GU (Gushan Environmental Energy Limited) produces biodiesel and its by-products. Its biodiesel is used to produce chemical products, primarily produced from various feed stocks, such as vegetable oil, animal fat, and recycled cooking oil; to fuel a range of diesel engines in trucks, mass transit vehicles, marine vessels, and generators; and as fatty acid methyl ester in the chemical industry.

At the current prices, GU has the potential to become a 10-bagger.

Let’s start by discussing what a 10-bagger is and why GU has the potential to become the next 10-bagger: a 10-bagger is a stock that multiplies its current price by 10. Let’s say a stock is at $1. If it starts an uptrend that goes up to $10, that’s a 10-bagger.

Now let’s check how a potential 10-bagger looks like. A stock with such potential is usually a stock that dropped like a rock in a previous bear market. The stock then consolidates for some time, and starts a new uptrend that reaches the price it was before the bear market.

Here’s a nice example of a 10-bagger: CROX:

It’s not easy to find a stock that drops as fast as CROX did in the past… the stock went from $70 to less than $1 in just 1 year! At that time everyone was telling CROX was a terrible company and that it would go to $0. Now that was panic talking. That was the best possible point to buy CROX stocks.

As you can see in the chart, CROX is now back to $10 and those that bought it at $1 made good money.

Now let’s check GU:

- GU also dropped like a rock, just like CROX and now it’s consolidating for over a year around $1.

- $1 is a vital support for GU right now, and the good thing is that IF this stock starts to move it can become the next 10-bagger.

- On the short term, GU can move up to $3 without many problems. It just needs some good news to triple its price in days or weeks.

- After the $3, there are not many resistances so GU can reach the $10. It should take some time to reach such a target, and as always there are risks.

- But the potential is there for sure…

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