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joe- this board is about the stock and not individual issues.
But you brought it up as an issue about the company via your email comunication with them, and I replied (with facts).
And the fact is, despite how good HC International is seen, and the money NUIN paid them for non-deal road shows, investor presentations, etc. the volume for one day, 3 days, and one week following the CGP report was higher than anything NUIN got from HC International. Moreover, the share price has held in there compared to 99% of China small caps since the report release.
As for the company and the quality, efficacy, or demand for their products, you may not agree, and that's fine, but the fact is that many of their customers pay cash up front for their products (hence the lowest AR balance Glen, myself, or Yicheng have ever seen in this sector). That tells me the demand is exceptionally high- and why they're increasing capacity to meet that demand this year.
I thought this board was about the stock and not individual issues ? As the board moderator, you of all people should know this. As far as the volume on the day the report came out, sure it was higher ...... for one day. Congrats on gettng a few IHUBsters to buy the stock. We'll see how happy they are on down the road. This company is junk at best, especially at a time where market pressure exists. No one wants to throw their hard earned cash at some golden grass magic treatment.
Well- let me know what they say joe.
I think they're already aware that the volume (while not a blockbuster by any means) was still a record for them the day the report was released (30% higher than the previous record volume day), and for the three days following the report, volume was 50% higher than any 3 day period in their brief trading history.
The share price is about .01 higher than it was the day prior to the report release....not much to crow about there unless you look at what's happened to most other stocks in our sector, as well as the US market averages in the same period.
You might also consider that the CGP report resulted in more volume than anything HC International "one of the most respected IR firms on Wall Street" did for NUIN. I know they (NUIN) are aware of that fact also.
I understand you're upset about being banned from the CGS board temporarily- but I think you're going about it the wrong way. You can send companies we work with now, and those we'll be working with in the future (in negotiations presently) all the hate mail you want, but they'll be focused on facts like those I posted above.
My e-mail to the company .......
Subject: Nutrastar is wasting its money .......
From: xxxx xxxxxxx (xxxxxxx@hotmail.com)
Sent: Wed 6/30/10 6:49 AM
To: zhaoyudi@nutrastarintl.com; ir@nutrastarintl.com; info@amcapventures.com; zhaoyudi@syxny.net
Hi Yudi,
Your company recently hired American Capital Ventures as Nutrastar's IR firm, breaking away from HC International, one of the most respected IR firms on Wall Street. In my opinion, this was a horrible move and will simply result in a total waste of the company's money. In fact, American Capital Ventures recently spent $20K of Nutrastar's money on hiring China Growth Partners to write an article about Nutrastar and give an investment opinion ........
http://finance.yahoo.com/news/China-Growth-Partners-Inc-iw-1818935398.html?x=0&.v=1
Do you have any idea about who China Growth Partners is ? It's a brand new firm consisting of three guys with no IR experience whatsoever, three guys who are message board posters on IHUB, investorshub.com who thought they might have influence in getting some of their IHUB friends to buy your stock. Obviously it didn't work and was a miserable failure. In looking at the company's stock price, it's obvious that this $20K report did absolutely nothing and was a total waste of money. Do you honestly think that the report (link above) was worth paying $20K for ? I can tell you right now that I would have charged no more than $1K to do this kind of amateur report.
If I were you, I would simply focus on operating your business and stop throwing money away that is simply burning a hole in the company's pocket and hurting the bottom line. I can tell you from experience that both of the above firms will do absolutely NOTHING for the stock price of your company. Please concentrate on the growth of your business and put an end to this expensive nonsense.
Have a nice day.
xxxx xxxxxxx
lol joe, now you're starting to go a little overboard. NUIN has about $30M cash on hand right now and won't be raising more. They have strong cash flow from operations and they are fully funded to launch their beverage products, increase sales and distribution, and increase production capacity by 20% by eoy.
so when you say "they need to raise cash" when they've got $30M of it, it weakens your argument IMO.
"Can't be a more riskier stock out there, especially with the company needing to raise cash."
Also- I've been told they will have zero debt by eoy, and I believe they will make good on that also.
Not sure how your post is material to NUIN, but both stocks are total garbage IMO. I think anyone looking at NUIN as an investment should have their head examined. Can't be a more riskier stock out there, especially with the company needing to raise cash. That's why they're a publically traded company .... to sell stock and raise cash. NUIN's IR firm is a total joke.
Well, they didn't tell you two different things if I remember correctly- they told you one thing and ratobranco and myself something different two months later after circumstances had changed. (They ended up financing some of the debt with loans and not dilution).
