China GrenTech Corp Limited (ADR) (GRRF)

China and CAPS all star play

China GrenTech Corp is a provider of "wireless coverage products and services in China and a developer of radio frequency technology. I found this company using a screen that looks for companies with low p/bv ratios and positive earnings revisions. The company lost money last year but it has generated earnings in recent quarters and is expected to make $0.42 per share by 2010. the balance sheet is sound and longterm sales trends are good. The company seems like a bargain at 0.5 times book value.

a stock on sales...

from your reports

GRRF penned a major agreement w/ China Telecom back in Sept 2008 to supply CDMA equipment. China Telecom has announced it will invest approximately $4 billion US in Phase I of the CDMA network construction to enlarge network capacity and improve coverage quality in major cities, and in rural areas with high population density. I really like the growth potential of the Chinese economy (wish I could say the same for the US) and this stock in particular. Got in at $0.80, watched it double today, going to ride it to $5/share.

grab em before they rise

I have no idea what they do but I'll greenlight the price.

Regardless of the Economy, this is a technology that all governments in all countries need to keep up the ever demanding need for communications within every sector of their government agencies especially when you consider how important it is during war time, emergency management just to name a couple.

There are so many situations that we rely on now through fixed wire feeds that are great, but what happens when that fails during a natural disaster which are occurring more & more every year and getting worse all over the world.

Governments have already awarded select companies in the communications field a lot of money to start getting their technology rolled out quicker and R&D to expand on making it even better.

Whats even better, is that consumers want it even more and can't wait for the next product generation within these technologies.

Bottom line: Technology covers a wide spectrum and without it we would not be where we are today in every aspect of life, but, Communication Technology is one that everyone from all walks of life use and even the average consumer sees it as a necessity. Most importantly, the government continues to help finance the technology for further enhancements and continued security.

Cheap stock, been beaten down. Hoping for a little rebound. Did I mention I love China?

Book Value per share = $8.97, as of 3/31/08.
Stock trading at about $5.00 on 5/23/08.
Trailing 12 month revenue growth = 20%.
Trailing 12 months EPS = $0.45 cents, but that should get better because:

1. Revenue growth has been limited in recent quarters because of uncertainty surrounding Chinese telecom restructuring, which will be resolved very soon.
2. Major customers (China Mobile and China Unicom) have been switching to a regional bidding model that defers revenue and profit recognition out over time for Grentech.
3. EPS would have been about 25% higher if the company hadn't had to book a paper loss for the decline in the value of their US dollars. Dollar accounts will mostly be converted to RMB by the end of Q3, so those charges will be gone.

The reality for US investors in Chinese companies is that the rising value of the Chinese RMB relative to the dollar is a positive, rather than a negative. Book value per share increased by $1.28 over the past 4 quarters, even though GAAP earnings were just 45 cents, mainly because of the currency issues.

GRRF has a good business model and is committed to continue R&D spending to increase product offerings while attempting to build an international customer base. They are well positioned in a growing sector in the world's fastest growing economy.

Trading near its 52 week low, after posting positive results for last year and last quarter.

Buy low sell high

Fundamentals are good, wireless tech company, price/book is .03!!! if the company liquidates this second you would get your money back, talk about under valued!

Fundamentals are very good

Large wireless provider in China. With a rapidly growing middle class and a huge chunk of the world's population, the need for wireless services will only skyrocket, hopefully with this stock in tow.

this is one I want money in the market for these

PEG 0.42

$10

Under the good juicy balance sheet and revs there is a 27.01 Float %.

This is a hard hit china stock with good market potential. Not even mentions 3G. Hold through around next year middle. Project $15+