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).