I had suggested to you at the time that you call them and inquire what had changed from the time you spoke with them to the time ratobranco and I did and why, but I don't think you ever did.
NFEC was the stock, and the level of dilution I think you were calling for never happened.
At any rate, it's not material to NUIN.
But as I said in my PM's to you, I wish you luck and continued success joe.
We'll just have to agree to disagree. Sorry, but "Golden Grass" (LOL) isn't going to cure cancer for anyone let alone help their suffering or provide any benefits whatsoever IMO. Also, I see where your firm was paid $20K by the company's IR firm for a research report, the very same firm whereby I was given two completely different responses about a serious question concerning one of the companies that they USED TO represent ........
"Well, it's actually not hocus pocus. As my earlier posts show there's plenty of western research that shows the efficacy of Cordyceps in cancer research and in increasing the immune response. But everyone is entitled to their opinion."
Well, it's actually not hocus pocus. As my earlier posts show there's plenty of western research that shows the efficacy of Cordyceps in cancer research and in increasing the immune response.
But everyone is entitled to their opinion.
I think that NUIN is total junk IMO. Seriously folks, "Golden Grass" ? LOL. These hocus pocus, fix-em-up Chinese herbal stocks are going to have a short half-life IMO. The Chinese people are getting smarter and smarter and will eventually focus on western medicine and toss all of this magic stuff aside. Golden grass ? LOL. Too funny.
Nutrastar International, Inc. Renames Corporate Website to Nutrastarintl.com
(Not blockbuster news...but makes sense to use their name in the URL instead of http://www.syxny.net)
http://ih.advfn.com/p.php?pid=nmona&article=43405402&symbol=NB%5ENUIN
michael
No problem at all. Happens to the best of us.
Good luck,
Gary
Hi Gary. Nice follow up on the Geoinvesting board. Even though I may not agree with you when comparing BSPM and NUIN, I do appreciate your insight and knowledge. Thanks. I have been thinking about NUIN and even with out the beverage taking off, it is definitely undervalued and a quality company with even greater upside due to the beverage. My top considerations in the sector other than BSPM are HFGB, BFAR, and NUIN. My apologies about overdoing the one message, our discussion went back and forth and it began to go where it did not need to. Good luck.
Agreed.
I personally never put a large amount of my portfilio in any one stock, no matter how bullish I may be on it.
thanks gary I think the perspective of slow volume elsewhere does lessen the concern but I would not put a huge amount of funds here
sam
Good question- SAMNOTSAMUEL
Well, I can't agrue that the low volume is a positive, although I've seen others try to make that case in stocks sometimes.
But it's something I've personally learned to accept in many China small caps- especially early on in their trading history. Nutrastar began trading as NUIN on January 26 2010, so it's just 6 months old...not much time to develop an investor base. We're also at a time where volume is traditionally low (summer) and that's showing up in almost all the China small caps I own/follow.
So far today, PUDA has volume of 35,000 (average daily volume two months ago was 300,000-500,000, and CCME has traded 62,000 shares so far today, with volume two months ago over 500,000 daily...etc.
Yesterday, WKBT announced they're filing for NASDAQ listing...and traded all of 5,112 shares for the day...less than NUIN has traded today.
So...to answer your question, "How does the low volume influence your view on the company or do you ignore it except for buying slowly"...
it doesn't really concern me, and I will average in slowly.
That said... if most other China small cap stocks and US stocks were trading their average or higher than average volumes, and NUIN was trading the low volumes it's trading right now, I would be concerned.
Gary
Gary,
I suppose one can view low volume as a positive but I view low volume overall as a negative.
How does the low volume influence your view on the company or do you ignore it except for buying slowly?
sam
micheal
It is my business partner that has done the on-site visits, not me. I feel it's his decision to make it public or not and when...not mine, even though it is a factor in how I see both companies here.
but again, we're just going around in circles now.
We each have our reasons for believing one company is a better investment than the other for the next 12 months. I have stated my reasons and you have stated yours.
why not leave it at that, as I've asked several times now.
You may do that in due time? what is the hold up. Please, enlighten us with this information that you hold. You keep on stating, leave it as is, but you keep stating comments above or below that statement. How do you expect me not to respond?
"I would also like to see one of those viagra-type "4 hour warnings" on the NUIN cans. That would encourage folks to guzzle the stuff."
Not a bad idea :)
michael
I may do that at in due time..
