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CELM - Not All Chinese ADRs Are the Same

April 22 , 2010

We have seen quite a few of Chinese ADRs crashed recently:

CSIQ - Solar stock.  $25.97 -> $18.26 (04/21/2010);
FUQI - Jewelry Maker. $19.00 -> $10.30 (03/16/2010);
SNDA - Online gaming. $45.50 -> $38.50 (03/04/2010);
VISN - Advertising services. $8.20 -> $5.09 (03/03/2010);
GAME - Online gaming. $8.27 -> $6.40 (03/01/2010);
YTEC - Financial software. $6.75 -> $3.55 (01/29/2010);
LDK - Solar stock. $9.20 -> $6.75 (12/21/2009);


Investors may ask what happened to those Chinese ADRs and may afraid of putting money into any of Chinese ADRs.

But not all Chinese ADRs are the same. If you spent time, you may find some hidden gems among Chinese ADRs. CELM is one of them.

CELM - China Electric Motor, Inc. A recent IPO and in Electronic Equipment sector.

China Electric Motor, Inc. engages in the design, manufacture, sale, and marketing of micro-motors and micro-motor components in the People's Republic of China and internationally. It offers micro-motors and micro-motor components for various applications in automobiles, power tools, home appliances, and consumer electronics.

This stock was put into stock market on Janurary 29 this year and closed at $4.45 that day. It becomes a $8.91 stock today. The company gave a $0.20 per share profit in its latest quarter report. Estimates for 2010 and 2011 fiscal years are for EPS of $0.83 and $1.12 respectively, a 35% growth.
If the company can meet or beat its estimates, the stock should be worth much more than its current price.

We put it into our Portfolio at $4.90 one month ago and gained almost 100% since our buy. This is another of our Supper Picks and a gift to our members.
See the Chart:



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