Hudson Securities is out with a research report this morning, where it reiterates its Buy rating on China Marine Food Group Limited (NASDAQ:

); it has a $10.00 price target on the stock. The HS analysts said that they believe that earnings will come in at $0.18 per share on revenues of $22.8 million. They are not expecting any top line upside after the October 20, 2010 update; year-to-date algae based beverage sales were $17.3 million. The analysts said, “However, we are concerned with (a) potential gross margin volatility that can be triggered by any small increase from its low margin Marine Catch business, and (b) potential bottom line risks induced by any OPEX increases such as S&M expenses used to promote the algae beverage sales. Due to our lack of due diligence and insight into this promotional process during this quarter, we did not make any adjustments to our bottom line estimate for this risk. But we believe the risk is viable and need to voice our concern.”