China Yida Holdings (NASDAQ:CNYD)

Significant development

Correction: Yesterday, our original third quarter note highlighted nine months results. We have corrected the information to include the third quarter results. The correction results in an even more bullish CNDH story.

China Yida Holding reported strong 2009 third quarter results, experiencing strong growth in both its tourism and media marketing divisions. We are speculating that momentum will continue to build as the Company soon realizes benefits from two new tourism ventures.  We do need to be mindful to the possibility of an increase in shares outstanding in the future:

"Over the course of the next few years, we intend to grow and expand our businesses in China’s tourism, media, entertainment and other related industries. We expect to acquire additional tourist areas that will enhance our reputation as a world-class company that develops and manages tourist attractions. These acquisitions will be financed either by our revenues or by funds raised from sales of our stock or other securities. With respect to the mass media business, we expect to grow by acquiring another operating television network."

The GAAP EPS growth of 42.9% is no doubt impressive.  However, astute investors should key in on the fully taxed adjusted EPS growth of 81.8%.  The GeoTeam® prefers to observe apples to apples comparisons.

^aFor valuation purposes, The GeoTeam® prefers to adjust EPS to reflect a standard United Chinese tax rate of 25%.(Previously we had used a U.S. tax rate of 36%)