i have a very close eye on CXTI at this point. The stock has been damaged be resignation of its CFO which also led to the recent 5 day extension for reporting the EC, along with the depressed market.
The valuation of this stock is so undervalued at this point its ridiculous.
the company expects to report 1.01 eps in 2008 on a 75.3% jump in revenues. giving them a very low forward 08′ PE of just 3.42x earnings compared to the industry average is trading at 26.6x earnings.
Giving CXTI a fair value of $26.86/share for 2008 compared with todays closing price of 3.46 which is just about as attractive of a stock i’ve come across yet in my time as a trader.
Earnings should be out soon and i believe them to be in favor of the longs. I want to buy CXTI given a fair chance on Monday, Preferably below 3.50.
Headlines:
China Expert Technology Signs $22.8 Million e-Government Contract with Suizhou City
PR Newswire (Mon, Jul 16)
China Expert Technology Signs Three New e-Government Contracts
PR Newswire (Mon, Jun 25)
I dont have much time to dig into this as its saturday, 10pm, and i’m in the middle of celebrating my 23rd birthday here come midnight 
But this stock looks dirt cheap, its a china stock which i love, and the company has an awesome current ratio of 8.07.
I want this in my portfolio
