I'm very familiar with the Company.
I've spoken with the CEO numerous times. What I am expecting is at minimum 50% growth year over year for at least the next 3 years. 2010 may even come close to 100% growth.
The reasons for the high growth numbers is easy to explain, as of 2008, the Company had mainly been in start-up mode. Numerous construction and expansion projects completed in 2008. Most of the expansion funding was realized when the Company went public in 2007.
It takes roughly two years for the HU plants to reach maturity, so you have 2008 plants coming into full production in 2010. You also have partial increase coming in from 2009 plantings. So expect HU to almost double in cash flow in 2010.
The dairy is expanding, they have 1,800 new head of cattle coming in plus the retail side, so that should see a good 50% increase there as well.
Also the fishery project may come on line in 2010.
2010 will basically be a big year in growth for the Company which will continue its momentum going into 2011.
I'm guessing EPS for 2010 to be in the high 20's low 30's which will continue at around 50% growth moving forward into 2011.
I also know the CEO has told me many times he does not intend to do anything that isn't accretive to EPS. He basically stated whatever he does to common holders effects him as well because they own common as well. He has no desire to do any convertible or debt financing that negatively impacts EPS.
I think the CC will really be very fruitful. Of course there will most likely be a short term sell off on the CC. Buy the rumor, sell the news is pretty predictable in the OTC.. however I think it will be very short lived and may in fact run on the CC.
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