Replies to post #113 on Huifeng Bio-pharmaceutical Technology (fka HFGB)

[minimonk]

Either way it's a $2.00+ stock.

[Ikem]

Are you assuming 0 net income from Kexin acquisition for Q3 and Q4?

[pappy]

o.k. So eps won't be $0.22-$0.26 in 2010 as I projected "conservatively"before the new shares were added into that projection.

But the need for added facilities to fill increasing order backlog makes me think eps would have been at the upper end of my projection.

So 2010 eps will only be around $0.19 thats still up from $0.15 last year with like 50% more shares outstanding.

And the new plant is expected to add $20M in revenue gains on a full year basis.

On a per share basis off the top of my head this will add about $0.08 to 2011 eps & about $0.15 to 2012 eps.

With growth like that I don't think you can say this deal was dilutive to eps unless your taking a very shortsighted view.

I for one will be buying the dips as long as HFGB is doing deals that are accretive to longterm growth & can still increase eps this year while doing so..

[pappy]

I was looking for $0.06 to $0.08 in the 3rd & 4th qtr.

HFGB came in with $0.08 vs $0.05 last year when far fewer shares were outstanding.

For 9M eps of $0.18 vs $0.07 in 2009.

They guided for revenue of $20-$25M but are on pace to outdue the high end of revenue guidance.

Earning should also exceed the high end of guidance with latest 12 month eps now @ $).26 up from $0.15 for all of 2009 when far fewer shares were outstanding.

True with the 6.5M new shares added in eps won't be $0.26 for 2010,however with management able to deliver this kind of growth & further revenue gains of $20M expected from building the new plant its hard to 2nd guess why management found it necessary to raise cash below B.V. to get the additional plant done.