China-Biotics, Inc. (CHBT)

[throwerw]

these guys are way ahead of schedule. They guided for 50% utilization by December 2010. Here we are in July and they are already at 40%. 15 tons last quarter would be more than their entire bulk production in 2009. What if they get up to 100% utilization by the beginning of next year and move right into the next 150 ton expansion? wow...

if 12 tons of bulk additives accounted for about 25% of sales in FY 2010, and we are at a 60 ton run rate already, we could see 3 bucks+ per share in FY 2011. If the ramp up continues at this speed, they should be able to sell all 300 tons in FY 2013. So, 3 years from now, we could see 8 bucks a share??? Actually, it could be more, since the company announced a $20 million buyback and could do more as the cash starts flowing in.

Is a PE of 15 too much to ask for a rapidly growing company poised to become the dominant domestic supplier in a market supplied by imports? I would not surprised to see 120 bucks in 3 years.