Replies to post #37314 on China Growth Stocks

[GorillaGorilla]

CPQQ, crazy :-) Yes, at full production and possible future expansion it looks cheap. I like it but would have liked something more cast iron in the PR about orders a moderate growth in orders would leave it looking less attractive.

I'm thoughtfull on it but not yet bought it.

rich

[viking86]

CPQQ: well let's see if they can: 1) ramp up production to 100% capacity and 2) sell it all= 6500 Tons this year vs. 1500 Tons (maybe a little more with outsourcing) last year. That's a BOLD assumption. I would be happy if they can triple current production = 4500 Tons this year compared to 2009.

Also, if we assume all warrants and prefs converted in 2010 (FD=24.5M), that's a 64% dilution vs. 2009 (FD= 14.9M per 10K). Poor eps will get reduced accordingly. So let's also reduce the numerator in the P/E by deducting the extra cash from the conversion from the market cap to make the P/E look not that high.

Anyway, even if we get "only" eps 0.56 (vs. your dream eps of 0.74) this year compared with 0.28 last year, that's 100% yoy. I'll take it anytime :)

[pnnymn]

CPQQ Im surprised that nobody has mentioned the fairly obvious in that it would seem that management has listened to shareholder concern over the new plant and has responded.