CDS:AMEX China Dream stock 7 PE W
With a 7 forward PE, CDS:AMEX is the most undervalued China stock.
CDS is a China Magensium producer that guided for $20 MM Income in 2008 ($1 EPS). However that forecast was when Magnesium was $3000 per Ton.
MAGNESIUM IS NOW OVER $5000 PER TON. CDS SHOULD REVISE ITS 2008 FINANCIAL PROJECTIONS SUBSTANTIALLY HIGHER.
If CDS even attains a CONSERVATIVE 15 forward PE it will be $15. With CDS's skyrocketing growth a PE of at least 25 is warranted IMO. CDS could be the next CHNR (China metal stock that went from $8 to $50).
CDS is the best buy in the US stock market IMO. You won't find another stock with $20 MM in cash, no debt, exponential growth, and a 7 forward PE.
From November Earnings PR: "As we head into 2008, we preliminarily see our current revenues exceeding $270 million with net income exceeding $20 million. This outlook, which is not inclusive of any additional acquisitions, will be reviewed and updated at the time of our 2007 year end results."
The Street.com has CDS in its top 10 picks for stocks under $10 (January 16 article).
The prestigous small cap research firm Dutton Associates has $15.52 Target price for CDS.
