To OTC Journal Members: 

If you're interested in the China space, you needed to read this past weekend's article. It was supposed to be entitled "Like Roberto Duran: Fund Managers Say No Mas To China Stocks". Thanks to a software glitch, the word "No" was dropped from the headline. This stuff drives me nuts. No matter how many times I review these articles to make them perfect, some glitch always gets in the way.

I got a lot of calls and emails from professionals in the business congratulating me on getting the story spot on. If you missed it for any reason and want to know what's going on in the China space- it's a must read.

Click here, and you'll get the version without the goofy headline in an email. Sorry if that confused anyone.
 

Bohai (OTC BB: BOPH) Comes Ripping Back

I like to be first, and most of the time it pays off. Sometimes not. I am an investor in Bohai with my own capital, and I was the first one to get to the markets with any information on the company. 

Bohai Pharma (BOPH), my first idea in a series of 3 absolutely fantastic values in the China small cap space, traded poorly for one day. It has now come roaring back. It's back to the $2.40 level it traded to on my introduction day (up from the opening trade of $2.30).

The stock has begun trading some pretty significant volume since I first featured it. As it happens sometimes with thinly traded stocks; as soon as a little volume comes in, some weak hands that need cash sell, and once they are out, you often see the kinds of charts you're looking at here.

The rebound in the stock can be tracked to some positive ink the company has received of late. Columnist Gene Marcial wrote "Inside Wall Street" for Business Week and the Wall Street Journal.

In his column that appears at the Daily Finance section of AOL, Mr. Marcial featured Bohai and described it as "An Attractive Investment". He notes Murphy Analytics has a price projection on the stock of $7 in 2011 and $11 in 2012. I hope he's right. Click Here to give it a read.

Based on sales and earnings in any sort of rational market, I could easily see BOPH up into the $4 to $5 range this year. Their government approvals, distribution channels, and proprietary products - not to mention the $123 billion the Chinese government is spending to subsidize health care for rural areas, give this one a lot of upside.
 

And, Speaking of Rural Areas.....

Yes- I've got two more I absolutely love, and plan to bring to you while China stocks remain mind boggling cheap.

Here's a preview:

Did you know that 98% of people in China who live in Tier I and Tier II cities now have a refrigerator. However,in rural areas, which still represent 55% of China's population (double the number of households in the US), only about 23% of residents have the simple use of a refrigerator- not to mention other appliances we take for granted such as TVs, washers and dryers, toasters, and solar power (huge subsidies are available for this in China).

There's a company selling appliance in rural China through 768 rural locations- $100 million in annual revenues and a 300% growth rate, and just ridiculously cheap. Stand by.

Also- You gotta eat.

Who's feeding all the people working for the likes of Kodak, Phillips, Bank of China, Dell, Lenovo, and WalMart? I'll tell you who's doing it- soon. This one will deliver a mere 240% growth rate for '10 over '09, and the bottom line is surging in concert.

I think I'll deliver you the first one this Thursday after the market closes. Stand by. When these stocks start coming back, there's going to be a lot of money made by those with some courage, foresight, and patience.

Disclosure- Long Bohai

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