Just wanted to share it with this board:


Dear subscriber,


As we've talked a lot about Canadian stocks last days, it might be time to bring up a US-listed Chinese stock!

The company we're talking about is Chemspec International (CPC).

Chemspec International is a Chinese company, focused on specialty chemicals mostly for the semiconductor-industry. It listed on the New York Stock Exchange back in june at a price of US$9.00.

Last two days, the stock has been hammered down, to a new low of $6.00 this afternoon. One cause we could imagine is the fact the company is about to announce it's quarterly report on friday.

Analyst Estimates are a earnings per share of 96 cents for 2009, and 1.07 dollar for 2010 (Source: Yahoo Finance). At estimated earnings for this year, P/E of this company is 6.35 which is attractively low.

If we look at the balance sheet, it looks even more attractive! Shareholder Equity is 170 million USD, so we are trading at around 1.3X book value, which is quite low for a company with such projected earnings.

But the uncertainty of course are the Third Quarter earnings release now friday. We are now taking a small position (at 6.11) for the long term, but please beware it's quite possible next earnings will be weak, and that might be the cause why the stock price is dropping!

Please always do your own research!




Kindly yours,

The Caesars Report Team
www.caesarsreport.com