CHCG Update

A good breakdown of my trade pick of the year China 3C Group ticker CHCG.OB. Keep loading up at any price sub-$2 per share and hold on.

The company itself has been a money making machine over the past 2 years. The cash flow and earnings per employee is through the roof. At these levels it looks very very underpriced. If CHCG uses its cash for additional expansion, revenue/earnings could easily double. This makes it a growth story.
Shareholder Equity
Shares Outstanding 52.7 M
Institutional Ownership 7.77%
Number of Floating Shares 42.7 M
Short Interest as % of Float --

Valuation (MRQ)
Price/Earnings (TTM) 4.09x
Price/Sales 0.34x
Price/Book 1.63x
Price/Cash Flow 5.32x

CHCG's P/E Ratio is lower than 88% of other companies in the Audio & Video Equipment industry. This typically means that investors are willing to pay less for its level of earnings relative to future growth.Profitability (TTM)
Gross Margin 17.89%
Operating Margin 12.95%
EBITDA Margin 12.97%
Profit Margin 8.30%

CHCG's Gross Margin is less than 73% of other companies in the Audio & Video Equipment industry, which means it has less cash to spend on business operations as compared to its peers. As indicated by the Operating Margin, CHCG controls its costs and expenses better than 92% of its peers.Financial Strength (MRQ)
Quick Ratio 6.22x
Current Ratio 7.38x
Debt/Equity 0.00x
Debt/Assets 0.00x
Management Effectiveness (TTM)
Return on Assets 44.43%
Return on Equity 51.90%
Return on Inves. Capital 51.90%

The Return on Equity for CHCG shows that it is able to reinvest its earnings more efficiently than 97% of its competitors in the Audio & Video Equipment industry. Typically, companies that have higher return on equity values are more attractive to investors.Growth Rate (TTM)
Earnings Per Share growth 82.3%
Sales growth 86.2%
Dividend (MRQ) --

CHCG's EPS Growth Rate is greater than 79% of its peers in the Audio & Video Equipment industry.Dividend (TTM)
Dividend Yield --
Payout Ratio 0.00%
Annual Dividend 0.00

CHCG does not pay a dividend. The average dividend yield for companies in the Audio & Video Equipment industry is 0.20% Operating Ratios (TTM)
Asset Turnover 5.35%
Inventory Turnover 47.69%
Receivables Turnover 34.31%
Effective Tax Rate 35.92%


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