Monday, November 30, 2009

GCHT: Grand-slam Chinese wind-play, get in now


The stock is called GC China Turbine (GCHT), and while it may be low-priced at the moment, all that will likely change very shortly. This company is about to report its first profitable year (thanks to spectacular rise in sales), and is on track to grow its sales by 265% a year for the next three years at least. Very shortly, I expect the share price to begin a climb that could take it as high as 51X its current level.

Let me tell you what makes this stock one in a million...

Right Place. GC China Turbine is located in China, the fastest growing economy in the world. Next year, the IMF expects China’s GDP growth rate will be 9% – 6 times higher than that of the U.S. Under those conditions, you can expect returns on Chinese stocks to outpace their American counterparts by a wide margin.

Right Industry. China’s economic growth requires its energy supplies to grow by 10% a year. Yet at the same time, China needs to develop cleaner energy sources to curb its terrible pollution. To satisfy these goals, China’s government is investing $150 billion over the next 10 years to develop wind power. Turbine makers will see their sales skyrocket as all this cash gets spent on new windfarms.

Right Product. GC China Turbine has exclusive rights to manufacture and sell the most advanced wind turbine in China. It’s 2-bladed design is lighter and more reliable than anything else on the market. The design was developed in Sweden under a $75 million research grant, and test models have been in operation for over 10 years. What’s more, this turbine can bring the cost of wind power down substantially, so that for the first time it can compete price-wise with coal-fired and hydro-electric plants.

Right Connections. GC China Turbine may be small, but its parent company has a 40% market share of the market for technology geared to the electrical utility industry and an excellent reputation. GC can benefit from its parent’s engineering expertise, reputation, and contacts within the utility industry, government, and parts suppliers to expand its business rapidly. Right Backers. Two of China’s most successful venture capital firms have provided the company with the cash infusion it needs to expand its production.

Right Timing. GC China Turbine already has won 3 contracts for a total of 150 turbines worth $128 million. Seven of these are already delivered and installed, while the rest will be over the next few months. That means not only this year’s profit but also next year‘s huge increase are practically guaranteed. Between now and the end of this year, you have one final chance to buy shares for under $5.50. Once the next earnings report comes out, I doubt they will ever be this cheap again.

Let me stress. This may be a small company now, but in three years it could easily have a market cap of over $1 billion. It’s the kind of opportunity that doesn’t come along every day, and I really think you should take advantage of it. Contact your broker now, and if you’re lucky enough to find GC China Turbine (GCHT) selling for under $5.50 a share, buy some quick!

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