<style> </style> Recall comments from our previous note on July 14, 2009.
Further due diligence confirms the company meets 8 out of 10 GeoBargain criteria. However, the company does not meet the minimum 30% earnings per share (EPS) growth threshold .
Given that it beat analyst estimates, the GeoTeam ® will need to access the company's outlook to determine if it can achieve 30% EPS growth, . We will also monitor any changes in analyst estimates. If it becomes apparent that 30% EPS growth is currently unachievable we will re-code the stock as a GeoSpecial based on its low tax adjusted PEG Ratio (~.55).
Today the company announced strong first quarter fiscal 2010 financial results. The company easily exceeded analyst estimates giving the GeoTeam ® confidence that China-Biotics may be able to achieve a minimum of 30% earnings per share growth rate for the coming year. Before today, analyst estimates also echoed this sentiment indicating earnings per share growing of over 30% to $1.30.
See the GeoTeam ® updated valuation scenarios .
$12.78 (08/18/09)
