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Re: nsomniyak post# 3

Wednesday, 10/21/2009 6:29:12 PM

Wednesday, October 21, 2009 6:29:12 PM

Post# of 35
LHSI...Could be a nice Chinese sleeper. The name of the company and symbol has not yet been changed to reflect the R/M so you have to look at the recent 8k filing to get the skinny.
Last year Shaanxi Jiali Pharmaceuticals had a 25% increase in net income in the 2nd half of the year over the first half. (China pharma sales tend to be stronger in the 2nd half of the year). They had EPS of $0.19 in the first half of this year., so if they can crack out another 25% HoH increase, we'd be looking at approx $0.24 in the 2nd half of this year, or $0.43 EPS for FY2009. Based on todays stock price of $1.75, that would equal a PE of 4.
So I'm thinking when they finalize the name and symbol change, LHSI could get some attention, especially if the stock price is still below $2. And it's nice to see that they are already looking to uplist from here...

"Our next goal will be to seek a listing on a senior stock exchange in the United States."
http://finance.yahoo.com/news/OTCBB-LHSI-Completes-Reverse-bw-1190664794.html?x=0&.v=1

More from the 8k...

As of September 30, 2009, an aggregate of 8,228571 shares of Common Stock were outstanding, including shares issued pursuant to the Closing.

LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2009, we had cash and cash equivalents of approximately $1.2 million. We believe our existing cash and cash equivalents will be sufficient to maintain our operations at present level for at least the next twelve months. We plan to review acquisition opportunities as a strategy for further growth.
Total liabilities approx $3M.
http://sec.gov/Archives/edgar/data/1354071/000112785509000447/lidhair8ka100609.htm

The information posted by 2morrowsGains is opinion only and should not to be taken as investment advice.

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