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It is undervalued if the company numbers can be believed. The fact the the valuation is so low suggests that some investors, or potential investors, have some doubts about numbers coming from the company. I know I do.
This stock is so undervalued right now, it is almost comical....I will just continue to buy more shares as often as possible.
Stock Ticker: DRGG (OTCBB)
Recent Price: $0.05
Shares Outstanding: 103 million
Public Float: 60 million
Market Cap: $5 million
Audited 2007 revenue: $15.3 million
Audited 2007 net loss: $0.8 million
2008 revenues (9 months): $33.3 million
2008 Net income (9 months): $2.3 million
2008 EPS (9 months); $0.02 per share
2009 Projected revenue: $50 million
2009 Projected net income: $4.8 million
2009 Projected EPS: $0.05 per share
Book Value: $0.11 per share
Stock Rating: Strong Buy
Target Price (12 months): $0.50 per share
Fiscal Year: June 30
Company Website: http://www.drgg.us
Investment Highlights
• Dragon ranks in the top 4% in revenues of all companies listed on the OTCBB.
• Dragon is one of a select group of companies (2%) on the OTCBB that has a history of earnings.
• Dragon is a leader in China (the world’s largest consumer market) in the manufacture and distribution of specialty paper and packaging products.
• Dragon is anticipating a 80% increase in revenues and a 175% increase in earnings in 2008 and 2009 compared to 2006 and 2007.
• Dragon intends to list on the NASDAQ in 2009.
Investment Opinion
We believe that Dragon International Group Corp. (OTCBB: DRGG) has all of the right ingredients in place to offer shareholders a unique investment opportunity. Dragon’s management team has been in place since 1997 and has demonstrated the ability to create substantial growth in revenue as well as profits. The company is a leader in China’s specialty paper and packaging products. They manufacture and distribute packaging products for high end utilization in the packaging of food, beverage, and pharmaceuticals, and tea industries. The Company and its subsidiaries have cultivated strategic relationships with several of the world’s largest paper and specialty packaging companies. They have had a longstanding relationship as a distributor of products for International Paper Company in China. The Company’s manufacturing plant is complemented with state of the art equipment, to insure the production of the highest quality products to their customers, at very competitive pricing.
The company expects substantial growth in 2009. Revenue for 2008 is projected to be about $40 million, representing an increase of approximately 160% over 2007. The anticipated growth is expected to come both internally as well as externally. Management has been studying various methods of consolidating their industry in China, and now that they have access to the U.S. capital markets, they will be implementing them in 2008 and 2009.
It is impossible to analyze Dragon without looking at what is taking place in the Chinese economy. The cover of the December 2nd issue of Business Week said it all “The three scariest words “THE CHINA PRICE”. For the last decade we have seen U.S. companies creating relationships with Chinese companies to tap into the world’s largest population base. What we are now witnessing is China going out in an unprecedented manner and buying into the world market. Billions of dollars, euros, and yen have been invested into companies on the mainland. Now Chinese companies flush with cash and in command of the world’s lowest cost manufacturing plants, are on a buying frenzy. Huizhou based TCL Corp. merged with France’s Thomson to create the world’s biggest television manufacturer including the RCA brand. Lenovo Group Ltd, China’s biggest computer maker has agreed to buy controlling interest in IBM’s PC operations. Shanghai Automotive announced it is buying a 48.9% stake in Korean truck maker Ssangyong, and their next target may be Rover. It is estimated that China’s outside investments may total $7 Billion in 2004 and could reach $14 billion in 2005.
China not only represents the world’s largest consumer market, it also has the potential of becoming the world’s largest exporter of a wide range of products. We believe that Dragon is well positioned to capitalize on this growth. The sector they are in should experience dynamic growth for the next decade, if not longer.
While all investments involve a degree of risk, and a great many of the stocks listed on the OTCBB involve a higher than normal risk level, we believe that is partially true due to the fact that many of them are start up companies. Dragon is a mature company, and we believe several companies we are covering that our becoming public out of China offer above normal profit potential. Dragon fits all of the criteria for us to make such a strong buy recommendation.
