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!

Top 50 Most Undervalued Companies for 2010 (part 5)

Stocks in this article: CADC TXIC CHIO

Tongxin International (TXIC) is in the rapidly expanding auto industry and builds the body structures for commercial vehicles in China. It's trading at a P/E of 5 based on 2008 net income and is growing rapidly.

China INSOline (CHIO) is one of the more speculative plays, but it could be very rewarding. It is an online insurance provider that services the Beijing area. It has great profit margins and high returns on equity. Our main issue is that we have been unable to get in touch with the company, despite trying several different phone numbers and emails.

China Power Equipment (CPQQ.OB) is trading at a P/E of about 10, yet it's growing at breakneck rates. Net income over the past year almost tripled. It manufactures alloy transformer cores and alloy electricity transformers that are designed to step down voltages in power plants.

China Baicaotang Medicine (CNBI) is engaged in three segments in Guangxi province: pharmaceutical distribution, retail pharmacy and pharmaceutical manufacturing. It is currently at a P/E of 6, despite solid growth. It just recently engaged Crocker Coulson to conduct its investor relations, a great sign that it will uplist in the future.

YaSheng Group (YHGG.PK) has had quite the month. It's up almost 300% since it recently started making filings again with the Securities and Exchange Commission, which it hadn't done in about three years. Rumors are that it's planning on completing all of its late filings and eventually listing on Nasdaq. If that occurs, this $250 million dollar company could easily reach $1 billion. Again this is a more speculative company, so investors should carefully weigh their decision to invest in it.

At the time of publication Bradford was long all the companies mentioned. Buckley was long YaSheng, China Baicaotang Medicine, China INSOline, China Yongxin, Sino Agro Foods and Tongxin International.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider Sino Agro Foods, China Linen Textile Industry, China Yongxin Pharmaceuticals, China Rutai, China Advanced Construction Materials, Tongxin International, China INSOline, China Power Equipment, China Baicaotang Medicine and YaSheng to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

Buckley will be spending three months this year in China visiting companies that are exciting investment opportunities. Follow him on his blog,, as he travels across China touring factories and interviewing management.
2 of 2

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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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