April 14, 2009
SpeculatingStocks.com Stock Pick: China Green Agriculture (CGA)
Stock Price: $4.89
China Green Agriculture, Inc. produces and distributes humic acid ("HA") based liquid compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., ("TechTeam"). CGA's TechTeam produces and sells approximately 15,000 metric tons of over 100 different kinds of fertilizer products per year.
The fertilizer products produced by CGA's subsidiary are certified by the Chinese government as green products and suitable for growing Grade AA "green" foods, also known as green products that contain little or no chemical materials.
During November of last year, China announced that it would be spending $586 billion to invest in its own country. The plan set forth is expected to set well with the Chinese economy and companies.
CGA is trading at less than a market cap of $100 million and a PE of less than 10. In February, the company released full year 2009 revenue guidance of $31.6 million - $32.8 million and EPS guidance of $0.61 - $0.66.
CGA has become very hot over the past six trading days with increased volume and closed at or near its highs the last two trading days. With increased attention coming to CGA, we believe we could see it surge higher.