Monday, November 30, 2009

Time To Play SNWT Again!!!

San West, Inc.

Symbol: SNWT

Current Price: $0.21

Snapshot - "We have successfully discussed SNWT twice in the past! The last time we discussed SNWT on 11/1, it moved 73%+ within two trading days. The first time we discussed SNWT on the evening of 9/28 at $1.08 and it reached a high of $1.70 within 10 trading days! This was a total possible gain of 57%+ the first time we discussed SNWT! We know SNWT well and we believe SNWT is ready to move huge again, for the third time that we are discussing it! Our SNWT pick could be another big short-term moneymaker for investors! SNWT announced third quarter results around mid-November and announced that management projects Q4 revenue to exceed $800,000. SNWT is right under its uptrending 50-day moving average, which is now at $0.225. A move above its 50-day moving average of $0.225 could indicated a big breakout scenario for SNWT! Watch SNWT very closely as we believe we could see SNWT make another big short-term move!"

SNWT reported a third quarter 2009 revenue increase of 53.4% from the same period last year. Revenue came in at around $217k for Q309. At the same time, management projected Q4 revenue to exceed $800k!

SNWT is involved in the designing, manufacturing, selling and repairing of off-road buggies, and additionally provides aftermarket performance products and accessories for off-road buggies.

SNWT products are sold through retail store locations and online as well through a growing dealer network.

SNWT owns Buggy World, a wholly owned subsidiary of San West, Inc. Buggy World has multiple locations in north and east San Diego as well as Orange County.

SNWT announced on November 3rd their intention to launch an advertising campaign designed to increase revenue stream and exposure.

The marketing campaign includes a giveaway of a flagship off-terrain vehicle and runner-up prizes. The ad campaign, which includes 20 sixty second 'on-air' and 125 'online streaming' commercials per week, centers on the winning of a Buggy World Exclusive "Truggy!"

We believe it is great timing to play SNWT! According to a Letter to Shareholders on 11/2, the busy season for Buggy World and most retail companies, has started off with a bang and is shaping up to be the best quarter in Buggy World's history.

It was also announced on November 19th that SNWT and Buggy World poised for additional sales and exposure heading into season's largest event at Glamis Dunes.

Buggy World will maintain a booth from November 26th through November 30th for off-road enthusiasts to purchase products, register for the buggy giveaway, obtain service and repair assistance and sign up for news, specials and updates via the company newsletter.

We are excited about SNWT, heading into the end of the year! We could see SNWT turn into a very big play from this level! SNWT also has support slightly below its current price!

SNWT released two big partnership press releases during October.

SNWT partnered with San Diego SportCycles, a leading retailer in Southern California. The partnership gives SNWT's BuggyWorld access to leading products including No Fear, Oakley, Fox, Bridgeston, K&N and others. The partnership is also expected to bring a large amount of foot and web traffic to Buggy World.

SNWT anticipates that this alliance will help Buggy World become a mainstream Superstore for off road enthusiasts!

The second big partnership news out of SNWT during October was partnership. is one of the largest online retailers in the off-road recreation sports market.

As per the press release, is the second largest online dealer in the United States, grossing an estimated $3.2 million in revenue for 2008!

SNWT has two store locations through San West, one in San Marcos, CA (off-road buggies sales and accessories) and the other in Santee, CA (off-road buggies sales, service, parts and accessories).

San West is on their way to establishing themselves as a significant player with the recreational 'off-road' market especially with the two partnerships established during October!

SNWT released several strategic initiatives. Check out the PR on 9/29 that illustrated clearly where SNWT has been and where they expect to go!

SNWT's strategic initiatives poised for the next 12 months as of 9/29 PR:

Increased focus on Buggy World Internet sector

Pursuit of additional Buggy World dealership locations

Launch of marketing campaign through advertising, social media and increased industry event presence

Increased Buggy World distributorship of large industry brand names and companies

Promotion of Buggy World repair shop and part sales

Added product inventory, such as Redline and Joyner, which appeals to wider range of sports enthusiasts

We believe SNWT is about to become hot again!

