Sep 18, 2007 Small Cap Stock Picks
About Universal Travel Group
Universal Travel Group, a leading air travel and air cargo transportation agency in Southern China, is engaged in providing reservation, booking, and domestic and international travel and tourism services throughout China. The company’s core services include booking services for air tickets and hotels as well as air cargo transportation and tour packaging for customers. Universal Travel recently completed the acquisitions of Shenzhen Speedy Dragon Enterprise Ltd., a nationwide cargo logistics company, Xi’an Golden Net Travel Serve Service Co., Ltd. which provides air tickets, train tickets and packaged tours, and Shanghai Lanbao Travel Service Co., Ltd., which owns and manages the award winning China Booking Association website http://www.cba-hotel.com/. Universal Travel’s goal is to become China’s leading travel services provider in the aviation, cargo, hotel booking and tour packaging segments. For more information, visit www.chutg.com.
I just can’t seem to get enough of these small cap Chinese stocks that are extremely undervalued. Seems like another one pops up every week 
Which i certainly can’t complain about as we’ve capitalized greatly on these undervalued Chinese stocks latley.
UTVG is my latest small cap China stock that i just came across today after it made a bullish breakout from its ascending triangle pattern with above average volume confirmation suggesting continued trending upwards for this stock.
Recently last month UTVG reported a strong quarter which beet the street estimates by 25% resulting in .05eps for the quarter. Currently UTVG is trading at 27x earnings compared to the Consumer Services industry average of 36.x earnings making UTVG look somewhat undervalued with its current reported financial status. Though growth story isn’t expected to stop as UTVG expects to report earnings of .24 for 2007 which entails 200% earnings from from 2006. For 2008 analysts are expecting UTVG to report .39eps giving them a low forward 08′ PE of just 8.56x earnings. We should expect their stock price to continue north to catch of with its future valuation as time passes. Theoretically for UTVG to be fairly valued in its industry we should expect price to proceed skyward near $14/share as we head into 2008. This is calculated by multiplying the expected annual 08′ eps of .39 x the industry average PE of 36x earnings which gives us an estimated share price of $14.04.
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Overall this looks like another great opportunity for us to capitalize on an undervalued small cap China stock on the verge of a major move sparked by a bullish breakout of an ascending triangle pattern based on technical analysis, that is also backed by strong fundamentals.
Im looking to buy UTVG.OB during tomorrows session.
