China Biologic Prods Inc (NASDAQ:CBPO)

CAPS Rating: 1 out of 5


Player Avatar giftofgod (98.51) Submitted: 7/1/2010 12:12:32 AM : Outperform Start Price: $10.95 CBPO Score: +412.94

I looked at the top bull pitch and thought, wow that is a better bear pitch except for appearing on the MFI list. This company seems to be one of the few undervalued companies on my list. The growth is pretty outstanding. I don't understand the comment that most of the long-term debt would be coming due in 2010. If that were so, it wouldn't be considered long-term debt, it would show up under short-term debt. Regardless of those assumptions, the P/E is high, but there is pretty good growth ahead, especially in the high-flying economy of China. They do not have the debt and tax problems the U.S. does, and they are going to let their currency rise in value. Why people think inflation and devaluation of currency is good is beyond me. Increased valuation means that the average worker can buy more for their wages. Inflation hurts average savers and only helps the wealthy who have their money in investments that increase greater than inflation. Wages are going up slower than inflation, but they always ignore food and oil in the 'core' inflation figure. To me the core inflation should be those very items and exclude everything else.In other words, China's economy will increase, while America's will decline or stagnate on real terms, and any growth will be through inflation, which only appears on paper.

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