SNWT is ready to move again!!!

I Project that Your SRGL Profits will increase

One week ago, we told you to buy shares of Source Gold (SRGL) around the $0.80 level based on our exclusive Contrarian selection strategy, which strongly indicated that this rapidly emerging gold-explorer was starting a long upward price-move. Over the subsequent five market days, SRGL traded up to $0.98 per share. You should continue to buy more shares of Source Gold. Even if you’re currently sitting on 20% profits, we project that you will make much more money in the near future if you hold and add to your current SRGL position.
Source Gold Surpasses Our Projections of Huge Gold Indicators:
The Sky could be the Limit on Future SRGL Profits
On 27 November 2009, Source Gold released preliminary gold-grade data from its ongoing trench sample testing at its prime KRK West property, Ontario, Canada. Our profit-projections on SRGL must now be exponentially increased based on the company’s initial and astounding indicators of 9.55 ounces of gold per ton and extremely high-grade copper of 15.5%. Also keep in mind that Source Gold controls this property with “visible gold” even before the drills start turning. Be sure to review point 2 of our initial buy-recommendation issued on 22 November. The company has now increased its preliminary gold indicators – and the stock-price is reactively moving up. This initial price-escalation is just the start of a long-term projected profit expansion, which means you should continue accumulating SRGL shares at the current price-range.
Below, we have reposted point #3 from our 22 November buy-recommendation on SRGL because we’ve now taken a giant step toward this profit-projection in just five market days:
3. Source Gold, next with its substantial gold-resource indicators, will be an irresistible attraction to major gold producers that want to finance this junior exploration company’s future success – and this is when SRGL shares can make YOU more profits than actual gold.

Muscle Flex Inc. Acquires and Launches an Updated Web Site Ahead of the Beagle StepFit National Commercial Release December 7, 2009

Muscle Flex Inc. Acquires and Launches an Updated Web Site Ahead of the Beagle StepFit National Commercial Release December 7, 2009

LOS ANGELES, CA--(Marketwire - 11/30/09) - Muscle Flex Inc. (Pinksheets:MFLI - News) ( announced today it has acquired the web domain and has gone live with a new updated site ahead of the national release of the Beagle StepFit commercial.

"Acquiring the web domain was an important step in ensuring that all web traffic generated from our advertising is captured with as little bleeding as possible," commented Danny Alex, CEO of Muscle Flex Inc. "I regard our web traffic to be one of our most valuable assets and now with the acquisition of, Muscle Flex Inc. owns the important web properties for capturing customers as well as maximizing search results and web optimization."

Muscle Flex has an aggressive ongoing web development program. The 'marriage' of Muscle Flex television media and its online properties is one that consists of leading edge data capture, efficiency and entertainment value for the customer. Cross pollinating the Muscle Flex customer database and communicating with them effectively, without intrusion, is an important strategy in developing ongoing sales and maintaining an intimate relationship with the customer.

In regards to data capture, The Muscle Flex Inc. Privacy Policy states that it will never sell or divulge any information of any customer at any time to any third party unless that which relates to the fulfillment of a customer's order.

About Muscle Flex Inc. (

Muscle Flex Inc. is a leading edge fitness, health and lifestyle company that develops exciting brands and new products to market using direct response TV advertising and commercials as well as cutting edge brand and image marketing through the creation of television media content for network and cable television distribution.

TradingMarkets 7 Stocks You Need to Know for Today

  • Frontline (FRO | Quote | Chart | News | PowerRating), the oil tanker company, reports its earnings before the bell with an expected loss of 12 cents/share.

  • The Bermuda based, gas transport company Golar LNG (GLNG | Quote | Chart |News | PowerRating) has forecasters awaiting a 2 cents loss prior to the open.

  • Propane company, Inergy (NRGY | Quote | Chart | News | PowerRating), reports its fiscal fourth quarter results before trading starts with an expected EPS loss of 49 cents.

  • Patriot Transportation (PATR | Quote | Chart | News | PowerRating) has forecast a fiscal fourth quarter EPS of 59 cents revealed prior to the bell.

