Replies to post #85127 on China Growth Stocks

[researcher59]

GURE -0.30 to 2.70 in premarket .... evidently traders don't like the reduced guidance, but it's extremely cheap even on the revised earnings forecast.

Maybe the conf call will shed more light on the situation ....

[rru2s]

This is a company that gives conservative guidance and expects to always meet or exceed its targets. No BS here, you have to factor that into the projection. The product pricing variables are probably a bit too pessimistic IMHO. Nevertheless, 2011 guidance expects EPS to be $1.41, and at a P/E of 2.6 = $3.67 PPS. If 2012 has the same net income as this quarter but without the one-time impairment charge, then 2012 quarterly net income = ($10M + $7.6M). Annualized 2012 NI = $70.4/34.7M shares = $2.02 EPS. At a P/E of 2.6, = $5.27 PPS.