** This Recession-resistant Stock Growing Revenues -- by Mitchell Clark, Profit Confidential

The power generation business in China and India is relatively recession-resistant. And so is the health care and pharmaceutical business. The pharmaceutical business in China is a burgeoning industry with real staying power. Individuals might cut back on buying a new television or vehicle, but they don't cut back on medicine in times of need.

One small company that's growing significantly in this industry is China Sky One Medical Inc. (NASDAQ/CSKI). This fast-growing company owns a portfolio of pharmaceutical companies in China and its business plan is to become a leading industry player in the sale and distribution of over-the-counter pharmaceutical products in that country.

Currently, China Sky One owns and operates Harbin Tian Di Ren Medical Science and Technology Company, Harbin First Bio-Engineering Company Limited, Heilongjiang Tianlong Pharmaceutical, and Peng Lai Jin Chuang Company Pharmaceutical Company.

Still small and at an early stage of development, China Sky One's revenues in its latest third quarter grew 77% to almost thirty million dollars million. Company management cited its strong sales distribution channel, a successful marketing and advertising campaign, and new sales from acquisitions as reasons for the growth.

Net income for the third quarter of 2008 grew 83% to $9.9 million, or $0.60 per diluted share, as compared to net income of $5.4 million, or $0.44 per diluted share, generated in the third quarter of 2007.

In the first nine months of this year, the company's revenues grew to almost sixty-six million dollars, representing growth of about 80% from revenues of more than thirty-six and a half million dollars in the same period last year.

Net income for the first nine months of 2008 was a substantial twenty-two million dollars, or $1.39 per diluted share, up from net income of just over eleven million dollars, or $0.90 per diluted share, generated in the nine months ended September 30, 2007.

China Sky One finished the third quarter of 2008 with fifty-one million dollars in cash and zero bank debt.

China Sky One is experiencing strong demand for its pharmaceutical products. This newly-listed NASDAQ company is highly profitable and well-capitalized. The business is about to cross the one-hundred-million-dollars mark in annual sales and, although highly speculative and a light trader, I think this small company is worth watching over the coming quarters.

I've accepted the fact that there is very little growth to be had in most of the world right now, so countries like China just have to be a part of an investor's portfolio. Economic growth is slowing in that country, but this doesn't mean that it's contracting -- far from it. When our domestic economy stabilizes, China will regain its enormous appetite.


Profit Confidential

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