Replies to post #11114 on China Growth Stocks

[Traderfan]

YUII, kinda funny that I traded the stock today for the first time after the earnings came out. I bought it premarket at 6.15 and sold them at 6.97 also premarket. You basically have the high in premarket in 95% of all cases if you get good news in such a thin stock. I'm not sure why that is the case. I'm really thinking that shorts need to cover for whatever price because they fear getting hammered or so. It's always the same.

[Brennus]

YUII net margin...you're correct, I was being conservative.

If you take the mean net margin from the past 7 quarters it's 30%. If you take mean revenue from sales of retired boilers it's 1.9MM. If you take mean egg sales it's .425MM. Mean broiler price excluding 4q08, which was a bit of an outlier, was RMB2.87.

So ON AVERAGE, given YUII guidance of 150MM broilers in 2010, we should expect 19.8MM net income & $1.25 per fully diluted share.

That sort of margin is certainly possible. After all, they just told us they expect net margin in the 4th quarter to be 31%+. I'm going to put in a bid today.