Bohai Pharmaceutical (fka BOPH)

[dfh]

Thanks for the summary 2mG. eom

[2morrowsGains]

Q2 adj net EPS (Non-GAAP) = $0.24. 6 month EPS (non-GAAP) = $0.48, which is more than the current share price!!! Cash is @ $20M!!

"We had Non-GAAP net income of $10,739,430 for the six months ended December 31, 2011, as compared to Non-GAAP net income of $7,671,323 for the six months ended December 31, 2010, an increase in Non-GAAP net income of $3,068,107, or 40.0%. This translates into basic Non-GAAP net income per common share of $0.60 and $0.46, and Non-GAAP diluted net income per common share of $0.48 and $0.37, for the six months ended December 31, 2011 and 2010, respectively".

"We had Non-GAAP net income of $5,844,022 for the three months ended December 31, 2011, as compared to Non-GAAP net income of $4,458,871 for the three months ended December 31, 2010, an increase in Non-GAAP net income of $1,385,151, or 31.1%. This translates into basic Non-GAAP net income per common share of $0.33 and $0.27, and Non-GAAP diluted net income per common share of $0.24 and $0.22, for the three months ended December 31, 2011 and 2010, respectively (See Use of Non-GAAP Financial Measures above).

Total other income included a non-cash charge in effective interest expenses of $6,687,314 for the three months ended December 31, 2011 compared to $785,671 for the same period in 2010.

Total other income for the three months ended December 31, 2011 also comprised of a non-cash credit for fair value of warrants of $191,747.

http://sec.gov/Archives/edgar/data/1443242/000114420412009041/v302108_10q.htm

[dfh]

Quarterly Report is out
http://ih.advfn.com/p.php?pid=nmona&article=51195618

[dfh]

BOPH earnings release tomorrow maybe? eom

[dfh]

The website is still down. ?? It's getting to be a little disconcerting.

[TheProfit]

if it dips anymore I will be grabbing more here again

[dfh]

Well, I'm not sure what it means but Bohai's website has been down. Haven't seen any other info.

[dfh]

We could certainly present a good case for it . : )

[otterman]

Yeah but Im thinking companies should pay us to stay away!

[dfh]

All of us should be banished from ever trading in stocks. lol

[otterman]

No, you remember what happened last time we let you drive!

[luvthemtrainz]

Can I have the Ferrari this time?

[otterman]

Hey lets not get too many of us here at the same time. You know what happened last time we did that! Lol.

[otterman]

Absolutely, you must consider that when looking at a thin trader. No sense in buying 10k shares when it only trades a couple here and there. I suspect that once the company gets visibility/discovered the volume should pick up. Always use AON orders on the likes of these, I got stuck with a 1 share fill on an open order once!

[unlimitedh]

Thanks. The problem of thin trading is you can BUY super low, but WHO WILL BUY FROM YOU? This is part of the risk, do you think?

[otterman]

Low OS, just under 18MM, and an undiscovered entity will give you thin trading.

[luvthemtrainz]

Thanks for the info. If these products are genuine and making the money it looked like they were making, a little PR expenditure should put the outfit on the radar at some point. Will keep a sharp eye on it 'til then.

GL to you on this one.

[unlimitedh]

Does anybody know WHY the small volume of shares traded each day? The price JUMPS and JUMPS but the volume is Nothing. 10k, 20k shares doesnt really mean what investors think of it.

If anybody sells one day 10,000 shares at 0.10 , then that will be the price showed in the tickers.. and really really means Nothing compared to the total shares involved in this company.

What is happening with this company ? When will people notice it?

[dfh]

Hi Bob, good to hear from you again. My thoughts? Well, to tell you the truth, I don't know. It seems good by the numbers and Zacks Investment had them rated a couple months back as a strong buy but recently they've downgraded it to a hold with no explanation. ??
They supposedly have a good American company for auditing now but having seen any filings from them yet. We might get some different numbers from them instead of the suspect Chinese ones when the new 10Q is released. That might be a better time to decide whether to jump in or not.
It could be however that the share price regression is just simply that this is a boring company, not much to release PR's about.
That's about all I have, hope it helps.
Don

[luvthemtrainz]

Hi Don. Ott turned me on to this one. I've been watching for several months now. This thing sure looks like a winner but sure isn't acting that way. Any thoughts?

