Another cheap and tasty China stock
SkyPeople Fruit Juice is backed by the government, without many of the common obstacles other companies face.
Written by Douglas Estadt
There are many good reasons we feel our latest buy is a good choice. My friend Kevin Hughes of K.M. Hughes & Associates, the best foreign currency trader I know by a (very long) mile, sent research to me from his college buddy now in China searching for great stocks.
One of those stocks was of a Chinese company called SkyPeople Fruit Juice (SPU), which makes concentrated fruit juices and fruit
products. It is a top agricultural company in its
province. The stock made 58 cents a share last year, and Kevin's friend thinks it’ll make 78 cents a share this year. We talk about why we like
this stock on Friday’s show.
SPU has been so
successful that the Shaanxi Province local government agreed to continue to
provide SkyPeople support through 2015.
Chinese companies with government backing are at an advantage, without many of the obstacles other ones face. With this kind of help, it can gain a leading position in the market and continue to grow.
This is a company
with a low price-to-earnings ratio (P/E), low EBITDA ratio, and more than 100
international customers. It’ll benefit from being a healthier choice in
keeping with what seems like an ever-growing “green” and organic craze.
You can see my real-money profits on Covestor and Covestor Investment Management.
Visit us at Wall Street Media. We feature exclusive insights from leading 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.
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.