China Growth Stocks

[Traderfan]

Tradinghawk, regarding SIAF

I somehow agree with you about SIAF. It's still a pinkie and it's not really cheap based on 2009 EPS. They project 20 cents for 2010 or at least Chad projects that and he does know the company pretty well. So one could argue it's not expensive on a forward looking PE especially if it becomes an OTC BB stock in the first 2 quarters.

On the other hand let me tell you my guess why the stock is running now.

Since they announced the divi the stock is on the run. In the first few days I was wondering myself why the stock didn't immediately act to the really good news. Somehow it often takes a couple of days for the big guys to react to really good news, I see this quite often on different stocks.

If a pink promises a divi it becomes a different animal. The shorts in there (if there have been any) need to cover as soon as possible and some probably did the last few days.

Like Chad already said they have some good JV's and people get more convinced by the day that they will really uplist come 2010. They have nice potential for growth the next 3 years.

If they do 20 cents for next year then you have a 50% net income growth yoy and that is not bad.

People anticipate good guidance for 2010 in the CC and therefore it's kinda running up prior to the CC now.

That's my "guesses" why SIAF was so strong lately. FWIW