China Green Agriculture (CGA) is an innovative agricultural company that helps farmers grow more crops without hurting the environment. The "green" fertilizer market in China is booming right now due to the fact that the country's population continues to grow alongside its economy. This means that more arable land is needed in the coming years to ensure that there's enough food available to sustain China's growing middle class.
CGA is a small foreign company without much of an analyst following, but you don't need estimates to see how great this pick is.
China Green posted strong earnings in February, including a sales increase of 60% year-over-year and a jump of 78% in net income. Gross margins also improved to 61% from 59% last year. This drove shares up by double-digits in just a few trading days after earnings, and CGA should continue its red-hot run in the weeks ahead.
Next: Small Cap #5: Hi-Tech Pharmacal (HITK)
At the time of this writing, Louis Navellier held shares of CGA in personal or client portfolios.
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