China Minzhong

China Minzhong: Counter increased 5.2% after the surge past the dollar mark at the current $1.015. Previous posting on technicals saw the stock at a bullish break out above $0.860 key resistance level, and heading towards the next obstacle at $1.020. On the fundamentals, China stated that they're taking steps to cut production and transport costs of agricultural goods by lowering water and electricity prices for the sector in a bid to keep food prices in check. Electricity and water costs will be lowered for agricultural wholesale markets as well as for vegetable and hog producers and enterprises engaged in the transport and storage of agricultural goods. Stock is currently trading at 4.0x P/E on Street forecasts of 3.8x FY13E P/E and TP of $1.10