Blog > Hot Stock Pick of the Week > Green Stocks: This Chinese paper recycler could see 50% gains by August
 | Email This Article Email This Article  | 

Green Stocks: This Chinese paper recycler could see 50% gains by August

Posted February 21, 2008

A Today’s Financial News Research Report:
“This Hong Kong-based company is especially compelling for those investors considering Asia as an escape from the volatility of U.S. stocks — not to mention those socially conscious investors looking to add to their green portfolios.” – Laura Cadden

By Laura Cadden, TodaysFinancialNews.com

The following is the TFN Hot Stock Pick for this week selected by Laura Cadden. Click here to watch the financial video.

Baltimore (TFN): Zhang Yin (“Jang Yeen” is the pronunciation) richly deserves the title, “Queen of Trash”. She built her empire by collecting scrap paper in the U.S., shipping it to China, then recycling and selling it to exploit that country’s chronic paper shortage. This first venture was a paper trading company with an initial investment of $3,800.

Nine Dragons Paper Holdings Limited, of which Ms. Zhang owns 72%, is now one of the largest producers of packaging containerboard products. The company’s value is now over 3 billion dollars and the indomitable Ms. Zhang is one of the wealthiest entrepreneurs in the world.

With its 2006 IPO, this company focused on expansion, both within China and without – with pronounced success.

A Chinese company for lovers of green stocks? Believe it!

As attractive as a paper recycling company is to the socially conscious investor, bringing additional joy is the fact that ND Paper’s philosophy is “No environment, no paper.” The phrase may seem simplistic in its English translation, but it’s backed by sophisticated environmentally friendly equipment, technologies and processes at its facilities – a pleasant surprise in a nation not known for its environmental sensitivity.

A brief labor dispute last December at one of the company’s production facilities was quickly resolved. But it no doubt contributed to the dramatic fall of the company’s stock price from a late summer high of $3.50. It’s slowing climbing back and is currently priced at $1.75.

Tired of reading? Just watch the financial video…

It just keeps growing and growing…

With recent talk of expansion including new factory in Southwest China, pulp and timber projects in Southeast Asia, the announcement of a 3 million dollar investment in higher-end products like specialty paper and liquid paperboard, and a nice strong trend of increasing prices for packaging paper, this stock should see nice gains by August.

This Hong Kong-based company is especially compelling for those investors considering Asia as an escape from the volatility of U.S. stocks — not to mention those socially conscious investors looking to add to their green portfolios.

Nine Dragons Paper Holdings Limited trades as an Over the Counter stock and on the Hong Kong exchange. I recommend you buy shares of NDGPF.PK (OTC) at or under $1.90 – or you can buy directly from Hong Kong (2689 HK). Please be aware that this stock trades in board lots of 1,000 shares only.

***BLOGGER’S NOTE: An update to this report on Nine Dragons Paper (Holdings) Ltd. was added on April 24, 2008. Read the update.

Related Articles


Posted by Laura Cadden · Filed Under Hot Stock Pick of the Week 

Comments

close Reblog this comment
Powered by Disqus · Learn more
blog comments powered by Disqus