One of my favourite non mining shares is Deer Consumer Products. They are a NASDAQ listed Chinese kitchen appliance make (think juicers, soy milk makers, toasters, kettles, that kind of thing). They supply for some major names internationally, such as Alba, Kenwood, Disney, Black & Decker.
Lots more info on their site http://www.deerinc.com/
Throughout 2010, they have made many inroads targeting the Chinese growing domestic middle classes, under their own name for the likes of Tesco and Walmart, and many others based in China.
Today I am excited, as they announced a $0.05 quarterly dividend. Okay, so the company is trading at around $11/share (369 Market Cap). However, I believe a dividend is so much more than just a yield. It is also very much a vote of confidence. In light of a number of US listed small cap Chinese companies turning out to be outright frauds, this first dividend should provide a vote of confidence.
Performance
Deer’s performance in 2009 was stella. Initially trading OTC, it graduated to the NASDAQ in mid 2009.
Management announced a $75 million offering at $13/share in early 2010, a $2 discount, causing the share to plummet. Meanwhile, quarter after quarter performance increased.
For the last 4-5 months, the share price seems stuck in a very tight $11 trading range. From experience, I know that with the kind of chart pattern seen above, once breakout to the upside does occur, the price can go very high, fast. This is something I would place a high probability happening soon, so long as the broader markets can stay up just a little while longer.
Fundamental Performance & Growth
Date Net Income(k) Revenue(k) EPS (Quarterly)
3’10 9,266 55,260 0.28
2’10 6,021 34,410 0.18
1’10 4,037 23,900 0.12
4’9 5,873 32,620 –
3’9 4,123 26,540 0.18
2’9 1,715 15,310 0.08
1’9 0.657 6,872 0.07
Date Shares Issued(FD k) Net Assets/Share(FD)
3’10 33,590 3.90
2’10 33,700 3.55
1’10 33,770 3.36
4’9 23,190 –
3’9 23,270 1.60
2’9 21,710 0.918
1’9 10,010 1.65
2010 P/E => 12.4 (with about $34m cash!)
Current Net Asset/Share = > $4.9 (FD)
Estimates 22% earnings growth in 2011!
Complete earnings details can be found here http://finance.yahoo.com/news/Deer-Consumer-Products-Inc-prnews-2047567069.html?x=0&.v=1
goldstocktrader 