Top 4 Undervalued OTC Chinese Stocks
China 3C Group (CHCG), Jiangbo Pharmaceuticals, Inc. (JGBO), MyStarU.com, Inc. (MYST), and Worldwide Energy and Manufacturing USA, Inc. (WEMU) are just a few OTC Chinese stocks that appear to be a bargain given their earnings and growth rates.
China 3C Group [[CHCG.OB]] has doubled from its March lows, but remains a compelling value play. The Chinese electronics retailer earned $3.4 million, or $0.07 per share, during a rough first quarter, but remains healthy with $28.7 million, or $0.54 per share, in cash on its books. Meanwhile, the stock trades at just 1x trailing earnings and 2x estimates for 2009. Given this valuation and new management strategies, this stock appears substantially undervalued.
Jiangbo Pharmaceuticals, Inc. [[JGBO.OB]] is trading up more than 30 percent from its May lows, but also remains a compelling value play. The Chinese pharmaceutical company reported fiscal 2009 net income of $8.9 million, or $0.44 per share, after an acquisition and restructuring charges, with $82.3 million, or $7.89 per share, in cash on its books. Meanwhile, the stock trades at just 5.5x earnings, assuming no growth during the upcoming year.
MyStarU.com, Inc. [[MYST.OB]] more than doubled since the beginning of the year, but the stock remains a great value play. The Chinese entertainment company reported net income of $3.26 million, or $0.02 per share, during the latest half year, which marks a 115 percent increase over the comparable period last year. Meanwhile, the company’s balance sheet also remained healthy with $40.9 million in total assets compared to $5.46 million in total liabilities.
Worldwide Energy and Manufacturing USA, Inc. [[WEMU.OB]] is up more than 50 percent off of its April lows, but remains a great value play. The solar energy and contract manufacturing company reported net income of $443,154, or $0.13 per share, and a cash balance of $3.52 million, or $0.99 per share. Meanwhile, the stock trades at just 7.9x trailing earnings with a projected growth rate of over 100 percent and a pending Nasdaq application.
CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com