This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"China Sky One Medical (NASDAQ: CSKI) -- which manufactures pharmaceutical, medicinal and diagnostic products -- is our top pick for 2009," says Benson George in The Growth Report.
"China Sky One has delivered solid results -- for the nine months ended September 30, 2008, revenues increased to $65.9 million, up 80% from $36.6 million in the year-ago period.
"Net income over this period was $21.9 million or $1.39 per diluted share, up from $11.2 million, or $0.90 per diluted share in the nine months ended September 30, 2007.
"Despite the economic downturn, China Sky continues to see strong demand and growth both organically and by way of acquisition.
"On Nov. 9, the company increased its 2008 revenue guidance by almost 10% to the $88 to $90 million range, representing more than an 80% increase from 2007.
"The company is highly profitable, and cash flow from operations added almost $27 million to its coffers for the first nine months of 2008.
"A cash balance of $50.9 million at the end of the third quarter is an important fact for a highly acquisitive firm that largely uses cash to fund its purchases -- as shopping goes, it's a great time to be flush with cash as this depressed economy has left some great bargains to be had.
"What stands out about China Sky is not only how cheap it looks, but how resilient its stock has been. This suggests there are some institutional buyers and believers in this company -- another great sign in a bad economy.
"The firm has a forward P/E of seven, which is remarkably low for a firm growing at the rate of China Sky. As more investors become aware of this firm, and bring their money back to the table, we expect to see a quick expansion of this pricing multiple."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
Ray of light: U.S. temp worker hiring increased by 34k in October
Closing Bell: Bulls gutting bears (ATVI, EWBC, GE, JASO, ENZN, MCD)
Goldman Sachs CEO Lloyd Blankfein pulls a Jeff Skilling in an interview
