BB's Stock Haven

[jaybird249]

CHINA rebound: Best stock to buyL
NED:NYSE ($7.05) is the buy of the decade IMO. NED has $4 per share cash and should easily earn $.50 in this fiscal year. NED had IPO price was $14 and was $23 a few short weeks ago.

Applying a conservative 35 PE gives NED fair value as
$.50 X 35 + $4 = $22 per share (another China education stock EDU, tradse at PE of 80).

The earnings projections are based on the following assumptions:

2007 net income = $8.7 million.
2008 net income will increase by:

$5 Million in interest on $140 MM raised in IPO
$3 million in increased operating income (thats conservative).

Hence I see 2008 net income of at least $17 million. With 36 MM fully diluted shares that gives about $.45 - $.50 per share.