Gushan Environmental Energy (NYSE:GU)

CAPS Rating: 3 out of 5

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Player Avatar ahovan (< 20) Submitted: 10/14/2009 6:18:22 PM : Outperform Start Price: $8.85 GU Score: -111.49

I think GU is risky, but attractively priced. The China/emerging market/political risk is hard to quantify. The biodiesel price/market risk is also hard to quantify and is a wash, as I think that prices can either go up or down.

However, due to timely IPO, they have a ton of cash. Given this financial strength, they will likely survive until a high price environment returns. If this happens, the stock should do well. I think it is likely Oil will spike in the next five years, so I think that this stock is likely to outperform in the next five years.

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