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Ever-Glory International Group, Inc. Message Board

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    by bobtriplett33 Jul 21, 2014 2:48 AM

    Hi Bob,

    I'm not saying that I have a crystal ball, but at least let me share some information and my point of view with you. First, I own this stock since 2006 and I've been following the company evolution since it was on the OTC market.

    This company was at the beginning in the wholesale business only (poor margins and prices erosion) and has decided to create in 2008 a domestic brand (retail market) in China. It started from scratch and they are now making approximately 200 M$ per year on the retail segment...which starts to be significant...with decent margins.If you add the wholseale revenue, you have a company almost making half a billion dollars per year. Globally the growth is 20% per year as far as the EPS is concerned. In the last 18 months, the important point is that the PER has increased very significantly, thus reflecting the fact that the company is now more trustable (size, revenues, targets achieved regularly, growing EPS).That explains why the share price has increased so much lately (it reached 8.50$). If you have a closer look at the share price, you'll notice that it decreased to 5.4$ tonight...People have sold it because the EPS has suddenly decreased to 0.68$. In fact, this decrease has nothing to do with the reality or any problem in the EVK business, but it is due to the fact that now EVK is eligible to regular tax rate ....(exemption is over).I won't go into details but you can read that in the results very easily. Therefore, the fundamentals are intact and...the stock starts to increase again.For the future, I think there is a huge potiential since EVK should reach 1.2$ (EPS) in the mid term and the stock could then reach 15$ or more.To finish that summary, I can add that several institutions such as Invesco, Goldman Sachs, BlackRock Fund Advisors,Bridgeway Capital Management, Inc, Eagle Global Advisors, LLC have started to invest in the company, and that in the last days, EVK has entered the NASDAQ Golden Dragon China. Hope this will u :)

    Sentiment: Strong Buy

  • Does anyone know enough about this stock to predict its future growth?

  • A break above $5.92 could move the stock up to $6.92 in short term according to allchinastocks website.

  • The Street has finally realized that the EverGlory performance was still there ...despite the fact that the EPS increase has stopped at the moment....As I stated in my previous post, the performance and growth of the company is there and we are measuring the same company as it was before...the only thing that has changed is the tax rate EVK is now eligible to ....I invite all the interested people to have a look at the report...this is crystal clear...this tax rate effect will be cleared (at the EPS impact level) before the end of the fiscal year due to the company growth...and then the EPS will start to increase again....I encourage everybody to have a precise look at the incoming statements....

    I don't know yet if EVK will be the new Zara or H&M in China but they are clearly on the way. Cross fingers !!!

    Good luck to longs

  • Recent results have shown that EVK continues to execute its strategy as planed : what is really key is to see that the retail activity is still growing at a very impressive FY 2014, EVK will be almost a half billion revenue company...which starts to be significant...knowing that the retail revenue will be around 300 M$.

    It is a very strong achievement when you think that the retail activity started from scratch in 2008....

    Talking about the profitability of the company, the recent results have shown a decreasing EPS. I had a very detailed look at the report and I figured out that the net income from operations is still growing at a very solid line with previsions....what has changed is that EVK is now eligible for a normal tax rate, that explains the difference...almost 30% compared to 10% approximately. The strong decline in Q4 2013 EPS is due to the fact that this new tax rate has been applied for the whole year in a single quarter !!!

    The Q1 2014 results show that the income is still growing at a very solid pace and that the tax impact is now easily anticipated : ie If you have a look at the EPS in FY2014, it will be the same as in FY 2012 this means that the EVK growth will have compensated this tax rate effect on the EPS on a few quarters....and that EVK is now ready to restart its valuation increase again.

    At least this is my opinion....


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