American Dairy, Inc. (ADY)

current P/E 9.44
Forward P/E 7.7

50.8% 5-yr growth rate. Stock is down 40% from 52-week high, so it's got some room to climb back up. Looking at 22% earnings growth from FY09 to FY10. 5-yr average Return on Investment is 21.90%. This stock should do really well in 2010 and beyond.

Upthumb. A Chinese milk products company named, "American Dairy". Cash cow. 57% growth rate. Low debt ratio. Huge margins relative to peers. Underwent SEC investigation. Rather unstable earnings.

I like Chinese food, and I like milk. Chinese like Chinese food (they just call it food), so they should like milk, too. Solid logic.

Rising demand for food and food products will fuel their profits

company has a competitive advantage within their marketplace, as well as strong financials and growth prospects.

IMnsHO, American Dairy remains undervalued just as it's peer Synutra International remains over valued. The story of two cows. Both distribute powder'd milk and other dairy products in China. Synutra recently sold off a large part of it's home based assets, much of it new, after a melemaine scare caused it to import much of it's product. American Dairy, on the other hand is changing it's name so that it will be better associated with China, it's primary market. It's a tough call as the "american" in it's name probably helps with it's stock valuation as foreign stocks swing wildly. The growth of the dairy business in China has been outstanding, and the rebranding, overall, should be beneficial; while Synutra tries to show it imports "safe" products, American Dairy is trying to show that it's a local safe producer. American Dairy has 15% margins, 24% ROE, a 59% qtr/qtr growth and minimal debt. It is not very cash flow positive currently, but continues to reinvest. Some asset management firms have been jumping in and out, adding to stock fluctuation. Overall, they appear to me to be a very good long term play, barring any product issues of thier own and assuming positive acceptance of the pending name change.

a crazy idea...
two facts:
1. the majority of asians are lactose intolerant.
2. the majority of americans and other foreigners want the chinese to have absolutely nothing to do with our food supply.
and yet - outperform - !@#$!#@$ globalization!

Reported earnings of $.24 last quarter when the concensus estimate was only $.07.

inside ownage

encouraged by gov't, incredible market penalties for failure, tax advantages, a soldier in China's war to make a middle class, well-run, selling at about a 4-1 P/E should be a $100 + stock once it finishes its growth phase,

China has provided it with tax advantages, China is hurtling into developing a middle class which drinks milk, the retail market is virtually untapped and has huge growth potential, the company is acting in an adult manner by cleaning up its accounting practices and working to grow its brand.

has all the basics fundamentals of a great stock

new to the game and very happy my first negative pick is going the way it is.

overreaction to dissapointing guidance created an upside today.

I thought I had missed my chance on this one. Patience is a top virtue in China; this stock should reward me if I stick with it.

With this drastic drop of expectations, I'm in. This company has a bright future and this was the break I was looking for. Hang on for a few years and re-evaluate.

Sales growth and earnings grew at an excellent rate in recent quarters. Good growth estimates for the next two years. High insider ownership. High ROE. Only 13 funds own shares, 2% of shares owned by funds, and only 4 analysts cover it.

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