Top 50 Most Undervalued Companies for 2010 (Part 3)
By Zack Buckley and Glen Bradford
China Medicine (CHME.OB) is trading at an adjusted price-to-earnings ratio of 7. It recently took a big hit after the release of its 10-K, which allows investors to pick up shares of a great company on the cheap. China Medicine generated $17 million in 2009, and is only a $65 million company. China Medicine is waiting on government approval of its proprietary drug rADTZ which should substantially contribute to future revenue growth.
Yongye International (YONG) continues raising revenue guidance, with 2010 net income expected to increase between 60% to 72%, and has issued the expectation of 50% compounded annual revenue growth over the next three years. Its recent count of branded stores is 10,000, with the goal at year-end to be 20,000. There are discussions that by the end of the decade Yongye may have 100,000 branded stores.New Energy Systems (NEWN.OB) has been reaffirming guidance at between $5.3 to $6 million. Since it has reaffirmed this number on three separate occasions we can assume it will be close to accurate. The company projects 2010 per-share earnings of 1.23, which makes a low P/E of only 6.1 times earnings, even though this incorporates a tripling of net income. With return on equity of 60% and profit margins at 26%, this company has high returns on capital and strong margins. Average return on equity in American business is 12% -- anything above 20% is spectacular. Orient Paper (ONP) is a rapidly growing company with a P/E of 8 in a great industry. It makes paper, it is very simple and understandable which we love. Orient Paper achieved a return on equity of 22%. It expects adjusted EPS of $1.21, which is about 16% growth for 2010. China Ceramics (CCLTF) is one of those companies that makes you proud. Take a look at its super 8-K issued last November and if you're perceptive you'll realize how truly innovative the company's structuring is. I firmly believe that more companies should go public in this manner. Basically, if the company performs, they get over $100 million through its warrants being cashed in; the warrants trade as CCLWF.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV