PSKEP70's  Instablog

On February 18 2010 LIHUA (liwa) received it's second buy recommendation with a price target of more than double it's current price.


This was from Reidal research group. and they put a price target of 17.00 dollars on it, with the other buy recommendation having 20.00

Reidal mentions a few points about LIHUA worth mentioning:
 

• LIHUA is the largest provider of copper wire when measured by gross profits
• LIHUA's gross margin is higher than it's competitors
• LIHUA's biggest customer is Medea, which is the second largest air conditioning and washing machine producer in china. Medea is enjoying robust growth due to china's appliance subsidy programs. LIHUA will benefit from this through out 2010
• LIHUA currently is at a P/E half of it's competitors, and with a free cash flow model Reidal arrived at a 17 dollar price target.
• LIHUA is expected to grow earning more than 60% year over year in 2010
• LIHUA is able to pass all commodity price fluctuations to customers 

As we all know china has produced some high flying, fast moving companies through out 2009 and I have a feeling that LIHUA (liwa) is about to have it's turn.

And it's going to be at least  a double if the two analyst are right.


Disclosure: long liwa