Replies to post #49303 on China Growth Stocks

[value1008]

Here are my ten amigos, almost all of which i own (or, as noted, i'd buy on a dip or on reallocation of profits). These were selected in terms of best risk/reward and upside potential (IMO) for the next 12-18 months.

CCME --recent blowout earnings, great biz model, wide moat, and possible gap up to this "new media advertising" sector's high P/Es [18-25] suggest a 3- to 4-bagger in 12 months for this stock trading on ttm P/E of only 5, forward P/E of likely 3 on 2011 EPS. Note that CCME is the "youngster" compared to FMCN, AMCN, VISN, et al., and all it needs is another big qrtr or two of earnings to prove to institutions and funds that it's a leading member of this sector and then the P/E will be bid up to levels nearer its peers here.

CNAM --if you buy the recycled scrapmetal growth story, this is potentially huge; a 2nd recycle facility could make this a $1bn rev/yr company. (And what about possible 3rd or 4th recycle facilities to meet huge demand for scrap in China?) Forward P/E of ~2.5 based on 2011 EPS of at least 1.50.

JADA.OB --as one CPA shareholder wrote, this co. could go 4 years without selling any of its SheTai jade and still be solvent without dilution or debt, such is the ridiculously low cashburn rate; co.'s earnings have certainly been choppy, but it's steadily growing its cash on huge margins, so one day it will vertically integrate and grow steadier earnings. Like CCME it could easily enact a share-buyback and institute a 3% to 5% dividend to re-set its shareprice to a higher level. Ttm P/E of 2.0.

LTUS.OB --everything is coming together for this pharma's colossal growth story, with no more overhang worries about its cash or dilution. Another stock with outrageously low trailing & forward P/E and PEG.

CKGT.OB --this manufacturer of cactus based healthy nutriceuticals and beverages, etc., is ramping up its newer healthy animal feed and no/low nicotine cigarettes for huge growth in coming years; if either the cigs or feed take off (and people like the cigs' taste and evidently animals like the feed) this is another billion-dollar co.

YYIN.OB --their goat milk is far healthier than cows' milk for babies, kids, adults and the environment; co. was in transition last 10 months or so, incurring big expenses for revamping product line, hiring big-clout Trout & Partners P.R. firm, and running prominent ads in major tv slots; their brand identity as "healthier form of milk" in minds of health-oriented Chinese (not yet conditioned to think of cows milk as the "main form of dairy," unlike in Europe & Americas) could lead to gigantic sales.

CPQQ.OB-- this stock had super-fast run-up in summer-fall 2009, but disappointed EPS growth expectations for 2010 b/c of dilution. Looks like a great play for 2011 with its new 4x greater capacity plant for its energy saving electric transformers and transformer cores, products mandated by the PRC govt to replace existing transformers and be used in all new power lines.

NEP-- In-house political problems with director Bruce and a trading halt on need to re-do numbers have created uncertainty; when everything blows over and trading resumes, this should be at least a $15 stock in 6-12 months (i.e., nearly a 3-bagger from present halted pps of $5.50).

CHBT-- I'll likely buy this on a dip. I agree with others here that this has vast upside potential; the Waldo Mushman short hypothesis declaring that "the SAIC figures and SEC figures don't match" for CHBT and many other China cos. is irrelevant, a red herring, b/c the SAIC and SEC are utterly disimilar agencies.

Really undecided about which one to put in for #10 here. I've got a lot of other companies on my watchlist, some of which i actually own (like SPU, CAGM, CHOP, SCEI, NFEC, CNOA), and others with which i'm very impressed and might buy on a significant dip or with reallocated profits (like SOKF.OB, ZSTN, BORN, CREG, NEWN, UTA, LPH, CBEH, BFAR.OB, JGBO, WKBT.OB, HFGB.OB and many others), almost all of which could see great advances in 2H 2010 and certainly as we get into 2011....

So i guess i'll put for #10 CELM, only b/c its price looks depressed right now at under $5 pps. Being an IPO, its pps can swing up higher than most reverse-merger companies' stocks. Could be a double at any time over next 6-12 months.

One last point here is that most of these will only see their stocks' big upside potential unfold with sector rotation by Big Money back into the U.S.-listed China smallcap space. I see that happening if/when the Shanghai Composite Index soars back over 3,000 as many big analysts see it doing in next several months.

--Timothy

[atco1982]

Next 10 Amigos list -

First, in general if it's not on your site with a score of 10+, forget it (in most cases).