  • Popular clothier, Guess? Inc (GES | Quote | Chart | News | PowerRating), reports its fiscal third quarter 2010 EPS before the opening bell with a consensus estimate of 50 cents/share.

  • Bristol Myers Squibb's (BMY | Quote | Chart | News | PowerRating) & Eli Lilly's

TradingMarkets 5 PowerRatings Stocks for Today

Warner Music GroupWMG10
Crocs Inc.CROX9
Martha Stewart Living OmnimediaMSO9
Tenet HealthcareTHC8
Whole Foods MarketsWFMI8

Media Digest 11/30/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

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Reuters: UAE shares fell on Dubai debt problem news.

Reuters: The Treasury will meet with mortgage companies to try to get them to accelerate loan modifications.

Reuters: Holiday shoppers did not use credit cards as much as in the past.

Reuters: Shoppers are increasing the use of e-commerce.

Reuters: Shoppers spent less per person on Black Friday than a year ago.

Reuters: Beijing Auto may have an interest in Saab.

Reuters: Regulators have made a list of systematic risk firms.

WSJ: A rift may be forming between Dubai and the UAE central bank.

WSJ: Some failed banks cannot be sold at any price.

WSJ: More shoppers went to stores over the Thanksgiving weekend, but they spent less.

WSJ: Higher interest rates are threatening bank stocks.

WSJ: More companies are becoming vertical through acquisitions.

WSJ: Wall St. traders are beginning to spend large sums of money again.

WSJ: The store debut of the Barnes & Noble (NYSE:BKS) Nook has been delayed.

WSJ: US coal miners expect to cut output.

WSJ: AOL plans to mass produce content using huge numbers of articles produced by outsiders.

WSJ: Samsung handset sales are on track to exceed expectations.

WSJ: Shopping via mobile phone is picking up.

WSJ: The Apple (NASDAQ:AAPL) iPhone went on sales in South Korea.

WSJ: R&D spending is staying strong.

WSJ: Lenovo will by a mobile handset company.

WSJ: More economists do not expect a strong recovery raising the question of how that will effect equity prices.

WSJ: Credit ratings agencies are producing more independent reports.

WSJ: Following Twitter is helping some companies predict near term sales.

WSJ: More companies are outsourcing idea creation.

NYT: Google (NASDAQ:GOOG) is working to gain ground on Yahoo! (NASDAQ:YHOO) in Japan.

FT: India GDP growth was 7.9% in the third quarter.

FT: There may be a bid for AIG’s (NYSE:AIG) aircraft leasing business.

FT: GlaxoSmithKline (NYSE:GSK) will cut drug prices for developing countries.

Douglas A. McIntyre

GCHT: Grand-slam Chinese wind-play, get in now

The stock is called GC China Turbine (GCHT), and while it may be low-priced at the moment, all that will likely change very shortly. This company is about to report its first profitable year (thanks to spectacular rise in sales), and is on track to grow its sales by 265% a year for the next three years at least. Very shortly, I expect the share price to begin a climb that could take it as high as 51X its current level.

Let me tell you what makes this stock one in a million...

Right Place. GC China Turbine is located in China, the fastest growing economy in the world. Next year, the IMF expects China’s GDP growth rate will be 9% – 6 times higher than that of the U.S. Under those conditions, you can expect returns on Chinese stocks to outpace their American counterparts by a wide margin.

Right Industry. China’s economic growth requires its energy supplies to grow by 10% a year. Yet at the same time, China needs to develop cleaner energy sources to curb its terrible pollution. To satisfy these goals, China’s government is investing $150 billion over the next 10 years to develop wind power. Turbine makers will see their sales skyrocket as all this cash gets spent on new windfarms.

Right Product. GC China Turbine has exclusive rights to manufacture and sell the most advanced wind turbine in China. It’s 2-bladed design is lighter and more reliable than anything else on the market. The design was developed in Sweden under a $75 million research grant, and test models have been in operation for over 10 years. What’s more, this turbine can bring the cost of wind power down substantially, so that for the first time it can compete price-wise with coal-fired and hydro-electric plants.

