China Agritech (fka CAGC)

[scottmba]

It's over for now. I'm out. After the split, subsequent pop, and monstrous shelf, along with the insider warrants at $5, this is now overvalued. I hope it comes back into a proper range, because I love the company. When Carlyle got that deal, I called IR, because I was shocked at how good it was. Well, now that is major overhang. If you add up 6 million shares at the current price for the shelf, 4 million for cheap Carlyle warrants, and the 17 post split, you have 27 million shares!! Take next years NI prediction of 22 million, ( a 50% bump due to a 50% revenue projection bump by the company) and you get a P/E of:

22/27= .81

17/.81= 21

The stock currently has a PE of 21. That is high for an emerging market small cap stock.