Their projections in the powerpoint are a bit puzzling.
FY 2008 vs FY 2009 had negative growth. Then in FY 2010 they had a very nice jump...Then look at their projections, they expect 2011 to do quite well relative to 2010, but then expect a drop for 2012 again (Net income drop, revenue increase, how can margins go down if they are raising prices)?
Personally I do not like this weird growth pattern they are projecting.
Furthermore, if you look at how they plan to use the proceeds of the capital raise...2M is to buy 11.53 acres, moving farmers out of the land, etc. Given this information it sure does not seem they OWN the 94 acres in the 'cemetery operations'. They seem to only own the Foguang and GuiYuan sections, with everything else being 'options' they need to pay(ie: buy) for.
They also state they plan to raise an additional 10M soon when they uplist...
I'll pass on this one.
-Fernando
