Replies to post #3522 on China Growth Stocks

[abh3vt]

Perhaps I confused your earlier bullish take on CCGY with some of the comments from ChinaStockPicker who I believe has cited management estimates from a long time ago re the new plant.

Either way, the stock has run up based upon some anticipation of firming business and the expected contribution from this new plant in FY10. Last quarter's numbers don't really justify the runup in the price we've seen for CCGY, imho. Its trading at an annualized forward PE of 16x based upon Q2, and that's pretty rich for an OTC:BB China stock.

I think there are better buys out there.....look at the problems that GU (Gushan) has been having:
http://finance.yahoo.com/news/Gushan-Environmental-Energy-prnews-1791650673.html?x=0&.v=1

How will CCGY be able to avoid some of the macro issues that GU is describing? I remember last year when it was CCGY that struggled and GU was deemed the better company, seemingly oblivious to the GM problems that CCGY suffered from. Now its GU's turn, and I suspect that CCGY will struggle too.