Second I'm almost afraid to have a list at all since it seems to be a target list for shorting if thay are capable of being shorted. Therefore BB stocks are a best bet since they are overlooked.

I have provided no justifications except in a rare case.

CCME - This just can't last can it?
CHBU.OB
CGPI.OB
KNDI - Small electric cars are about to take off in China with government subsidies and government installation of 'replacement stations' where car owners lease the batteries and exchange them at these stations. The batteries are then slow charged (saves battery life) at night. A small KNDI Full Speed EV (latest version not yet released and no photo available) cost about $4,500 after the subsidy. Sales in the second half are expected at ~ 3,000 which will produce 0.25 - 0.30 in net earnings.
AWRCF.OB
LTUS.OB
JADA.OB
CBP
CCLTF.OB
CKGT.OB

[RyanW439]

I've got 7 amigos.

CCME
LPH
CHBT
CGPI
BSPM
CKGT
CHBU

[Michael Anderson]

My 10 amigos


BSPM - only SFDA approved OTC Hepatitis B drug in China(10% of population has Hep B), strong growth, forward P/E of under 4, continued additions to product mix

SCEI - recently uplisted, amazing growth, issue of dilution is already addressed

HFGB - strong growth plans which are also detailed, strong competitive advantage, continued expansion

ONP - if it comes back that they are not fraudulent, then worries are lifted and should create a decent multiple because of it

BFAR - strong growth, good recent acquisiton, much more room to expand, but seems to change directors often

CCME - very undervalued with a good amount of cash

CKGT - unique products with competitive advantage and strong growth

NEWN - incredible growth, just uplisted

NUIN - great growth, good cash on hand, unique product with high market share, new beverage product that should contribute significantly

SIAF

[viking86]

Amigos list: here is my list of 10 amigos ranked based on my view of potential appreciation in the next 8-9 months based on Aug 20 closing price:

JADA
NEP
CCME
BSPM
NEWN
UTA
CCGY
SIAF
CPQQ
CHBT

[Fi]

Top 10 Amigos, I only have 6 =)

CCME - Gigantic EPS, cash machine, easy to understand.
LPH - Same above
YHGG - $11 book value, gigantic agri company
SIAF - Dividend, agri again, under BV
CNAM
JADA

[realfast95]

AMIGOS

CCME - 10.20 jumped on the bandwagon..err bus
LPH - 2.02 retirement stock unless a refiner merges with them
CHGY - 1.50 one of the few remaining coal's on the OTC
CNOA - .46 BB, spec, ag distributer, new team, earnings overdue
CSGH - .84 watch list, OTC, Battery maker, 10K earnings any day
NEWN - 6.65 watch list 2011
CNAM - 3.61 watch list 2011
CHNG - 5.42 watch list 2011, buy under $5
CCGY - .789 BB, watch list, may RS to uplist.
FEWP - .31 BB, watch list, Crane's new company

[tika1]

My Top Ten List

SIAF - Great growth ahead
JADA - Good cash flow and Low PE
CCME - This stock is ........
UTA - Downside risk is limited at current price
TXIC - Trading below book value and very cheap in auto sector
PFGY - Hopefully Sept Q,it will deserve its value
BWOW - Beaten at moment, but have huge potential. Warrant is one to watch
AERL - Great cash flow. Be part of Macau gambling growth

[Traderfan]

CCME, well what should I say about this one. Short of being a scam this one is a sure double over the next 9 months. Probably a lot more but I admit it trades very strange. That is the only part which makes me go hmm about this stock.

LPIH, just a solid and secure business model which will just continue to grow. Stock is ridiculously cheap right here.

SIAF, first and only one so far from our space who did the divi thing. Shows they are legit. Huge growth potential through their business segments especially the fish farm stuff coming soon. Will also uplist to OTC very soon.

LTUS, one of the cheapiest stocks in our space, big new facility for 2011 with huge revenue growth rate expected.

CCLTF, serious growth company with a full orderbook and excellent business outlook. Very cheap.

WKBT, interesting at these levels because 2010 will most likely be pretty good despite a bad Q2.

CPQQ, not cheap now but as soon as they can show that their huge facility expansion will be met with orders the stock will fly.

CGPI, Guidance for 1.45 for fiscal 2011 with huge room to expand their business in the next 12 months.

CKGT, disappointing first half year but overall very cheap at these levels and the second half of the year should be much better.

