About Infosmart Group, Inc.

Founded in 2002, Infosmart is a fast-growing and profitable recordable DVDR manufacturer. Infosmart selectively identifies opportunities, strategically times entry and executes efficiently to exploit those with maximum profit potential.

Infosmart operates a state of the art DVDR production facilities y in Hong Kong and Brazil and is preparing to launch new recordable High Density DVD media n of (HD-DVDR). media the next generation in optical storage (disc) media. Additionally, Infosmart is poised to become one of the largest CDR/DVDR manufacturers in Brazil’s and all of South America this year, garnering largest manufacturer of DVDR discs. This second facility will help garner Infosmart significant share of the country’s estimated 720600 million disc annual demand.

Whether it is HD-DVDR for mature markets or traditional DVDR for developing markets, disc media will be the storage media of choice for years to come. No other storage media available rivals its combination of high capacity, low cost and exceptional portability

Just came across this little penny stock today after it popped up on my small cap filter with some very large buys compared to its past trading history. After doing a little research it appears this stock seems to be deeply depressed at these current prices in the .30’s with upside potential near 1.44 aka roughly 350% gain.

IFSG is currently the 10th largest DVDR manufacture in the world and is setting up shop in other countries in addition to the low cost manufacturing powerhouse china. Recently they opened up manufacturing facilities in Brazil which they expect to eventually have revenues doubled over 2006.

With IFSG’s forcasted growth and upside potential as the company enters the Brazilian market and the upcoming HD/Blu- Ray disc boom i think it appears that this could be a major diamond in the rough for future growth and undervalued.

Currently the industry average P/E ratio is trading at 18x earnings, as well Imation, a very large competitor of IFSG is currently trading at 17x earning though isn’t experience nearly as significant of growth. IFSG expects to report .06eps for the full year of 2007 which could put there share price around1.08 if they succeed at doing so. Currently IFSG is trading around the industry average P/E ratio at 17x. If they were to maintain this average we should expect price to climb along with earnings. For 2008 they’re expecting to report eps of .08 which gives IFSG a very low forward P/E ratio of just 3.85x compared to the average 18x earnings, suggesting prices near 1.44 in 2008 from todays closing price of .31.

I think this looks like a good investment opportunity though there is always a lot of risk involved when trading penny stocks so be very cautious. I myself will only bet a 1/2 position on this speculative penny stock. I’ve laid out the just of the growth story and and potential gain in share price. If you would like to read more about there products and production info in Hong Kong and Brazil there is a lot of information via PDF documents from there website.

IFSG Earnings call, fact sheets, presentations, investment reports etc.
http://www.infosmart.com.hk/corpinfo_investors.htm

Technically theres not much here execpt for the huge spike in volume during wednesdays session sparking possibly the beginning of a new bullish trend. Volume has been extremely low so buying and selling this stock could pose to be difficult. Hopefully investors catch the eye of this storm and hop on the bandwagon to riches A breakout to the upside of the horizontal trading channel at .33 would be a very bullish indicator that this stock is ready to head north. I’m looking to fill a 1/2 position in IFSG.

This entry was posted on Thursday, September 6th, 2007 at 10:36 am and is filed under Small Cap Stock Picks. 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.