China Kangtai Cactus Bio-Tech Inc (fka CKGT)

[Headley Lamar]

I'm expecting approximately 9.1 million in revenue for Q4 brining 2009 revenue to 27.1 million. This would yield a net income of approximately 7.75-8.25 million or diluted EPS of .39-.41.

For 2010 I have a conservative estimate of 38.6 million in revenue and 46 million on the aggressive side. The difference is contingent upon an introduction of beauty products in 2010, the rate of growth for the animal feed and how well the cigs do. The remaining product lines have had steady growth in the 30% range, and are thus more predictable.

Based upon these estimates and a 28% profit Margin, I put the 2010 ESP between .54-.65

Here is a breakdown of my conservative revenue estimates

Product Revenue Gross Profit Margin
Nutraceuticals 17M 47%
Animal Feed 4.4M 16%
Health & Drink 9.12M 52%
Package Food .2M 31%
Extracts & Powder 6.4M 33%
Cigarettes 1.52M 38%
Beauty Products 0.0M n/a

Here is my disclaimer. If the animal feed or cigarettes are wildly successful or the beauty product line is launched with success, even my aggressive estimates could be considerably low.