Thursday, April 1, 2010

China Animal Healthcare: Snazzy 2009 Annual Report!

Probably from the same design team that did Oceanus Group recent annual report, China Animal Healthcare's (CAH) struck me as slightly snazzy. If you did not know, you would think that CAH was operating a Zoo!

Maybe it is a small cap stock thing doing up such eye catching covers, when I receive the annual reports from GMG Global or even the late Singapore Petroleum Company, there were quite plain, with the company's logo, a vague slogan and that is it.

In terms of share price, CAH has moved past the $0.30 mark in line with the broader market.The broader market was on steroids, gaining close to 50 points after giving up slightly as much the day before.

My outlook for CAH remains the same, relatively bullish in the medium with earnings growth from the successful receipt of certification from PRC authorities as the main share price driver. Fears of accounting shenanigans still remain, but with several institutional funds with stake in CAH, they can be useful signals should things really go wrong.

For those ardent surfers, you would also know NRA's Kevin Scully is positive on the stock. I give this stock at least 6 more months to realize the plans that its CEO has been touting, namely the mass production of the many vaccines and bidding for the relevant government contracts. If the mood is right, $1.00 is not impossible. Somewhat unnerving, fears of S-Chips might slowly slip out of our minds then.

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