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Monday, 01/14/2008 7:08:00 PM

Monday, January 14, 2008 7:08:00 PM

Post# of 785
NSOM challenge

Two fast growing chinese stocks are in my picks, LTUS and SUOT.

LTUS develops, manufactures and distributes pharmaceuticals and drugs. Last quarter revs were up 83% vs a year ago and income from operations was up 97%. Its trailing PE is only 7.6 and it's SP is down to $1 from a 52 week of $3.30.

SUOT is a fast growing steel producer in China. Revs were up 62% and net income more than doubled vs the year ago quarter. Strong balance sheet with $54 mil in cash and restricted cash and no LT debt. Mkt cap is $160 mil. Adding new production facility next month.

SIMG- Semiconductors, primarily for High definition applications with strong patent protection. Very strong balance sheet with $2.60 in cash (vs $4 SP) and no debt. Analysts expect them to earn 8c in the current Q and 35c for the year. Back out the cash and that is a PE of only 4.

INX.v- Found this one courtesy of Gilead. Also like it after more DD. Earned 1.3c last Q vs 26c SP. Company expects to grow revs 40% in 2008.

OISI.ob, this medical tech company has been discussed quite a bit on VMC board lately. SP is way down to 58c even after earning 2c last Q. Again a strong balance sheet with 28c in cash. Bringing new products online.

AFPC.ob-My wildcard pick. Another medical technology company that has also been beaten down from fund selling by investhealthpartners to raise cash for redemptions after a terrible year (same has happened to OISI). They are a well managed company and nicely profitable until last year when they acquired QR and have been integrating their operations and adding the support team needed for marketing their new 3d Conebeam dental image scanner to the dental profession. Recently approved for US sales, the company expects strong sales and profitability from this in the current year. This stock was in the $1.25 - $3 range over the last 3 years until a few months ago. I expect them to go right back into that range over the next year (currently at 40c-edit 55c after a PR today)

http://biz.yahoo.com/bw/080114/20080114005971.html?.v=1

http://biz.yahoo.com/bw/071214/20071214005342.html?.v=1

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