This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

China Digital Trades at Discount

Stocks in this article: CMTP CBAK ABAT

Over the past one to two years, the company has been expanding its production of finished, high-margin lithium ion batteries for phones, computers and other electronic devices. CMTP now derives the majority of its revenue from this line of products, which provides gross margins in excess of 30% and account for over two-thirds of revenues. The company has had positive cash flow from operations every quarter in the past and previous years.

CMTP is clearly an ignored, underfollowed stock. In March, CMTP briefly traded at a 20% discount to cash on its books. Six months later, the stock has tripled. Although I am kicking myself for not finding CMTP back then, I don't want to make the mistake of ignoring it now just because it has gone up so quickly, particularly since it is still trading at a very significant to its direct comparables.

Below are segments of interviews with CFO Junfeng Chen in Shenzhen, and Investors Relations Vice President Ken Lin (via phone from New York).

CFO Junfeng Chen explains battery products to Rick Pearson.

Mr. Chen, can you please give me some overview and background information on China Digital?

Since 2001 we have been in the business of supplying battery caps and shells to the battery industry, particularly lithium ion batteries. Since 2008 we began expanding into the high margin business of producing finished batteries. Our operating subsidiary in Shenzhen is E'Jenie. We are U.S. listed and trade under the symbol CMTP.OB. Later this month, we will be changing our name to New Energy Systems Group to reflect our primary focus on producing lithium ion batteries.

3 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs