SKBI , BSPM.OB , CHGY.OB , CHBT , LPIH.OB , JADA.OB

Skystar Bio Pharmaceutical (SKBI) is a fantastic company because of a strong sustainable competitive advantage it has due to being the only veterinary medicine company in China that isn't a stated-owned enterprise. With a P/E of 6, more than 30% annualized growth and return on equity currently over 50%, this is a no-brainer.
Biostar Pharmaceuticals (BSPM.OB) is another great pharmaceutical company with a sustainable competitive advantage -- the firm has the only government-approved OTC treatment for hepatitis B in China. This may affect up to 130 million people. The company is expanding its sales outlets to 10,000 from 3,500 just this year. With a P/E of 8, this company is incredibly cheap both on a current and forward-looking basis.
China Energy (CHGY.OB) is a $100 million company divided into two business segments -- coal and power. Its coal production in 2010 is estimated to be larger than 2008 and 2009 combined due to a change in the company's mining methods, which changes the recovery rate from 35% to 80%.
China-Biotics (CHBT) plans to quadruple revenue. While it may currently look expensive with a P/E of 23, at full capacity this company could be as low as 5.75, not to mention it expects to continue growing rapidly in coming years with a potential 1,000% or more revenue growth in the next five to 10 years.
Longwei Petroleum (LPIH.OB) will make 65 cents a share based on 2011 guidance to capacity expansion. Rumors are that things are going as planned, and Longwei should be able to continue growing.
We'll leave you with a somewhat speculative but extremely rewarding company. This is a $48 million company with a current P/E of 4.2. Jade Art Group (JADA.OB) is up more than 50% just as we have written this article. Jade Art's mine can produce up to 40,000 tons of jade a year. With jade at $3,200 a ton, that makes $128 million in revenue for a full year of capacity. With profit margins hovering around 60%, we conservatively estimate net income of $60 million at full capacity. This would put the company at a P/E of less than 1!
Jade Art is a growing company. Just for it to return to a reasonable P/E of 10 would make the stock a 20 bagger.
At the time of publication, Bradford and Buckley were long all stocks mentioned in this article.