Another promising China stock
China-Biotics is the largest provider of probiotic bacteria in China.
China Biotics (CHBT) is the largest provider of probiotic bacteria in China. Probiotics are beneficial, live bacteria that can be used as dietary supplements and food additives to improve intestinal health and digestion.
Our friend, Dr. Eric Jackson, of Ironfire Capital LLC, likes the stock for these reasons:
- By 2014, the probiotics market in China is expected to reach $9 billion
- The company shows gross margins of 71% for the last two years
- It's retail business can definitely grow from only 100 stores today. And CHBT’s biggest opportunities are in dairy and animal feed.
- All revenue is based on an old facility with limited production capability. The company opened a new facility in February and is expected to raise production quickly.
- China is a net importer because it cannot presently produce enough probiotics domestically.
To have some of your risk capital autotraded for you on Covestor Investment Management, see my model here.
Visit Wall Street Media. We feature exclusive insights from the world's leading transparent investors.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The company is scrambling to protect its equities arm, which could face declining volume and revenue as competitors close the gap.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.