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IBDvalueinvestin (99.67)

DEER in the "Headlights"

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February 05, 2010 – Comments (2)

The stock has pulled back 50% from $15+ to $9 and is now a very compelling buy..

 Jan. 20th Guidance:

Deer Consumer Products, Inc. Announces 3 Year National Sales Agreement with a Leading Chinese Electronics Retailer, Provides 2010 Financial Guidance, Anticipates a Year of Record Earnings Growth- Affirms 2009 net income guidance of $11.5 million, an increase of approximately 238% from 2008 on estimated revenues of approximately $81 million, an 88% increase from 2008


- 2010 Revenue Guidance: between $140 million and $145 million from organic growth, an estimated revenue increase of between 73% and 79% from 2009


- Anticipates high margin, Chinese domestic market sales to increase more than 300% from 12% of total revenues in 2009 to approximately 40% of total revenues in 2010


- 2010 Net Income Guidance: between $22.5 and $23 million, an estimated increase in net income of between 95% and 100% from 2009


- Continues to Maintain Strong Balance Sheet: strong cash position and no long term debt


- Strong cash position to fund the current strategic growth plan
- Anticipates favorable market environment and growth momentum to continue in 2010 and beyond
- Insiders Interest Aligned with Shareholders: Insider shares locked up through July 2012, representing Deer's entire insider holdings and more than 48% of Deer's total current outstanding shares

 

2 Comments – Post Your Own

#1) On February 05, 2010 at 5:52 PM, SockMarket (41.96) wrote:

UltraLong's Pitch for them:

"13 times book value??? This is a home and kitchen appliances company... 13 times book? I can't tell you the last time I saw an RSI of 92 that stuck... I have to be thinking heavy short interest will work its way in here very soon.... seriously though, 13 times book???!!!!!"

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#2) On February 07, 2010 at 10:35 AM, IBDvalueinvestin (99.67) wrote:

Daniel hope you realize that all those stats you provided have been cut in half since UltraLong's pitch, in other words your a little late to the short party.

 Good luck with shorting a high growth stock at 50% discount from a few weeks ago and which sell its products in the USA to Black & Decker. When people don't have much to spend they go for Black & Decker. Although they don't look as fancy as the high end products they still get the job done. 

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