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Do or die time this week...hit piece has to come out before Thursday morning if its coming. MASSIVE put & short interest...
Will keep a close stop, thanks for the heads up.
I like the odds as a contrarian indicator. When there is a large number of puts being bought, this usually indicates that there is fear in the market and that a bottom may not be that far off. The opposite is true for a very low put call ratio reading.
This has been an indication of a new hit piece pending release in the past... I have been watching this crap for 3 years. I hope you are correct, but be careful.
Likly some speculation by investors taking a short position in the underlying without trading in it directly to keep their shorts afloat. I wouldn`t want to be short in here, took a long position today
Any insight on today's huge put volume? Seems another hit piece is brewing...
Nice forward earnings probably Q to Q, low P/E, new product mine operations 1-2 years out, large institutional holdings, heavy insider ownership with plenty upside potential. Stocks contained within a large short position over float. Not all Chinese stock are frauds.
Follow up hit piece on seeking alpha
http://seekingalpha.com/article/314299-yongye-international-further-evidence-calls-for-regulator-scrutiny
He says that YONG is claiming it's costs are 50% higher than market rates. And is actually money laundering it's hidden profits.
So then his prior target price of .53 should be raised to what
.75 too funny?
The company already said they can get costs down by running their own mines.
YONG responds
Yongye International Responds to Misconceptions in Internet Report
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BEIJING, Dec. 15, 2011 /PRNewswire-Asia-FirstCall/ -- Yongye International, Inc. (Nasdaq: YONG) ("Yongye" or the "Company"), a leading developer, manufacturer, and distributor of crop nutrient products in the People's Republic of China ("PRC"), today responded to misconceptions regarding its business contained in a report posted Tuesday on the website Seeking Alpha by Prescience Investment Group. The author is an admitted short seller and specifically disclaims any warranty of the accuracy of what it published about Yongye. The allegations in the report are false, misinformed, and misleading. Yongye has previously, on several occasions -- in public filings and on publicly accessible conference calls -- addressed all of the issues raised by this report. However, investors can refer to the FAQ section of Yongye's investor relations site (http://www.yongyeintl.com/FAQ.html) in order to view a detailed response to each of the specific assertions in the report.
Yongye is committed to transparency and best practices regarding all matters pertaining to corporate governance and stands by its distribution model, which continues to deliver positive results for the business. Further, the Company is proud to have Morgan Stanley Private Equity Asia (MPSEA) as an active partner that is committed to helping drive Yongye's business forward and ultimately enhance shareholder value for all investors.
About Yongye International
Yongye International is a leading crop nutrient company headquartered in Beijing, with its production facilities located in Hohhot, Inner Mongolia, China. Yongye's principal product is a liquid crop nutrient, from which the Company derived substantially all of the sales for the nine months ended September 30, 2011. The Company also produces powder animal nutrient product which is mainly used for dairy cows. Both products are sold under the trade name "Shengmingsu," which means "life essential" in Chinese. The Company's patented formula utilizes fulvic acid as the primary compound base and is combined with various micro and macro nutrients that are essential for the health of the crops. The Company sells its products primarily to provincial level distributors, who sell to the end-users either directly or indirectly through county-level and village-level distributors. For more information, please visit the Company's website at www.yongyeintl.com.
FAQ
1. What is Yongye’s main business?
Yongye International Inc. (“Yongye” or the “Company”) is a leading crop nutrient company headquartered in Beijing, with its production facilities located in Hohhot, Inner Mongolia, China. Yongye's principal product is a liquid crop nutrient, from which the Company derived substantially all of the sales for the nine months ended September 30, 2011. The Company also produces a powder animal nutrient product which is mainly used for dairy cows. Both products are sold under the trade name "Shengmingsu," which means "life essential" in Chinese. The Company's patented formula utilizes fulvic acid as the primary compound base and is combined with various micro and macro nutrients that are essential for the health of crops. Yongye’s plant products’ main function is improving crop yields, while the Company’s products for animals improve the overall health of livestock. The Company's products address the real need for greater efficiency in China's agricultural sector. The Company sells its products primarily to provincial level distributors, who sell to the end-users either directly or indirectly through county-level and village-level distributors.