ZSTN, clearly a solid company especially after the nice guidance increase. Not the most potential from these levels here in my opinion but growing nicely and is cheap and solid and should be good for at least 50% from here.

[rjeezy007]

SIAF
CCME
LPH
CCLTF
CNYD
NEWN
CNAM
LTUS
ZSTN
CPQQ

[atco1982]

Ten Amigos -

Reply from Traderfan

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=53594196

[joenatural]

My top 10 amigos based upon a 12-month timeframe ......

CCME - own it (light position, but close to really loading up after dumping into recent strength)
ZSTN - own it (light position)
CHCG - own it (light position and a turnaround story one of these days with alot of cash)
GPLB - own it (light position and this stock should come on to radar screens pretty soon)
RINO - don't own it at present
YONG - don't own it at present
CHGY - don't own it at present
SIAF - don't own it at present and the soon TBA lawsuit will certainly put a short term damper on the PPS)
LTUS - own it (light position, but ready to add soon)
PUDA - don't own it at present

[throwerw]

Top 10

CCME
LTUS
LPH
CCLWF
JADA
CHBT
CKGT
YHGG
CGPI
SCEI

[Rames]

Here's my Top 10

LLEN takes the coal spot as both PUDA and SCEI have yet unpriced offerings out

CGPI
YONG
NEWN
RINO
TRIT
CNAM
LLEN
HFGB
ZSTN
GFRE

[cleezdeez]

diez hombres con queso

BSPM - massive target market, augmenting product offerings
CCME - don't analyze trading patterns, patiently accumulate cheap shares
CGPI - because in the long run, we're all dead
LPH - trades @ ~2/3's of liquidation BV *and* profitable
LTUS - will move eventually, likely before new facility comes online
NEWN - android, iphone, blackberry? who cares, they all use batteries
SIAF - despite the recent run-up, can still do multiples from here
SOKF - undeniable growth prospects as membership ramps in coming years, firm underlying bid
SRRY - undervalued waste manager operating in China, HK, and Australia
ZSTN - GPS segment growth grossly under appreciated, will drive earnings forward, pristine balance sheet

[Danduedil67]

Top 10
CCME
LPH
SIAF
LTUS
CNAM
CCLTF
BORN
BSPM
BWOW
CPQQ

[Rames]

Top10 Amigos Lists for our Index

Here are those I have added so far. You can change around anything until the deadline. Everyone else please don't forget to post yours.

Deadline is next Friday, August 27.

atco1982 - AWRCF, CBP, CCLTF, CCME, CGPI, CHBU, CKGT, JADA, KNDI, LTUS
danduedil67 - BORN, BSPM, BWOW, CCLTF, CCME, CNAM, CPQQ, LPH, LTUS, SIAF
Fi - CCME, CNAM, JADA, LPH, SIAF, YHGG
handbelleditor - AWRCF, CCME, CHBU, CHGY, CSGH, JADA, SIAF
joenatural - CCME, CHCG, CHGY, GPLB, LTUS, PUDA, RINO, SIAF, YONG, ZSTN
lmcat - CCME, CHGY, CNAM, JADA, LPH, LTUS, NEWN, PUDA, SIAF, YHGG
lostmyballs - CHBT, CNYD, GFRE, KONE, LIWA, NEWN, SKBI, TSTC, YONG
michael_anderson210 - BFAR, BSPM, CCME, CKGT, HFGB, NEWN, NUIN, ONP, SCEI, SIAF
Rames - CGPI, CNAM, GFRE, HFGB, LLEN, NEWN, RINO, TRIT, YONG, ZSTN
ratobranco - BORN, CCLTF, CCME, CELM, CGPI, NEWN, SIAF, TPI, YONG, ZSTN
realfast95 - CCGY, CCME, CHGY, CHNG, CNAM, CNOA, CSGH, FEWP, LPH, NEWN
rjeezy007 - CCLTF, CCME, CNAM, CNYD, CPQQ, LPH, LTUS, NEWN, SIAF, ZSTN
RyanW439 - BSPM, CCME, CGPI, CHBT, CHBU, CKGT, LPH
throwerw - CCLTF, CCME, CGPI, CHBT, CKGT, JADA, LPH, LTUS, SCEI, YHGG
tika1 - AERL, BWOW, CCME, JADA, PFGY, UTA, SIAF, TXIC
Traderfan - CCLTF, CCME, CGPI, CKGT, CPQQ, LPH, LTUS, SIAF, WKBT, ZSTN
v80alue - BSMP, CCGY, CCME, CGPI, CHGY, CKGT, HFGB, NEWN, TSTC, TXIC
value1008 - CCME, CELM, CHBT, CKGT, CNAM, CPQQ, JADA, LTUS, NEP, YYIN
viking86 - BSPM, CCGY, CCME, CHBT, CPQQ, JADA, NEP, NEWN, SIAF, UTA

