GKIS question - EV/Revenue

**jianyunli** Wed Dec 28, 2005 12:26 am

GKIS question - EV/Revenue
This artificially low Wall Street earning estimate was clearly wrong so that GKIS easily beat earning estimate by 90% in the last quarterly earning release. This artificial low earning estimate also can be identified by extremely low enterprise value to revenue ratio then

Question 1:

What do you mean by last sentence, low earning estimate can be identified by low enterprise value to revenue ratio

The commodity market of chicken and corn/soybean feed meat is moving against GKIS in recent weeks. Chicken commodity price has weakened much worse than I expected and feed meat price has not dropped as deep as I estimated originally.

Questions 2:

Where do you get this chicken commodity prices and soy bean feed meat prices?

thanks blast

**blast_investor** Wed Dec 28, 2005 12:55 am

Hi jianyunli,

this GKIS is no longer covered by BIRTP and its research reports are free at blastinvest web site so that I moved your question here.

On your first question,

enterprise price to revenue is very important metrics to identify cheap stocks among peers.

You can obtain valuation comparison between stocks in same industry using this metrics. The idea is that whichever stock has cheapest enterprise to revenue, should have highest potential to rise.

Enterprise value to revenue ratio is similar concept to price to sale. But I believe EV/revenue is better metrics than price to sale.

Yahoo finance provide this ratio for every stock:

GKIS
http://finance.yahoo.com/q/ks?s=GKIS

SAFM
http://finance.yahoo.com/q/ks?s=SAFM

**blast_investor** Wed Dec 28, 2005 1:00 am

Your second question on GKIS commodity price and commodity price.

You can obtain delayed quote of NYMEX quote easily for soybean and corn.

The chicken price is published by various source as well, some public and some paid service. The information is pretty public.

For example, this is one of source I used for GKIS commodity research:
http://www.lmic.info/priprod/pandp.html