UTVG, 10-bag within a year in my opinion
UTVG is the first stock that has the potential to be a 10 bag I have found in the past months. Yesterday was the day I was busy with buying UTVG deeply discounted shares. I am really grateful for those bringing this stock here.
After read all the files through either Universal Travel Group or Tam of Herdenson, talked to a company management member and even pretended to book plane tickets and hotel rooms, I have concluded that this is a micro value stock with high growth and extremely low valuation. UTVG has grown its revenue and profit in each of the past 7 quarters, and last quarter it earned $0.03. This quarter UTVG may earn $0.035-$0.04. Based on its business expansion stratgies such as expanding service area from one city of China into whole China and from ticket booking into hotel booking, I would not be surprised if UTVG earn $0.06-0.08 in the last quarter of 2007. Compared to CTRP traded on Nasdaq with relative lower growth and pe multiple as much as 60, even $5 is just too under valued for UTVG.
Part of the reason why it is deeply discounted is that UTVG has not spent much resource on detailing its business model through sec files. Its PR firm did a lousy job in the past a few months, and I have suggested they should fire its PR firm. Besides, you can not find its sec files by search Universal Travel Group, and you have to search through Tam of Herdenson, its former strange name. The company management member said they are in the process to make this change but it takes several steps thus time.
The stock rose to as much as $1.66 after the 3th quarter earning. Then it drop to $0.8-0.9 due to profit taking. The sharp drop in the past 2 days may contributes to tax loss selling. Right now you can buy it at $0.44-0.5. I predict UTVG will begin to rise toward $5 dollar stock after the end of tax loss selling.
