China Organic Agriculture, Inc. fka CNOA

[10bags]

Cash Flow Higher than Net Income Last Qtr.
The Net Income was $4,510 thousand and Cash Flow was $8,306 thousand. Not many companies have more Cash Flow than Net Income. You know what many savvy investors like Warren Buffet say is that Cash Flow is as important or more important than a companies earnings.

You might ask, "Why did this happen? Why was the Cash Flow higher than the Net Income for CNOA? It occurred because CNOA made $42,265 thousand from its Investing Activities. The $.06 a share made through current operations and shows in Net Income is separate from the earnings in Investing Activities. If you divided the $42,265 thousand by the diluted shares of 173,157 thousand CNOA made an additional $.24 a diluted share so the actual earnings counting Operations and Investing Activities was $.30 ($.06 from Operations and $.24 from Investing Activities) a diluted share.

Next you might ask where did the bulk of that $42,265 thousand in Investing Activity go? Most of it went to pay down Account Payable so CNOA lowered its debt by about $38 million and that is a HUGE positive for CNOA that noone short or long has discussed on this board to date. The Accounts Payable dropped from $43,752 thousand at the end of June 2009 to $6,295 thousand at the end of September 2009.

With $.30 a share earned in the last quarter from Operations and Investing Activities, and debt lowered the price of CNOA should have gone up not down when the third quarter earnings statement was released last month.

http://finance.yahoo.com/q/cf?s=CNOA.OB