Best Regards,

Trainz

[otterman]

Still lots of indecision in China. No respect for Chinese stocks or companies doing work there. I can wait yet, as long as the company continues its growth it will get discovered eventually.

[dfh]

Your .38's are starting to look vunerable. It's been a rough couple days. I see Zacks has lowered their rating of BOPH to a hold from a strong buy. Puzzling.

[NORTH LAND]

ty dfh !

[dfh]

Not based on that filing as that was released a week ago. I would have posted it sooner had I seen it.

[NORTH LAND]

do you see some upside am?

[dfh]

Current report filing (8-K)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of Earliest Event Reported): January 5, 2012 (December 31, 2011)

Bohai Pharmaceuticals Group, Inc.

c/o Yantai Bohai Pharmaceuticals Group Co. Ltd.
No. 9 Daxin Road, Zhifu District
Yantai, Shandong Province, China 264000
(Address of principal executive offices)

Registrant’s telephone number, including area code: [phone]

Item 1.01 Entry into a Material Definitive Agreement

On January 5, 2010, Bohai Pharmaceuticals Group, Inc. (the “Company”) entered into a Securities Purchase Agreement with certain accredited investors, for which Euro Pacific Capital, Inc. (“Euro Pacific”) is acting as representative, whereby the Company issued two-year convertible notes in the aggregate amount of $12 million (collectively, the “Notes”) and warrants to purchase shares of the Company’s common stock. As of the date of this Report, there is currently $10.5 million due under the Notes and the current maturity date of the Notes is January 5, 2012.

On December 31, 2011, the Company entered into an amendment to the Notes with Euro Pacific as representative of the Investors (the “Amendment”) which: (i) extended the maturity date of the Notes from January 5, 2012 to April 5, 2012 (such extra three month period, the “Extended Period”); and (ii) increased the interest rate on the Notes to an annual rate of 12% (or 3% for the Extended Period). A copy of the Amendment is attached hereto as Exhibit 4.1. The description of the Amendment is qualified in its entirety by reference to Exhibit 4.1.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On December 31, 2011, Mr. Gene Hsiao submitted to the Board of Directors of the Company his resignation as a director of the Company and the Chief Financial Officer of the Company, which resignation became effective on December 31, 2011. Mr. Hsiao’s resignation was for personal reasons and not as a result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices. Mr. Hsiao noted in his resignation letter that his decision to resign was difficult as working at the Company has been a great experience for him for which he is extremely grateful. Mr. Hsiao wished the Company every success in the future and thanked the Company’s Chairman and Chief Executive Officer, Mr. Hongwei Qu, for the opportunities Mr. Hsiao was given during his tenure with the Company.

Mr. Qu noted his thanks to Mr. Hsiao for his service to the Company over the past one and one-half years. Mr. Qu further noted that the officers and employees of the Company have enjoyed working with Mr. Hsiao and wish him the best in his future endeavors.

The Company is in the process of identifying a qualified candidate to fill the vacancy created by Mr. Hsiao’s resignation.

Item 8.01 Other Information

Fiscal Second Quarter 2012 Revenue Guidance and other information


The Company is hereby publishing its preliminary gross revenue guidance for the second quarter of fiscal year 2012 ended December 31, 2011 in the range of $35.7 million to $40 million which, if achieved, would represent year-over-year quarterly growth of approximately 60.8-80.2%. The Company expects that this revenue growth were driven by a combination of the acquisition of Yantai Tianzheng Pharmaceuticals Co., Ltd in the first quarter of fiscal 2012 and an increase in sales of the Company’s key products In addition, the Company expects revenue growth to continue during the second half of fiscal 2012. During recent fiscal quarters, the Company has been generating net operating cash flow approximately in the range of $3 to 4 million per quarter.

