China Growth Stocks

[GorillaGorilla]

CELM - I like it. It has $1.80 in cash and put on $4M on balance sheet in the last quarter alone. The company has been ramping up this August and we should start to see the results this quarter and through till at least mid 2011. By which time they should have doubled their output.

The company opened up another vertical "DC coreless micro motors segment" with no fanfare.

CFO - answered all questions put to him from nobodies like me. Seems to understand the market. He says since he IPO'd at 4.50 he isn't going to buyback above that level but would consider it beneath 4.50.

He also says he will be looking at upgrading auditors and is looking at SOX even though he's not required yet (think IPO's get a years grace or something).

So, at $5.00 downside limited. We should start seeing upside with Y/Y EPS growth possibly Q3 or certainly Q4.

rich