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Strategies & Market Trends : Greater China Junior Stocks

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From: yassinzineb5/19/2006 12:29:29 AM
   of 1992
 
CHID.77 here's my opinion on this one
CHID has been languishing since early 2004 except the unsustainable one month spike last summer in a long downtrend.

stockcharts.com

Now,the BIG difference is that real revenues and profits are here.

I don't know why but CHID reminds me AOB both fundamentally and technically...

I have the same comfort level with CHID that I had with AOB all those years.
Personnaly,i believe that CHID could reach the same kind of valuation.

Let's take a look at AOB financials:

quicktake.morningstar.com.

AOB revenues and EPS

2002 10M .11
2003 20M .15
2004 32M .20
2005 54M .31
2006 85M(e) .45(e)

CHID revenues and EPS

2004 2.3M (.02)
2005 12.7M .05
2006 30.4M .13
2007 55 M(e) .22(e)

AOB easily reached 6$ and a market cap of 250M(PE of 20)and at its peak of 7.6$ it had a market cap 350 millions and a pe of 25.

If we extrapolate these numbers,CHID,given the very similar growth rate and its historical conservative estimate,could reach 2.60$(PE of 20 market cap 180M)this year alone and if you apply my 2007 estimates,the 4$ mark is the cards.

Remember,the CEO of this tiny company just bought a good amount of shares (at .96$) because after all i believe she knows better than anybody else what's in the cards going forward.

Here's the CHID message board,everybody is welcome!
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