Tuesday, February 3, 2009

February 2009 Stock of the Month

At tomorrow's open, we'll be closing out ITRN and opening a position in China Information Security Technology, Inc. (CPBY).  CPBY is a small software company that provides security systems for the Chinese government in such areas as policework, border security, and surveillance.  Investing in China certainly involves some risk, but if the PEG ratio is even close to accurate, this one is a real bargain.  Here are the numbers:


Market Cap = 160M
PEG Ratio = 0.15
Qtrly Sales Growth est. = 77%
ROE = 32%
ROA = 15%
Insiders Own = 10%
Total Debt-to-Equity = 5.5%