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InternationalInvesting
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Scouring the globe for the investments with compelling risk/reward scenarios. Depending on market conditions these include dividend stocks, REIT's, MLP's, International Small Caps, special situation's, metals, bonds, etc. I focus on long term fundamentals while capitalizing on short term... More
  • LPH Quick Profits 0 comments
    Sep 28, 2010 3:07 PM | about stocks: LPIH
    LPH is an oil, gas, and tar distributor in china. They directly benefit from the Chinese auto market and China's economic growth. They are forecasting 47%+ revenue growth for 2011, yet are severely discounted. They trade at 16x 2010 earnings, but this is a vast misrepresentation of their operations and their value. Their GAAP earnings(therefore their PE) currently appear weak because of warrant expenses, which will eventually expire. Taking out these expenses their 2010 guidance implies .31 diluted a 7x multiple. Put next years guidance into the equation with GAAP diluted earnings (Including warrant expense) of .51 and now its a 4.2x multiple. The 10K is also coming out soon, hopefully today, which will confirm the companies great results. More importantly it will start to lower the PE ratio on google, yahoo, etrade, etc so more retail investors will buy in. 

    Disclosure: Long LPH
    Themes: China, Oil, Gas, Tar Stocks: LPIH
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