China Automotive Systems, Inc. (NASDAQ:CAAS)

MCMI

I think autos will lead us back to economic recovery and CAAS will be a part of it.

Underpriced Chinese Auto Supplier will rise from the wreckage caused by accounting restatements that had nothing to do with fraud.

Another Chinese fraud!

Tracking portfolio for China based companies that gained listings on US exchanges (Nasdaq, NYSE, or Amex) after conducting reverse mergers. Stocks that have been delisted have been omitted. Start date: Jun 24, average P/E of these companies: 3.

This is a tracking portfolio of all CAPS-ratable tickers in the Chinese RTO/SPAC space (i.e., companies that listed without filing an IPO).

China Automotive Systems, Inc. went public via a reverse merger in 2003. The company is based in China.

A Chinese RTO rallying on preliminary UNAUDITED financial results. Sounds dubious to me.

The stock value is 20$ , I believe it will get to 20$ in the next 2 years for sure.

My 10% screen. Their latest quarterly results are reason for concern, but if they return to growth soon, this stock is poised for a big bounce.

High inside ownership, no debt, low institutional ownership so far so plenty of room for the big guys to make waves.

Half price of its one-year high. Room to boom.

This is a brief outline of how and why I selected CAAS to outperform:

(1) CAAS appears maintained an absolute floor of about $14 for the last 10 months.

(2) CAAS almost crossed $27 in January.

(3) The mean value of CAAS for the last 10 months is about $19, and it has traded above that mark almost every month except September 2010.

(4) CAAS's revenue is growing at a rate of about 25% per year.

(5) CAAS is part of the nascent Chinese automotive industry, which is expect to grow significantly with the Chinese middle class's demand for cars that is already the largest market in the world.

(6) CAAS won a new contract from a top 5 Chinese automotive company in July.

(7) CAAS has supplied parts to Volkswagon/Audi China.

(8) CAAS has three R&D centers with a staff of some 200 people and an academic research relationship.

(9) CAAS has licensing and technology transfer agreements agreement with other steering systems companies.

In short, the Chinese automotive industry appears to be a very good place to invest. It appears that CAAS's may be purchasable under $16, while it can be expect to approach $18 within months. Although CAAS has a relatively high P/E ratio (13.40) and a much slower growth rate that others in the Chinese auto parts sector, there appears to be very little potential downside here.

Speculative play on huge Chinese auto market

oXEN

A key player in a sector that will grow rapidly as China's economy expands.

Coming off of 3 quarters of accelerating earnings growth and once the big boys start to get on board the stock price will follow the earnings track record.

Automotive industry will shift sourcing to least-cost markets. As CAAS's business grows, it will benefit from improving manufacturing quality and experience. This should provide all upside for the near future, barring any unforeseen management mistakes.

Well positioned in a huge market. Hoping that the global economy recovers within the next 5 years though....

well positioned in a emerging market