China Animal Health is still riding on the Fibonacci Fans nicely and the uptrend is still intact. Current level looks attractive to enter in view of the company’s core business and financial fundamental. In addition, Blackstone has also invested in this company recently and there was an insider bought about 31 million shares at about $0.30 to $0.31 in July 2010.
Financial Fundamental at a snapshot (base on FY2009)
- Net Profit Margin = 36%
- ROA = 19%
- ROE = 21%
- Current Ratio = 13.9
- Debt to Equity Ratio = Net Cash
- Current PE of 14.2 is not expensive for a biomedical company.
Risks: The company fakes the financial report but I think the probability is low because Blackstone should have done a detail audit of this company before investing.
A good stock to hold for long term investment.