Readers Respond: SQNM, CHFI, SNDY,

In "Readers Respond" I do my best to answer readers' questions, but keep in mind that my responses to these questions are my opinions and personal speculation that I have based on my own research and DD.

Also, I will try to respond to a number of requests that I've received via email or comments to the board asking for 'VFC's Take' on stocks that readers have found. While I'll do my best to address as many as I can, please take a few things into into consideration while reading:

- I have not thoroughly researched all of the stocks that I'm about to comment on. I've done the initial DD but my opinions are mostly based on my first impressions of the stock. I'm merely providing VFC's Take, as requested. Use that as a starting point to do your own DD.

- Don't get testy if I don't like your stock. Remember, this is just my initial impression and I take into consideration some variables that other people don't, that's why 'VFC's Take' is not always the mainstream impression.

- I appreciate all the recent feedback, and keep the stock tips coming; this is a great forum for all investors of all levels to share tips and insights. There's a whole lot of stocks out there, but there's only a few gems. Let's keep trying to find those gems.



SQNM: A comment from Pete regarding Sequenom, Inc.:

Hello VFC,

I love reading your comments and insight, keep up the good work. Not a day goes by without me learning something new by reading your posts.

I still have a question on your take of Sequenom (SQNM). Any comments?

Thanks in advance.

-Pete

VFC's Take: Appreciate the comments. It's a two-way street here, I think that all involved have something to offer and we can all learn a thing or two from each other. That's the best part of putting a whole bunch of good minds in one place - a whole lotta great investing ideas can be put to action.

As for SQNM: The recent turmoil surrounding Sequenom and the mishandling of the Down Syndrome test results still has me a bit weary of buying stock in the company, although I do see the argument that this is a "buy while the kicked dog is still down" stock, as I described in a previous post about the stock.

That being said, I've decided that if I am going to dabble in this stock, I'm going to dabble in the options, which are very cheap right now. I like the long call options for 2011 because that gives the company plenty of time to get their ducks in a row and re-examine the Down Syndrome data. With the options currently trading for a low price, I like the idea of potentially controlling a lot more shares through options than can be purchased on the open market for the same amount of money.

If the stock rebounds, it should rebound nicely making those options an attractive play right now, in my opinion.

SQNM is a nice rebound play because people are scared stiff of the stock right now, and I can understand a speculative investment in the stock, but if I get in, I'm going to do it via long call options.

Disclosure: No position.



CHFI.ob: A comment from Lenny regarding China Finance, Inc.:

Hi Vinny,

These forums are great!

I was doing my little lunchtime browse on the MB's and saw a reference to CHFI on the CVM board. This is a Chinese financing company, the stock has had quite a run over the last couple of weeks. It is trading around 40 cents right now, I don't see anything 'negative'.

If you get a chance, can you let us know?

Tks!

Lenny

VFC's Take: I'm on the fence with this one. The recent run has been spectacular for shareholders that bought near the lows or on the way up, but with no news released in quite some time, I'm hesitant to buy into the hype.

That being said, I could understand a bit of 'night on the town' money going into this stock because if the company is doing what it says it is doing on the website, then it will benefit from the growing Chinese economy.

I can't shake the pump & dump feeling on this one for some reason, maybe I'm just a bit more sceptical than others about Chinese bulletin board companies, but the website looks too much like propaganda to me. I know that one of the missions of this company is to get Chinese businesses an 'in' with American companies, but I don't get the picture of the NYSE on the main page of a Chinese company.

And then the "Ray of Sunshine" page just screams of propaganda. This company reminds me too much of the guy that opens up his jacket and has a whole bunch of shiney Rolexes for you at a great price.

Do your own DD on this one and make sure that you buy and sell based on your DD and not on pure emotion.

I'm going to pass on this one because I think that it could drop just as fast as it rises. I may miss out on a continued run, but I'll be able to sleep a lot easier at night because I won't get the feeling that I've bought into a company that was set up to make money for a bunch of criminals.

Disclosure: No position.



SNDY.pk: An anonymous comment regarding Solos Endoscopy:

Hi VFC! Thank you for taking the time to post your thoughts! Your posts are very informative, helpful, and much appreciated! What are your thoughts on SNDY.PK (Solos Endoscopy)? It seems like they have a lot of good things going for them, including early detection cancer products, one is FDA approved. The stock is only at .02 cents and had a decent run over the last few days. I'd love your thoughts. Thanks again!

VFC's Take: Solos Endoscopy is a decent enough 'night on the town' play while trading for roughly three cents and a market cap of about 16 million.

Friday's sixty percent rise could be attributed to a press release announcing that Solos has received multiple purchase orders for its MammoView product line, and those orders could increase further on down the road as Solos looks to expand into the European market.

There are some concerns - nearly a billion shares outstanding and two billion authorized. However, if the company can line up some good partners and/or hire an effective sales staff, then there's no doubt that the potential is there for the market cap to rise from the sixteen million level.

For the short term, I'll add it to my watch list and look to see if the stock consolidates or retreats after the nice runup. For the long term, it all depends on how well this company can market its products and compete with the big boys for market share.

Disclosure: No position.

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