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livioroma (< 20)

china nutrifruit cngl

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August 19, 2010 – Comments (1) | RELATED TICKERS: CNGL

There is a china pennystock that has fantastic numbers and business

it's CHINA NUTRIFRUIT CNGL

some numbers for you:

Market Cap (intraday)5: 110.15M
Enterprise Value/EBITDA (ttm)3: 2.71
Trailing P/E (ttm, intraday): 5.93
PEG Ratio (5 yr expected): 0.16
Return on Equity (ttm): 41.55%
Total Cash (mrq): 35.99M
Total Debt (mrq): 0.00
Levered Free Cash Flow (ttm): 14.67M

I think that there are some little problems of technical analisys, that I understand just a little
but I think that when there is a good business and a good management a day prices must go up...


target price 8,5$ today cngl trade at 3$


For the fiscal year ended 31 March 2010, China Nurtifruit Group Limited's revenues increased 29% to $72.9M. Net income applic. to Common totaled $19.7M, up from $4.5M. Revenues reflect an increase in sale volumes. Net income also reflects a significant increase in gross profitmargins, higher operating profit margins, the absence of interest expense and the presence of gain on disposal of property and equipment.

What do you think about it? for you what could be the problems for this stock?

1 Comments – Post Your Own

#1) On September 03, 2010 at 4:11 PM, EnigmaDude (97.34) wrote:

Livio,

I had not heard of this company before you brought them to my attention. The fundamentals (numbers you provided above) do look quite positive. But companies in China have a history of providing mis-leading or even fraudulent accounting. In other words, it is hard for me to trust the numbers they are reporting. If they really are growing and have lots of cash and no debt they could be a very good stock to buy.

But here is one piece of news that concerns me. Their CEO recently resigned:

Mr. Jinglin Shi resigned as Chief Executive Officer, President and Director of the Company, due to personal and health reasons. Mr. Shi's resignation was not due to any disagreement with the Company on any matter relating to the Company's operations, policies or practices.

Now it is quite possible that he really did resign for personal reasons, but one has to wonder if that is the truth.

Also, UltraLong is a highly respected CAPS member who recently did some detailed analysis of several Chinese companies. You might also want to see what he thinks about this one.

Looks like you have done some good research. I wish you the best of luck if you should decide to invest.

-EnigmaDude

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