This one looks great to me! They operate fitness, spa, and beauty facilities. Just expanded into the Beijing market.
They are a cash cow. No problem with accounts receivables like most Chinese companies since they deal directly with consumers. Last quarter EPS was .17 so on a .68 pace but they continue to grow as they just acquired 2 more fitness centers (after the close of 2Q so should see the results in Q3).
I like that ALL of the current expansion (currently building 4 new facilities) are all funded by cash flow! They have mentioned a possible equity offering to expand even more rapidly but they are growing now at over 50%. Could you imagine what they could do with more money?
I don't like the price because I think current shareholders would of payed close to $4 but this will allow them to grow even faster. Maybe this news will get people to take a closer look at them. If people do they will like the cash flow and margins for the businesses they are in!
Posts: 1458 | From: Ohio | Registered: Mar 2004
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