Gushan Environmental Energy (GU)
—Add to Watch-List 22 January 2010; market closed (The previous issue was broadcast on 1/14/10)
Preemptive Profit-Positioning (add to watch-list): Gushan Environmental Energy (GU NYSE): $1.28 X $1.29 China-based Gushan Environmental Energy (GU) is a company that could see a major near-term bounce in its share price -- GU is currently trading just above its 52-week low of $1.23 per share. The company is well positioned to capitalize on China’s expanding economy and the country’s imminent shift toward green technologies. Our most recent Chinese stock, which also produces a green technology, is JST – which we recommended in September 2009 at $27.60 and currently trades near $40. Gushan Environmental is a leading producer of biodiesel in China -- biodiesel is a renewable, clean burning fuel made from vegetable oils, animal fats, and waste oil – and is a viable alternative fuel to conventional petroleum-based diesel. Gushan sells its biodiesel directly to users, such as marine vessel operators, as well as to petroleum wholesalers and individual retail gas stations. The company currently has 7 production facilities with a combined annual production capacity of 450,000 tons. Gushan Environmental is coming off a difficult third quarter hampered by a dizzying consumption tax issue currently in the hands of the Chinese government, which has yet to be resolved. Yet, GU has a strong cash position of around US$86 million, which should enable the company to withstand this current period of volatility and uncertainty. Gushan has done a good job of late diversifying its raw material sources, and the long-term outlook for China’s biodiesel market looks strong. In addition to a projected near-term bounce in its share-price, Gushan could eventually trade back above the $18 per share level as the company capitalizes on China’s medium and long-term development plans for clean energy sources such as biodiesel. Now is the time to conduct your own due diligence on Gushan Environmental Energy. You can view the company’s recent press releases and SEC filings at www.finance.yahoo.com under the symbol GU. I am officially adding Gushan Environmental Energy (GU) to our watch-list of preemptive profit-positioning candidates. Stand by for now. This publication is based exclusively on information generally available to the public and does not contain any material, non-public information. Information is obtained from sources believed to be reliable, but the information cannot be guaranteed as to its accuracy or completeness. The author is not, and does not purport to be, a registered investment adviser and does not accept compensation from publicly traded companies in return for his commentary. The objective of this newsletter is to present Situational Analysis and to provide progressive implementation of the author’s proprietary Situational Strategy Templates. No statement or expression of opinion, or any other matter herein, directly or indirectly, shall be construed as an offer to sell or the solicitation of an offer to buy the securities mentioned. Readers should not view this publication as offering personalized investment advice, and must individually determine the suitability of investments discussed for inclusion in their own portfolio. Past performance does not guarantee future results. Reprints or redistribution of this copyrighted material is allowed only by written permission from Nat-Con Publishing. To opt-out from receiving future publications, please click here. |
|||||||||||
 |
|
| HOME | ARCHIVE | DISCLAIMER | CONTACT |
|
| © 2010 © Nat-Con Publishing. All rights reserved. |