Another cheap and tasty China stock

SkyPeople Fruit Juice is backed by the government, without many of the common obstacles other companies face.

By Wall Street Media on MSN Money Jan 7, 2010 7:32PM

china © Brand X/SuperStockWritten 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


Related posts:


A safe, smart bet on China


A $5 'green' stock that's growing fast


0Comments

DATA PROVIDERS

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.

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.

120
120 rated 1
268
268 rated 2
439
439 rated 3
709
709 rated 4
641
641 rated 5
609
609 rated 6
640
640 rated 7
516
516 rated 8
272
272 rated 9
152
152 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
EXCEXELON CORPORATION10
TAT&T Inc9
VZVERIZON COMMUNICATIONS8
CTLCENTURYLINK Inc8
AAPLAPPLE Inc10
More

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.