CSGJ:
Gorilla, I put more stock in current P/E's rather than forward P/E's, UNLESS the forward P/E reflects a significantly negative factor. In the case of CSGJ, the forward P/E only shows this stock should not perform as well, but still far better than it is valued. Add in the obscenely low price/book value, and this stock is the very definition of "undervalued".
Back to the subject of P/E's, the current P/E is partially reflective of how management has dealt with previous conditions within their business. The increased forward P/E is reflective of China's decision to restrict new construction, which will obviously impact this company. But because CSGJ was already running VERY efficiently, isn't it safe to assume they will adjust to this change in their business environment? Frankly, they are in a better position than many American companies in their industry (which are faced with the market-forced restriction on new construction, i.e. lower real estate prices).
Even if their earnings drop, a P/E of 5-7 is still a pretty sweet spot to be.
