We had a phenomenal week last week with our last 5 Star China Stock rallying all week from $1.98 to as high as $3.25, for a gain of 64% in less than one week! Congrats if you were able to cash in on those solid short-term profits! Remember, after a huge run like that there will almost always be a pull back from profit taking but these companies are for the long-term.
We have now researched close to 100 china stocks looking for more undervalued situations that we think could make our club big gains and we are excited to bring you what we believe will be the next china play that could see a short squeeze offering us huge profit potential!
No other small-cap newsletter spends as much time as us doing research!
We are pleased to introduce to you our next 5 Star Stock ...
SkyPeople Fruit Juice, Inc. trading on the Nasdaq under ticker symbol SPU. SPU closed at $2.79, up +18.72% and it looks like the short squeeze has begun so our timing couldn't be even better!
Once you do your research on SPU there is no doubt in your mind that you will believe SPU will become an enormous winner. We based our analysis on facts and fundamentals!
SPU, through its subsidiaries, produces and sells fruit juice concentrates, fruit beverages, and other fruit related products primarily in the People's Republic of China. Its products include fruit purees, concentrated fruit purees, and concentrated apple, pear, and kiwifruit juices; fruit juice beverages and fruit cider beverages; and organic and non-organic fresh fruits and vegetables, dried fruits, preserved fruits, kiwifruit seeds, pear fructose, and apple aroma. The company sells its products directly to hotels, supermarkets, whole sellers, and other outlets, as well as to end-users; and through distributors and trade Websites. SkyPeople Fruit Juice, Inc. also exports its products to North America, Europe, South Korea, Russia, and the Middle East.
SPU at the current PPS has a market cap of $71.6 MM with a P/E of 3.3. SPU's revenues are up in 2010 to $93.25M from $59.25 M in 2009 and $41.64 M in 2008! SPU's net income is up in 2010 to $21.18 M from $15.18 in 2009 and $10 M in 2008!
Earnings estimates are 86 cents for 2011 and $1.11 for 2012. The book value is stated at $4.99.
As you can see, the company's growth is second to none!
Best of all, SPU has $76.15 MM in cash and only $13.79 MM in debt!
Think about it, that means SPU has a net cash position of $62.36 M when the market cap is $71.6 M! The whole company is being valued at only $9.3 M when they had revenues the past 12 months of $93.25 MILLION and net income of over $21 MILLION!!!
This is a NO BRAINER!
If we take the net income of $21 M and multiply it by an enterprise value of just 5 times earnings we would get $105 M. If we add the net cash position of $62.36 M we would get a market cap of $167.36 M. Remember, SPU's market cap right now is only $71.6 M! With a potential market cap of $167.36 M and current shares outstanding of 25.69 Million that would equal a price per share of $6.51!
SPU is currently trading at $2.79 which means there is a potential gain to be made here of 133%!
There are 755,000 shares short this past month which is down from 970,000 the previous month which leads us to believe that SPU could be setting up for a HUGE short squeeze in the near term!
The rally looks like it just begun and it is extremely important that you research SPU tonight before you miss the boat. The stock broke through its 50 day moving average and the chart is starting to bust. Barchart.com just rated SPU a buy -http://barchart.com/quotes/stocks/SPU
This is the real deal and won't be trading at such a discount for much longer, in our opinion!
We gave SPU our highest ranking showing our highest level of confidence!
Do your due diligence and get ready for a breakout come tomorrow!
More Updates To Come ...
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