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[sweet crude]

TEDG - bird flu research ($1.46 target price)

Ludlow Capital Issues $1.46 Price Target on TEDG on 'Bird Flu' Vaccine Acquisition
Research Staff
Last Update: May 02, 2006 - 7:36pm EST

NEW YORK--May 02, 2006--Ludlow Capital began research coverage of TechEdge (OTC:TEDG), and their new acquisition of one of China's largest non-governmental vaccine research and production companies.

CHINA BIOPHARMA ACQUISITION

On April 10, 2006, Techedge, Inc. announced that it had acquired 100% of China BioPharma Limited, a Cayman island Company. China BioPharma, Ltd. currently holds 35% ownership rights to Tianyuan Bio-pharmaceuticals (production), and 65% of China BioPharma Development Co, Ltd. (marketing, research & business development for Tianyuan Bio-pharmaceuticals). The company currently has a number of human vaccines against Influenza, Epidemic Hemorrhagic Fever, SARS, and H5N1 Avian Bird Flu.


PRICE TARGET VALUE OF $1.46

TEDG reported around $10 million in vaccines sales last fiscal year, with $1.5 million in net income profit. Based on other biotech 'bird flu' plays within the sector, we feel TEDG should have a fair market cap value of at least $120 million. This still would only give TEDG a price/sales ratio of 12 as compared to others in the sector ranging from 17 to 1,060 times sales.

The market cap for stocks within the bird flu sector range from $72 million up to $335 million, with TEDG only having a current market cap of $35 million. We feel $120 million market cap for a Chinese vaccine biotech generating $10 million in vaccine sales, and a net profit of $1.5 million should fairly reflect a $120 million in market cap value, at least. Thus, with 82 million shares outstanding TEDG should be trading around a fair value of $1.46 a share in the open market.

($120 million market cap / 82 million outstanding = $1.46 a share)

http://www.theasianinvestor.com/reports/tedg.htm