We view DRGG as an excellent growth company with exceptional potential for capital appreciation over both the short and long term. This is essentially investing in a rapidly growing company in the world's largest and fastest growing market. Bearing in mind that significant company developments will occur in the coming months, along with industry projections, leads us to believe that DRGG is an excellent investment opportunity. We see substantial appreciation potential of the stock price, both from earnings growth and increased recognition. This could be multiplied if investors come to realize that the company is going to be involved in high growth specialty packaging companies in China.
Over the next 6 to 12 months, we are projecting a target price of $0.50 per share for DRGG, about 10x its projected earnings in 2009, or 1x projected sales in 2009, based on 103 million shares outstanding. Over the next 12 to 18 months, we are projecting a target price of $1 per share for DRGG, about 20x projected earnings in 2009, or 2x projected revenues in 2009, based on 120 million outstanding shares.
I like, and I'm buying.
hard to believe this is under .08/share here when they made .02/share in fist 3/4 of fiscal 2008, and are looking at .04-.05/share for fiscal 2009 (which they're already in now).
If their numbers are for real, this is way cheap here.
I got some at .07-.075 today.
DRGG.OB... .074 stock with .02 earnings in first 9 months. You gotta like this letter to shareholders issued today:
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6038880-7778-11466&type=sect...
Dear Fellow Shareholder:
Dragon International Group has experienced substantial growth for the first nine months of fiscal 2008 as we transitioned our business for the future. We decided to exit the low margin cigarette packaging business as we focused our efforts in the food and pharmaceutical packaging business where margins and growth prospects are far more robust. In October of 2007 we acquired a 100% equity interest in Wellton International Fiber Corp. (“Wellton”), a company engaged in the distribution of paper products and pulp. This acquisition, coupled with our focus on our higher margin packaging operations has been the key driver to the significant improvement in our operating results for the first nine months of fiscal 2008.
Our revenue in the first nine months of fiscal 2008 reached $33.3 million with net income rising to $2.2 million or $0.02 per share, as compared to revenue of $13.3 million and a net loss of $350,000 in the first nine months of fiscal 2007. We are confident that the company is well positioned for continued growth for the remainder of this fiscal year which ends on June 30, 2008 and into fiscal 2009. For fiscal 2009, management currently estimates that revenue will exceed $50 million with earnings reaching $5 million or in the range of $0.04 to $0.05 per share.
We believe that as a result of the decisions made in fiscal 2008, we are poised to take advantage of the substantial growth opportunities in specialty packaging. We anticipate the Chinese government will continue its initiative to increase quality standards in pharmaceutical packaging which will have a positive impact on the overall growth of this industry as well as the growth of our operations. We intend to broaden our product lines and increase our marketing efforts in order to substantially accelerate the growth of our pharmaceutical packaging operations in the coming years. We believe that the pharmaceutical packaging industry in China will remain a high growth sector for many years to come as evidenced by the fact that its market size was roughly US$2 billion in 2007 as compared to US$30 billion in the United States. We are confident that we can grow this business significantly while maintaining healthy profit margins as we strive to increase our shareholder value. Management further believes its pulp and paper operations at Wellton will continue to grow organically and maintain a double digit growth rate for the foreseeable future.
In closing, as Chairman of Dragon International Group, I feel it is important for you to know that we are determined to maximize the value of our company for its shareholders. We head into fiscal 2009 in a strong financial position with high expectations for the future. We will continue to look for opportunistic acquisitions that will complement our current operations. We intend to focus on horizontal consolidation opportunities as we work diligently to have our company emerge as a market leader in the packaging industry. We are confident that we have the right initiatives, the correct business model and the right leadership to capitalize on the significant market opportunities we have in China. We would like to thank you for your support and look forward to maximizing the value of DRGG for you, our shareholders, in the years to come.
Sincerely,
David Wu
Chairman of the Board
It is under anybody's radar screen, at least for now.
I'm surprised no reaction to good news...
