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


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