China Investing: Like a Kid in a Toy Store

2. The second company to consider may have the most upside in the long run, but is more of a gamble. China Clean Energy(CCGY Quote) is in the biodiesel and specialty chemical products business. Rumors are that this company is increasing capacity to bring on $14 million of net income annually. Not bad for a company at $10 million. It's less of a rumor now, as the company just put up new pictures of its expansion plant in construction. A word of warning, another company, Gushan(GU Quote), operating in the same province as China Clean Energy had to shut down production because of a new consumption tax that took effect on Jan. 1, 2009. So far, China Clean Energy appears to be in the clear and as of today reiterated that the value-added tax has not been finalized and that it is watching the situation closely.

3. From bikes to trains to video games at the biggest toy store there is. Somehow, we ended up in the electronics isle, and it's only suitable that I disclose my fully integrated information and entertainment service provider stock: MystarU.com(MYST Quote). My estimate puts 2009 earnings at $10 million plus or minus $5 million. That said, my estimate could be hugely understated, as growth rates are in the triple digits. Did I mention that subsidiary Subaye.com is working with Google (GOOG Quote)? Enough said.

4. I don't want to grow up because if I did, I couldn't be a Toys 'R Us kid. To stick with the theme of electronics, here's a company that has been laughedat by investors down 40% since its last conference call: China 3C Group (CHCG Quote). It just acquired its logistics company to increase efficiencies. China 3C has been trying to uplist for over a year, getting unfairly punished by investors; For $38 million, you can catch a company that made $26.8 million last year.