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Thursday, November 26, 2009

Happy Thanksgiving Stock Pick China BAK Battery ( CBAK ) ( Long Term penny stock ) !

China BAK Battery Inc ( CBAK ) 3.13 a share Target price 6.00 by 2010.
China BAK Battery, Inc. is engaged in manufacturing rechargeable lithium-based battery cells. It produces battery cells that are the principal component of rechargeable batteries used to power applications, such as cellular phones, notebook computers, portable consumer electronics, such as digital cameras, portable media players, portable gaming devices and personal digital assistants (PDA), and other applications, such as cordless power tools, mining lamps, light electric vehicles and hybrid electric vehicles. Its products are packed into batteries by third-party battery pack manufacturers in accordance with the specifications of manufacturers of portable electronic applications. Its prismatic cells are targeted at the People’s Republic of China replacement market, where cellular phone batteries produced by independent battery manufacturers are purchased for use in second-hand cellular phones or as back-up batteries, and primarily comprises steel-case cells. China BAK Battery, Inc. (CBAK) – Shares of the Chinese battery manufacturer rose sharply higher after Indie Research issued a report highlighting the company as a potential play on China’s environmental protection spending that is supposed to more than double through 2015. According to Bloomberg, the world’s largest producer of greenhouse gases could spend as much as $454 billion on such initiatives.China BAK Battery, Inc. (Nasdaq: CBAK) is one of the largest manufacturers of lithium-based battery cells in the world, as measured by production output. It produces battery cells that are the principal component of rechargeable batteries commonly used in cellular phones, notebook computers and portable consumer electronics, such as digital media devices, portable media players, portable audio players, portable gaming devices, and PDAs. Recently, China BAK was accepted into the approved vendor list of an international first-tier OEM notebook computer manufacturer. China BAK Battery, Inc.¡¯s 3.0-million-square-foot facilities are located in Shenzhen and Tianjin, PRC, and have been recently expanded to produce new products.

China BAK Battery Inc. operates through three wholly-owned subsidiaries. Founded in August 2001, the company's Shenzhen BAK subsidiary develops and manufactures prismatic cells and cylindrical cells. The Company's other subsidiary located in Shenzhen, BAK Electronics, develops and manufactures lithium polymer cells. BAK International (Tianjin) Ltd., the third operating subsidiary located in Tianjin, is principally engaged in the manufacture of advanced lithium ion batteries for use in electric bicycles, power tools, uninterruptible power supplies, and other applications. China BAK Battery became an US publicly traded company in January 2005 through a merger and stock exchange transaction. In May 2006, China BAK Battery began trading on the NASDAQ Stock Market under the symbol CBAK.outperform as China emerging markets will continue to surge.This is a hot sector in a hot country. Like many in the sector, the company isn't yet profitable, however it is cash flow positive. It's cheap compared ot its Chinese battery peers on a P/S basis.Lithium battery are all the rage and for good reason. they are used everywere and developement of hybrid vehicle is adding fuel to the fire.... Risky, but promising. Demand for Li-Ion batteries will increase with the use of portable electronics and electric vehicles. Others uses will be implemented. China has the right mix of reasonably priced labor and tech know how to remain an exporter of electronics goods, especially those whose origin is generaly not readily apparent to the consumer, like batteries. China as a nation also has direct access to most of the worlds major lithium ore deposits.China, manufacturing, batteries for an electronic age. This is a well run company with a strong business plan, strong leadership, obvious winner. Great Potential
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