China Sun Group: The Cheapest Lithium Ion Stock Out There

The best way to find to make loads of money in the market is to find the hidden treasures before the mob has found them, the stocks that you can get into before they are in the public eye and blow up before you can get into it at a fair price. One way to find these kind of stocks are to scope out the OTCBB stocks before they are traded on the major exchanges, such as stocks like China Direct (CDS), which I found while it was trading as a bulletin board stock and purchased in the $3 area and noticed its value and growth as a hidden treasure stock.

Here's my original article on CDS and CHND.OB, here at Seeking Alpha back in May 07. I eventually sold this stock for a 150% gain after it was trading as a stock on the Nasdaq exchange. Another example is Advanced Battery Technologies (ABAT) which also used to trade on the BB exchange and I managed to pull 35% out of when it was trading in the $1 area. It is now listed on the Nasdaq as well and went as high as $9/share.

China Sun Group High Tech Co. (CSGH.OB) is another great example of a BB stock that could turn out some huge profits as it has some phenomenal growth and will likely trade on a major exchange one day. As of yesterday's close, it was trading at just 1.06/share. Let's compare CSGH.OB to two other Lithium Ion Stocks traded on the Nasdaq; ABAT and CBAK.

2008 EPS: Winner = ABAT
ABAT : .33
CBAK : -.19
CSGH.OB : .13

07 - 08 Revenue Growth: Winner = CSGH
ABAT: 40.3%
CBAK: 46%
CSGH.OB: 206%

07-08 Earnings Growth: Winner = CSGH
ABAT: 50%
CBAK: slipped to unprofitable .01 to -.19
CSGH: 1,031%

Trailing P/E: Winner = CSGH
ABAT : 14.2x
CBAK : Unprofitable
CSGH.OB : 8.4x

Forward P/E : Winner = CSGH
ABAT: .51 = 7.64x earnings multiple
CBAK: .19 = 21.2x earnings multiple
CSGH: Guesstimated 100% earnings growth = .26 = 4x earnings multiple

Future Fair Value Within Industry Based on 14x earnings average P/E and Forward Earnings est. Winner = CSGH
ABAT: 14 x .51 = 7.41 ; 81% increase from yesterday's closing price
CBAK: 2.66 = 33.9% decrease from yesterday's closing price
CSGH.OB : 3.64 = 244% increase from yesterday's closing price

So after looking at CSGH's growth numbers, I see a lot of the similarities that I saw in ABAT and CDS when I first found them as small time bulletin board companies before they hit the major exchanges. With CSGH trading just over a buck and recently reporting record earnings I think this is a prime opportunity to hop and board as this could be another big winner.

Comments

[Tom Santamaria:]

I have a $4 pps target on csgh based on 15x 2009 estimated eps. Which is pretty much in line with your 100% growth estimate for 2009.

pappytom

2008 Aug 29 02:15 PM

[User 41022:]

you might want to look at chcg earned .14 last qtr and should earn close to .50 per share trading at 1.65

2008 Aug 31 12:00 PM

[saintsun:]

i think this is really wonderful company i am from dalian

2008 Sep 01 02:40 AM

[bones33:]

Ijust bought 150,000.Hope you're right.

Feb 03 07:27 PM

[saintsun:]

how many peaple bought this

Mar 07 12:10 AM