Right Connections. GC China Turbine may be small, but its parent company has a 40% market share of the market for technology geared to the electrical utility industry and an excellent reputation. GC can benefit from its parent’s engineering expertise, reputation, and contacts within the utility industry, government, and parts suppliers to expand its business rapidly. Right Backers. Two of China’s most successful venture capital firms have provided the company with the cash infusion it needs to expand its production.

Right Timing. GC China Turbine already has won 3 contracts for a total of 150 turbines worth $128 million. Seven of these are already delivered and installed, while the rest will be over the next few months. That means not only this year’s profit but also next year‘s huge increase are practically guaranteed. Between now and the end of this year, you have one final chance to buy shares for under $5.50. Once the next earnings report comes out, I doubt they will ever be this cheap again.

Let me stress. This may be a small company now, but in three years it could easily have a market cap of over $1 billion. It’s the kind of opportunity that doesn’t come along every day, and I really think you should take advantage of it. Contact your broker now, and if you’re lucky enough to find GC China Turbine (GCHT) selling for under $5.50 a share, buy some quick!

Sunday, November 29, 2009

Quanta Services (PWR): Infrastructure power play

"I'm excited about Quanta Services (NYSE: PWR), a contracting company that specializes in building utility transmission and distribution infrastructure," says Ian Wyatt.

In his Top Stock Insights, he explains, "The current focus in the US of projects that improve energy conservation, utilize renewable resources, and improve air quality make Quanta an excellent long-term growth opportunity."

"Its customers are in the electric power, gas, telecommunications, and cable television industries. These are stimulus spending customers, i.e. big government organizations and utilities companies.

"Quanta's industry is highly regulated and very cyclical. The industry is pulling out of the cyclical trough with a renewed focus on projects that will improve energy conservation, utilize renewable resources, and improve air quality. Federal stimulus spending is also helping by spurring demand.

"Quanta Services will benefit from U.S. efforts to increase energy independence while meeting clean energy goals. It can build the infrastructure and electricity distribution networks to harness energy from diverse sources like wind, solar, and natural gas.

"In fact, many coal fired power plants are considering making the switch to natural gas as a cleaner, more cost-efficient alternative fuel.

"While challenging market conditions won't evaporate overnight, and the future of natural gas is not set in stone, Quanta is in an very strong position to capitalize on increasing demand for clean energy initiatives.

"Quanta has been growing both organically as well as through acquisitions. From 2006 to 2008 revenues increased from $2.1 billion to $3.8 billion.

"Over the same period, the company reduced its total debt from $450 million to $145 million. With nearly $440 million in cash at the end of 2008, it's safe to say that Quanta Services is growing operations at an attractive pace.

"Its latest acquisition, Price Gregory Services, just closed in October 2009. Price Gregory is a leading U.S. energy infrastructure company and specializes in the construction of large diameter transmission pipelines.

"These are the big boys that will really get natural gas flowing around the country. I really like that Quanta is growing its natural gas operation at a time when the long-term outlook for the commodity is improving.

"Right now, there are more than 50 major pipeline projects either approved or under construction in the U.S., and Price Gregory's leadership in the industry will help secure business for Quanta.

"The acquisition will also bring in nearly $1 billion of revenue in 2009 and increase earnings by $0.13 - $0.21 per share. These are the kinds of immediate earnings increases that I love to see out of acquisitions.

"Quanta Services is going to grow earnings at a rate around 50% over the next year, and I expect at 25% in 2011. I'm looking for the company to have 2009 EPS of $0.72 and 2010 EPS of $1.11.

"I don't think the currents share price fully represent the favorable industry momentum, the competitive advantage of the Price Gregory acquisition, and strong financial management of the company. Quanta's shares should trade up to $27."

