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09.24.09 TimelessWealth.net issues undervalued investment idea with
American Lorain Corporation: ALN ($2.57).
Dear Subscriber,
TimelessWealth.net has issued an undervalued investment idea with
American Lorain Corporation (ALN), a Small Cap China stock.
The
Small Cap China Index (HAO) has appreciated 68%
year-to-date, representing significant growth among companies of
this class. After meeting listing requirements, American Lorain
Corp.
commenced trading on the American Stock Exchange (AMEX) on
September 8th, 2009.
Among the thirty-four (34) emerging small cap inductees,
American Lorain Corp. was invited to present at the 2009 RedChip
New York Equities Conference on September 30th and October
1st, 2009. For over 17 years,
RedChip has been dedicated to “Discovering Tomorrow's Blue
Chips Today™.” RedChip's long history of success includes
research coverage on Starbucks™, Nike™, MarketWatch.com™,
Daktronics™, and many other companies before they were Blue
Chips.
American Lorain Corporation engages in the development,
manufacture, and sale of various food products in China and
internationally. The company offers its products through its
sales team, independent sales representatives, and third-party
distributors, as well as directly to supermarket chains, mass
merchandisers, wholesalers, food companies, trading companies,
and small customers. American Lorain Corporation was founded in
1995 and is headquartered in Junan County, the People’s Republic
of China.
The
processed & packaged goods industry is a two-hundred and
ninety-nine billion dollar ($299,000,000,000) industry, with an
average price to earnings (P/E) ratio of 16.1. American Lorain
Corporation’s trailing twelve months (TTM) diluted earnings per
share (EPS) was $0.57, hence realizing a P/E ratio of 4.5
(PPS/EPS = $2.57/$0.57). The market adjusting to industry
average P/E, represents a potential 257% return on investment (ROI),
given the closing price ($2.57) from the most recent trading
session. Fair market valuation states: EPS multiplied by the
industry average P/E derives fair market value price per share
(PPS). Relative to American Lorain Corporation (ALN), diluted
earnings of $0.57/share multiplied by industry P/E (16.1),
results in fair market value of $9.18/share. Stockholder equity
has grown 27% over the past four quarters, with current book
value per common share of $2.88 ($72,520,535 /25,177,640).
Despite a rough global economic climate, American Lorain
Corporation’s second quarter 2009 (period ended June 30th, 2009)
revenue grew 11.3% compared with the same period in 2008. On
September 22nd, 2009, American Lorain Corp. announced the
company signed contracts with two popular chain restaurants
in China, collectively worth nearly eleven million dollars
($10,900,000). In closing we offer you our thoughts from a
technical perspective, please
click here to view our
annotated chart.
Through strong growth,
and an undervalued presence in the small cap market, American
Lorain Corporation (ALN) may be in line among the next Small Cap
China Company to significantly appreciate in value, in the
market. We strongly encourage you review this undervalued
investment idea with further research. Our report is designed to
cover key technical and fundamental concepts while providing a
starting point with due diligence material. All the best.
Sincerely,
Edward Stevenson.
Timeless Wealth Staff.
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