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

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

Gushan Environmental Energy Limited (GU) is a Chinese company that produces biodiesel and by-products of biodiesel.

Here is some fundamental information relevant to a potential decision. Current capacity of 290,000 tons is expected to increase to 400,000 tons in Q408 through the construction of two additional production facilities and a ramp up in production capacity at a pre-existing facility. In addition, GU has expectations of adding an additional 200,000 tons of capacity throughout 2009. Using what I expect to be an extremely conservative estimate for the price per ton of biodiesel ($435

• NY Empire State Index for August - Street expects down 5.0

• Net Foreign Purchases for June - Street expects $57.5B, compared to $67B in May

• Capacity Utilization for July - Street expects 79.8%
• Industrial Production for July - Street expects 0.0%, compared to 0.5% in June