GoodFellas Big Board Catalyst and Chart Plays

[prokopton]

LIWA Inching up under the radar for about a month now.

"Despite repeated quarters of double-digit growth, Lihua's stock has failed to rise. A combination of short selling and skepticism towards Chinese RTOs has left LIWA with an unreasonably low stock price despite two independent financial reports confirming the validity of their operations. In their last quarter (3Q)..."

LIWA reported 53.5% year-over-year revenue growth as well as a 27% increase in net income. With a market cap of 160mm and a share price of 5.20, LIWA reported an adjusted EBITDA of 23.6mm, which annualized equates to a 1.43 times EBITDA. Lihua International's balance sheet also shows a lack of debt and $130.5 million in cash on September 30, 2012. As of right now, the company has a book value of $8.00.

Their most comparable Chinese peer, Fushi Copperworld Inc. (FSIN), traded at roughly 5x LIWA's P/E before the company was taken private in December. American peer, Encore Wire Corp. (WIRE), trades at about 8x LIWA's P/E. Both of these comparisons would equate to a value of at least mid 20s on LIWA without even taking into account their cash or growth rate.

http://seekingalpha.com/article/1177821-lihua-international-looks-significantly-undervalued?source=google_news