2. When were Yongye International Inc. and Yongye Nongfeng Biotechnology Co., Ltd (CJV) founded?
Yongye International Inc. was founded in December 2006 and Yongye Nongfeng Biotechnology Co., Ltd was founded in January 2008 as a Cooperative Joint Venture company in China.
3. What is Shengmingsu and how was it developed?
Our former Chief Scientist, Professor Gao Jing, led the development of Shengmingsu in 2001 with first sales in 2005. Yongye's Shengmingsu plant products are primarily developed based on a patent-protected formulation of fulvic acid, micronutrients and other NPK (nitrogen, phosphorus and potassium) elements.
4. How could Yongye develop so many branded retailers so fast?
Yongye doesn’t own any of the branded retailers. Those retailers typically are very small-size agricultural stores in rural villages/towns and are normally recruited and managed by Yongye’s county level distributors. Our provincial level distributors play a key role helping developing and managing our county level distributor network in their markets. Our distributors all have dedicated team of sales and channel management staff for our business and some use “Yongye Sales Center” as their name when promoting our products in their geographic markets, although none are related parties to Yongye. As of the end of the third quarter of 2011, Yongye has approximately 25 provincial level distributors, 810 county level distributors and 29,307 branded retailers.
5. Please explain why Yongye has various regional marketing centers?
Yongye’s provincial level distributors play a key role in developing and managing our county level distributor network in their markets. The Company’s county level distributors help it recruit and manage branded retailers. Yongye does not own any of the branded retailers that sell its Shengmingsu products. The Company’s key distributors all have dedicated teams of sales and channel management staff for Yongye’s products, and some, including Shenzhen Jiuzhoufangyuan and Shijiazhuang Jichuang, use “Yongye Sales/Marketing Center” as their name when promoting Yongye’s products in their geographic markets. As of the end of the third quarter of 2011, Yongye has approximately 25 provincial level distributors, 810 county level distributors and 29,307 branded retailers.
6. Is Yongye’s independent distributor, Shenzhen Jiuzhoufangyuan a related party to the Company and run by a Yongye employee?
Shenzhen Jiuzhoufangyuan is an independently run business and in no way related to Yongye beyond acting as a distributor of the Company’s Shengmingsu products, and Mr. Shen Dan Hua is not an employee of Yongye. While most of the Company’s provincial distributors exclusively carry agricultural products, China's distribution industry today is generally less specialized than in developed economies, and some of the Company’s distributors, including Shenzhen Jiuzhoufangyuan, sell (or have sold) non-agricultural products in addition to Yongye products. As with all of the Company’s distributors in China, Yongye selected to work with Shenzhen Jiuzhoufangyuan based on their extensive experience coupled with their strong desire to work with Yongye's attractive product portfolio.
7. Is it true that an independent source shows that Yongye is vastly overstating sales to one of its main distributors from Inner Mongolia?
As previously reported, sales to Bameng Jingshirong, one of our Inner Mongolia distributors, were US$19 million in 2010. The list of the 100 largest private enterprises in Inner Mongolia, linked here, is referenced from a news story posted on the official website of the Inner Mongolia Federation of Industry and Commerce (NMGFIC). The compiled list was based on voluntary submissions from private companies in the autonomous region. The list in no way constitutes an official or certified list of the 100 largest private companies in Inner Mongolia by revenue. The notation attached to the list itself also notes that companies must voluntarily opt into the list and that the list does not include a completely accurate record of the 100 largest private companies in Inner Mongolia.
8. What third party studies exist to support the efficacy of Yongye’s Shengmingsu product?
The Inner Mongolia Autonomous Region Scientific and Technology Bureau (IMARSTB) has conducted tests on both Yongye’s plant and animal nutrient products. There have also been many third party tests conducted on Shengmingsu as our sales territories expand to more geographic areas in China. Some of these test reports have been translated into English and are posted on our website.
In addition, there are various international academic research studies being conducted to examine the impact of humic and fulvic acid on agriculture output. Some of these research papers are also posted on our website. These reports can be found in the “Research & Development” section of our website linked here.
