NEW YORK ( TheStreet) -Nobody apparently is listening. That's fine. That's about what you'd expect when you find something that actually is undervalued. Louis Navellier allegedly just left the building. He'll likely be back.
It's funny to me that this particular company - Longwei Petroleum Holding Limited (LPH) -- is getting sold off. Take a look at how fast it's growing. What kind of multiple you'd pay for this kind of company?
The analyst report from RedChip suggests that eight times earnings is what you should be willing to pay. That's $5.20. Look, I'm not going to poke fun at analysts, but any mutual fund manager would love to buy a stock growing this fast at more than 16 times earnings.
You want catalysts? I've got a few.
- Crude oil prices are rising. Not only that, but in terms of U.S. dollars, they are going to increase from here as we are currently at peak oil levels. Energy demand in China is going to squeeze oil prices higher there and especially in the U.S. Get ready for it.
- Global money flows to China. Where is money going to flow globally? China. Why? Because they are raising interest rates --- and this attracts investment capital. Not to mention that the Shanghai and Hang Seng still have upside to their markets before they are overpriced. If Longwei listed on one of those exchanges, it would likely sport a 30 times multiple or greater.
- Expansion to a new facility. It's likely to happen in the next 12 months.
- The yuan will rise against the dollar. Longwei earnings will be magnified in terms of dollars as this happens.
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