China Growth Stocks

[Drexion2004]

CCCL: I view the release of Geo's positive OTG findings as the icing on the cake. I don't think the stock needs that to move higher as we approach Q2 results though.

The capacity expansion is really starting to kick in now and we should see progressively higher YoY growth numbers every quarter for CCCL, starting with this strong Q2. There should also be some slight margin improvement as they bring some of their production back inhouse (versus using outside OEM sources for part of it).

-Fernando