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IBDvalueinvestin (98.34)

DEER in the Headlights



December 11, 2009 – Comments (1)

EDGAR Online(Fri, Dec 4)Deer Consumer Products, Inc. Signs US$29.3 Million Distribution Agreement with the Second Largest Consumer Electronics Retailer in China for 2010 Product Delivery PR Newswire(Fri, Dec 4)
Revenues of $26.54 million, an increase of 130% from Q3 in 2008 , Net income of $4.12 million, an increase of 168% from Q3 in 2008


DEER crashed today on 6M share offering but it needs the cash to expand operations , as you can see it recently signed a $29.3M deal with China's 2nd largest consumer electronics retailer. Growing internally is not a bad thing but the sellers of shares today in DEER will regret it soon enough. The good news is we can add shares today at a discount, so all news is not bad.

1 Comments – Post Your Own

#1) On December 11, 2009 at 2:18 PM, JaysRage (79.23) wrote:

That's some serious dilution, though.   Only 25 million shares outstanding.   6 million represents almost 25% dilution.    It was riding a pretty high P/E even before that news.   I think the correction is justified.  

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