GREY:CHLBF - Post by User
Comment by
Grove1on Jun 30, 2011 12:30pm
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Post# 18785131
RE: RE: China Health Labs earns $1.22-million in Q
RE: RE: China Health Labs earns $1.22-million in QI agree the companys results were very good. My only knock would be the continiung high trade receivabes which seem to be putting a cash flow strain on the company if they wish to expand or invest.
I do not think the market will bid these shares much higher in the short term. The shares may drift back up to $1 or maybe a little more over the next few quarters but unless the company can 'surprise' us with a new deal/ announcement then current expected results over 2011 will keep a lid on share price.
if you look at expected revenue in 2011 at say $51,000,000 and using the 2010 profit as a % os sales which was 7% (Q1 they admitted at 18% was high because of the POCT labs) then earnings per share is more like .05-.07/share in 2011 (compared to .02 share in 2010). That translates into a share price of $1.00-$1.50 at 20x earnings.
So yes if we sit tight all else equal our share price could double from here by year-end.