China Linen Textile Industry Ltd. (fka CTXIF)

[Fi]

updated estimates...

FY2009 $0.28/share earnings
FY2010 $0.41/share earnings est.

With very reasonable P/E of 5 for 2010, $2.05/share. P/E of 5 for 2009 gets $1.40. Very undervalued at the moment.

Even with dilution of upto 30% of outstanding stock, the EPS should be at least $0.30 for 2010. Now applying a discoutned P/E for this stock of say 7.5, this stock should double fairly quickly.

I expect RedChip's report to have a price target of several multiples of current stock price.

I assume management isn't just pulling numbers out of thin air of course... but they own a lot of stock so no reason for them to do so.