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downthehatch

09/18/12 10:12 AM

#3783 RE: phillyfury #3782

CHRI has a very solid income stream, is profitable and growing, and is expanding into some new areas, as you mention. They have a leading presence in China in the TCM market, and a stable base of supply.

I have been in CHRI for a while, and I believe the stock is not showing true value because of the general unease with Chinese stocks, but also because of the slowdown in the Chinese economy, which did result in a slowdown in sales/profit growth for CHRI in the last quarter.

They also announced a letter of intent to purchase an American herbal pharmaceutical firm, and then decided not to acquire the company, after doing due diligence. In my opinion, that showed that management was savvy, and not willing to buy any company, just to get a foothold in the U.S. I think some saw the failed merger as a negative however, and that may also be impacting the share price.

My average price is now just a bit over .02, and I consider it a strong buy at this level. There is little downside here- it seems to have strong support at .02