If you like BSPM here, then by all means, continue to hold, average up or down, etc. and don't worry what I personally think about the company here. I'm not bashing BSPM, and hope my posts are not taken that way. That said, I just don't see it as a place I want to put my money for the next 12 months compared to other opportunities I see out there.
I have posted reasons why I believe NUIN's growth in revenue, income, and cash flow from operations will surprise already. It seems we're going around in circles now...so, I suggest (once again) we leave it where it is and see where the share prices are a year from now.
Gary
BSPM and NUIN:
I am interested in both stocks but think it might be more helpful to discuss each stock on its respective boards.
Im watching NUINs volume this week and hope to see a nice little uptick.
I would also like to see one of those viagra-type "4 hour warnings" on the NUIN cans. That would encourage folks to guzzle the stuff.
enlighten us. I would love to hear the information that you know that others do not. You are on here a lot giving your opinion. So why not share with us what you know? What are your reasons that you think BSPM will not surpass estimates or at least by a significant amount? What makes you say that Nutrastar's growth is going to rise so suddenly?
like I said michael, there are things I know about both of these companies that are not found in their filings to date. Based on what I've seen, including information not found in filings, I believe NUIN will likely have revenue and income growth as strong or stronger than BSPM's this year. I also have reasons why I believe BSPM won't come anywhere near the .80/share you're now estimating.
Yes, but EPS for full year 2010 based on estimates:
NUIN: .63
BSPM: .70
(both will probably pass these estimates and I believe BSPM will have an EPS closer to.80)
Now, we can leave it at that and I will agree that NUIN is undervalued as well as BSPM. Good luck to you as well.
michael
Lets agree to disagree (without being disagreeable) and just see where the share prices are a year from now.
You will never convince me that revenue growth is more important than eps, or cash flow from operations, even though I believe NUIN's revenue growth will match BSPM's growth (based on my research) in the next 12 months.
There are are things I know about both of these companies that are not found in their filings that also make a difference in how I view them as investments. I have an advantage in having a Chinese-American business partner who visits these companies regularly.
Lets leave it at that.
Good luck in your investments,
Gary
Wow!
Really!? You are the one who made yourself come off that way and I was giving my opinion based off of yours(which it was not even that bad in the first place). Too put it a little bit more lightly, I do not believe you have provided a valid argument of why NUIN is more undervalued with better growth than BSPM. I agree, I believe I know more and see things that others do not as well. I will go back and forth and provide valid arguments to those who disagree with me, but I am not going to just give a reason that it is because I see things others do not or that I am better.
michael
Your last post came very close to a personal attack and I removed it as a result.
I respect and value the opinions of others who disagree with me, but not when they make statements like the one you made. Yahoo is the place for that, not here.
If you would like to continue posting on this board, please refrain from posts like the one I removed and treat those with a differeng opinion with respect.
thank you,
michael-
OK...BSPM is the cat's pajamas. It's the best stock in the world.
I think we need to agree to disagree and leave it at that.
As for "I guess you see something that I do not"...well...I don't mean to come off as an ass...but I typically see things differently in China small caps than most do...and that's something I'm not only proud of, it's something I profit from. I don't know how else to say it.
I was all over BSPM about 200% ago in price. Now I'm on NUIN (and a few other undiscovered ones nobody is currently paying attention to) and a year from now I think you'll see why.
Good luck
Their expected sales for 2010 are going to be less than 20 million. Their gowth rate for 1st quarter 2010 was a less than 2% compared to 1st quarter 2009. Their sales growth has slowed each of the last 3 years and the trend is expected for 2010 as well. How can you deny that Biostar's growth is less when their full year 2010 revenue growth is expected to be more than 50% higher compared to 2009 full year revenue and their net income is expected to be close to 100% higher than 2009 full year net income? Based on estimates by both companies for 2010, Biostar's p/e is lower as well and their EPS is higher too. Hepatitis B in China is a multibillion dollar industry and Nutrastar's main product has an industry equating to less than 100 million. Biostar has the only SFDA approved OTC drug in China being sold. I guess you see something that I do not, but the growth and future eps show that BSPM is the better of the two.
michael
If it's measurements of demand you're interested in, NUIN already sells 100% of their current capacity and many customers pay cash up front for their products due to the demand. That's why their AR balance was a mere $215k on $15.3M in sales for 2009. That's the definition demand- especially in China, which is well known for huge AR balances and unreasonably long DSOs. Demand for Cordyceps/Chinese Golden Grass in China exceeds supply be 2x according to The China Market Monitoring Center.
