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 Tracking 1027 U.S. listed China Stocks and Counting...
 Tracking 1320 U.S. Stocks and Counting...

 China Armco Metals (NYSE AMEX:CNAM)

Wednesday, August 19, 2009

Valuation Scenarios

Added to Geo Bargain list on August 18, 2009. ($2.39). 

Data Inputs:

Fiscal Year Ends in December
2008 Tax-Adjusted non-GAAP EPS: $0.28

Date 8/19/09
Price $2.97
12 Months Trailing EPS a,b $0.28
Geo EPS Estimatesa,b $0.64
Future EPS Growth Rate Based on 2009 Estimate a,b 167.7%
Trailing P/E Ratio a,b 10.61
PEG Ratio (P/E divided by growth rate) a,b 0.063


a CNAM is not paying a full U.S. tax rate.  Therefore, all EPS numbers have been adjusted by the GeoTeam® to reflect a tax rate of 36%.

b EPS numbers are non-GAAP.  Non-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time,  differ from company supplied figures.

The GeoTeam® is still ivestigating the possibly of dilution due to outstanding warrants.  It initially appears that this becomes an issue if the stock reaches $5.00 per share.


Short-Term Valuation Scenarios

Date 8/19/09
Price Based on P/E of 25 on Four Quarters Trailing EPS $7.00
Price Based on P/E of 20 on Four Quarters Trailing EPS $5.60
Price Based on P/E of 15 on Four Quarters Trailing EPS $4.20
Price Based on P/E of 15 on 2009 Geo EPS Estimate $9.60


Long-Term (6 to 12 Months Forward) Valuation Scenarios

Date 8/19/09
Price Based on P/E of 25 on 2009 Geo EPS Estimate $16.00
Price Based on P/E of 20 on 2009 Geo EPS Estimate $12.80


Peg Ratio Analysis - Common rule of thumb that PEG ratio should be less than 1.0

PEG Ratio Less than 1? YES


These scenarios are not investment advice, but are scenarios based on some commonly used investment guidelines.  They are provided to aid investors in making their own investment decisions.