CMED, which had already fallen from about $20 a share to mid 15s when they pre-announced that they had had a poor quarter as they were focused on an internal enquiry by their audit committee (China Medical Technologies to Announce Unaudited Financial Results for the Fourth Fiscal Quarter and Fiscal Year ended March 31, 2009 and the First Fiscal Quarter ended June 30, 2009 on September 1, 2009) dropped 19% today as they strangely announced the 4th quarter and 1st quarter simultaneously in 2 press releases (China Medical Technologies Reports FY2008 Fourth Fiscal Quarter and Full Year Unaudited Financial Results) and (China Medical Technologies Reports FY2009 First Fiscal Quarter Unaudited Financial Results).
I should have sold them after they began making excuses, it was a painful lesson. No sense selling at this price, at $12.55 they are pretty darned reasoanble, even if growth is flattening out. They are paying a 55 cent dividend (that is over 4% at today's price) and they did make 40 cents per share in the 1st quarter. Balance sheet is extremely strong with 226m in cash and a market cap of 400m. If I didn't have a bunch already, it'd be tempting to buy more.
Except for that fiasco, and it was a big fiasco and JTX dropping another 10% (I mentioned them yesterday), it wasn't a terrible day. But with those two fiascos (I suppose they need to be counted) it was a terrible day.
The drop didn't surprise me. I have been expecting a drop. I again didn't have my CMFO order filled. Maybe tomorrow.
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