I believe that Oppenheimer is following the stock, but other inputs are welcome. My two cents is that from a quick look at the 2011 numbers EDS has reported and the guidance they have given, the potential return can be even greater than 10-20 times. The current market cap is ca USD 60M, if we assume a P/E of 10 (US peers have P/E's between 15 and 20), based in last year earnings that'll give us USD 750M market cap. If we add the USD 150M net cash, it would be USD 900M, that is 15 times current market ca. But the company is growing at 15%-20% compunded growth yoy, hence quicker than Chinese economy; if assume 15% p.a. growth in net income and hence consider a forward P/E of 10, we might be looking at a market cap of USD 1.5-2B. That is 25-35 times current market capitalization. If we trust the company numbers and their auditors (a well established auditing firm) this can be a golden opportunity, The market is clearly overreacting to the risk (in my opinion non existent) the company may be a fraud altogether or the risk (in my opinion minimal) the company may be overstating figures.
tnx,but this r all paper numbers ,we need somebody familiar with financials and who can go and see if there are real stores in malls or high streets, buyers traffic,inventory in shops, call to suppliers etc., ,the same as we can see anf or aeo