Replies to post #84260 on China Growth Stocks

[wadegarret]

xray- CNTF

I have no idea either. CNTF is growing by leaps and bounds, but no one cares. Even though it's growing EPS for nine consecutive qtrs, never been attacked, is an IPO, sells at a 3 PE, gave great guidence for the June qtr, cash/share equal to stock price with no debt, they'de rather pay a 5 PE for RTOs like AERL, LIWA, and DEER. Also there are other IPOs ie OSN that are selling for 3-3.5 PEs going forward, while there are still umpteen RTOs selling for 2 PEs and under going forward. GURE is my favorite in that pack.

Xray, here's what I think though. I can only go by history. Back in 2002-2003 the merchant energy stocks were sent down to $1-$2 after Enron regardless of fundamentals. The more credible looking ones rebounded first, however almost all of them did within six months of the bottom, and many were 5 baggers or more a year later. That's what will happen here in the China sector IMO.

I guess there is some luck though in being in the ones that rebound the strongest. I mean we can do our homework, but only know so much. I just hope after CCME, that I don't end up owning any others that were fraudulent.