9. When does Yongye usually release its quarterly earnings results?
Yongye's quarterly earnings reports follow SEC regulations on timing. Per SEC definition Yongye is an accelerated filer, which requires it to file earnings results within 40 days after quarter end and 75 days after year end. All earnings releases are posted on the company’s website and sent through normal media outlets.
10. What are Yongye's fiscal year and corresponding quarter-end dates?
Yongye operates on a fiscal year that runs from January 1 to December 31. Quarter-ends are: March 31 (Q1), June 30 (Q2), September 30 (Q3) and December 31 (Q4).
11. Where is Yongye’s investor presentation?
Yongye’s latest investor presentation is available for viewing and download on the investor relations section of the Company website linked here.
12. How can I get on an e-mail list to receive all press releases?
To receive all press releases and other financial reports via e-mail or to automatically receive e-mail alerts for the information categories that interest you, please click on E-mail Alerts and submit your E-mail address.
13. Can you share information regarding Yongye’s industry and competition?
Yongye’s crop nutrient product competes in a relatively fragmented market in China against other smaller local products. As of July 2011, there were over 800 registered humic and fulvic acid products according to the website of Ministry of Agriculture in China. Yongye’s Shengmingsu branded products are the leading nationally distributed and promoted brand in China with over 29,000 branded retailers across China, the largest distribution network of any crop nutrient product company in China.
14. Was Yongye required by the SEC to provide more detail on its customers? Is Yongye in compliance with all SEC report rules currently?
Yongye is compliant with all SEC reporting rules and best practices. While Yongye’s original customer disclosure complied with the SEC’s requirements, the company has publicly provided additional details on its customer lists (notwithstanding legitimate commercial concerns) and has expanded its customer disclosure in its periodic quarterly filings in the interests of investor transparency.
15. Mineral Resource Project - Has Yongye received all government permits to develop its mineral resource project in Wuchuan?
In August 2011, Yongye Fumin, a wholly-owned subsidiary of Yongye Nongfeng, the Company's main operating entity in China, obtained government approval for mineral resource exploration for its designated project site in Wuchuan, Inner Mongolia, China. Yongye entered into an agreement to purchase this mineral resource project in March 2010 to secure the key raw material used in the production of Yongye's Shengmingsu crop and animal nutrient products, as part of its long-term strategy for vertical integration and securing key raw material supply.
This Exploration Permit gives Yongye exclusive exploration rights for the 29.74 square kilometer project site for an initial period of three years effective August 2, 2011. The project site in Wuchuan is located near Yongye's primary production facility which manufactures the majority of Yongye's Shengmingsu products. Once exploration is complete, Yongye can apply to the government for development permits which will allow it to begin production of the site. The remaining approval process normally takes 2 to 3 years.
16. Does Morgan Stanley have a “put right” due to Yongye not yet obtaining all the necessary mining right approvals?
While Yongye is required to use its commercially reasonable efforts to obtain the mining right and environmental evaluation approval by Dec 31, 2011, this is a covenant item, and not obtaining them will not automatically trigger MSPEA to pull out its investment so long as such efforts were made. Yongye believes that it is in full compliance with this requirement. More details of the investment agreement between MSPEA and Yongye can be found on page four of the 8k filing linked here.
17. Wuchuan Facility - What are Yongye’s current production development plans?
Yongye’s Wuchuan production facility is the company’s primary production facility and the site of future capacity expansion. The first phase of development of this facility was completed in 2010 and cost approximately US$15 million. Yongye continues to develop this facility in a phased approach, which will continue in 2012 with the implementation of additional production and product line capacity as announced during the company’s 3Q earnings call on Nov. 9, 2011. This capacity expansion, as announced, will cost approximately US$8 million and expand Yongye’s total capacity to an estimated 70,000 tons per annum.
18. Will Yongye be launching any new products in 2012?
Yongye is preparing to launch two new products in 2012. These two products, Zhongbaosheng (???) and Qianggenbao (???), are complementary to Yongye’s existing Shengmingsu product and are primarily targeted at enhancing the seedling and nutrition absorption of the roots of plants.