Sunday tips round-up: Lloyds, Standard Chartered, Petra Diamonds

The option to buy shares at a discount to the market price is extremely tempting. If the economy turns upwards and Lloyds can pull off a successful merger of operations with those of HBOS, then 37p looks like an extremely good deal. But the economic outlook remains uncertain and banks have not proved themselves the most reliable guides to their own financial stability.

Fortunately a rights issue gives investors a way to increase their investment and so benefit from the recovery without dipping into their own pockets. Sell some of your rights entitlement and use the proceeds to buy the rest. Or in Cityspeak, swallow your tail, says the Daily Mail.

Greed has been in the driving seat for some time – but at the end of last week news from Dubai caused fear to re-emerge as the emotion controlling events. Shares in Standard Chartered fell 6pc on Thursday, wiping about Ł1.8bn off its valuation. Investors are concerned that events in the emirate could set off a chain reaction across Asia. However, the Telegraph’s Questor is along-term investor and regards the steep fall last week as a buying opportunity.

The shares are trading on a December 2009 earnings multiple of 14.2 times, falling to 13 next year. They are yielding 2.7pc. Shares in Standard Chartered were recommended as a buy on April 6 at Ł12.40 and they are now up 22.5pc compared with a market up 31pc. Buy.

On Friday Petra Diamonds sold a 168 carat diamond from its Cullinan Mine for $6.28m (Ł3.83m) – or $37,380 a carat. The Cullinan Mine, near Pretoria, South Africa, is famous for producing a 3,100 carat diamond in 1905 – with the two largest gems from this stone becoming centrepieces in the British crown jewels. The shares were recommended at 68žp on October 20 and the shares are down 9pc compared with a flat market. Because of the quality of its diamond mines, the shares are a buy, says the Telegraph.

Sunday newspaper round-up: Dubai, Yell, Banks

Abu Dhabi is this weekend putting together a rescue package for Dubai, its debt-laden Gulf neighbour, in an attempt to restore calm in panicked international markets, according to the Sunday Times.

The FT adds that Dubai’s government is preparing a campaign to persuade the holders of a bond due for repayment next month to agree to a delay even if that sparks claims that the emirate has defaulted on the debts of a government-backed company, bankers said on Sunday.

The Bank of England has been secretly mediating on major financial restructurings to ensure that they are approved by creditors, in a return to a 1990s policy known as the "London approach". Most significantly, the Bank intervened in the struggle that Yell Group, the Yellow Pages publisher, faced when it pushed through amendments to the terms of its Ł4bn debt burden at the turn of November. The Bank's chief cashier, Andrew Bailey, made telephone calls that resulted in what a market source described as "gentle conversations" with creditors who were considering voting against the amendments, says the Independent on Sunday.

Lord Myners, the City minister, has launched an investigation into the giant profits racked up by investment banks, after claiming the scale of the windfalls “defies rational analysis”. A handful of banks, such as Goldman Sachs and Barclays Capital, are expected to post record profits this year, partly due to the continuing chaos in the financial world, writes the the Sunday Times.

The billionaire currency trader Joe Lewis has blocked the appointment of Archie Norman as chairman of Mitchells & Butlers, the Ł1 billion pub group. Norman, who was this month appointed chairman of ITV, the broadcaster, had been in talks about becoming non-executive chairman of M&B, which owns 2,000 pubs including the Harvester, All Bar One and O’Neills chains, reports the Sunday Times.

Saturday, November 28, 2009

China Wind Systems, Inc. Reports Third Quarter Fiscal 2009 Results

On 9:39 am EST, Tuesday November 17, 2009

WUXI, Jiangsu, China, Nov. 17 /PRNewswire-Asia-FirstCall/ -- China Wind Systems, Inc. (OTC Bulletin Board: CHWY - News), ("China Wind Systems" or the "Company"), a leading supplier of forged products and industrial equipment to the wind power and other industries in China, today announced its financial results for the quarter and nine months ended September 30, 2009.

