China Fruits (OTC BB:CHFR)

Seeking feedback from GeoReaders on the status of CHFR story:

Specifically, I am referring to the following comments in the 2009 Third quarter 10Q filing:

In order to create our brand identity efficiently, we plan to acquire or joint venture with the existing profitable and middle-size retail stores. We will provide the stores with management, supplies, as well as the remodeling in connection with display, color and sign to match the franchise requirements. The first franchise store was opened in Beijing in November of 2007. As of September 30, 2008, there were 11 wholly-owned franchise retail stores opened, of which 5 stores located in Beijing, 3 stores located in Haining, eastern China, and 3 stores located in Dongguan, southern China. The biggest store has approximately 4,200 square feet and independent warehouse of approximately 1,200 square feet, which is located at the main street business center of He Ping Li, one of the busy areas in Beijing.

We expect to be profitable during the second half of fiscal year 2009 due to the recovery of current economy, the implementation of our business plan, including the increase in franchise retail stores, and the increase in marketing budgets. However, there can be no assurance that we will achieve or maintain profitability, or that any revenue growth will take place in the future.  

Is CHFR implying they will be profitable during the 2009 fourth quarter? The company was right around break even during the first nine months of  2009. We are also intrigued by the fact that the company raised funds via the sale of stock at $0.20, which is well above the current price.  

At $0.06 we will code CHFR as a GeoSpecial on the Radar just in case management delivers on its expectations.  We may request an interview.