Replies to post #134 on Huifeng Bio-pharmaceutical Technology (fka HFGB)

[minimonk]

That would be up to you.

I see you like CHBT. It trades at 3 times revenues.

Assume HFGB adds the $20 million to the existing $20+ million in revenues for 2010. That's $40 million. Assume 30 million OS going forward. Use the 3 times sales and it comes to $4.00 per share.

Or see that CHBT does $1.28 EPS. Assume HFGB hits there .20 ESP. That's about 1/6 of CHBT's EPS. Translate to 1/6 of share price and HFGB value could be $2.14

And it looks like EPS will eventually move up much more than .20 with the added facility.

That's just the way I see it.

Still grossly undervalued and I will buy on dips.

[Ikem]

Dilution is priced in. I am expecting the share count to be around 50,000,000 when they are done with all the funding. Also, I am expecting revenue to triple as a result. Remember they need to raise additional capital to fund acquisition finished product factories. None of these should be news. The management has been singing this as a song as long as I can remember. This is from their presentation last march, so expect additional dilution. EPS expansion is coming in 2012.

"Additional capital injection will significantly expedite Huifeng’s growth
Target to raise $15-20M for strategic acquisition and production expansion
$5-8M is for constructing a new COS Standard API plants for disomin
$10-12M is for acquisitions of patent medicine factories"