China Growth Stocks

[GorillaGorilla]

CNOA: "They Dalian Huimang 60% interest paying 10.6 mil $ in nov 08. DH made only 2.4 mil dollar in yr 2007."

In 2007 DH did $40 million in revenue and net income of $2.7.
Which was four fold increase over 2006. So to put it mildly it's fast growing.

If you want to pay for a fast growing company you have to pay over the odds..

2.4 million net income... at a 10 multiple is 24 million - so 60% owner ship would be $14 million. They paid $11 million, cheap. So, looks like a good price to me anyway, ignoring the growth.

It dove tails nicely by being in NE and trading different things than CNOA was trading....

"They do not mention Ankang trading activities in Q report this yr."

I would have to double check notes... but I'm fairly confident they put all the trading activities under the same division. So, you won't see any breakout. That makes sense given the only difference was what they sold - rice vs beans say.


What's dishonest about that?

rich