Take a little time away from your heated A-Power discussions and go take a good long look at CSR. It reminds me a bit of HOLI, but can be had at a cheaper price. It's guiding $1.15/share GAAP earnings in 2010, and is only selling for $5.70/share.

It has a large barrier to entry since it mainly does large commercial and government contracts and most competitors do small and medium sized projects. It has a large stable source of business with the Safe City initiative only 20-25% completed. It is entering the cosolidation phase of it's long-term plan after acquiring a large quantity of companies over the past two years, so margins and efficiences should begin to improve.

It's becoming a force to be reckoned with in the digital infrastructure industry. It's mainly security and surveillance but has branched into fire safety by acquiring a fire equipment manufacturer. It is also winning some exponentially larger contracts which are called E-city (Digital City), and include an emergency response component.

Their long-term plan will inevitably lead them to more of a service-based business since that is the natural path of the security industry as evidenced by any developed nation. CSR is well positioned to take advantage of this transition into the high-margin, recurring revenue portion of the business since every customer they do installations for is a potential service customer.

It just cleaned up it's toxic convertible notes deal and is now free from the excessive shorting that has taken place over the past 1.5 years. The best part is many of the past investors were scared away and have not realized CSR has changed their ways and is not shackled anymore.


It still has an issue with A/R but it's mainly because the gov't is notoriously slow at paying, but they have begun to structure their contracts in phases, whereas before they had to wait until the project was completed before getting paid. The phases will help clean up the A/R.

CSR also has two contracts on the Chinese version of their website they have yet to do a PR for, and they are worth 4 billion RMB over the next 2-3 years. Should be a nice catalyst. They have signed nearly $700 million in contracts in the last month alone.

Management owns a large chunk and is very committed to the success of the company.

They have also been doing the investor conference circuit like HOLI, and I know you like to see that sort of thing.

Just thought you would be interested in this company.