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$3.91 -0.17 (-4.17%)
7/3/2008 1:00 PM

China BAK Battery, Inc. (CBAK)

CAPS Rating:
***

Engaged in the manufacture, commercialization & distribution of a variety of standard & customized lithium ion rechargeable batteries for use in cellular telephones, as well as various other portable electronic & general industrial applications.

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Avatar SmallCapGuru11 (28.73) Submitted: 6/19/07 12:55 PM : Outperform Start Price: $3.17 CBAK Score: 40.90

CBAK is a great buy here. I'll tell you why. Forward p/e is insanely low, around 6. Book value is $2.55 (literally no premium to book at current stock price) while most of the accounts receivable comes due and should turn into cash within the next 6 months (adding to the comfort).





CBAK has a franchise value of the replacement market in china worth $2-$3 alone in premium. They will likely find MANY OEM's willing to do business and I expect a lot of news on that in a few months. OEM's will like the price, location (doing business in CHINA to consolidate operations) and quality...





CBAK is at book value, makes money, might stumble a little in the next two quarters, but will recover big time in 2008.





My price target is $9 to $10 by mid 2008. Thats a 18 to 20 p/e for 2008 earnings and is quite reasonable given growth, earnings and book value of $2.55.





Adding to that, CEO owns 20mil shares and has a big interest in this company. Institutions added last 6 months as well, mostly value picking institutions. Bodes well.

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Avatar SodKing (< 20) Submitted: 9/27/07 9:07 AM

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forward p/e ratio currently aroud 23...still low. Plus a 966.7% company growth estimate over the next year makes CBAK still look like a great buy, even after the 40% jump yesterday.

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