Bottoms:
SKBI – $6 http://investorshub.advfn.com/boards/read_msg.aspx?message_id=54530254 SKBI…NICE growth/profit machine…Here’s the kicker…
SKBI’s new vaccine production plant will add $12M – $14M to the top line next year @ 70% margin. Recent Hubei acquisition will add approx $4-$6M to the top line next year at approx 40% margin. That’s approx $10M EXTRA in gross profit next year not counting organic growth or anything else. That’s more than Skystar has in gross profit for the first 6 months of this year ($7M) and first 6 month EPS is $0.49.
HUGE Q3 coming up also. SKBI could easily come in w/ $1.80 – $2 EPS for FY2010 and $3++ for FY2011 (based on approx 7.1M shares outstanding). Also, Skystar mentioned that they have enough cash on hand to complete the Jiangsu based micro-organism facility which they already have a deposit on. Micro-organisms = approx 70% profit margin. (The Jiangsu acquisition is projected to be completed in the third quarter of 2010, so we’ll see what happens. That’s only a couple of weeks away.)
SKBI’s Rodman & Renshaw presentation is well worth a listen IMO.
Next year’s estimated growth is mind boggling, especially when adding in organic growth and the Jiangsu based micro-organism facility if and when the acquisition is complete.
Current share price = $6.50.
CNAM – China Armco $3
CCME – China MediaExpress Holdings Inc (Public, NASDAQ:CCME – $7
UTA – Universal Travel Group (Public, NYSE:UTA) – $4
LPH – Longwei Petroleum – $2
CHBT – China Biotics $9
LTUS – Lotus Pharmaceuticals $1
lots of bottoming happening in this space.