The woodshed is full of broken stocks. The ones nobody wants because of bad things, scarey things, and evil things.
Some get put in the woodshed though by association only.
A year ago some Chinese ADR's trading in U.S. Markets needed cleansing and this made suspect to almost all carrying the ADR banner.
As investors we remember our own equities that violated ethics and put our trust factor at arms length. Thus now the search for clarity is important to separate the occupants of the tainted place.
NEW CHINA BORUN CORPORATION, (NYSE:BORN): is in my opinion held hostage in the shed.
When I see criteria as; a forward PE of 1.80, Book Value @ $7.76, next Q earnings of .43, sales growth Q/Q of +50% (giving a PEG of .13) and analyst targets of $7 and $16.50 I get very cornfused.
This company makes food base and food ingredient alcohol. They make this from corn. BORN has just finished a new processing plant and has booked 90% capacity for 2012 even with the increased potential.
BORN shows $1.40 cash and Debt/Equity of .44.
Are you getting cornfused? Well let me cornfuse you a little more. The stock triple-bottomed today and closed @ $3.10.
Thats right its at a 60% discount to what it should be. Take a little of that back because its a Chinese ADR and its still 1/2 the price it could and should be trading at.
I'm not here to do anything other than let you answer for yourself if its real or not. The research information is a few buttons away.
This products made by BORN are not subject to recession any more than an American product as Ketchup would suffer in a recession here as a comparative.
Spend a hour, study, and at the end of your DD you will be smarter and hopefully mildly "cornfused" with me.
Disclosure: I am long BORN.