Andrew McCreath
Glg Life Tech
GLG-T
TOP PICK
Mar 30, 2011
Speculative category. Recently did a financing. Based out of Vancouver but operations in China. They modified Stevia plant to be sweeter than what is otherwise available. Company could see revenues of $200 Million this year.
Markets a natural sweetener. Fairly big in Asia but small in North America. Sales and earnings are growing quite nicely. Had a couple of hiccups and is ahead of itself. Trading at about 30X next year's earnings and about 13X next year's EBITDA. Also sensitive to a higher Cdn$.
Have this issue in terms of the China story. Accounting and corporate governance risk. He is concerned about execution risk in China. You can always get back when there is a bounce.
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