NUIN's revenue should increase substantially this year as they increase production capacity by 20% and simultaneously increase retail sales that carry much higher prices/unit.
In the long run income and cash flow are more important as the company becomes more established, but revenue show the growth of the products and the demand, which in the near term for both companies in my opinion is more important. Plus, BSPM is expanding and marketing heavily, which is reducing their profit margin for the time being. As the numbers show, Nutrastar's income/revenue cannot get much better, whereas Biostar's can easily increase as SGA spending decreases. Yes, EPS is important and based on the guidance for full year 2010 from both, NUIN EPS will be about .63 and BSPM will have an EPS of about .70 and this is based on the management of both. Nutrastar's revenue/sales growth continues to decline. I believe both will beat their income guidance. Also, with Biostar's Hep B product, it is easy to have a repeat customer because it subsides the effects of a serious disease that 10% of the chinese population have.
Well michael, if you believe revenue is more important than strong growth in positive cash flow from operations, and/or eps, (and it appears that you do), then I think there is no point discussing this further.
Equities are ultimately priced by earnings (eps and cash flow from operations)...not revenue. That's just a fact that I seldom see people argue with.
That said, I believe NUIN will also easily beat their income target, and I'm not as confident that BSPM will.
I know BSPM pretty well (see the first 5-10 posts on this board),and bought the heck out of it back when nobody wanted it. There are reasons I wanted to own it then,(under $2/share) and reasons why I don't want to own it now that I won't go into here.
But the beauty of it all is that this difference of opinion is what helps create a market for stocks.
GL
I disagree
Revenue in my opinion is the most important for a newer company as they build brand recognition, rapid expansion, and heavy marketing. The revenue shows the actual growth of their product/sales. Based on CURRENT p/e NUIN is more undervalued than BSPM, but it is much more than p/e. Since you mentioned it, forward p/e based on current price of each and expected 2010 earnings.
NUIN - 2010 expected net income: 9 million
9 million/14.3 million shares = .63 eps
share price as of 6/18/10: 3.12
3.12/.63= 4.95 p/e
BSPM - 2010 expected net income: 18-20 million
19 million/27 million shares = .70
share price as of 6/18/10: 3.02
3.02/.7 = 4.31 p/e
Thus, BSPM is more undervalued based on 2010 guidance from both companies. BSPM has the higher growth rate based on numbers and the better ability to increase margins
As stated NUIN's first quarter 2009 revenue was 30% of total rev
As stated BSPM's first quarter 2009 revenue was 14% of total rev
So, you cannot compare the first quarters of each to one another as they have a different significance for each
NUIN's revenue growth has slowed every year since 2007
I will agree that both companies are undervalued
I hear you, but IMO revenue growth isn't nearly as significant an indicator as growth in cash flow from operations...which was my original point. I think NUIN bests BSPM on "the biggies" like cash flow from operations,(NUIN = $9.3M, BSPM = $5.7M), eps for 2009 (NUIN = .58, BSPM = .32), as well as Q1 of 2010 (NUIN .19/share and BSPM a mere .08/share).
If NUIN were to have BSPM's pe multiple, (and it will get there eventually), it would be about $6/share share right now.
It also helps that NUIN has less of a following at the moment...it's still relatively unknown by comparison...which is when I like to buy 'em.
You may not agree, but I see NUIN as more undervalued currently, with bigger upside potential 12 months out.
But that's whey we have a market as they say.
GL
I am using expected results and growth of each
With both BSPM and NUIN, if they both hit their expected results, BSPM would have the higher EPS. Now, I definitely think that BSPM will exceed their results, and NUIN probably will as well.
NUIN's 1st quarter revenue for 2009 was over 30% of the full year revenue
BSPM's 1st quarter revenue for 2009 was only about 14% of their full year revenue
NUIN's 1st quarter revenue for 2010 was only 2.7% higher than their 1st quarter revenue of 2009
BSPM's 1st quarter revenue for 2010 was 66% higher than their 1st quarter revenue for 2009
NUIN's income/revenue for 2010 1st quarter was 57%
BSPM's income/revenue for 2010 1st quarter was 18%
-meaning that they are spending a lot on expansion and marketing at the same time their cost of goods sold is reducing
-over the last year SGA costs have been 50% of revenue when historically it has been less than 40%
Overall, I do think that NUIN is a quality company and undervalued, but their revenue is not very much and their growth has slowed. While BSPM's growth continues to be very significant and they can easily increase margins over time. Even based on managements estimates of both, BSPM is more undervalued with better growth
You're assuming NUIN will only make their "make good"
I'm not.
