- An unknown Chinese company with great fundamentals lists in the U.S. on the OTC Bulletin Board at a dirt-cheap valuation (usually about 5 times earnings).
- The company delivers several quarters of impressive growth and has a good growth story.
- The company undertakes what I call "the big jump": In a short period of time, it conducts a reverse split of its stock, appoints an independent board, selects a well-known investor relations firm and then lists on Nasdaq or the American Stock Exchange.
- The valuation trades in line with well-known peers, typically in the midteens (i.e., a tripling of its price from when it was unknown).
Top China Stocks: Year-End Review
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