Biostar Pharmaceuticals, Inc. (BSPM)

[Michael Anderson]

2011 - What are others thoughts on the possibility for 2011, this is just a possibility that I came up with that is reasonable, but could also be very different, and is a very rough estimate

Based off of my listed estimates and they grow by 10% 2010 estimates from 2009 production and 7 expansion areas by 10% as well. Plus estimates they have given on other products.

(47.63 + 11 + 9.3) * 1.10 = 74.73 million

say they expand to 12500 rural networks($2000 each)= 25 million

Zushima = 6 million(already stated)

Raw materials = 7 million

Xian Meipude products = 3 million

Yi zi, Tang Ning, Sheng Jing = expected 7.7 million for 2010, but production on these started late. so lets use 7.7

Total = 123.43 million 2011 full year revenue

I estimated in 2010 income/revenue would be 23% with SGA/revenue at 45%. So I think that they can get SGA/revenue down to 38%

23 + 7 = 30% income/revenue

123.43 * .3 = 37 million 2011 net income

Lets say they raise money and have to dilute by 5 million shares

27 + 5 = 32 million outstanding shares


37/32 = 1.156 EPS

based on share price of $3 = 3/1.156 = 2.6 P/E

With a P/E of 12 = 13.87 pps

Obviously tax rates, cost of goods sold, other acquisitions, and what there actual expectations are, expansion to other regions, SGA spending, all of these can make these estimates completely different, especially what they do actually end up earning in 2010. At the same time this is just an example of what is reasonable and very possible. In my opinion, this is a very conservative estimate based on growth and other revenue streams that will have their first full year of revenue in 2011. Any thoughts?