FFHL Price Target I think Chinese stocks are mostly undervalued. The country is growing at 9-10% a year. Its currency is about to appreciate against Dollar. I see 10% a year appreciation on average for a few years. So I believe a growing Chinese company should at least fetch a PEG ratio of 1 on forward EPS. A full valuation should add another 10%. FFHL is expected to earn up to 0.80 next year. With a growth rate of 30%, it should trade at $24. With a 10% premium, it should trade at $31.

After this IPO, FFHL is going to move into thicker BOPET film market to replace imports. It is also moving to other higher margin markets. They could potentially double their revenue in 2008.

This post is for informational purpose only. Under no circumstances does the information in this post represent a recommendation to buy or sell stocks.  ¶ 1:01 AM