Tianyin Pharmaceuticals Co (NYSE AMEX:TPI)

Added to the GeoSpecial list on December 3, 2009 @ $4.35

Catalyst: Company has a robust drug pipeline. Substantially increased capacity.
Peak performance: Reached a high of $5.25 on January 13, 2010.
Current Price: $3.06

Current road block: The company is still dealing with dilution issues that we originally highlighted in our initial report on December 3, 2009; No knowledge of capital needs for its fiscal 2011 year:

"We believe that Tianyin is adequately funded to meet all of our working capital and capital expenditure needs for 2010."

Remains on the GeoSpecial list. Tianyin Pharmaceuticals 2010 fiscal year ends in June. If 2010 guidance holds up fourth quarter EPS should grow 24% to $0.10. This will be the first EPS growth quarter since the its 2010 first quarter when EPS grew 9.1% to $0.08. If all holds, 2010 EPS will come in at $0.35 ($0.32 fully taxed). Based on fiscal 2011 net income guidance of $19.6 million, EPS could reach $0.56 ($0.50 fully taxed). This would imply an EPS growth rate of 56.25% and may qualify TPI as a GeoBargain as it enters 2011 as long as the company does not give away stock in an equity financing. The stock trades with a forward P/E of 6.2 and less than two times its book value per share of $1.75. We also like that the company has been buying back stock.

"On October 27, 2008, the Board of Directors authorized the Company to repurchase up to $3.0 million of its common stock from time to time in the open-market or through privately negotiated transactions."

"On January 30, 2009, we announced the start of the initial purchase of shares under its previously announced stock repurchase program. Those shares will be retired to the treasury while reducing the number of outstanding shares of the common stock or sold out wholly or partially when market turns better. The initial share buyback illustrate our confidence in the long-term growth of the company and our commitment to our shareholders. As of April 3, 2009, a total of 83,785 shares have been bought back at prevailing market prices. The share repurchase program is to continue for the remainder of 2010."