GUSHMAN ENVIRONMENTAL ENERGY Ltd.  (GU)     Rate GU  -  Discuss GU  -  Add to Watch List        

Bank of America (BAC), Citigroup (C), Ambac (ABK): The Dow is "hideous," says Cramer and the financials are to blame. Mutual funds who thought they were bottom fishing are now panic-selling, sending the financials down.

Gushan Environmental Energy (GU): Cramer says the Chinese need alternative energy more than we do, and recommends GU which may have some new innovations.

Rio Tinto (RTP), Vale (RIO): CEO Tom Albanese told Cramer China’s appetite for commodities will fuel his business, and sees Toyota’s potential development of

Let's look at the numbers:

GU plans to make $1.24 in '07 (reporting this month)

GU plans to make $1.86 in '08 (for an yoy growth of 50%)

The stock is priced at $11.50 for a P/E of 9 on the est of $1.24 (is this P/E low for a 50% growth rate?)

Conclusion the earnings report is critical to show that this company can do what it says but if it can the price will jump very fast. 

NOW BEHIND THE NUMBERS:

GU just opened a new plant adding 50,000 tons to the company's annual biodiesel production capacity for a total of 240,000 tons (that's up 26%). Annual capacity o