China Kangtai Cactus Bio-Tech Inc (fka CKGT)

[pappy]

They missed my $0.05 estimate without the gain from selling the land use rights by a penny due to the unexpected drop in margins.

The eps miss would have been even more without the larger than expected revenue gain in the 1st qtr.

It appears revenue gains from new products is proceeding slower than some of us expected however the added distribution agreement they signed should broaden the distribution of the newer products in future qtrs.

None the less I am reducing my 2010 eps estimate to $0.65 on a non-gaap basis.

This is still a 50% gain in eps over 2009 while I expect that revenue will still exceed ckgt's projected numbers.

While 1st qtr was mildly disappointing ckgt still has great prospects for future growth & the current pps is not factoring that in but as the year unfolds I feel the pps will improve making the current pps a bargain for new buying,,however with the current IR team new buying is not being attracted.