19. Is the Morgan Stanley investment really unfavorable for common shareholders?
The terms of MSPEA’s investment in Yongye are fully disclosed in Yongye’s public SEC filings, and management and the board of directors believe that this transaction offered significant benefits to the Company and its common stockholders and its announcement resulted in an immediate and significant appreciation in its stock price. Yongye also notes that following the closing, MSPEA purchased approximately 2 million additional shares of Yongye common stock in the open market.
20. Has Yongye considered issuing a dividend?
At this moment, Yongye is not considering issuing a dividend because the company is still in a very high growth stage.
21. How many of the Company's shares are outstanding?
There are 50.5M common shares outstanding as of November 30, 2011.
22. What are Yongye’s ticker symbol, exchange, and CUSIP?
The Company’s common stock trades on the Nasdaq Global Select Market under ticker symbol YONG. The CUSIP is 98607B106.
23. Who is Yongye's outside investor relations firm?
FTI Consulting is Yongye’s outside investor relations firm. For any investor relations inquiries please email them at yong@fticonsulting.com.
24. Who are Yongye’s legal and audit advisors?
Yongye’s auditor is:
KPMG
8th Floor, Tower E2
Oriental Plaza
1 East Chang An Avenue
Beijing 100738
China
Phone: +86.10.8508.5000
Fax +86.10.8518.5111
Yongye’s legal counsel is:
Loeb & Loeb, LLP
345 Park Avenue
New York, NY 10154
Phone: +1. 212.407.4000
Fax: +1.212.407.4990
25. Who is Yongye’s transfer agent and registrar?
Yongye’s transfer agency and registrar is:
Empire Stock Transfer
2470 Saint Rose Parkway
Suite 304, Henderson, Nevada 89074
Phone: +1.702. 818.5898
Fax: +1.702. 974.1444
YONG "Hit piece"
53 cent target, lol.
Prescience Investment Group Is Bearish On Yongeye International
Quote:
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Shares of Yongeye International (Nasdaq: YONG [FREE Stock Trend Analysis]), the Chinese agricultural products maker, were off almost 3% today and Prescience Investment Group is out with a note saying investors in the stock should be “extremely cautious.”
“We believe that YONG's business activities are riddled with undisclosed related party transactions and that its revenue and profit may be overstated in its filings with the SEC. Further, we urge the NASDAQ and the SEC to look into Yongye's largest sources of revenue in an effort to protect public shareholders and defend the integrity of US financial markets,” Prescience said in a note.
On its Web site, Prescience says “We specialize in extensive, investigative research on difficult-to-analyze or obscure public companies in order to develop unique insights and identify singular investment opportunities. We seek out abnormally large disparities between what businesses are intrinsically worth and what they sell for and invest accordingly, long and short.”
In the note, the firm says Yongeye is “vastly overstating” revenue derived from one of its largest distributors and noted there is potential for KPMG, Yongeye's auditor since 2009, to have been deceived.
Prescience said its fundamental value for Yongeye is 53 cents a share, well below the $4.10 per share the stock closed at today. The stock has almost been cut in half this year.
Yongeye makes and sells fulvic acid based liquid and powder nutrient compounds for plants and animals.
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Read more: http://www.benzinga.com/analyst-ratings/analyst-color/11/12/2198388/prescience-investment-group-is-bearish-on-yongeye-intern#ixzz1gNBVTn1C
yes, i got stopped out even
20,600 shares bid at 4.45 (3 MM's) looks like LPH before it's last run
yup...easy 20-25% from 4.35
BEIJING, Nov. 9, 2011 /PRNewswire-Asia-FirstCall/ -- Yongye International, Inc. (NASDAQ: YONG), ("Yongye" or the "Company") a leading developer, manufacturer, and distributor of crop nutrient products in the People's Republic of China ("PRC"), today announced its financial results for the quarter ended September 30, 2011.
