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If the company's financial statements weren't a work of fiction then this would be a huge bargain. It's truly shocking how many investors get sucked in by these Chinese frauds and end up losing a lot of money.
Sales/income growth 50%+. ROE 34%. P/B=0.84. P/E 2.8, Fwd P/E 2.3.
This is a tracking portfolio of all CAPS-ratable tickers in the Chinese RTO/SPAC space (i.e., companies that listed without filing an IPO).Biostar Pharmaceuticals, Inc. went public via a reverse merger in 2007. The company is based in China.
"Reports Record 2010 Results; Revenues Increase 50.4% to $80.2 Million, Adjusted Net Income Increases 57.4% to $18.1 Million with Adjusted EPS of $0.66"
Nobody cares about the business anymore, it's either fraud or not. If this was an American company and people believed the numbers it would jump an easy 300%. Hit or miss long term but been burned by the chinese microcaps and this isn't going anywhere for a while. CCME, institutional investment, Deloitte full year audit, gobal hunter due dillegence, forbes china #1 small business pick for 2011...taken down by some short sellers with no due diligence . Risk vs reward just got real skewed. Enormous upside but won't move until SEC concludes it's investigation, they get a big 4, AND they get legit analyst coverage, all years away...but after CCME all bets are off even then.
Pharmaceuticals,legit company with guanchee, or in english (favor with those who count), in an area with the potential of monsterous medical growth. Very Appealing legal drug slinger.
Easy pick, health care in China, how is this not already overvalued?
This stock will have stellar earnings this year.
Good PE and great value price, and starting to gain some good momentum...
It's growing quickly and underpriced.
Over the counter Hep B med, Chinese market, techs look great.
Growth play.It has excellent potential. Being a Chinese firm, it being audited by Mazars gives some assurance. Mazars ranks among the top 10 of international accounting firms in size and global billings. Revenue growth is accelerating, it actually earns money (unlike many other chinese firms). Its best seller is over the counter drug Xin Ao Xing that is used to treat hepatitis B patients and is best selling Hepatitis drug in China. About 10% of Chinese population suffers with Hepatitis. Book value is about $2 so it has lot more room for premium on current share price.Cash return is around 18.
Anyone have misgivings about this company. I have a long position in Biostar. I have reduced it today mainly because of the continuing disparity I see between the cashflow from operations and the net income. Over the past 4 quarters and the past two years the cash flow from operations has been less than half the net income. In each instance (quarterly or annual) the cause of this diparity is the same. Another increase in accounts receivables. As a result, days sales outstanding is now 144, up from 101 in the 3rd calender quarter of 2009. (I have used average 4 quarter revenue of 16.05M as the basis for the DSO calc.).The longer this is going on, the more this looks like channel stuffing. I realise that to build out a rural network in China requires inventory and generous credit terms. Howevr, with A/R at 4.7 months and continuing to climb every quarter I took advantage of the recent uptick in the price to reduce my exposure. I retain a small long position hoping that the new cold medicine for the Chinse Army may reverse the A/R trend. I would like to hear any comments on the A/R, Cash flow & DSO which would explain why the net income would eventually turn into cash flow and why I should go out and buy more Biostar.
DRUGS! Biostar Pharmaceuticals,Inc could be a rock'en little stock.Has high potential longshot wrote all over it.
Tough to argue with the numbers. Another pick to back with real money...
This company is amazing. Their growth is amazing. First quarter revenue 2010 increased 66% compared to 2009 1st quarter. Their main drug for Hep B increased 128% for 2010 1st quarter comparing to 2009 1st quarter and it is over 70% of their revenue. Their Hep b drug is the only SFDA approved OTC Hep B drug being sold in China. 3 others are able to sell, 2 of them tried and failed as their formulation and product was not accepted by consumers so they took it off the market, the other tried to replicate Biostar's formulation and obviously failed. The best part is that the Chinese government is not giving out anymore permits for an otc Hep B drug. They acquired Xi'an Mei pude and are acquiring their assets and getting 3 million in revenue for 2010 from it. They are vertically integrated and have their own raw materials plant and are going to sell the majority and get about 7 million in revenue from it in 2010. They have several drugs in the pipeline. One military drug coming out at the end of 2010, Zushima, contributing 2 million for 2010 and 6 million for 2011. They plan on acquiring 3-5 smaller pharmaceutical companies by the end of 2011. Over the last 7 months, they expanded into 7 large regions including Beijing. Their SGA is high, but that is because of the large expansion and heavy marketing so those costs will come down. They seem to do everything correct and guide very well as they no what they are doing, but at the same time they are conservative. strong strong buy. Its price has dropped so there is an even better opportunity now. <br /><br />
From a numbers perspective, there isn't really a company out their that looks more attractive. Check out this absurd revenue growth the last 5 yrs:2005: 3.98M2006: 5.75M2007: 15.89M2008: 33.91M2009: 53.32M2010 est: 80MWow wow wow! Those are absolutely stunning yearly revenue increases, how can you not like that? Based on these huge yr./yr. revenue growth, this must be extremely overvalued right, negative Fools! By all accounts, BSPM is actually dirt cheap and screaming valuation buy. Seriously! Forward 2010 and 2011 P/E of 5.5 and 3.8, me likey!While we are at it, through in 85M in cash and zero, zip, nada, in regards to debt. After the recent sell off in the market, I firmly believe this is an extremely good buy. So quit reading this pitch and get out and buy yourself some shares!
BSPM is a company that sells Hep B medication. 10% of the Chineese population is infected with it, with another 15% not diagnosed yet. Great financials and huge upside. Just listed on the Nasdag 4 days ago.
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