China Green Agriculture (CGA) announced it expects to exceed analysts’ estimates for fourth quarter revenue thanks to market share gains.

China Green Agriculture, Inc. [[CGA]], a producer and distributor of humic acid, today announced that the Company expects to exceed the high end of its previously announced revenue guidance of $32.8 million to $33.3 million due to strong sales from its green fertilizer products in the fiscal fourth quarter of 2009. The Company now expects revenues in excess of $34 million for fiscal year 2009; a record for the company. Fiscal year 2009 and fourth quarter financial results will be reported in mid-September 2009.

“We are extremely pleased with our business momentum which enabled us to exceed our previously announced revenue guidance for the 2009 fiscal year,” stated Mr. Tao Li, Chairman and CEO of China Green Agriculture. “China Green Agriculture continues to gain market share while further establishing our position as a leading green fertilizer player in our industry. We are confident that our extensive distribution network, cohesive marketing strategy and sustained market demand for our green fertilizer products, will enable us to deliver incremental revenue and earnings growth for our company during fiscal year 2010.”

Popularity: 17% [?]

China Green Agriculture, Inc. [[CGA]], a leading producer and distributor of humic acid based liquid compound fertilizer announced that it closed the sale of an additional 525,000 shares of common stock at the public offering price of $7.15 per share.

The exercise of the over-allotment option brings the total number of shares sold by China Green Agriculture in the follow-on offering to 4,025,000 and the aggregate net proceeds received by China Green Agriculture to approximately $27.2 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company.

The Company intends to use all of the net proceeds to expand its existing research and development through the construction of new green-house facilities. The Company estimates that these new facilities will require an aggregate investment of approximately $38.6 million over the course of two years. The Company anticipates using existing cash reserves, operating profits and bank loans to provide the difference between the total required investment of the new green-house facilities and the net proceeds from this offering.

Popularity: 6% [?]

China Green Agriculture (CGA) distinguishes itself in this market not only by its niche, organic fertilizers, but by its compelling valuation. Despite a drop in shares driven by an additional public offering, the stock’s fundamentals can’t be ignored.

What if I described a stock with these metrics?

P/E: 12
Forward P/E: 8
PEG Ratio (5-year): 0.32
Profit Margin: 36%
Current Ratio: 4

Not only that, but the company is based in the world’s fastest growing economy and right now has a market capitalization of only $138 million. Even better, the company’s CEO owns more than 1/3 of the company – some serious skin in the game.

There is obviously no mystery here – this describes a real company: Xian, China-based China Green Agriculture [[CGA]], a developer, manufacturer and distributor of organic fertilizers.

China Green Agriculture is making news right now for its plans to sell an additional 3.5 million shares of stock at $7.15 each in a public offering to raise funds for the construction of new green-house facilities for research and development. This announcement is weighing on the stock – understandably so because in the short-term it is diluting existing shareholders and the offer is priced lower than the current trading price – but in the long-term this will only drive further growth by increasing the research pipeline.

Even with 3.5 million shares added to the 18.6 million already outstanding, China Green Agriculture offers an outrageous value.

The simple fact is additional share offerings are never ideal but if the money is being put to good use and the valuation remains attractive even after dilution then the drop the offering brings to the stock should be considered an opportunity to invest, not a concern.

Popularity: 14% [?]