Well, much as I should try to resist choosing a Chinese stock for this month’s idea after the so-far disastrous performance of one of my Chinese ideas last month (that would be NEP, which is still in a trading halt but has at least had its plan for regaining compliance accepted by AMEX with a July 14 deadline). But this month I’d like to suggest something entirely different: a growth stock that trades at a discount, and a company with huge insider ownership that is poised to supply small kitchen appliances to the growing markets of China and the emerging economies: Deer Consumer Products (DEER).

As you will note if you’ve been following my personal portfolio, I picked up some shares of DEER when it collapsed in price about a month ago … but I wasn’t yet comfortable enough with the company or the stock’s performance to suggest the shares to anyone else. Since then I’ve learned more about the company and their plans — and their ambitious goals, and I think the possibility for really dramatic growth continues to be there for them for at least the next few years. Add on to that a recovery in the shares a little while after my bottom fishing purchase, and an announcement from the company that they see continued excellent sales prospects and no particular softness from Europe, and I’m now happy to send you to DEER for a look.

Deer Consumer Products is not a new company, it’s about 16 years old and started life basically as an outsourcing manufacturer for cut-rate blenders. Since then they’ve continued to perfect their in-house vertically integrated manufacturing (meaning they design the products and build the cases and the engines), and they’ve developed relationships with many of the major global consumer brands — if you buy a blender, juicer or coffee maker from Betty Crocker, Ariete or Black & Decker, you may well be buying a Deer built and designed product.

As they’ve designed, manufactured and exported products for dozens of brands (80 different blender designs, for example), they’ve also been building their own brand, largely for the Chinese market, and setting themselves up to be a major beneficiary of Chinese urbanization and the growing Chinese middle class — all while keeping their costs low, and maintaining incredibly high margins that would make any other appliance maker in the world jealous. ...