Small Cap Stocks Pickings

Small cap stocks often fall off analysts' radar screen. Some of them might offer upside potential. Here are my pickings.


FFHL: $1.08, mktcap $14.11 mil
the Chinese company manufactures and distributes plastic film. EPS in 2009 was negative due to market downturn. Annual EPS before 2009 was at least $1.39. Assets $740 mil, equity book value $530 mil.
Reasons to buy: seems seriously undervalued; given the expected growth of China industrialization, the company can turn into profit in 2010.

VISN: $4.7, Mkt cap $337 mil
VisionChina Media Inc. is engaged in operating out-of-home advertising network using real-time mobile digital television broadcasts to deliver content and advertising on mass transportation systems in China based on the number of displays.
PE: 12
Reason to buy: based on Wall Street's analysis, the expected annual growth rate of the company revenue will be at least 30% in the next 3-5 years. and the valuation is still moderate.

ACY: $21.82, Mkt cap 33.68 mil
AeroCentury Corp. acquires used regional aircraft and aircraft engines for lease to foreign and domestic regional carriers.
Reasons to buy: low PE at 6.03 while solid fundamentals: uprising revenue even at market downturn; stable and uprising cash flow

CBEH: $11.53, mkt cap $384 mil
China Integrated Energy, Inc., formerly China Bio Energy Holding Group Co., Ltd., is an integrated energy company in China engaged in three business segments: the wholesale distribution of finished oil and heavy oil products.
reasons to buy: energy company and china market oriented; moderate valuation; uprising revenue with annual growth rate at least 20% in the past 4 years; relative stable margin;