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Better check your math ..... From Q2 EARNINGS REPORT:
Nov 13 19:52 pm
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All Comments by #8 »China Water & Drinks: Getting Diluted [View article]
Revenue/earnings growth is dependent upon acquisitions and dilution at this early stage but given the dilution the growth will be relevant with revs in 1st half 07' of $18.7 million and 2nd half projected to be $50 million and net income of $5.6 million (1st half) vs $13.4 million .... that's about 250-275% growth from one half to the next! Outstanding shares have grown from 20 to 94 million or about 375% .... you're right about the dilution being greater than the rev/inc growth but given time to consolidate operations the earnings should improve with efficiency ....
>> For full year 2007, the Company expects revenues of approximately $68.0 million, net income of $19.0 million, and earnings per diluted share of $0.18. For 2008, the Company expects revenues to be about $105.0 million, net income of approximately $30.0 million and earnings per diluted share of $0.30. <<
They are projecting fully diluted earnings for 07' of $0.18 vs your estimate of $0.07 and 08' earnings of $0.30 for 65-70% YOY earnings growth ..... based on 08' earnings of $0.30 at 70% growth (with no add'l acq or dilution) one could project a share price of $21 which is quite a discount to the closing price of $6.20 today .... Odd, No?