ChinaMart

Five China Stocks to Watch This Week

I agree these 5 stocks are all, for various reasons, "ones to watch." I am particularly bullish on SNEN over the long term, given the Chinese government's support of CNG growth combined with SNES's early mover advantage in the sector.

Additionally, there is one extremely undervalued China micro in LTUS.OB (Lotus Pharmaceuticals) that I believe is worth a closer look. This is a stock that has been oversold to the point where it now trades at a PE of 6 based on 2007 expected income of .18/share. The stock is thinly traded/unknown still, but that should change when their new IR firm is hired/announced.

LTUS has come off a triple bottom and was up 10% Thursday to $1.14/$1.20 on near-record volume and no news. Given the 100% income growth of LTUS yoy, their increasing margins, extensive drug pipeline, the hiring of a much needed IR firm which appears around the corner, and an extremely modest PE, LTUS.OB should be added to the list of "Ones to Watch".

Cheers,

The Long Case for Sinoenergy

ewwolff

Although your question was directed to the author, I thought I'd jump in.

You asked: "what do you think about SNEN compared with CHNG, which is already profitable?" which implies that SNEN is not profitable. In fact, SNEN made .24/share in 2006, and CHNG made .23/sare.

SNEN is now trading at a trailing PE of 9
CHNG is trading at a trailing PE of 29

Hope this helps,

The Long Case for Sinoenergy

Hi Brett,

I was doing some dd after reading your article on SNEN and came across this video of Boone Pickens talking about CNG growth in China. I'm sure it's the one you were referring to in your article, and I thought your readers might be interested in it.

www.cnbc.com/id/198242...

Anyway, thanks for uncovering this one. I'm still looking at it, but it looks interesting so far!

John