The best way to find to make loads of money in the market is to find the hidden treasures before the mob has found them. The stocks that you can get into before they are in the public eye and blow up before you can get into it at a fair price. One way to find these kind of stocks are to scope out the OTCBB stocks before they are traded on the major exchanges. Such as stocks like CDS that I found while it was trading as a bulletin board stock and purchased in the $3 area and noticed its value and growth as a hidden treasure stock. Heres my original article on CDS, then CHND.OB, here at seeking alpha back in May 07’ : http://seekingalpha.com/article/35157-china-direct-the-undervalued-newcomer . I eventually sold this stock for a 150% gain after it was trading as a stock on the Nasdaq exchange. Another Example is ABAT which also used to trade on the BB exchange and I manage to pull 35% out of when it was trading in the $1 area. It is now listed on the Nasdaq as well and went as high as $9/share.

CSGH.OB is another great example of a BB stock that could turn out some huge profits as it has some phenomenal growth and will likely trade on a major exchange one day, as of Todays close its trading at just 1.06/share. Lets compare CSGH.OB to two other Lithium Ion Stocks traded on the Nasdaq ; ABAT and CBAK.

2008 EPS: Winner = ABAT
ABAT : .33
CBAK : -.19
CSGH.OB : .13

07 - 08 Revenue Growth: Winner = CSGH
ABAT: 40.3%
CBAK: 46%
CSGH.OB: 206%

07-08 Earnings Growth: Winner = CSGH
ABAT: 50%
CBAK: slipped to unprofitable .01 to -.19
CSGH: 1,031%

Trailing P/E: Winner = CSGH
ABAT : 14.2x
CBAK : Unprofitable
CSGH.OB : 8.4x

Forward P/E : Winner = CSGH
ABAT: .51 = 7.64x earnings multiple
CBAK: .19 = 21.2x earnings multiple
CSGH: Guesstimated 100% earnings growth = .26 = 4x earnings multiple

Future Fair Value Within Industry Based on 14x earnings average P/E and Forward Earnings est. Winner = CSGH
ABAT: 14 x .51 = 7.41 ; 81% increase from todays closing price
CBAK: 2.66 = 33.9% decrease from todays closing price
CSGH.OB : 3.64 = 244% increase from todays closing price

So after looking at CSGH’s growth #’s I see a lot of the similarities that I saw in ABAT and CDS when I first found them as small time bulletin board companies before they hit the major exchanges. With CSGH trading just over a buck and recently reporting record earnings I think this is a prime opportunity to hop and board as this could be another big winner.

Tags: CSGH.ob, Technical Analysis

This entry was posted on Friday, August 29th, 2008 at 4:01 am and is filed under Small Cap Stock Picks, Technical Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.