Skousen: Ag and tech in China

"Asia is booming again, and one industry that is growing like wildfire is 'green' tech in China," says Mark Skousen. In The Turnaround Alert, he eyes China Green Agriculture (AMEX: CGA)."

"Urban population and demand for energy is exploding, causing pollution and a reduction in per capita arable land to feed 1.4 billion Chinese.

"One way to profit is to buy China Green Agriculture, one of the fastest-growing agricultural technology companies in China.

"Through its subsidiary Shaanxi TechTeam Jinong Humic Acid Product Co. Ltd., it produces and distributes 119 different organic fertilizer products throughout 27 provinces in China.

"Revenues doubled last year to $32 million, and earnings exploded 132% to $11.4 million. With a profit margin exceeding 35%, China Green is red hot, and is likely to continue growing rapidly.

"It doesn’t hurt that the CEO Tao Li is a high government official, serving as vice chairman of the China Green Food Association of the Ministry of Agriculture.

"The small cap stock traded as high as $33 a share when it first came out, and is now more reasonably priced.

"Still, it’s selling for only eight times next year’s earnings, and has a price-earnings to growth (PEG) ratio of only 0.31  (the lower a PEG number, the better)."