Third Quarter 2011 Financial Highlights
Revenue in the third quarter of 2011 increased 95.9% to $140.6 million from $71.8 million for the same period of 2010
Gross profit increased 103.2% year-over-year to $85.6 million
Income from operations increased 143.0% to $50.6 million
Net income attributable to Yongye increased 122.6% to $39.1 million, or $0.69 per diluted share, compared to $17.6 million, or $0.37 per diluted share, in the same period last year
Adjusted net income attributable to Yongye, which excludes non-cash expenses related to the amortization of the acquired Hebei customer list and a change in the fair value of derivative liabilities, was $39.7 million, or $0.70 per diluted share, compared to $18.3 million, or $0.39 per diluted share, in the same period last year*
Operating cash inflow was $7.3 million compared to an operating cash outflow of $0.2 million for the same period of 2010
Mr. Zishen Wu, Chairman and Chief Executive Officer of Yongye International, stated, "This was a particularly strong quarter for Yongye with year-over-year increases in revenue and net income attributable to Yongye of 95.9% and 122.6%, respectively. Additionally, our gross margins continue to improve, at 60.9% for the quarter. Such strong growth highlights the strength of our brand and the success we are having in existing and new markets with our sales and distribution strategy."
Mr. Wu added, "We continue to work closely with our distributors, and effectively manage our retail network in order to further penetrate existing markets. Our crop nutrient product is also beginning to pick up traction in newly developed provincial markets, as 21.4% of our sales this quarter were derived from new accounts. We are very excited about the future growth prospects of our business, and, to meet the growing demand for our products, we are focused on expanding our production capacity for next year."
Third Quarter 2011 Results
Sales increased by $68.8 million, or 95.9%, to $140.6 million for the three months ended September 30, 2011, from $71.8 million for the same period of 2010. For the three months ended September 30, 2011, $110.5 million, or 78.6% of total sales, was derived from existing provincial markets, and $30.1 million, or 21.4% of total sales, came from the newly developed provincial markets, which the Company started to actively manage after the second quarter of 2010. The newly developed provincial markets primarily included Jiangxi, Yunnan, Anhui, Sichuan and Shaanxi. During the quarter, the number of branded retailers increased from 28,373 to 29,307. The number of branded retailers as of September 30, 2011 increased 33.7% compared to the end of September 30, 2010.
Gross profit was $85.6 million for the three months ended September 30, 2011, compared to $42.1 million for the three months ended September 30, 2010, an increase of 103.2%. The $43.5 million increase in gross profit was due to the increase in sales of the Company's liquid crop nutrient product. Gross margin was 60.9% for the three months ended September 30, 2011, as compared to 58.7% for the same period of 2010.The increase in gross margin was mainly due to the Company's Wuchuan Facility becoming operational, which enabled the Company to start using lignite coal as the key raw material, and bypass intermediaries from whom the Company used to purchase humic acid. The Company recorded non-cash expenses of $0.7 million related to the amortization of the acquired Hebei customer list as part of its cost of sales for the third quarter of 2011.Excluding the aforementioned non-cash expenses related to the amortization of the acquired Hebei customer list, third quarter 2011 adjusted gross profit was $86.3 million, or 61.4% of sales.*
Selling expenses increased by $10.0 million, or 64.1%,to $25.6 million for the three months ended September 30, 2011, from $15.6 million for the same period of 2010. As a percentage of sales, selling expenses decreased from 21.7% for the three months ended September 30, 2010 to 18.2% for thesame periodof 2011. The increase in selling expenses was primarily due to (i) an increase in advertising and promotion expenses, and distributors' seminar expenditure of $9.8 million relating tomarketing and promotional activities in the Company's existing and new geographic markets, and (ii) an increase in the transportation expenses of $0.9 million due to increase in sales.
General and administrative ("G&A") expenses increased by $1.3 million, or 37.5%, to $4.8 million for the three months ended September 30, 2011, from $3.5 million for the same period of 2010.As a percentage of sales, G&A expenses decreased from 4.9% for the three months ended September 30, 2010 to 3.5% for the same period of 2011. The increase in G&A expenses was mainly due to increases in meeting expenditure, general maintenance expenses and staff training expenses.
Research and development ("R&D") expenses were $4.5 million for the three months ended September 30, 2011, as compared to $2.2 million for the same period of 2010. The increase in R&D expenses mainly consisted of field test expenses for new crops and newly developed provincial markets as well as new product development expenses.
