I have been following CHOP for about 4 years. I just graduated from the University of Nebraska at Lincoln. In one of my senior-level finance classes I researched CHOP extensively. I wrote reports and performed investor presentations on CHOP over the course of the semester. I'm telling you right now, that CHOP is one of the most undervalued companies on the planet right now. I had to use a 25% discount rate to justify its current valuation, all the while projecting net income growth at -5% per year.
The recommendation I made was that CHOP hire a PR firm to provide more information to potential investors. If CHOP was located in the U.S., it would be trading at $10 or more. Well, CHOP hired Grayling to provide PR and IR services. Grayling is an outstanding firm. Honestly, if you own CHOP you should buy more, if you don't you should buy now. If CHOP falls below $2 again, you have to buy. It will take a little bit of time for Grayling to get it done, but when they do, CHOP will skyrocket. This time next year I could easily see $5 or more.
If you own, smile. If you don't, force yourself to be anxious and scared until you do. For those investors out there with balanced portfolios, put all your risk-on money into CHOP. Maintain a long-term outlook, never settle for the short-term.
This is a great post, and it makes a very important point. A stock is only worth what someone else is willing to pay you for it. The argument you make is exact. It's clear and makes sense. ...And yet you could have made it at any time in 2010. Sentiment matters. Momentum matters. Risk aversion matters. Even when it doesn't make sense.
I agree wholeheartedly. Grayling represents numerous fortune five hundred companies. There is no way they would jeopardize their integrity by lending there name/services to a company that is not legitimate. CHOP will see $5 before long, after all, $5 is the baseline for the warrant conversion two years ago. This will provide a floor for CHOP, and within two years, barring worldwide economic collapse, which worldwide Keynesian economics and fiat currencies will not allow, this stock should skyrocket. I say put your money in CHOP and silver. Silver to hedge against economic uncertainty/currency devaluation and also gain exposure to a pick up in production if things stay status quo. Anyway, CHOP is a great buy, it has already corrected from 2.37 in December, and the next short term wave should take it to $3. Sentiment is picking up. The cat is out of the bag folks!