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 Tracking 1027 U.S. listed China Stocks and Counting...
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 Skystar Bio-Pharma (NASDAQ:SKBI)

Friday, June 12, 2009

Valuation Scenarios

Added to Geo Bargain on the radar list on May 20, 2009.  ($9.00).

Added to Geo Bargain list on June 1, 2009.  ($10.00)

Stock has now been re-coded to a Geo Special due to its low PEG ratio and remains on the Geo Bargain On The Radar list. ($15.97)

Data Inputs:

Fiscal Year Ends in December

Date 06/12/2009
Price $15.97
12 Months Trailing EPS a,b $3.07
2008 Tax Adjusted non-GAAP EPS Growth Rate  a,b 16.10%
Trailing P/E Ratio a,b 5.38
PEG Ratio (P/E divided by growth rate) a,b 0.33

Short-Term Valuation Scenarios

Date 06/12/2009
Price Based on P/E of 15 on Four Quarters Trailing EPS c $46.05
Price Based on P/E of 10 on Four Quarters Trailing EPS c $30.70

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

PEG Ratio Less than 1? YES

a Skystar Bio-Pharma  is not paying a full U.S. tax rate.  The GeoTeam ® prefers to use U.S. fully-taxed EPS figures when calculating potential valuation scenarios. Therefore, all EPS numbers have been adjusted by the GeoTeam ® to reflect a standard U.S. tax rate of 36%.

b 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 . The GeoTeam ® non-GAAP figures may, from time to time, differ from company supplied figures.

c
The GeoTeam ® Generally applies P/E's of 20 and 25 on trailing EPS when portraying potential short-term valuation scenarios.  However, since the Company's 2008 non-GAAP EPS growth rate is below the GeoTeam ® preferred 30% minimum P/E's of 10 and 15 were utilized.

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.