China Growth Stocks

[worthylion]

LIWA--Closed at $5.32 vs. cash at 12/31 of $4.82 with no debt. Trading at forward PE of 2.5X based on upper end of 2013 guidance (which they have always beaten in the past). All of their IR is as professional as I have seen for a smaller Chinese company. They seem to be doing everything they can, despite all the suspicions around Chinese companies, to prove they're legitimate including continuing to speak at US conferences when many others have quit. They seemed determined to prove they're a real company that deserves a reasonable valuation. I think there's a good chance they'll either succeed or ultimately get frustrated and go private/relist. Given the founder/CEO's large stake, the company's cash position and it's current valuation, a going private should be very possible--and at a valuation much higher than the current price. Either way, I think there's significant upside here over the course of 2013.