A China Penny Stock With Ten-Bagger Potential
August 13, 2009
By Jamie Dlugosch, Editor, Penny Stock Winners
Feeding China's billions is Job #1 for Beijing, make no mistake. China is always, always, one typhoon away from utter social collapse.
China cheerleaders won't tell you this, of course. Last year's horrible earthquake revealed the ugly truth: Beijing's hold on power is very conditional.
Rice and pork, not cars and phones, are what motivate 1,530,000,000 Chinese.
Following this theme led me at first to a fertilizer company, China Green (CGA), but the stock's run from $2 to $13 happened too quickly for my taste.
Nevertheless, a seed company I discovered in Beijing is perfectly poised to jump from $4.50 to $15 quickly, and even $45 down the road.
Rice Price Jumps 50%
Rice, the staple crop of Asia, is racing for a 34-year high, and the reason is: Supply cannot meet demand.
India is unofficially in a drought. Australia is officially so.
Prices have jumped 50% recently. Hardest hit: the Philippines, by far the world's largest rice importer.
Worldwide famine and massive civil unrest are real possibilities at this point.
This China Seed Company Is at the Forefront
Origin Agritech (SEED) designs rice that is drought-resistant, flood-resistant, bug-resistant. One blight in particular, known as Xoo, can destroy a rice paddy in a matter of days.
Origin Agritech holds the key to combating Xoo and has all the advantages that spell a 10-to-1 return:
It's small — a few hundred employees, $103 million market cap.
It has no analyst coverage.
Deferred revenues are up 57% for the first 3 months.
Earnings, which were released on Tuesday, show an income increase of 21%. The stock jumped 16%.
What to Do Now
Buy SEED up to $5.00 with a stop at $3.88
http://www.investorplace.com/experts/james_dlugosch/articles/china-penny-stock-origin-agritech-seed.html
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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