Tuesday, November 11, 2008

Earnings Pouring In

Wow, active couple of days for my stocks. Generally very good news, and I am starting to gain some ground on the benchmarks.

EGY - they beat the estimates handily, making 38 cents per share versus 32 cent estimate (VAALCO Energy Announces Third Quarter 2008 Earnings). No real news, they commented that their exploration efforts continue.

CSKI - this Chinese drug company really had a strong quarter (China Sky One Medical, Inc. Announces Record Third Quarter 2008 Results). Revenues were up 77%. They made 60 cents a share for the quarter (this is a $9.82 stock). Then here is what the CEO said about 2009:

"we expect to see a significant increase in our top- and bottom-line performance in 2009 and beyond."

If you believe any of this data, this stock is extremely cheap. They did give guidance that they expect to earn $2 per share for 2008. Finally they have $59m in cash and equity of 95m.

CAST - this is my Chinese educational company. As readers may recall, I spoke with their IR guy this past quarter. They are also ridiculously cheap, with a share price of $2.36 and market cap of 74m despite making about 36 cents per share in 2008 (ChinaCast Education Corporation Reports Third Quarter 2008 Results). They have $72m of cash and a tangible BV of about $95m.

While the market continues to drift downwards, the malaise will eventually pass. The depressed stock prices, in my opinion, offer investors with a long-term view tremendous protection.

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