China Green Agriculture (NYSE:CGA)

We have removed China Green Agriculture (NYSE Amex:CGA) from the GeoBargain list.  It had a nice run from our initial article on April 2, 2009 at $3.38. The Fiscal 2010 EPS growth rate guidance is below the GeoBargain 30% requirement. 

Why is EPS growth slowing down in 2010?

• Using the funds from its recent fund raising activities, it will take some time for CGA to complete its (R&D) green house facility expansion .  This arm of China Green's business (agricultural products) develops products resulting from the testing of its liquid fertilizer.  The green house expansion is expected to have its desired financial impact beginning in fiscal 2011.  Thus, in the short-term we may see little growth in this portion of the business. China Green's fertilizer business is expected to continue to grow at a healthy pace.
• Dilution from recent fund raising activities.  

We will continue to track the CGA story due to the tendency of the company to exceed its guidance.  Also, investors that can look beyond the upcoming year will notice that estimates indicate EPS growing over 50% in Fiscal 2011 to $1.33.  The stock is still selling at discount  to its long-term growth rate, which may attract long-term investors.