Readers' Top Picks (Part 1)

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[springpig 03-01-2011]:

China Taisan(Target Price 25cents, ~22% upside from current price of 20.5cents):
* It's a laggard and may soon play catch-up with China Gaoxian
* Fundamentally good:  good sales, net profit, profit margin, going to add production capacity; earning has recovered since Q4 2009 & consistently shows good result; constant innovation(R&D) to deliver new products with high margin.
 
In my opinion, this stock is only second to China Gaoxian (on the same industry), but considering Gaoxian has had a good run, it's about time for Taisan to follow.
  Taisan is good but if only taisan had thought of doing a Korea dual listing rather than a TDR. *facepalm*  Just because they are a taiwanese company does not mean they have to list in taiwan. An oversight on the management's part imo. But this year, they rebounded and i suspect they will give a 1.44 cent dividend which is 7.3% yield based on 19.5cents closing price. I believe it is undervalued as well. My top pick for the year.

My pick will be China Taisan. China Gaoxian have shoot up from 20cents to current 43 cents level. While the Korean listing will raise it profile, i think the news already fully factor in... don't forget about the dilute of earning from the issue of new shares over in Korea. For China Taisan, this current has not move much and still trading at forward PE of 4-5x. Yesterday Press Release, the board have approved the capital expenditure for existing factory instead of waiting for approval from authority for new land due to feedback from their client that order will be coming in. They now have a happy problem and forced to expedite on the additional of new machinery which is expected to come online this FY. Brought more at 0.195 yesterday.. There was large SELL order but i suspect that someone is accumulating. My own target is 50% upside from current price = 0.30 cents with forward PE of only 6-7x..... which is very realistic.

Sunmoon (expected 300% increase to $0.02 from current $0.005)
Reson: Steady business which has remained profitable during downturn. Has wide geographical coverage and huge potential for growth
 
Sinotech Fibre (expected 100% increase to $0.22 from current $0.11)
Reason: Recovery of chemical fibre industry with recovery of global economy. Lots of spare capacity, which allows company to easily double its current production volume

My group of friends have made nice hongbao from recommendations here on :

Qingmei : 27 to 33 cents --- 22% gain.

China Fibretech:  8.5 cents to 10 cents ----17% gain

Gongxi fa cai.




But sitting on a small hole (aka loss) on ....

Ziwo : 42 cents down to 38 cents ---- 9.5% loss.

Who is surprised to see Ziwo get pusshed down to 35 cents? Now PE only 3-4 X but market is not warming up to it.....

Ziwo is one of the worst hit counter as compare to other s-chips. Will it be linked to the poor performance of Gaoxian on KDR? Any dual listing candidate may not be view in the positive light due to Gaoxian listing?