China BAK Battery, Inc. (CBAK)

jillianDSS23 (< 20) Submitted: 6/20/07 1:02 PM : Start Price: $3.21 CBAK Score: 23.05

I'm glad im not the only one who sees the potential here. I know that for various reasons management had to tell us to expect low earnings for another 2 quarters, but they really explained just how much potential there is on the last conference call.


They say by end of Dec 2007, they will be able to service $475million in revenue if they fill the capacity. They also say that they expect things to return to normal in 3 quarters or by 2008. Expected earnings in 2008 are .47 while this year is .19. The previous poster is right with his strict interpretation of "book value" or "franchise value". CBAK is probably the largest battery manufacturer in China and deserves a massive premium. They aren't losing any money after all. Now what about electronics demand? Everyone wants an Iphone, cell phones are constantly upgraded and new portable music mp3 upgraded and bought daily. Then theres the other markets CBAK explained. Overall, this market is a constant revenue stream for the electronics industry. Every two years, I upgrade a new cell phone. That means in the U.S. and China, there are 600mil + 500mil cell phone users that want new phones every two years. Thats just the U.S. and China. 1.1billion new batteries needed every two years. Then theres electronics. Mp3 players, notebooks, laptops etc.. People upgrade these as well. Overall, great value here IMO, and deserves at least a $6 to $7 stock price because of the 2008 earnings that are pretty much guaranteed right now.

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