Christian DeHaemer of Crisis & Opportunity recently recommended China Green Agriculture for its great value. This company, which was the first Chinese firm to be listed on the New York Stock Exchange, has significant appreciation potential. DeHaemer notes that that firm’s valuation is very low, and asserts that since the fertilizer company has been making significant progress lately, shares could enjoy robust growth in the long-term.
China Green Agriculture (CGA)
from Crisis and Opportunity
CGA is a small company with a $112 million market cap and a trailing P/E of 2.32. The company’s cash position is $75 million, with $16 million in short-term loans. If you net out the cash minus debt, you would have a market cap of just $59 million and a P/E of one and change. That’s ridiculous - the industry average is around 15.
CGA could go up by 500% and still be vastly undervalued compared to other fertilizer companies.
The stock chart has solid support at $2.75 and plenty of upside potential. After its latest earnings report, the company jumped to $4 and is starting to percolate as the value investors are sticking their toes back in. This is a perfect Crisis & Opportunity play. It’s a company that was beaten down for a number of reasons that proved unsubstantiated, has righted the ship, is making money, and has long-term growth prospects.
Bought China Green Agriculture (CGA) at $3.76. Current Price: $4.57
Christian DeHaemer, Crisis and Opportunity, www.angelpub.com, 877-303-4529, October 11, 2013