Revenues Exceed $33 Million for First Nine Months of Fiscal 2008; Net Income Exceeds $2.7 Million for First Nine Months of Fiscal 2008; Net Income of $0.02 per Basic Share for First Nine Months of Fiscal 2008; 3rd Quarter Revenues Reach $12.3 Million, up Over 370% From 3rd Quarter of 2007; 3rd Quarter Net Income Reaches $237,994, up From a Loss of ($549,274) in the 3rd Quarter of 2007
I feel your pain...I also hold drgv
Dragon International Group, Corp. Reports Record Financial Results for the Second Quarter of Fiscal 2008
Market Wire "US Press Releases "
NINGBO, CHINA -- (MARKET WIRE) -- 02/21/08 -- Dragon International Group Corp. (OTCBB: DRGG), one of China's manufacturers and distributors of specialty paper products and packaging materials, announced today the Company's financial results for the second quarter of fiscal 2008 ended December 31, 2007.
Financial Highlights:
Revenues for the second quarter of fiscal 2008 ended December 31, 2007 increased to $13,056,527 as compared to revenues of $5,188,903 in the second quarter ended December 31, 2006. The increase in revenues was mainly attributable to its acquisition of Wellton International Fiber Corp. completed in October of 2007.
Gross profit for the second quarter of fiscal 2008 ended December 31, 2007 was more than double that of the comparable period in fiscal 2007 and net income for the second quarter of fiscal 2008 reached $1,976,758 or $0.02 per basic share, as compared to $196,134 or $0.00 per basic share for the comparable period in fiscal 2007. The increases in revenue and income were mainly attributable to the Welton acquisition and were further aided by tax abatements related Dragon's operations in Ningbo.
About Wellton International Fiber Corp. ("Wellton")
Wellton operates as an agent of pulp and related paper products, primarily acting as an agent and supplier for two categories of goods: paper pulp and waste paper. Wellton customers are manufacturers of paper and related products. The majority of Wellton's customers purchase both products using the services of Wellton. Paper pulp and waste paper are raw materials used to manufacture paper related products such as packaging products, office paper and other paper-related products.
Mr. David Wu, CEO and Chairman of Dragon International Group, stated, "We are very pleased with the overall results in our fiscal second quarter. Our acquisition of Wellton has helped us transition our operations to focus on higher margin operations and further develop our pharmaceutical packaging. We look forward to continued improvement in operations for the remainder of the fiscal year as we strive to expand into higher margin opportunities."
About Dragon International Group Corporation
Dragon International Group Corp. is one of China's manufacturers and distributors of specialty paper products and packaging materials. DRGG has a distribution network covering east and central China. The Company and its subsidiaries have cultivated strategic relationships with several of the world's largest and most well-known manufacturers of paper and specialty packaging products. For more information, please visit http://www.drgg.net.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and, condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive products, pricing and new technology; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
Contact:
Dragon International Group
Tel: 1-877-CHINA-57
Email: info@drgg.net
This has got to move this stock. Just need people to find out about it.
DRGG closing 2007 on a strong note... stock approaching .12/share on big volume here on Dec. 31st. I'd still like to see some new contract wins... but perhaps the recent movement in the stock means good news is on the horizon? Let's hope so.
-b'brella
"$50,000 in cash to Mr. Brown, delivered in a paper bag, prosecutors said."
Contact: Andrew Brown
ROI Group Associates, Inc.
Tel: 212-495-0202
Email: abrown@roiny.com
===================================================
Government Accuses 6 Men of $55 Million Offshore Fraud
http://www.nytimes.com/2007/10/20/business/20trader.html?ref=business
By MICHAEL J. de la MERCED
Published: October 20, 2007
Federal prosecutors charged six men yesterday, including a New York corporate lawyer, three former executives and two Israeli investors, with making $55 million in fraudulent profits via private stock sales.
In Federal District Court in Brooklyn, prosecutors said that Edward and Steven Newman, Martin E. Weisberg, Andrew Brown, Zev Saltsman and Menachem Eitan ran a four-year scheme that revolved around Xybernaut and Ramp, two companies now in bankruptcy.
The Securities and Exchange Commission filed a civil lawsuit against them yesterday as well.
At the crux of the case is a security known as a private investment in public equity, or PIPE, in which a company sells shares to an accredited investor, usually at a discount. Because of the tendency of these kind of investments to depress a stock — they dilute existing shareholder stakes — they can prove lucrative to those with advance knowledge of them.
