Why this blog?

I'm starting this blog to methodically follow a particular Chinese growth stock which I believe has the potential to grow 200-300% in the next year. China Information Technology, Inc. (henceforth referred to by their ticker symbol, CNIT), is a small cap Chinese stock listed on the Nasdaq stock exchange. The current stock price, as of market close on 7/1, is $2.12, with 166,788 shares traded on this day. Its market cap is just about $111M and there are a little over 52M shares outstanding (check info on Nasdaq).

Who's CNIT? CNIT, in their own words, "specializes in Geographic Information System (GIS), digital public security and hospital information systems, with the goal of becoming the largest GIS software provider in China. Their mission, quite simply, is to "Build an information society and construct a Digital China." Considering the incredible growth of a variety of industries (including tech) in China, that's not a bad mission to have. They have an English site for you to get deeper information if you're interested: http://www.chinacnit.com/index.php.

Why CNIT? Why not RENN, SINA, DANG, BIDU, or any other highly publicized Chinese stock that investors and traders are raving about these days? Don't get me wrong, those are potentially great investments or trades as well. I actually occasionally swing trade on them, though I'm not particularly fond of what I feel are more speculative trades on companies with negative earnings or extremely high P/Es. I did actually hold SINA from early March 2011 (in the mid $80s) to about $110, before selling. But in my portfolio only about 10-20% goes towards trading on stocks that I feel are speculative in nature. CNIT is very different. They have a rock solid business model, a strong management team, an extremely low P/E (as of today it's just over 3, for a company in an industry where you wouldn't be surprised to see P/Es of 30), and it's in an environment where it has high chances of seeing extreme growth.

The stock is highly rated by anyone who cares to look (currently the only analyst I have found who is monitoring the stock, however, is Rodman & Renshaw, who set their last target at $9.00 on 4/14/2011 with a reiteration rating of "Outperform". As of today, that's over 300% upside. But of course it doesn't always work that easily. However, I'll follow the stock with this blog, carefully monitoring fundamentals as well as technicals, and hopefully make lots and lots of money.

Recent headlines:
- China Information Technology: Stock to Watch: Up 4.9% (CNIT)
- Crystal Gazing Tech Winners: NTWK, OPWV, CNIT
- A Little Rise, a Little Trend? BLDP, CNIT, FTWR, TRID

Disclaimer: I do not work for CNIT, nor am I connected with anyone employed there. I also do not have access to any information which is not public - i.e.: I have the exact same information that you do. I just pay attention to it more for this particular stock :)