Company Profile:
Advanced Battery Technologies (ABAT) manufactures and distributes rechargeable Polymer Lithium-Ion (PLI) batteries, which are used in mine lamps, electric automobiles, motorcycles, cell phones, notebook computers, walkie-talkies and personal digital assistance devices. PLI batteries are superior to traditional rechargeable batteries and are leak resistant, less energy dense, environmentally friendly, with high design flexibility, which allows the company to produce a battery as thin as 0.5 mm. The company is headquartered and operates primarily in China.
ABAT is a holding company and is involved in the business of PLI batteries through its subsidiaries, Cashtech Investment Limited (Cashtech) and Heilongjiang Zhong Qiang Power-Tech Co., Ltd. (ZQ Power-Tech). ZQ Power-Tech is a company based in People’s Republic of China in which, Cashtech owns 100% interest.
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Is this the right time to invest in stocks? Well, it depends on who you listen to and what the psychologic make-up of the investor in you is.
Contrarian investors believe in buying low—if that’s your make-up, then you’ll be all over the stock market right now. However, in doing so, you are betting on the economy following a cyclical pattern. I’m one such investor. There are always rules that govern the dynamics of society; even chaos has order. If that’s the case. then shouldn’t all stocks go down or grow conservatively when the market’s down? Shouldn’t events that create pandemonium and panic such as the current energy crisis and politics govern all sectors of stock markets as well? Shouldn’t small caps be down when investors are shying away from well-established and proven blue-chips with guaranteed revenue streams?
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There’s something about the trinity of Oil, Gold and Stocks that catches the fascination of modern investors. I spent sometime last night looking at the correlation between these. Though, I have data on the prices of the three for the past 62 years (since WW II), in order to make this exercise relevant to modern times, I chose to do it from 1970 onwards. It was right after man landed on moon and the era of scientific, engineering and industrial evolution leap-frogged to levels only dreamt about before. From an analysis perspective, I chose to study the correlation between the 3 around the following data points:
A. Oil crisis of 1973
B. Stagflation of the late 70s (1975-1980)
C. The Paul Volcker effect of the early 1980’s
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