The Company currently produces 19 varieties of approved traditional Chinese herbal medicines. Of these 19 products, 12 are prescription drugs and 7 are over the counter (or OTC) products. By the end of the fiscal 2011, the Company added more than 200 level 2 hospitals and more than 10 new drug store chains to its national network of retail locations in China currently selling its key product, Lung Nourishing Syrup. As a result, the Company now sells Lung Nourishing Syrup in more than 1,600 level 2 hospitals and more than 36 drug store chains across China.

[dfh]

.38's, nice timing. Hard to believe BOPH got that cheap and is still really low. We'll wake up one morning and it'll be skyrocketed. lol

[otterman]

The season was brutal for many pennies, only the cream of the crop will survive this year IMO. Or will more people take a chance on lotto plays due to the financial crisis!? Ugh, just killed my own buzz:( Lol. My .38s are looking good for the moment, not selling mind you until much higher prices.

All the best for 2012:)

[dfh]

Well, at least tax selling season is over. Maybe we go back up from here.

[otterman]

Looks like someone bought 30k just judging by the time proximity of the 5k trades.

[TheProfit]

I hear ya, going to get a few for the new yr GLTA!!

[2morrowsGains]

Looking hugely undervaled...BOPH's current Market cap is now beat down to only $6.8M. Last fiscal year, pro forma net income (inc acquisition) was almost triple that w/ sales of approx $127M.

Earned $0.25 (non GAAP) last Q, and the stock has been trading @ $0.37 - $0.38 (Y/E selling?). Earned approx $1 per share last year (pro forma inc acquisition). Also has nice cash flow.
If and when China stocks recover, this could be a HUGE % gainer from here. If BOPH just gets back to trading at EPS, it's almost a triple.
Bohai should have a strong year based on the phama sector and their recent acquisition. Convertible notes should be paid off by the first week in April and there should be plenty of cash on hand by the end of next year with little to no debt even after paying acquisition payments.

[dfh]

I'd love to double down but with both of us buying more it would be sure to go down further. lol
Actually, I blew the rest of my playing money on another loser. : )

[otterman]

Bought more this morning. I see many similarities to that other one I sent you. This may swing wildly from here. Dont see much downside except for lack of interest/visibility.

[otterman]

Still the same with my sources. $6 target. Lots of worry about how the problems in China will pan out. If its an equitable solution then these types of stocks will skyrocket. Interesting with N Korea's PM passing. Might take the heat of some issues in that part of the world.

[dfh]

Well, Zacks still considers Bohai a strong buy for whatever that's worth.
http://www.zacks.com/stock/quote/BOPH

[otterman]

Lol, I do that too so we're definitely doomed! Ill let you know if I intend to sell so you can load up for the big run:) We should probably be banned for some sort of supernatural stock manipulation.

[dfh]

It's probably tanking due to the fact that I bought it. lol

[otterman]

Wow, tax selling in full swing now? Many OTC issues getting slammed this week, others not even trading a share? Investors are repositioning.

[dfh]

Current report filing (8-K)

Date of Report (Date of Earliest Event Reported): December 8 , 2011

Bohai Pharmaceuticals Group, Inc.

c/o Yantai Bohai Pharmaceuticals Group Co. Ltd.
No. 9 Daxin Road, Zhifu District
Yantai, Shandong Province, China 264000
(Address of principal executive offices)

Registrant’s telephone number, including area code: [phone]

Item 8.01 Other Information

On January 5, 2010, Bohai Pharmaceuticals Group, Inc. (the “ Company ”) entered into a Securities Purchase Agreement (the “ SPA ”) with certain accredited investors (the “ Investors ”), for which Euro Pacific Capital, Inc. (“ Euro Pacific ”) is acting as representative, whereby the Company issued two-year convertible notes in the aggregate amount of $12 million (collectively, the “ Notes ”) and warrants to purchase shares of the Company’s common stock. As of the date of this Report, there is currently $10.5 million due under the Notes and the current maturity date of the Notes is January 5, 2012.