Operating income was $50.6 million, or 36.0% of sales, for the three months ended September 30, 2011, compared to $20.8 million, or 29.0% of sales, in the same period last year. Excluding non-cash expenses related to the amortization of the acquired Hebei customer list, third quarter 2011 adjusted operating income was $51.3 million, or 36.5% of sales.*
Net income attributable to Yongye was $39.1 million, or $0.69 per diluted share, for the three months ended September 30, 2011, compared to a net income of $17.6 million, or $0.37 per diluted share, in the same period last year. The Company recorded a non-cash income related to a change in fair value of derivative liabilities of $119,663 in the third quarter of 2011. Excluding the impact of non-cash expenses related to the amortization of the acquired Hebei customer list, and a change in the fair value of derivative liabilities, adjusted net income attributable to Yongye for the third quarter of 2011 was $39.7 million, or $0.70 per diluted share, compared to $18.3 million, or $0.39 per diluted share in the same period last year.*
Nine Month Financial Results
Revenue for the nine months ended September 30, 2011 increased 85.7% to $345.5 million from $186.1 million for the comparable period in 2010. For the same time period, gross profit was $204.6 million, compared to $106.0 million in 2010. Gross margin was 59.2% for the nine months ended September 30, 2011, as compared to 57.0% for the same period of 2010.Operating income for the nine months ended September 30, 2011 was $113.4 million, compared to $56.3 million for the same period 2010. Net income attributable to Yongye for the nine months ended September 30, 2011 was $87.0 million, compared to $46.2 million in the prior year period. For the nine months ended September 30, 2011, net income per diluted share was approximately $1.65, as compared to $1.01 diluted earnings per share for the same period of 2010. The Company recorded non-cash expenses of $5.0 million related to share-based compensation for management and independent directors and $2.1 million related to the amortization of the acquired Hebei customer list as part of its cost of sales, as well as a non-cash income related to a change in fair value of derivative liabilities of $533,250 for the nine months ended September 30, 2011. Excluding the impact of non-cash expenses related to share-based compensation for management and independent directors, the amortization of the acquired Hebei customer list, and a change in the fair value of derivative liabilities, adjusted net income attributable to Yongye for the nine months ended September 30, 2011 was $93.6 million, or $1.78 per diluted share, compared to $46.7 million, or $1.03 per diluted share in the same period last year.*
(*) See the table following this press release for a reconciliation of gross profit, income from operations, net income and diluted EPS to exclude non-cash items related to the amortization of the acquired Hebei customer list, share-based compensation for management and independent directors, and a change in the fair value of derivative liabilities to the comparable financial measure prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP").
Financial Condition
As of September 30, 2011, the Company had $80.4 million in cash and restricted cash, compared to $42.0 million as of December 31, 2010. Working capital was $270.6 million, compared to $124.3 million at the end of 2010. Accounts receivable for the quarter more than doubled on a year-over-year basis, as the Company experienced extremely strong sales in September compared to the prior year. Yongye does not have any accounts receivable that are uncollectable or beyond the company's six month credit policy. The Company has a $15.6 million short-term bank loan and $3.7 million in long-term debt as of September 30, 2011. Stockholders' equity totaled $331.2 million as of September 30, 2011, compared to $225.1 million at the end of 2010. Cash flow used by operating activities was $20.5 million and $9.3 million for the nine months ended September 30, 2011 and 2010, respectively. These changes were primarily due to the increase of $62.4 million in working capital employed, which was primarily driven by higher accounts receivables, but was partially offset by a lower inventory balance and settled deposits to suppliers. Other factors include an increase of $43.4 million in earnings and a non-cash expense of $5.0 million for management stock compensation.
Recent Developments
On October 25, 2011, Yongye Nongfeng, the Company's main operating entity in China, received the "Inner Mongolia Science and Technology Achievement Award" for the 2010 year from the Science and Technology Administration of the Inner Mongolian government. The award recognizes Yongye's contribution to humic and fulvic acid extraction technology and its commercial application in green agriculture in China.
In August 2011, Yongye Fumin, a wholly-owned subsidiary of Yongye Nongfeng, the Company's main operating entity in China, obtained government approval for mineral resource exploration permit for its designated project site in Wuchuan, Inner Mongolia, China. The permit gives Yongye exclusive exploration rights for the 29.74 square kilometer project site for an initial period of three years effective August 2, 2011. It allows the Company to conduct exploration of the project site to obtain remaining government approvals for it to fully acquire the Mineral Right. Yongye entered into an agreement to purchase this mineral resource project in March 2010 to secure the key raw material used in the production of Yongye's Shengmingsu crop and animal nutrient products. The project site in Wuchuan is located near Yongye's primary production facility which manufactures the majority of Yongye's Shengmingsu products.
