Just quick summary to bring this to your attention; more detail will hopefully follow.

This stock floated yesterday at 10p and has since doubled. It has, needless to say, suddenly become very popular on another BB.

The company is profitable already and trading on an estimated (by yours truly) forward PE for the current year of 9 at SP 20p. EDIT: Hoodless Brennan estimate EPS for Full Year 2006 will be 2.18p - see article (link below).

Free float is 11.4% of the 81.2 million shares in issue - most are held by the directors.







Extremely useful Investegate article LINK


Extremely useful Hoodless Brennan analysis LINK


PDYOR, etc.

laurie
Just done it.

EDIT: chart in header replaced with 5-day chart.

Driver, many thanks for yor post of the Hoodies article - a good find!

Taking away the most salient point of the report, TAIH is forecast to make EPS of 2.18p for the year ending 31 Dec 2006. Which, I should not need to remind anybody, is in ten days' time.

Currently we are on a PE of around 8.5 (at closing offer price of 18.5p). So we could well see a lift in the SP as and when a trading update is released, and when the results come through at the end of March.

Looks very good, IMO. Glad I bought and am waiting for great things in the New Year.

IMO, PDYOR, etc.

Laurie, sorry; the credit should go to you in the first instance for the HB article. I have now pasted the link to the header.

Decent recovery today, too: TAIH Bid: 16.5p Offer: 18.5p Change: 1

good luck to all!

sorry to sound pessimistic...but it seems unlikely that TAIH will go far because chinese herbal medicine is not well researched and its potential benefits and side-effects are not known. There aren't any randomised controlled trials on such herbal medicines. Very risky investment.

HL, I believe that Paclitaxel and Homoharringtonine are already used in Western countries.

And the TCM side, already accepted in China, is due to be expanded in China.

Does anyone else have any views?

ST,
Gotta say, I respect your stockpicking and when you started the thread I had a good close look, but I'm gonna go with hlyeo on that.
Chinese medicine does not appear to have gripped the market as one may have thought. Every shopping centre you go in has a Dr & herbs outlet, but never anyone in them! I am afraid that complimentary or alternative treatments will be treated as "faddy" for some years to come and while this may enjoy an opening splash, I see no real long term future as a large organisation. Expansion is very limited.
If these treatments ever become researched and regulated, they may become more mainstream and offer greater expansion potential, but regulation is a double edged sword. it also offers higher costs and massive restrictions on trade.
I wish all the investors the very best of luck, as I would with any share, but it is not for me. I really hope I am proved wrong and spend the rest of my days kicking myself for net getting in with you all.
WTFDIK & DYOR, but I'm sitting it out for the time being.
Alan

ST, this stock was classed as AVOID by Monisha V on allnewissues.com and a buy by Hoodless B, though HB are share holders (2.46%).

Reasons for the Avoid category were:

Company trying to sell a drug which is off patent, therefore margins will be low.
the impact on profitability of the Leukemia drug will take some time and necessary approvals not yet obtained.

Hope that helps.

LOL - it seems this one just isn't all that popular with this BB!

Seriously, thanks to all for explaining your reservations. I have to admit that the low PE is a major factor behind my interest. Will hang on and see what happens at the next results - hopefully it won't be a complete train wreck.

However, I must say that I think there are positives amongst the negatives as well and that there may well be some good news from the Chinese and other oriental markets.

Good to see everyone taking "DYOR" seriously :o)

Happy Christmas to all.
ST

Al
The UK may not be that keen on Chinese medicine but a lot of Taihua's customers are abroad, in China, Russia and South America and the expansion will come from the application process for licences and approvals to supply some of its products to drug manufacturers in South Korea and Europe. I see a lot of upside in this stock short term 40p+ imo.

And I hope you make enough to retire on , Driver & ST, its just not one I fancy.
I sincerely hope you are right, I really do.
Unless you are a tax inspector or a traffic warden, in which case I hope you remortgage your home, put everything in them, sell your kids into slavery to buy a few more and then watch them go bust, which will make you mad enough to commit suicide and hopefully get it wrong, so that your death is slow and agonising.
But thats just the view of one who has had a tax demand and a parking ticket on the same day.
Other than that, I look forward to being very wrong.
alan

Well said, Alan. Taihua is a very risky share not suitable for orphans and widows.

92 % buys and yet the price falls - don't you love the mm's?
Tree shake for the beers till Tuesday!

Still down a bit from the early post-IPO high, but ticked up today: TAIH Bid: 16.5p Offer: 18.5p Change: 0.5

nudging up again: TAIH Bid: 17p Offer: 18.5p Change: 0.25

A tick up a day keeps the bailiffs at bay.

Right - if it added a quarter of a pee every day we'd all get rich :o)

Soul hi,have been watching these for the past 12 months and finally dipped my toes in at 16p,i have to say that its one of the few aim companies making consistent profits and growing at a reasonable level.Have only bought 35000 but expect to see good growth with results out soon and particularly like the fact that they are trying to expand into europe later this year, that could be a company maker.With more drug registrations in the near future hopefully they will continue expanding.Six months profit to end of June has nearly equalled 12 months profit for 2005 so am hoping for sparkling results in next 6 weeks.It appears on paper to be a very undervalued stock at present and if you have any more info please could you post.
regards, pisces.

pisces
Me and soul are out.

Pisces, thanks for your post. Good luck with your investment. I see from an RNS dated 05 Feb that TAIH won a license deal to sell Paclitaxel in S. Korea, so clearly they are making progress with achieving their stated aims.

Other than that I haven't had time to check on this co as have been busy in Jan/Feb with an international house move.