BEIJING (TheStreet) -- The past 12 months have been very volatile for China battery makers including Advanced Battery Technologies , Hong Kong High Power , New Energy Systems , China Ritar and China Bak Battery . After six months of sitting on the sidelines and doing plenty of analysis, I recently bought back into New Energy Systems and view it as a stock with the potential to double.
I have owned shares of New Energy Systems off and on for about a year. I have a very favorable view of management, the company and the industry. I have also met with members of management, including the new chairman, on several occasions and toured its Shenzhen manufacturing facility.
The only reason I sold the stock last year was because I didn't fully understand the math behind its two recent acquisitions. The company issued around 7 million shares in order to complete two significant acquisitions that could generate significant revenue. However, I didn't know if the additional revenue and earnings generated by the acquisitions would be more than offset by the additional shares outstanding....
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