By Paul Honda
paul@hondareport.com
Tuesday, Apr. 24, 2007

In my last few posts, I let you know that there are Fundamental Growth companies that meet some key criteria.

1. Accelerating growth for at least three years.
2. Relatively low P/E within their industry.
3. Solid management.

Then there are companies that qualify as Growth with Some (Fun)damentals). I liked Spartan Motors in this category, and woila! SPAR is up from 25.50 to 29 in the past three weeks. Why? SPAR has gotten the attention deserves, at least in the media, and new buying has spike the PPS. The small float (21 mil shares) only puts the PPS on 'roids, so to speak.

This time, I don't have a SPAR. I have a company that fits the Fundamental Growth format. The company is China Mobile, which I've observed for the past few months. At $46, it could still pull back a few dollars before hitting the BUY button, but I'd be content with this price, too, since it has pulled back in the past two months.

China Mobile Ltd. (CHL / Nasdaq)
46.57 (4/24/07)
See chart

Despite being a behemoth in China, growth is still coming, nice and steady. It is barely owned by institutions (1.53%) and gross margin is a whopping 89.95%.

CHL
Industry: CHL is actually an investment holding company, but they provide mobile telecom in 31 provinces. They're the leader, and the test now is to continue growth by reaching into the rural areas of the Middle Kingdom.
P/E: 21.71
Growth rate/EPS: 21.8
Float: 4.8 billion.
Short interest: .06%
Earnings:

Pupule says: A "boring" stock that won't help but go up. Earnings have increased in each of the last three years. This is so boring, that it was $28 a year ago, and even dipped to 25 in mid-June before beginning a steady climb. Nice club. The stock has doubled before pulling back from a high of $51 in late February. Buy on the dip? I don't see why not. This is a good long-term hold with near minimal risk. A pullback to 44 or 45 would be nice before collecting some shares.

Almost forgot. China Mobile pays a nice little dividend, too. YAY.

Disclosure: 'Pupule' Paul Honda does not own any shares of CHL.

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