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.
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