Updated from 7:01 a.m. EDTGushan ( GU) is a $3 stock, with $2 in cash and zero debt. EPS for 2008 is likely to be 90 cents to $1, with 2009 EPS of around $1.50. So given the current valuations, Gushan is trading anywhere from two times to three times earnings. Based in Fujian province in China, Gushan is the leading biodiesel producer in China. It sells its biodiesel to oil wholesalers and oil retailers. When it went public in December 2007, Gushan issued 18 million ADS shares and raised $180 million. Gushan is a pure play on alternative energy in China. The number of motor vehicles in China, whose population is north of 1 billion peope, has grown from 20 million to 50 million since 2000. Chinese oil consumption nationwide is around 500 million tons, with 200 million tons being produced domestically; the rest is bought on the spot market. This is where Gushan comes into play. As part of a broad alternative energy policy, China's goal is to reach 5 million tons per year in biodiesel consumption by 2015, with renewable fuels reaching 20% of total supply. To support these monster initiatives, the Chinese government has supported all of the major biodiesel producers, particularly Gushan, by giving massive revenue tax breaks and in some cases helping with research and development costs. Thus, the regulator environment has been and will likely remain very favorable to biodiesel producers, especially Gushan. To read more, visit Stockpickr.com.