China Medical Technologies, Inc. (ADR) (CMED)

This is a stock that I would invest in anyway as a pure speculative pick based on long-term macro economic trends in China, but when you combine that with the fact that somehow CMED's stock price has managed to underperform the S&P over the past 12 months, while jokers like AIG and BOA are flying high, it starts looking like a really good opportunity for a multi-bagger over the next decade- throw in the fact that you get a hefty dividend while you wait for Mr. Market's valuation to catch up to reality? No brainer...

good DCF quantitative value. BUY!

Even with all of the hype about China, this stock is undervalued. There is a lot of potential revenue for this company. Some government healthcare reform couldn't hurt either!

28,6 US$ Feb 2010

money flowing from Chinese government is going to be a good thing for this company

Despite remarkable technology and remarkable historic profitability and sales, China Medical Technologies is available for less than 7 times forward earnings and less than 2 times book value. Jubak claims the Chinese government is trying to expand the country's healthcare system. This company should benefit from that policy.

Until tonight, I was previously unaware that there was major health care reform in the works in a country other then the United States. The Chinese government plans "to spend $124 billion by 2011 to provide some form of health insurance to 90% of the population." He also notes that "the decision to devote tens of billions a year to improving health care and providing a minimal level of health insurance is a remarkable sign that the government actually intends to do something about social insecurity in China."

How could an investor profit from health care reform in China? Two names for investors to consider are Ping An Insurance (PNGAY) and China Medical Technologies (CMED).

China heathcare initiative

China Health Care reform

So what is the big deal about a $30M share buy back, this is less than 6% of the shares outstanding. If I understand it correctly, CMED has three main product lines, the ECLIA, FISH and SPR systems. The ECLIA system is one of the two main revenue and earnings product lines, the other being the FISH system. The ECLIA is performing poorly due to other competitors offering the system at a much lower cost, and because many of their distributors are leaving them. The main product line, the SPR system is not going to generate revenues or earnings until later next year (2010), and SFDA approval must be achieved for the HPV chip set before hospitals can use the system. They have not had one hospital sign up for the SPR system, is that correct? Plus, the SPR system is draining money from the company, and the ECLIA revenues and earnings are falling meaningfully.

Is this just a "pump and dump" by big players? Is it more manipulation by the Company to dump stock? What is behind this rally, surely the 6% share buy back can't be a sound reason for the rally.

How can you purchase 30 million of your shares back when you only have arond $150 in cash. At the current price of $17.60, it would take $528 million to repurchase the 30 million shares. It will be interesting to see how much cash is really available when the company finally releases its audited statements in the next week or so.

When I personally spoke to a key Officer of the CMED, he told me that of their three product lines: ECLIA, FISH and the SPR systems; the ECLIA system was preforming poorly, due to pricing competition from other comanies now providing this old technology at a much lower cost than they are offering, and due to many of their distributors dumping CMED, as they stated that they were moving to a direct marketing approach.

The new SPR line has not been adopted by one hospital yet, as the purchasing agents for the hospitals do not understand the technology, and the HPV chip sets have not received SFDA approval. They "hope" that they will receive SFDA approval some time in the first half of 2010, and start selling the system in the second half of the year.

The only one of the three product lines performing well is the FISH system. Good luck keeping the stool up on one leg, when the leading leg (the SPR system) is draining the company, and the other support leg (the ECLIA system) is dropping rapidly.

Current 15.85, Sept 20 09. Limit 13.00

P/E 6
Chinese is getting wealthier and the longevity is getting longer.

a billion people will need health care

Like the looks for the long term based on ratings here, medical needs in China for long haul and somewhat beaten down trend lately.

CMED is a stong chinese company in "state of the art" medical instruments. The potential growth is huge: China now beggins a basic medical system for the whole population of 1.2 billion. An d the potential growth is huge considering only the chinese market, not gloabally.
CMED has technology and can compete wordwide. So it's a potential worldwide player.
The results of the 1Q of 2009 were good. The decline in Net Income was due to coincidental expenses. Whoever bought or buy this stock as an investment (not for short term trading), he will make huge profits.
Time frame: 5 years.

Caps 5, StockScouter 10

Great growth potential, in the fastest growing economy in the world

Dont know much about this stock, but gonna watch it for a while and make a decision on whether to invest myself. Near 52 week low, with a 5 star rating is very appealing to me.