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My Favorite Small Cap

|Includes:China Marine Food Group, Ltd. (CMFO)

Once in a while, I stumble upon a stock that in some ways seems too good to be true. Usually that’s just what they are, but I believe this one has the potential to be a superstar. The company is called China Marine Food Group (CMFO). For full disclosure purposes I recently picked up some shares and am feeling good about it. So what does this company do?

China Marine makes and sells seafood products in mainland China. It doesn’t sound like a sexy thing to do but it is definitely profitable. In my opinion the crown jewel of the company is its new algae energy drink called Hi-Power which is growing strongly. In the recently completed second quarter, sales of this drink grew 183% sequentially, although admittedly off of a low base. Another bullish sign is the fact that the sales and marketing staff of Hi-Power grew from 23 at the beginning of the year to 188 now. The three analysts following the stock seem confident that management will boost sales estimate of this drink in the near future.

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Disclosure: No positions
Stocks: CMFO