    Third Quarter 2009 Highlights and Recent Events     -- Net revenues increased 37.1% year over year to $16.1 million     -- Revenue from the sale of forged products for the wind power and other        industries increased 112.0% year over year to $11.1 million, or 69.1%        of net revenues     -- Revenue from the sale of forged products exclusively to the wind power        industry increased 175.7% year over year to $6.9 million, or 42.6% of        net revenue     -- Gross profit increased 31.7% year over year to $3.9 million     -- Net income allocable to common shareholders increased 9.4% year over        year to $2.0 million, or $0.09 per fully diluted share     -- Adjusted net income was $2.5 million, or $0.11 per diluted share, up        34.3% year over year excluding $462,000 non-cash deemed preferred stock        dividend related to issuance of 1.1 million series A preferred shares        in the third quarter of 2009     -- Completed one-for-three reverse stock split effective September 23,        2009     -- Raised $3.5 million for the private sale of 3.5 million shares of        Series A preferred shares in September and October 2009 to fund payment        of electro-slag re-melted (ESR) forged products production line 

"We are very encouraged to have achieved another quarter of strong earnings growth driven by rapidly expanding forged product segment for wind power and other industries," said Mr. Jianhua Wu, Chairman and CEO of China Wind Systems, Inc. "In October 2009, we commenced construction of our ESR production line which will be housed in an expanded wing of our newly built forged product facility. We anticipate completing construction by the end of the first quarter of 2010. We are confident that the addition of high precision forged products to our product portfolio will increase our competitiveness in the wind power components market."

Third Quarter 2009 Results

Net revenues for the third quarter of 2009 increased 37.1% to $16.1 million, compared to $11.8 million for the same period in 2008. The increase was primarily due to strong sales growth of forged rolled rings. Revenues from the sale of forged rolled rings for the wind power and other industries grew 112.0% to $11.1 million, or 69.1% of net revenue, for the third quarter of 2009, compared to $5.3 million, or 44.6% of net revenue, for the same period of the prior year. Revenue from the sale of forged rolled rings exclusively for the wind power industry rose 175.7% to $6.9 million, and represented 42.6% of net revenues, compared to $2.5 million, or 21.2% of net revenues in the year-ago period. Revenues from the Company's dyeing and finishing equipment segment decreased 16.4% to $5.0 million, or 30.9% of net revenues, compared to $6.0 million, or 50.6% of net revenue, for the third quarter of 2009 due to impact of the global recession on China's textile industry.

Gross profit for the third quarter of 2009 increased 31.7% to $3.9 million, from $3.0 million for the same period in the prior year. Gross margin was 24.1% compared to 25.1% for the same period in 2008. The dyeing and finishing equipment segment's gross margin was 21.7%, down from 26.3% in the comparable period in 2008, resulting from higher raw materials costs and industry pricing pressure. Gross margin for forged rolled rings and electric power equipment was 25.1%, compared with 23.8% in the same period last year. The increase was attributable to cost savings resulting from the Company's ability to manufacture machinery used by the Company to produce its forging products which the Company previously outsourced. As the Company improves its efficiency at the new facility, the Company expects the gross margins to continue to improve.

Operating expenses decreased 2.9% to $469,755, compared to $483,790 in the comparable period last year, primarily the result of lower professional fees.

Operating income increased 38.5% to $3.4 million for the third quarter of 2009, from $2.5 million for the same period in the prior year.

Net income allocable to common shareholders increased 9.4% to $2.0 million, compared to $1.9 million in the third quarter of 2008. Diluted earnings per share increased to $0.09 from $0.08 in the comparable period last year. Adjusted net income excluding $462,000 one time non-cash deemed preferred stock dividend related to issuance of 1.1 million series A preferred shares in the third quarter of 2009 was $2.5 million, up 34.3% from $1.9 million a year ago. Diluted earnings per share were calculated using weighted average shares of 23,506,936 and 22,396,370 for the three months ended September 30, 2009 and 2008, respectively. All share and per share information reflects the one-for-three reverse stock split, which became effective on September 23, 2009.

