# China Health Labs & Diagnostics Ltd (CHO)



## AnimeEd (Jul 22, 2012)

Hi guys, I took a position in this stock today and thought I would share some findings and also to see if there are anything which I might be overlooking.

Symbol: CHO
Market: TSX Venture
Current Price: $0.40
Market Cap: $26.24M
Market: Healthcare
P/E: 3.53

This company provide laboratory solutions and testing equipments for the Chinese market. Their share price is quite low for a company which has a lot of potential to grow. There is an analyst report which estimate a fair value of $2.50.
http://www.researchfrc.com/research/pdf/cho/CHO Update - June 21 2012.pdf

Of course, there are some risk here as well. 

The price is near the 52-weeks low right now. However, from the interim report for Q1, their Equity is at $28.2mil which represents a per share value of $0.43. Most of the Asset is Current Asset in the form of Receivables.
http://www.chinahealthlabs.com/Theme/ChinaHealth/files/doc_financials/CHO FS Q1 2012 (final).pdf

The company got in the TSXV through a reverse take-over :hopelessness:. This is a big one. The only thing which puts me at ease is that analysts have been on the ground and to see their operations.
http://www.stockhouse.com/columnists/2012/may/4/promising-54-cent-china-healthcare-play--stockhous

The CEO seem to have connections with government officials and the military which is a big plus for any business in China. The CEO has expressed that there would be financing through issuance of new shares when the price reaches $1 a share.


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