They're already on track to beat the 2009 make good by a good margin, and made .19/share in Q1 vs. .08 for BSPM.
There are many ways to measure growth, but one of the purest is to utilize net cash provided by operating activities. In the case of NUIN, the growth was 44% in the 2007-2008 period, and 43% in the 2008-2009 period.
I like them both (was one of the first to buy BSPM when nobody knew of it, and posted early here on the i-hub board for BSPM), but think NUIN has more upside potential for the next 12 months than BSPM.
Gary
Off of this post below, what I believe their 2010 full year revenue and income could be, based off of management estimates of different revenue streams and my growth estimate on 2009 production
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_B/threadview?m=tm&bn=88940&tid=4030&mid=4030&tof=4&frt=1
I wanted to add this reply as I made an initial mistake and double counted revenue which would equate to 10 million in less revenue and 2.3 million less in net income based off of my estimation above.
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_B/threadview?m=tm&bn=88940&tid=4030&mid=4042&tof=4&rt=1&frt=1&off=1
Margins:
The only reason that their(BSPM) income/revenue is so low is because since the second half of 2009 their SGA spending has been at about 50% of revenue, but that is due to the large expansion into the 7 new areas since November 2009, rural networks increasing, demand, establishing brand recognition. Their cost of good sold is coming down. Once SGA spending subsides, their margins are going to be very good.
BSPM vs NUIN
You may want to look at it more in depth:
NUIN has had great growth over the last few years, but with all of the so called demand, their growth is slowing:
2007 Full Year
revenue increased 114% from 4.3 million to 9.2 million compared to 2006
income increased 206% from 1.7 million to 5.2 million compared to 2006 full year revenue
2008 Full Year
revenue increased 41% from 9.2 million to 13 million compared to 2007
income increased 12% from 5.2 million to 5.8 million compared to 2007
2009 Full Year
revenue increased 17.7% from 13 million to 15.3 million compared to 2008
income increased 32.8% from 5.8 million to 7.7 million
2010 expectations: 9 million in net income which is an increase of 16.9% compared to 2009 full year income
They have 14.3 million shares outstanding
with 2010 full year income expected to be 9 million
9/14.3 = .63 eps
2011 expectations: 11 million in net income which is an increase of 22% compared to their 2010 full year net income expectations
11/14.3 = .77 eps with no dilution from current outstanding shares
They have 23 million in cash
66% management ownership
strong margins
low accounts recievable
19% of market share
They are growing and sell a supplement that has benefits and is difficult to cultivate, but their growth revenue growth has slowed each year since 2007. As of now they are undervalued.
http://content.stockpr.com/chinagrowthpartners/files/NUIN+presentation+and+press+release/NUIN+Research+Report.pdf
It does not compare to BSPM as they have a 100% market on the SFDA approved OTC Hep B drug in China being sold. Over 130 million people in China have the disease. There are no more permits being given out by the SFDA for an OTC Hep B drug. Their Revenue is growing at a substantially higher rate than NUIN. Their product is in higher need. They continue to expand and have strong marketing efforts. BSPM's growth and opportunity has just begun.
Their expected revenue for full year 2010 is between 80-82 million and net income is expected to be 18-20 million. Say the middle of the expected income. 27 million outstanding shares.
19/27 = .70 EPS for 2010 with the possibility of more based on management guidance of seperate revenue streams and growth
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_B/threadview?m=tm&bn=88940&tid=4030&mid=4030&tof=4&frt=1
Here is BSPM's growth
2008 revenue was 113% higher than 2007 fy revenue
2009 revenue was 57% higher than 2008 fy revenue
2010 1st quarter revenue was 67% higher than 2009 1st quarter
2010 1st quarter revenue for their Hep B drug increased 138% compared to 1st quarter 2009 for thier hep b drug and it is more than 70% of their revenue
They have expanded into Tianjin in November 09, Beijing and Shanghai in January 2010 and 4 new regions in April 2010. So their growth has just beguan
Also, their current cash on hand is over 8 million
So in all NUIN seems like a decent opportunity, but BSPM has the better long term potential and better growth
NUIN vs.BSPM...an interesting comparison.
2009 eps
NUIN .58
BSPM .32
2009 Net cash flow from operations
NUIN $9.3M
BSPM $ 5.7M
Q1 2010 eps
NUIN .19 (25% increase over Q1 2009)
BSPM .08 (GAAP) and .09 (non-GAAP) No change.
market cap:
NUIN $45M on 14.3M shares (66% held by management)
BSPM $82M on 27.3m shares
I could go on with many more favorable comparisons, but these are the biggies- the bottom liners.
