THE NSOMNIYAK CHALLENGE, the reasons for my 6 picks:
CHLN.OB - my favorit pick for 2008. CHLN.OB sold her 1st piece of land (25 gross acres and 18.4 net acres) at the end of 2007. CHLN will met her target of 16.4 net earning for 2007 or 54 cents for 2007 (30.3 million shares). It is traded at PE=9 for 07. I think that CHLN will hit earning target of $1.2 per share or forward PE=4 for 08. Besides, the remaing land value (468.6 gross acres) is worthy the north of $15 share price based on my calculation. Share price is currently $4.9.
CNEH.OB - my next favorit pick for 2008. CNEH.OB made 8 cents per share for Q3/07. I expect they will make 10-12 cents per share for Q4/07 and 55-65 cents for 08 if the average oil price in the range of $80-90 per barrel for 08. So CNEH is traded at forward PE=3.6 for 08 with excellent earning growth, very cheap.
PNS - PNS made 10 cent per share last Q, inventory coming down and account receivable comind done, and strong cash flow from operation. From the earning call, managements expected continue improvement and growth. Have bulit decent position in this stock since earning report. Annualized PE based on the last Q earning is 6, cheap.
INPH - 2008 should be the year the ramp up of ATCA and AMC. INPH has strong position in ATCA and AMC. I expect earning jump next the end of 08. Share price may jump in anticipation of explosive earning growth.
CHCG.OB - The company was up her earning guidance for 07, another cheap Chinese name. I think that they have good chance to earn 47 cents for 07 and 64 cents for 08, PE=8 for 07 and forward PE=6 for 08.
SGTI.OB - Another my favorit stock for 08. But the strong earning growth may not come until the 2nd half of 08. SGTI.OB made 11 cents last Q with annualized PE=7.4 with strong earning growth toward the 2nd half of the year.
