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China Fire & Security Group (CFSG)

June 12th, 2009 · No Comments

Quite an interesting company, this…

Here is something from the latest quarter:

  • For the full year 2009, the Company reaffirms its revenue projection of $88 million to $95 million. The Company also reaffirms that revenue will grow between 28% to 38%, and pre-tax income will grow between 22% to 32% to a range of $30.2 million to $32.6 million. The Company estimates that assuming an effective tax rate of 13%, net income will grow between 7% to 15% to a range of $26.3 million to $28.4 million, or $0.93 to $1.00 per diluted share, based on 28.3 million shares.

Add to that zero debt(!), almost $30M in cash, the steady growth industry they’re in and no negative surprises, we think these shares are fairly cheap still.

They’re also a bit soft today, could be a nice day to pick some up at under $12. They won’t immediately explode, we don’t think so, but for the longer term, they should perform nicely. Could easily be $20 by year-end.

Tags: CFSG