China Growth Stocks

[blackberry12]

CHWY China wind more information

your share count estimates are correct after the recent private placement. The placement was provided for investment in a new high margin ESR (electro slag) line. They recently received an order for this line, which has filled ESR for 2.5 years such is the demand. The shares were split recently 3-1 reverse to attain entry requirements ($4) for the NASDAQ, which should be coming soon.

There is a lot of information of CHWY from followers over the past years on the yahoo message board. One particular follower 'JAN' continues to do indepth analysis (see link to latest)

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_C/threadview?m=tm&bn=99866&tid=220&mid=220&tof=11&frt=2

He has messages archived on the following link

http://www.christian-sports.com/html/store.htm?article_id=105

you may want to look thru.

As an expectation and quote from JAN.

"The bottom line suggests FY2010 revenue of $90.49 million versus an estimated $56.57 million in 2009 or a substantial advancement of 60%. EPS is $.56 versus $.24 or a gain of 133%.

If these numbers come anywhere close to future performance, then the growth rate will indeed be striking. If we calculate the 2009 to 2010 PEG ratio using the projections above and the Friday closing stock price, the PEG comes to .13. As most of you know we want a PEG as far below "1" as we can get it because a PEG of "1" suggests the value of a company (as measured by its' PE) is equal to it's' growth rate and thus fairly valued. A company with a PEG of .13 tells us the company is way undervalued relative to its' growth rate. The average PEG right now of all companies monitored by First Call is 2.35.

Taking this story one step further, let's try to determine an applicable PE ratio for CHWY and a 2010 stock price. If the growth rates above become reality, a 15x PE would be very conservative for an alternative energy company in China, especially if the revival of the overall stock market continues. Applying just a 15x PE to the $.56 of 2010 results in a $8.40 stock price or 107% capital gain over Friday's closing price. That 107% is consistent with the other growth rates above, and that is a good start.

So, with a NASDAQ listing to bring the crowd to us, and the kind of revenue and earnings numbers that should flow toward us, we will win this game. We know, hopefully, where the puck is going to be. We just need to skate to it."