Simcere Pharmaceutical Group (NYSE:SCR)

This is a small/mid cap high growth stock that should outperform the S&P during the bull market.

china GROWTH

low valuation; great beneficiary of health reform in China; government strong support; cost-effectiveness in rolling out innovative medicine; leading performer in Chinese pharm sector

Generics will dominate the drug industry in this Social Communist country.

Solid balance sheet. Look to buy below $9

to much volatility

On the rise...

China is paying the price for their rapid industrial growth in high rates of Cancer and Lung Disease related to the air pollution. China is trying to shift to a green energy model, but in the meantime they have a lot of sick people needing cheap medicines, which this company manufactures. Stock is currently near 52 week low, with loads of upward growth potential in their market. Good long term buy in my opinion.

generic Rx company in China. Obama with his healthcare reform. America's love to solve problems by taking a pill. Very cheap. I can't pass it up.

This stock is a great choice. By evaluating this company and looking at their growth pattern and their marketing strategies this is a sure fire stock to pick. This company has great leadership with the ability to think outside the box. With the possibility of some future acquisitions this has all the ingredients for wonderful success, short term and long term both. Keep up and watch out. With this outlook ahead, we should also look to the left and right (aka their competion) for huge leaps as well. If you have a little on the side I say diversify within the sector and buy from all the competetors too for they also are looking very solid. That is my pick and I am sticking to it.

This is a play I may change in a few months, as I'm not sure on their long term potential. However, with the earnings coming out August 5, and everything I can read screams that they will meet, or exceed, their estimated earnings, this appears to be a great short term play.

With its current financial strength (assets/liabilities > 6:1), high Net profit margin, and good sales of the core products, the chances of a significant decline is small, particularly given the fact that its near a 52-week low DESPITE earnings having grown more than 80% over the past year. Go figure, earnings grow 80%, sign three new contracts for generic drug distribution, record cash comes in, stock price declines 40%. With more research (to be done this weekend), I may extend my time frame to several years. I'll update as necessary.

Bullish signal stocksabroad

With the price of the stocks for this company there is still intrest in what it can do for the country.

Way undervalued for a strong growth potential that this company shows.

Sustainable competitive advantage.

Simcere has a lot of scope for growth and it is selling at a reasonable P/E currently. At worst it shouldn't lose value but in two years or so I expect it would double in value especially in a growing economy like China where healthcare is getting increasing attention.

EXP POS EARN

Why be bullish on a little known Chinese pharma company with an overheated Chinese market due for more correction? Because bottom line they are making drugs. Not just some designer drugs, they make generics(one slice of drug mkt), they have anti-cancer drugs(huge growth upside), they are buying or partnering with other companies who have products to distribute.

They are positioning themselves for huge upside.

Now for the bearish end, it just listed as an ADR in April 07, has been trending downward since, as of my choosing this they haven't announced 4Q 07 earnings yet. There seems to be a problem with newly listed Chinese ADRs at times, murky information, hopefully they will learn to put more news out there. So this could guide lower temporarily if earnings are missed (approx .12), If it beats then it is a great sign towards future growth and entrenchment into the Chinese pharma industry.

Very thinly traded right now so any big stake is going to move it, as yet only 13% Institutional owners.

High risk? Yes. Company in an already inflated China market? Yes.

Taking those things into consideration I think the upside potential here is absolutely huge. Generic drugs with a market as large as the population of China...I think it's worth the risk.