China Agritech Inc (NASDAQ:CAGC)

	Recent 52-week high
	30% Earnings Per Share (EPS) growth rate
	10% revenue growth year over year
	Strong balance sheet
	15% minimum return on equity (ROE)
	8% minimum pre-tax margins
	Under 50 million shares outstanding
	High insider ownership
	Limited institutional ownership
	P/E at least 1/2 of EPS growth rate

CAGC Remains on GeoBargain List

• Added to GeoBargain list on 8/24/2009 at $2.95 ($5.90 post 1 for 4 reverse split and a 2 for 1 forward split).
• Current price: $21.60

CAGC had a huge run from in its initial inclusion on the GeoBargain list on.  The company should report 2009 EPS of close to $1.30, giving it a trailing P/E of around 16.  Because of the stock’s low P/E, we will keep it on the GeoBargain List.  We generally remove a stock from this list if it attains a trailing P/E of 25 or a forward P/E of 15.  The company has issued strong 2010 revenue guidance. However, given the stock’s huge run, uncertainty surrounding 2010 EPS and CAGC's recently shelf offering (giving them the ability to issue stock) may make it prudent to take some profits off the table.

We do think that management has an under-promise over-deliver type of philosophy, so we will monitor developments closely for:

• News that would increase guidance such as an acquisition
• Clarity on 2010 EPS Guidance
• Trading opportunities if the stock pulls back