Nine Month Results

For the first nine months of 2009, revenues increased to $37.6 million, up 19.7% from $31.4 million in the corresponding period of 2008. Gross profit increased 8.9% to $8.6 million, as compared to $7.9 million in the comparable period last year. Gross margin was 22.8%, as compared to 25.1% during the first nine months of 2008. Operating income increased 16.2% to $7.0 million, from $6.0 million during the first nine months of 2009. Net income attributable to common shareholders was $4.5 million, or $0.20 per diluted share, compared to net loss available to common shareholders of $0.9 million, or net loss of $0.07 per diluted share, in the first nine months of 2008. Diluted earnings per share were calculated using weighted average shares of 21,969,692 and 12,878,103 for the three months ended September 30, 2009 and 2008, respectively, as adjusted for a 3-to-1 reverse stock split, effective on September 23, 2009. Adjusted net income allocable to common shareholders was $5.1 million, or $0.23 per diluted share, as compared to $4.3 million, or $0.33 per diluted share.

Financial Condition

As of September 30, 2009, the Company had cash and cash equivalents of $1.2 million, accounts receivable of $6.0 million and working capital of $5.4 million. The Company had $1.4 million in short-term loans payable, $0.7 million in long-term debt, and stockholders' equity of $39.7 million.

During the first nine months of 2009, the Company generated $4.9 million in operating cash flow and spent $6.5 million in capital expenditures, primarily for property and equipment related to the new forged products facility and ESR production line.

Recent Developments

In September and October 2009, the Company received gross proceeds of $3,500,000 from the sale of 3,500,000 shares of series A preferred stock to pay down payment for its ESR project.

On October 13 2009, the Company completed a one-for-three reverse stock split, an important step for the Company to meet the minimum share price requirements for listing on a senior stock exchange in the United States.

Business Outlook

"As we continue to increase the utilization rate at our forging facility, we anticipate gaining momentum for our sales activity," commented Mr. Wu. "Upon completion of our ESR production line, we expect to be in a stronger position to apply for the highly valued international certifications that we believe are necessary for us to win larger contracts to supply wind energy components to major industry players. In addition, we expect to achieve higher gross margins in our ESR forged product line, which is anticipated at approximately 35%-40%. Given anticipated consolidation in the wind energy components industry, we are focused on improving the quality of our products to further distinguish the Company."

Conference Call

The Company will conduct a conference call at 10:00 a.m. Eastern Standard Time (EST) on Tuesday, November 17, 2009 to discuss its third quarter 2009 results. To participate in the live conference call, please dial 888-419-5570 (international callers dial 617-896-9871) approximately ten minutes prior to the start of the call and when prompted enter passcode 794 278 01. A replay will be available for 14 days starting November 17 at 12:00 a.m. EST. To access the replay, dial (888) 286-8010 (international callers dial 617-801-6888) and enter passcode 486 940 06.

Use of Adjusted Financial Measures

China Wind Systems believes that net income adjusted for certain non-cash expenses, a non-GAAP performance measure, is a reasonable means for understanding its business in view of the significant non-cash charges which do not relate to the operation of the business. In connection with the Company's November 2007 private placement, it issued 3% convertible notes to the investors in the principal amount of the $5,525,000. Because of the favorable conversion terms, the debt was issued at a discount of $2,610,938. Upon the conversion of the debt into equity in March 2008, the unamortized debt discount of $2,263,661 was fully amortized and treated as additional interest, and the relative fair value of the warrants granted in March 2008 related to the November 2007 private placement of $2,884,062 was classified as a deemed dividend to the holders of the series A preferred stock. Additionally, in September 2009, we sold 1,100,000 shares of series A preferred shares and recorded a beneficial dividend of $462,000. The amortization of the debt discount and the deemed dividend are non-cash events which do not affect the Company's operations.

About China Wind Systems, Inc.

China Wind Systems supplies forged rolled rings to the wind power and other industries and industrial equipment to the textile and energy industries in China. With its newly finished state-of-the-art production facility, the Company plans to increase its production and shipment of high-precision rolled rings and other essential components primarily to the wind power and other industries. For more information on the Company, visit . Information on the Company's Web site or any other Web site does not constitute a portion of this release.