China Marine Food (NYSE AMEX:CMFO)

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Monday, August 17, 2009

Valuation Scenarios

Added to Geo Bargain List on May 15, 2009. ($2.70).

Data Inputs:

Fiscal Year Ends in December
2008 Tax-Adjusted Earning Per Share: $0.37

Date	5/15/09	8/14/09
Price	$2.70	$5.38
12 Months Trailing EPS ^a	$0.39	$0.41
Implied 2009 EPS Based on Company Guidance ^a,b	$0.50	$0.50
2009 EPS Growth Rate Based on Company Guidance	29%	29%
Trailing P/E Ratio	6.92	13.12
PEG Ratio (P/E divided by growth rate)	0.24	0.45

^a CMFO is not paying a full U.S. tax rate. Therefore, all EPS numbers have been adjusted by the GeoTeam® to reflect a tax rate of 36%.

^b The company issued net income guidance of $14.3 million, but did not provide EPS guidance. The GeoTeam® used the 2008 year ending outstanding share count of 23,010,842 to calculate an implied EPS figure. Commentary in the company's March 31 10Q, page 58 infers that dilution from capital raises may not be an issue:

"We believe that the current operating activities would be able to generate adequate cash flows supporting the daily operations. We do not have any fund raising plan at the moment."

It should be noted that the company does have 2 million outstanding warrants with an exercise price of $4.20. This could come into play if the stock gains momentum.

Short-Term Valuation Scenarios

Date	5/15/09	8/14/09
Price Based on P/E of 25 on Four Quarters Trailing EPS	$9.75	$10.25
Price Based on P/E of 20 on Four Quarters Trailing EPS	$7.80	$8.20
Price Based on P/E of 15 on 2009 Company EPS Guidance	$7.50	$7.50

Long-Term (12 Months Forward) Valuation Scenarios

Date	5/15/09	8/14/09
Price Based on P/E of 25 on 2009 Implied Company EPS Guidance	$12.50	$12.50
Price Based on P/E of 20 on 2009 Implied Company EPS Guidance	$10.00	$10.00

Peg Ratio Analysis - Common rule of thumb that PEG ratio should be less than 1.0

PEG Ratio Less than 1?

YES

These scenarios are not investment advice, but are scenarios based on some commonly used investment guidelines. They are provided to aid investors in making their own investment decisions.

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