It was debatable if this is the right time to release a stock alert. With so much economic turmoil and stocks making new lows, it makes an investor second guess if buying shares is the right thing to do. However, if one finds a truly undervalued company that has great growth prospects and is capable of reaching its full potential, he/she would be foolish to simply dismiss the investment opportunity.

With this in mind, we would like to introduce Fuqi International, Inc. (FUQI). The company engages in designing, developing, promoting, and selling of precious metal jewelry in the People's Republic of China. It offers basic gold jewelry, as well as a range of products that include rings, bracelets, necklaces, earrings, and pendants made from precious metals.

Now obviously it doesn't appear to make much sense to invest in a company that is selling such highly discretionary items at a time like this. But, that is exactly why FUQI is trading for such a cheap valuation. How cheap? Well, the stock has a P/E of 3.69 and Forward P/E of 3.07 (this compares to the S&P 500's average P/E of 13.2 and Forward P/E of 13.3). To bring this further into reality, if the company were trading at a P/E of 13.2, the stock would be trading 357% higher than it is now. Notably, FUQI is also trading for a price lower than its book value.

Fuqi International has clearly shown it is capable of growing methodically, without taking huge risks or squandering profits. The company's five year growth rate in sales is 57.07%, while earnings have grown at an average of 76.16% each year. Analysts estimate that earnings will continue to grow at an average rate of 31% for the next five years. Three analysts believe the stock is a "Strong Buy" and one believes it is a "Buy."

Insiders own approximately 52.8% of the outstanding shares, most of which is held by CEO Yu Kwai Chong. As of last report, the company had total assets of $166.1 million and total liabilities of $47.4 million with $56.2 million in cash. Overall, FUQI has a strong balance sheet to support growth, the right mix of products and distribution, and a strong management team to lead the charge for further growth.