According to the indictment, Mr. Saltsman, 45, and Mr. Eitan, 51, two investors based in Israel, arranged to buy hundreds of thousands of shares in Xybernaut, a Fairfax, Va., maker of portable computer hardware, and Ramp, a New York producer of software for health care providers, from 2001 to 2004.
The two men used 37 offshore shell companies to buy the shares at a sometimes considerable discount. Prosecutors said they had arranged the sales with the cooperation of Edward Newman, 64, and Steven Newman, 61, brothers who worked as the chief executive and president, respectively, of Xybernaut until 2005; Mr. Weisberg, 57, a New York partner at Baker & McKenzie and a former Xybernaut director; and Andrew Brown, 38, the former president of Ramp.
Mr. Saltsman and Mr. Eitan sold both companies short, and then repaid the shares using their discounted stock. Altogether, prosecutors say, the two men made $16 million in profit from their Ramp sales and $39 million from their Xybernaut transactions.
To hide the transactions, which gave Mr. Saltsman and Mr. Eitan up to a 37 percent stake in Ramp and an 18 percent stake in Xybernaut, both companies illegally failed to disclose the PIPEs in regulatory filings. Prosecutors also say that Mr. Weisberg lied to regulators and Ramp’s auditors about two investments Mr. Saltsman and Mr. Eitan made in the company.
In return, Mr. Saltsman and Mr. Eitan are said to have paid more than $4 million in kickbacks to the other co-defendants. Among those payments were $1 million to Steven Newman through Mr. Saltsman’s Swiss bank account and $50,000 in cash to Mr. Brown, delivered in a paper bag, prosecutors said.
Mr. Brown was arraigned in Federal District Court in Brooklyn and posted a $1.5 million bond. Steven Newman was arraigned in federal district court in Virginia and posted a $1 million bond.
Mr. Saltsman was arrested in London on Thursday, and prosecutors are seeking his extradition, a spokesman for the United States attorney’s office said.
Arrest warrants were issued for Edward Newman and Mr. Weisberg. Lawyers for both men said their clients intended to turn themselves in on Monday.
Elkan Abramowitz, a lawyer for Mr. Weisberg, said: “My belief is that this indictment mischaracterizes Mr. Weisberg’s conduct in this matter. He acted at all times as an attorney and the payments described in the indictment will ultimately be shown to have been all legitimate.”
A spokeswoman for Baker & McKenzie, Mr. Weisberg’s law firm, said it believed that the events began before he started at the firm, and that he was on leave until the matter was resolved.
John M. Tran, a lawyer for Edward Newman, said: “We are doing everything we can to get him before the court,” and declined to comment further.
Alexander H. Gardner, a lawyer for Mr. Brown, declined to comment. No information on lawyers for Mr. Saltsman and Mr. Eitan was available. Prosecutors intend to seek the extradition of Mr. Eitan from Israel. He is not in custody.
We could certainly use an update from DRGG management. Many of the smallcap China stocks recovered last week (including DRGG). Let's hope this continues. Would love to see some more contract wins from DRGG.
-b'brella
nice movement for the last days, I don't know the reason
holding small amount of shares for over a year...i know a lot of people do not put much 'stock' in LEVEL II information...i do...and LEVEL II is telling my pea brain that @ asking (0.07) it is VERY STRONG...stock is right @ level one resistance...
not at all,for long time I just keep holding this kind of "paper"
have you news ?
Thats how I felt in december when I bought.
Maybe some day. Keep it on watch, the vol. will let you know when somethings up/
GLTU
it's in the .07's these days. Seems like such a promising stock but not much happneing.
What the hell is it at right now? You might be.LOL
I sold at .12 a long while back
in general the growth in China is very high except for DRGG, this company is unable making money
No deals here at all , I would like to sell my shares at 0.15, very cheap
They lost their biggest customer which accounted for almost $6 mil of their $10 mil in revs. Not good!
is that reduction in revenue the reason for that pps level, the total income is low compares with ceo statements, saying the company is going to be a leader in this section
During the nine months ended March 31, 2007, Ningbo Dragon generated revenues of $9,965,382, as compared to revenues of $10,341,050 for the nine months ended March 31, 2006, a decrease of $375,668. This decrease is a result of the loss of a customer, Indonesia APP Group Company, during the current quarter. For the nine months ended March 31, 2007 this customer accounted for approximately $5,824,000. For the nine months ended March 31, 2006 this customer accounted for approximately $6,200,000 of revenues.
