching sales of patent protected, proprietary line of products.

• Volatile and at the bottom of the trading range - Trading range $.05 - $.25 with little resistance moving up on modest volume

• Positive news on the horizon - The Company is thoughtfully executing its business plan while being incredibly frugal with the shareholder's capital. Sales have begun and are increasing rapidly. The market has yet to discover this gem but soon will. This is the kind of activity that can make a stock literally explode upward as the market gains awareness.

• Strong industries - Construction is driving and leading China's booming economy.  There is an absolute imperative to build "green" and to eliminate steel from construction formworks. Chang-On has come into the market with a less expensive, superior and environmentally sound product that this booming industry is hungry for.  Watch for this stock to continue heading back to previous highs as business momentum continues.  This stock is going to take off. Make sure you are positioned before hand. Start acquiring today. 

 

This list is far from complete but you get the idea. The sky's the limit when it comes to how big this company can become and this company is diligently focused on making it happen. We're looking for 2009 to be a transformational year for CAON, one that will see the company's stock establishing itself as one of the premier movers in the market.

 

The time to position yourself is before more acquisitions are announced and the market catches wind of the stock. We've seen no evidence of anxious sellers and, as CAON finds its way onto more and more quotation screens, the chances of it getting away from you increase in direct proportion to the big players who are watching and waiting to make their move. We think the time to start building a position is now.

 

Remember, once this stock has made its move, there will be people still on the sidelines saying to themselves "man, I shoulda-hadda-oughta picked it up when it was at the bottom". Do yourself a favor, put a few shares of CAON shares away today, then continue to acquire as the developments warrant it. We're convinced, this stock will soon be taking off and we encourage you to get in early to maximize your profits.

 

 THE CHART TELLS THE SAME STORY - NOW IS THE TIME TO BUY FOR MAXIMUM PROFITS. THE STOCK HAS ALREADY TRIPLED SINCE EARLY AUGUST. WE THINK THIS IS THE BEGINNING OF A SIGNIFICANT MOVE BACK TO PREVIOUS LEVELS.  JUST BECAUSE THEY SAY PAST PERFORMANCE DOESN'T GUARANTEE FUTURE PERFORMANCE, IT DOESN'T SAY IT WON'T HAPPEN EITHER. FRANKLY, WE LIKE OUR CHANCES!

 

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