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abh3vt

03/18/08 10:19 AM

#2090 RE: Chinapop #2089

chinapop...did you listen to the call? It explains why this selling is intense. Management presented reasons why they felt that business was going to be worse next year, but the explanation of their assumptions (GM, SGA, etc) was so flawed that management's financial competence has come in to question.

Given the ultra low forward PE multiples that OTC china stocks are getting these days, its not surprising that the stock is down so far. A wild guess on fd eps for next year is somewhere between 0.25 - 0.28. Slap a 5x multiple on it, and that's where the stock might get some support.