Hey Long, when you buy back in will you love this company again?
The PR's don't need to pump sir, only state the facts. GTEC was doing well before this merger, and obviously LJPC was doing very well at 187% stated increases in sales over the last two years and 728% growth in profits during that same period. Which is why Gary Wolfson (the former CEO of GTEC) called this reverse-merger the "crowning achievement" of his 19 year career in China and 5 years at GTEC!! I don't believe for a minute that he meant this last pop in price... he wants to keep getting paid for those accomplishments.
Let's try this one... LJPC had $22 million in profit for '07 (ended June '07) and despite the insane profit growth rate (728% over two years), let's just go with a double for '08. That would make roughly $40 million net for '08 (which in 8 weeks, '08 will be half over for GTEC), divided by 400 million shares or .10 EPS!! Maybe more! A reasonable multiple (considering their incredible growth) is let's say... 25X = $2.50 per share in a very short time.
The other 200 million shares issued will be for acquisitions to either strengthen and expand their product lines, increase distribution networks, or penetrate other markets. Whatever they acquire, they will be good for the company or GTEC wouldn't eat 'em. There are a whole lot of reasons to be optimistic about this company and none are really based on just air or Cheetos like most BB's and pinkies. We have a new paradigm here and it is based on reported earnings, and clear growth in an absolutely huge market.
