A small-cap China stock for any market

My bull market birthday gift to you: An innovative Chinese ag company with proven numbers

By Louis Navellier Mar 9, 2010 10:12AM

Louis Navellier small cap stocks

On the birthday of the bull market, I want to share  my top small-cap pick with you: An innovative Chinese stock that has the numbers to succeed in any market.


Whether you think the bull market is long in the tooth or whether you think this market is about to break out, the fact is that this top agricultural company is a great fit for any portfolio. That's because it has proven its worth with consistent sales and earnings growth. Coupled with the power of China's booming economy, this has resulted in a gain of more than 430% for this stock since the lows of last year -- and with more gains ahead!


China Green Agriculture (CGA) is one of my top small-cap stocks to buy right now. (Get the complete list of my Top 5 small cap stocks here). That’s because CGA has a great business plan you can believe in -- and the numbers to prove its success. China Green Agriculture is an environmentally responsible enterprise that has pioneered the development, manufacturing and distribution of organic fertilizers across China, proving that rapid economic growth does not have to come at the hands of high pollution.


The “green” fertilizer market in China is booming right now due to the fact that the country’s population continues to grow alongside its economy. This means that more arable land is needed in the coming years to ensure that there’s enough food available to sustain China’s growing middle class. Thanks to its low-cost operations and extensive distribution network, CGA is the right company for the job.


The numbers bear out CGA’s success. The company has topped expectations for each of the last four quarters, with its biggest earnings surprise totaling 40%. After its latest earnings report in February 17, shares surged 10% in just a few days thanks to these great numbers. Specifically, China Green posted a sales increase of 60% year-over-year and a jump of 78% in net income. Gross margins also improved to 61% from 59% last year.


Small cap stocks can really deliver dramatic profits that defy the market because these agile companies don't need a lot of volume to deliver huge gains in just a few days. For instance, in the March 2009 issue of Emerging Growth, published on Friday, March 6, just one trading day before the market set its lowest mark in over a decade, I made two very timely stock picks: Insurance software company Ebix (EBIX) and a natural gas company called Interoil (IOC) that’s based in Papua New Guinea. Ebix is up about 180% since that day and IOC is up over 220%!


Part of those gains came from buying at the bottom, I’ll admit. But the reason those companies posted such explosive returns in the last year is mainly because they are innovative small-cap stocks with proven leadership. They showed consistent growth in their sales and earnings, and I knew that these stocks would perform well whether the market moved up, down or sideways!


Get the complete list of my Top 5 small cap stocks for other winners like CGA. Each of these stocks has what it takes to post strong gains in any environment.


At the time of this writing, Louis Navellier owned shares of CGA and IOC in personal or client portfolios.


Related Links:

2Comments
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2013 Microsoft. All rights reserved.

Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.

Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. 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 SIX Financial Information.

Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

126
126 rated 1
257
257 rated 2
459
459 rated 3
599
599 rated 4
671
671 rated 5
682
682 rated 6
603
603 rated 7
455
455 rated 8
269
269 rated 9
113
113 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
ABTAbbott Laboratories10
AIGAmerican International Group Inc10
ATVIActivision Blizzard Inc10
CACA Inc10
CSCOCisco Systems Inc10
More
Fidelity Brokerage Services, Member NYSE, SIPC. (c) 2011 FMR LLC. All rights reserved

VIDEO ON MSN MONEY

ABOUT

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.