---Cordycepin Compound---more good stuff
What hasn't been discussed about NUIN is in their 10-K, they talk about developing Cordycepin Compound, which is made from Cordyceps Militaris, which is the botanical name for...Chinese Golden Grass.
Western research is showing a great deal of promise in the compound in tumor cell size reduction.
Here's an article from January 2010 you might find interesting:
Cordycepin Inhibits Protein Synthesis and Cell Adhesion through Effects on Signal Transduction.
http://ukpmc.ac.uk/classic/articlerender.cgi?accid=PMC2807318
More western research:
http://www.cordycepsextract.com/cordycepin.html
and just google "Cordyceps and Cancer research" or "Cordyceps and immune system" to see other studies that look promising in cancer research, the immune system, and in simply fighting fatigue in low doses.
There looks to be big time potential here, and NUIN is the world's largest producer of Chinese Golden Grass, (botanical name Cordyceps Militaris), which is what Cordycepin Compound is made from.
Bought : Long weekend of DD.
Investors will like this one. Over the weekend more should discover this excellent company.
Hi Shermdog.
Thanks for the kind words.
My EPS target for 2011 is conservative. It could be much higher...but I'd rather stay on the conservative side.
I don't believe they have any need for additional capital at this time.
Gary, grats on your new client!
I looked over your report and had a couple questions that hopefully you could answer.
2009 EPS was .58 on 7.7 mil in rev.
2010 Make good number is 9m and 2011 Make good is 11m, but you stated that you expect the EPS of 2011 to be at least .61-.65. Does management get bonus shares if they hit their Make Good numbers, kinda like CCME is? Is that why the 2011 EPS estimate starts only 3 cents higher than what the 2009 EPS was?
Also besides any bonus shares, have they expressed to you any need to further dilute? Normally step 1 to many dilutions would be to hire IR to get stock price up.
I'm very intrested in this stock, for your first company to represent you guys got yourselfs a good one it looks like!
Research Report on NUIN available here:
China Growth Partners
Yzapp International, Inc.
Suite 500
666 Burrard Street
Vancouver, BC V6C 3P6
Canada
Phone: 604-868-0264
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Nutrastar International Inc.
Ticker: NUIN.OB
Web site: http://www.syxny.net
Fiscal Year End: 12/31
Shares Outstanding: 14.3M
2009 Revenue: $15.3M USD
2009 Net Income: $7.7M USD
2009 EPS: .58
2009 Cash Flow from Operations: $9.3M USD
Research Report (June 2010) available here:
Forward statements by management:
"During 2010, Nutrastar plans to further increase the percentage of total revenue generated through sales of Chinese Golden Grass, both through increased sales of product processed and packaged for the consumer marketplace as well as sales of raw material to the pharmaceutical industry. The Company expects that further product awareness, widespread availability and increased health awareness among Chinese consumers will drive consumer adoption and sales for the Company's Golden Grass.
A major initiative of Nutrastar's future growth strategy is the introduction of new, value-added products targeting multiple downstream markets, including mass consumer, nutraceutical and pharmaceutical markets. After successfully introducing the small package consumer cordyceps products, the Company's growth plan during 2010 will include introducing a new branded specialty beverage product known as "Golden Grass Energy Drink". Commercialization of Golden Grass Energy Drink is scheduled for the second quarter of 2010, targeting affluent, professional, athletic and elderly consumers.
In support of its growth strategies, Nutrastar plans to increase annual production capacity from its current capacity of 55 tons to 65 tons by the end of 2010. Nutrastar operates the world's largest Chinese Golden Grass planting base, and employs patented technology in the cultivation and commercialization of Chinese Golden Grass. The Company also has cutting edge research and development capabilities that drives technology innovation.
"Given our leadership position in a growing market with high barriers to entry, supported by a well known and certified product brand, we are very optimistic about our growth prospects for 2010 and beyond," added Mr. Daniel Lee, CFO. "We anticipate incremental revenue and earnings growth of our higher margin Chinese Golden Grass products. We are very pleased with our progress to grow sales through downstream market applications and look forward to the successful launch of our specialty consumer beverage. In addition, we will be expanding into new pharmaceutical, nutraceutical and mass consumer markets which will bring the Company additional distribution channels, technologies and licensing opportunities, as we aim to become a leading nutraceutical company in China."
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