Why China Health Resources Inc. (CHRI.OB) is Currently Undervalued

Last year was a rough year for this Herbal Medicine Company focused on DAR, a traditional Chinese medicine known to cure many ailments, as they reported a loss of .01 cents per share. This however was a rough year for most agricultural firms within China as the year saw tremendous flooding that destroyed many crops. The market is still pricing this past information into this stock when this year has been quite good for the company.

They recently received the coveted Chinese equivalent to FDA approval, “GAP”. This is huge for the company and almost instantaneously adds franchise value to the firm as they can now export the product almost anywhere in the world. GAP is the same agriculture standard used by the EU. They also added a Research Scientist with over 40 years of experience giving them a tremendous competitive advantage over other firms in the DAR industry. This year the company has also grown operations with acquisitions and strategic partnerships, all of which one would think increases the shareholder value. However, the market seems to be failing at pricing this into the value of the company as it trades close to its 52 weeks lows.

A wise investor would see this as a tremendous value play as its Market Cap today is about $8 million. DAR is in its very early stages of growth, it has tremendous upside potential; in fact, one company alone competing in the Ayurvedic industry, an Herbal Medicine grown in India, generates sales of $45 million yearly. It is quite possible that DAR will become the next Ayurvedic. Because of the GAP approval, investors can be assured that they are not in the business of smoke and mirrors and that DAR from this company is the real deal produced at the highest standards. The market is not seeing this gem, making it a diamond in the rough for Investors looking for a value with huge upside potential.

China Health Resources Inc. and its subsidiaries focus on developing and commercializing Dahurian Angelica Root. They are located in the Suining, Sichuan province of China where 70% of China’s DAR output comes from. The company intends to build a total value chain at every step of the DAR Industry, from production to research. The company currently has 11,000-mu DAR field and has built a GAP research basement of 2,000 mu. They also have a number of research agreements with Chinese universities and professors providing a strong platform for R&D.

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