IKANG (KANG) & market hedging

IKang is a health screening and preventative healthcare provider in China and is 1) a candidate for a 1YPEG growth stock and 2) a hedge in today’s market should falls continue with a share price 20%+ below the take out price of a current bidding war. Yes the bidding could fall apart but both bid parties are bidding way above the current price.

Revenues are growing at ~25% and it is profitable…

The track record looks like this…

Revenue growth:-
Q2 16: $98.6m
Q1 16: $86.3m
Q4 15: $42.4m
Q3 15: $108.6m
Q2 15: $79.6m
Q1 15: $60.2m
Q4 14: $29.5m
Q3 14: $75.7m

Non-Gaap Net Inc:-
Q2 16: $12.1m
Q1 16: $11.2m
Q4 15:-$7.3m
Q3 15: $18.5m
Q2 15: $16.1m
Q1 15: $8.9m
Q4 14:-$4.7m
Q3 14: $11.m

Basic non-Gaap EPS:-
Q2 16: 0.17c
Q1 16: 0.15c
Q4 15:-0.12c
Q3 15: 0.26c
Q2 15: 0.23c
Q1 15:-0.03c
Q4 14:-1.24c
Q3 14:

If you wanted to leave cash in the market but reasonably protected with upside. Whilst the rest of your options bottom out this is not a bad place to be.