The Company is currently working with Euro Pacific as representative of the Investors on an amendment to the Notes (the “ Proposed Amendment ”) which would: (i) extend the maturity date of the Notes from January 5, 2012 to April 5, 2012 (such extra three month period, the “ Extended Period ”); and (ii) increase the interest rate on the Notes to an annual rate of 12% (or 3% for the Extended Period). Under the terms of the SPA, Euro Pacific has the power and authority to enter into the Proposed Amendment on behalf of the Investors and will undertake a process during the month of December 2011 of informing the Investors of the Proposed Amendment, following which (and prior to the original maturity date of the Notes) it is expected that the Company and Euro Pacific will formally enter into the Proposed Amendment.

[dfh]

This stock sure is a sleeper. I'm surprised that Zacks hasn't written anything on them lately. They would get some attention if they started giving a divy.

[otterman]

Target for BOPH raised to $6 from $5.50 at a Canadian broker (doesnt say who).

[dfh]

Bohai Pharmaceuticals Group Reports 78.3% Increase in Revenue for the Fiscal First Quarter of 2012
http://ih.advfn.com/p.php?pid=nmona&article=49929258&symbol=BOPH

[joenatural]

Back in at .75 on this morning's monster earnings after having sold at $1.22 and $1.30 back in August. Their all-cash acquisition paid off big time.

[2morrowsGains]

Does anyone realize that BOPH's stock price could double from here and market cap would still only be $27M??? And that's if the stock price doubles!! Current market cap = ONLY $13.5M.
Adj sales (inc acquisition) for last fiscal year were $127M with net income of approx $17.5M++.
This stock is sooooooooooooooooooooooooooooo un-noticed and undervalued.

[2morrowsGains]

Thanks dfh. Looking forward to earnings which should be out no later than early next week.

[dfh]

2morrows, great DD as usual. Thanks for your continued contributions!

[BigOnChina]

Thanks for bringing this one to my attention. I'm in.....

[2morrowsGains]

BOPH...More DD notes...Diluted EPS will go up nicely next year based just on the fact that BOPH will be paying off their convertable notes in January. Diluted share count should drop from approx 22.8M to approx 18M. Add organic growth to that and BOPH is going to have a VERY STRONG year next year!!

Listened to BOPH's FY2011 cc again and crunched some #'s. Here's what I came up with...

I'm convinced there will be no dilution and BOPH should easily be able to pay off thier $10.5M in convertable notes in January and pay $24M in acquisition installment payments by next August.
Here's how things break down on cash vs payments...

BOPH had $13M in cash as of 6/30/11.
Free cash flow in July should easily have been $2M.
That makes BOPH's cash total at the end of July $15M.
Acquisition was made in August. $6M paid for 1st installment payment on acquisition. Cash now at $9M (before adding Augusts cash flow).
(It was said in the cc that after the acquisition, monthly free cash flow would be $3M+).
So $3M x 5 months (Aug - Dec) = $15M. This puts BOPH's cash total @ $24M at Y/E 2011.
First week in Jan 2012, BOPH pays off convertable notes @ $10.5M leaving cash levels at $13.5M. Add January's cash flow of $3M to that and cash is @ $16.5M.
BOPH then pays 2nd acquisition installment payment of $12M putting cash @ $4.5M.
Feb - July will bring in another $18M putting cash levels at $22.5M making it easy for Bohai to make the 3rd intallment payment of $12M in August and still have over $10M in cash on hand.
Aug - Dec will bring in another $15M in cash putting Y/E 1012 cash total @ $25M.
BOPH can now make their 4th and FINAL acquisition installment payment of $5M which is due Jan 2013 leaving them with over $20M in cash owing $0.00 on acquisition & convertable notes.

After making $39.5M in payments, BOPH should still have OVER $1 per share in cash by the end of next year, w/ little to NO debt. Current share price is $0.85.

All just my opinion.

cc link...
http://ir.stockpr.com/bohaipharma/conference-calls/view/213/fiscal-2011-fourth-quarter-earnings-conference-call

[otterman]

.81 - .96 today:)