In January, China-based Bodisen Biotech Inc. (BBC-$3.36), which produces fertilizers and pesticides, announced it expected to post a 74 percent increase in 2006 earnings, as sales allegedly climbed an estimated 39 percent last year.
Bodisen said it expected 2006 revenue of $43 million and net income of $12.9 million, excluding one-time legal and other expenses related to deficiencies with the American Stock Exchange.
In 2005, the company reported $31 million in revenue and net income of $7.4 million.
Given today’s announcement that the Company will delay the filing of its annual report—due to previously undisclosed ownership issues and other potential liabilities—in our view, shareholders should not take any previous earnings guidance seriously.
Money is like manure. You have to spread it around or it smells. – Industrialist Jean Paul Getty (1892 – 1976)
Unfortunately, something smells foul at Bodisen these days—and it's not money or manure.
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The 10Q Detective--sadly--holds shares in Bodisen Biotech. The 10Q Detective has a Full Disclosure policy.