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Further Due Diligence on China-Biotics (CHBT)

|Includes: China-Biotics, Inc. (CHBT)

Further due diligence confirms the China-Biotics (OTC:CHBT) meets 8 out of 10 Geobargain criteria.  However, the Company does not meet the minimum 30% earnings per share (NYSEARCA:EPS) growth threshold

  • Non-GAAAP 2009 EPS growth was approximately 20%
  • It appears that fourth quarter EPS growth was negative.
  • Fiscal 2010 eps growth is currently projected to be about 17%.

Given that the Company beat analyst estimates, the GeoTeam® will need to access the company's outlook to determine if China-Biotics 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 recode China-Biotics as a GeoSpecial based on its low tax adjusted PEG Ratio (~.55).