Last Quarter Deer Consumer Products Inc. shares (DEER) reported a 35% increase in first-quarter profit and reaffirmed its 2012 earnings and revenue forecasts, citing a continually rising standard of living in China.
This quarter DEER hasn’t reported yet. That means we should get a report sometime this week.*
Schwab Earnings Report rates DEER a HOLD. In it’s report, Schwab states that Deer has an Actual P/E for TFQ of 1.8. That compared to these sector comparisons.: Appliance & Tool 12.4, Consumer Cyclical 16.4 and S&P500 14.6 makes DEER a steal.
Market Edge Second Opinion (R) upgraded the stock to Neutral from Avoid on 4/2/12 after DEER had reported.
What’s with the Dividend?
According to Reuters dated 28 May 2012, DEER had a 6.73% dividend yield. Yet most publications are now reporting that DEER does not pay a ‘regular’ dividend. That’s strange.
Reuters reports a P/E of 2.51 However here are the payout ratios from each year
12 Mo December 09 -0.00%
12 Mo December 10 – 0.00%
12 Mo December 11 – 16.88%
Most Recent Quarter – 12.52% with a 3 year average of 5.63%
However S&Ps report dated August 4, 2012 reports Dividend Yield as Nil.
*Quarterly Report Due This week
Deer files quarterly report with the SEC within 40 days after the end of each quarter. Deer’s quarters end on March 31, June 30 and September 30.
Investing in DEER is not for the faint of heart. This stock could go to zero, especially if the acusations of Alfred Little that DEER keeps a set of fake books comes true. However if indeed DEER is under attack form Al’s little band of Merry Shorters and the company reports are in fact accurate, then watch out, this stock could take off to $10 per share.
It will be interesting to see which way this stock goes. As for me I’m holding a small position for now. After all, I don’t want to risk being road kill, but an upside run on this stock will be a nice reward.