it better go up a lot further then 0.15...my bottle of vodka is running low...
already seen or found qtr figures ?
pps is too low?? why? I think this situation is unreasonable, waiting for better days
bought in LONG time ago...playing it LONG...along w\drgv
i don't follow it anylonger, but caution is always a good thing
you never know how real these chinese companies really are ;)
any followers of these stock?
not much info available from dragon
any one any info
belgium
Nice $2.3 million contract win today for milk packaging. We were overdue for some good news. It appears that DRGG's lightweight aluminum-packaging technology is in demand (and saves on shipping costs). Nice. Still amazed this stock is below a dime.
-b'brella
i'm holding lite on the amount of shares i have...i view this stock strong in 08/09...until then just seed the farm...rome was not built in a day...
This stock is mind blowing so much potential yet the price is .09. I really thought this was the next SUWN but I guess packaging products are not that sexy. Maybe when DRGG starts blowing out some earnings then it will rock. GLTA
This stock is hurting my feelings. I wish it would go to a happy place. And soon.
Amen
I haven't a clue. I follow the news daily, and this one is a mystery.
I am holding though, I like the co.
what suppose to be the target by next two weeks
Jimmy me boy, I like the vol. over the last couple days
leed me to the promise land!
IMO he doesn't pump, Just gives you a list to choose from. It is my choise what I pick from his list.
I am a fan of Leeds, I have seen a few of his stock picks go off the charts. I just can't seem to pick the right ones, or am too inpatient to wait them out. I.E. MCGL. Was in @ .19 for 2 mos. sold being inpatient and 3 days later the run started. it closed @ .57 yesterday. I am learning about this trading slwly. Started in late nov. Just frustrated at the education cost. Nothing but good things to say about Peter.
didn't know he's pumping it... doesn't he update on his picks?
I wouldn't even understand it. I bought on peter leeds and from all I have read this a solid co. Just don't understand
good company, bad stock i guess..
didn't read the latest filings, maybe you should read them?
This has been a frustrating hold for me. I got in @ .0123 what seems like a long time ago. co. is growing and aquireing. What is up?
Perhaps somebody has any explanation to pps dropping down?
is it just panic of some weakly hands?
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Dragon International Group Corp ("Dragon International") manufactures and distributes high end packaging products utilized in the packaging of pharmaceuticals as well as food and beverages and operates as an agent of pulp and related paper products. Dragon International was listed on OTCBB in October, 2004.
With the acquisition of Shanghai Jinkui Packaging Material Co., Ltd ("Jinkui") in June 2006, Dragon International trasitioned itself from manufacturing and distributing packaging products for tobacco, alcohol, gifts, cosmetics, tea to specialty packaging products, which creates a higher gross margin.
Dragon International holds an ISO9000 certificate and national license on import / export. The manufacturing facilities have reached advanced international standard and passed through state Good Manufacturing Process (GMP) inspection.
Our primary products are Cold forming blister aluminum foil, Tropical blister foil, PTP blister foil, SP laminated strip pack, AL/PE laminated strip pack, and Laminates for suppositories, including 8 series and a wide varieties. We are the pharmaceutical materials supplier for the markets in China as well as in Southeast Asia, Africa and South America
Company website: http://www.drgg.net |
Contact Information: |
Dragon International Group Corp.
No. 201, Guangyuan Road, District C
Investment Pioneering Park Jiangbei
Ningbo, China 315033
Tel: 86-574-83070703
Fax: 86-574-83070757
Dragon International Group Corp.
U.S. Representative Office
431 Fairway Drive, Suite 200
Deerfield Beach, FL 33441
Office: 954.363.7333 ext. 315
Fax: 954.363.7320
Info@DRGG.us
Share structure:
A/S - 225,000,000
O/S - 134,752,772 (per US Rep's office 3/1/2011)
Latest Financial Info(taken from 10Q dated 5/19/09):
With 134,752,772 shares outstanding and equity of $8,066,442 the valuation is .059 per share.
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