Wow very interesting article Jim! I have come across this one:
>>>China Stock Update
Dragon International Group Corp. (OTC BB: DRGG), one of China's manufacturers and distributors of specialty paper products and packaging materials, today announced it has acquired 100% ownership interest in Shanghai Jinkui Packaging Material Company, Limited (“Shanghai Jinkui”). Shanghai Jinkui Packaging Material Company, Limited, with headquarters in Shanghai China, is a member of the packaging sector in China. The company manufactures high grade packaging materials for the pharmaceutical industry in China.
Management of Shanghai Jinkui forecast the company could generate annual sales of $8 to $10 million as of June 30, 2007 and estimates annual sales of $18 to $20 million by June 30, 2008 with approximately 20% in net profit margin.
DRGG has trade over 3.5 million shares in the past two weeks. The average month trading volume was about 200,000 shares from January to May 2005. We believe increasing trading volumes indicate a long term rise of the stock price in the near term, as investors grab and absorb cheap shares out there. The good news is that DRGG is very cheap at this level where investors can really invest in this ground-floor opportunity. If DRGG could generate over $28 million in annual sales with $3 million in net income in the next 12 months, the stock trades about 0.33 x revenues and 3x earnings. How long do you think the current stock price will last? Like SUWN that we started coverage when SUWN was 0.10 per share last September, we believe DRGG is worth at least $0.50 per share in the next 12 months, about 1x revenues, and 10x earnings. Don’t surprise to see DRGG trading up to $1 per share, only about 2x revenues and 20x earnings. It really is reasonable even if DRGG trades above $1 per share.
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