As of January 4, 2008....
You should see CMED
China Medical Technology hasn't done as well as its mainland peer but, with an 83% gain over the past year, it is still a massive market-beater. Here's why:
Revenue (In Chinese Renminbi)
FY 2007 547.0
FY 2006 371.8
FY 2005 217.8
FY 2004 110.8
Source: Capital IQ, a division of Standard & Poor's.
That's three years of 70% average annual growth!
Some investors see more gains on the way, thanks to the company's innovations in cancer treatment. Here's how CAPS All-Star kwfisher put it in March:
... HIFU technology approval for use in the U.S. and other large foreign markets is the big potential payoff, but these approvals are not necessary for the stock to be a compelling value today. Its diagnostics systems appear to provide a steady and substantial source of growth on their own.
Indeed, according to Capital IQ, China Medical trades for 26 times this year's earnings for a low 0.87 PEG ratio. Will Danoff of the Fidelity Contrafund (FCNTX) apparently believes that's too cheap. He was a buyer as of October.
"I call investing the greatest business in the world because you never have to swing... All day you wait for the pitch you like,... The problem when you're a money manager is that your fans keep yelling, 'Swing. you bum!'"
W. Buffett