[researcher59]

Here are my top 10 - (subject to revision by Friday evening)

CCME
ZSTN
CCLTF
UTA
CNAM
LPH
BSPM
CADC
CHNC
HFGB

[NF]

10 Amigos Rames

ALIF
BORN
ZSTN
CSGH
CPQQ
NEWN
LLEN
PUDA
CCME
KNDI

[Rames]

Top10 Amigos Lists - post your list tonight!

Here are those I have added so far. You can change around anything until the deadline. Everyone else please don't forget to post yours.

Deadline is Friday, August 27 aka today. Tomorrow is fine as well, but at some point this weekend I will have to compile all that and I don't know yet when exactly I will have the time.

atco1982 - AWRCF, CBP, CCLTF, CCME, CGPI, CHBU, CKGT, JADA, KNDI, LTUS
bigprofit - BSPM, CCME, CELM, CGPI, CNAM, HFGB, LTUS, NEWN, YONG, ZSTN
cleezdeez - BSPM, CCME, CGPI, LPH, LTUS, NEWN, SIAF, SOKF, SRRY, ZSTN
danduedil67 - BORN, BSPM, BWOW, CCLTF, CCME, CNAM, CPQQ, LPH, LTUS, SIAF
Dutch Trader - SPU, WKBT, LTUS, CBP, UTA, ALN, BEST, HFGB, XIN, NEWN
Fi - CCME, CNAM, JADA, LPH, SIAF, YHGG
handbelleditor - AWRCF, CCME, CHBU, CHGY, CSGH, JADA, LTUS, SIAF, SKBI
HarryDee - CCLTF, CCME, CGPI, CKGT, LIWA, LNDT, LPH, UTA
joenatural - CCME, CHCG, CHGY, GPLB, LTUS, PUDA, RINO, SIAF, YONG, ZSTN
lmcat - CCME, CHGY, CNAM, JADA, LPH, LTUS, NEWN, PUDA, SIAF, YHGG
lostmyballs - CHBT, CNYD, GFRE, KONE, LIWA, NEWN, SKBI, TSTC, YONG
michael_anderson210 - BFAR, BSPM, CCME, CKGT, HFGB, NEWN, NUIN, ONP, SCEI, SIAF
NF - ALIF, BORN, CCME, CPQQ, CSGH, KNDI, LLEN, NEWN, PUDA, ZSTN
Rames - CGPI, CNAM, GFRE, HFGB, LLEN, NEWN, RINO, TRIT, YONG, ZSTN
ratobranco - BORN, CCLTF, CCME, CELM, CGPI, NEWN, SIAF, TPI, YONG, ZSTN
realfast95 - CCGY, CCME, CHGY, CHNG, CNAM, CNOA, CSGH, FEWP, LPH, NEWN
researcher59 - BSPM, CADC, CCLTF, CCME, CHNC, CNAM, HFGB, LPH, UTA, ZSTN
rjeezy007 - CCLTF, CCME, CNAM, CNYD, CPQQ, LPH, LTUS, NEWN, SIAF, ZSTN
RyanW439 - BSPM, CCME, CGPI, CHBT, CHBU, CKGT, LPH
throwerw - CCLTF, CCME, CGPI, CHBT, CKGT, JADA, LPH, LTUS, SCEI, YHGG
tika1 - AERL, BWOW, CCME, JADA, PFGY, UTA, SIAF, TXIC
Traderfan - CCLTF, CCME, CGPI, CKGT, CPQQ, LPH, LTUS, SIAF, WKBT, ZSTN
v80alue - BSMP, CCGY, CCME, CGPI, CHGY, CKGT, HFGB, NEWN, TSTC, TXIC
value1008 - CCME, CELM, CHBT, CKGT, CNAM, CPQQ, JADA, LTUS, NEP, YYIN
viking86 - BSPM, CCGY, CCME, CHBT, CPQQ, JADA, NEP, NEWN, SIAF, UTA

[SSKILLZ1]

mY TOP 10

BSPM
CCME
CNYD
HFGB
KONE
LTUS
NEWN
NIV
UTA
ZSTN