Company Valuation 101 - Question, page-207

If you shorted at $2.5 or above you would've done well. Got to a high of $2.7 as well. However I wouldn't be shorting anything sub $2. Given they have just receive CFDA application review and directors recently took an 'interest free loan' to purchase at $2.15.

I was thinking very hard to buy in at 70~80cents when horse was raving about this but didn't. Went with BUB at 50c and did very well there. Given that WHA is expanding into goat, baby food and other health care products, they may attract more interest. Chinese love big established companies selling genuine products. The bigger the product the range, the better I say.

Only problem I see them facing is cash flow. If the company can manage the cash flow well than should be good in the long term. With such a big expansion plan, comes a lot of capital cost- product development cost, launch, advertising, increased in supply, holding cost, production cost.

Given that revenue is pathetic and not making a profit at this stage, not sure where they are going to come up with all the money. Could be a capital raising, however share price should recover quickly if they can succeed with plans. Only thing BAL has over WHA is market brand. Product and supply wise, I definitely pick WHA over BAL. Also brand awareness can be built over time - as seen with how A2 overtook BAL.

I've held A2 for 2 years+ and rode the wave from 50~60c to $7.7
I've also held BAL briefly from $4 to $8. (Bought after the crash but sold too early- didn't understood how they kept going up)