On August 25, 2011, Mr. Nan Xu, General Manager of the Company's National Sales Center, was appointed Chief Operating Officer of Yongye and joined the Company's Board of Directors. The Company separately announced that Mr. Taoran Sun and Mr. Qiang Zhao resigned as members of the Board of Directors of Yongye for personal reasons, but will remain advisors to the Company. In addition, Mr. Sean Shao resigned from the Nominating and Corporate Governance Committee of the Board of Directors and was replaced by Mr. Homer Sun. These changes bring the total number of members of the Board of Directors to seven.
Business Outlook
Together with results for the third quarter, the Company also announced that it is increasing both top and bottom line guidance for 2011. Previous guidance included revenues of $335 million to $345 million and adjusted net income of $85 million to $87 million. Revised guidance now includes revenue of $390 million to $400 million and net income, which excludes non-cash expenses related to share-based compensation for management and independent directors, the amortization of the acquired Hebei customer list, and a change in the fair value of derivative liabilities, of $100 million to $102 million. The Company also expects to expand its branded retailer network to at least 30,000 by the end of 2011, which represents a 24.8% increase over the 2010 year-end number of 24,036.
if TSTC and LPH can run, so can the cream of the crop YONG.
YONG's earnings year-over-year are expected to be big.
Another solid day .17 gain...That $4.80 area could fall tomorrow with the big volume today...3.6mln shorts don't want to be holding with big numbers on the way...
Yongye International Receives Top Science and Technology Award in Inner Mongolia
Today : Tuesday 25 October 2011
Click Here for more Yongye International, Inc. (MM) Charts.
Yongye International, Inc. (NASDAQ: YONG), ("Yongye" or the "Company") a leading developer, manufacturer, and distributor of crop nutrient products in the People's Republic of China ("PRC"), today announced that Yongye Nongfeng, the Company's main operating entity in China, received the "Inner Mongolia Science and Technology Achievement Award" for the 2010 year from the Science and Technology Administration of the Inner Mongolian government. The award recognizes Yongye's contribution to humic and fulvic acid extraction technology and its commercial application in green agriculture in China.
The award is issued annually by the government of Inner Mongolia Autonomous Region and recognizes Chinese enterprises that have made significant research and technological achievements within their respective fields. The award also considers the practical applications of business' research in society. Yongye was selected for the humic and fulvic acid extraction and processing techniques used to produce its "Shengmingsu" product, and for the agricultural application and the economic and social benefits it has created for the community.
The award evaluation committee consists of industry and research experts, who conducted three rounds of reviews and inspections of the candidate projects, before selecting Yongye as the recipient of one of the six top winners of this award. The full award results are listed on the Inner Mongolian government's website at http://www.nmkjt.gov.cn/kjtnews/nmkjtlist.asp?tbid=9733.
Mr. Zishen Wu, Chairman and Chief Executive Officer of Yongye stated, "We are delighted to receive this prestigious award from the Inner Mongolian government. This achievement highlights our industry leading research and production processes, and utility of our "Shengmingsu" product in the agricultural industry in China. We look forward to continuing to provide a quality product to the market and to generate long-term value for the business."
About Yongye International
Yongye International is a leading crop nutrient company headquartered in Beijing, with its production facilities located in Hohhot, Inner Mongolia, China. Yongye's principal product is a liquid crop nutrient which accounted for 99.3% of total sales for the first half of 2011. The Company also produces powder animal nutrient product which is mainly used for dairy cows. Both products are sold under the trade name "Shengmingsu," which means "life essential" in Chinese. The Company's patented formula utilizes fulvic acid as the primary compound base and is combined with various micro and macro nutrients that are essential for the health of the crops. The Company sells its products primarily to provincial level distributors, who sell to the end-users either directly or indirectly through county-level and village-level distributors. For more information, please visit the Company's website at www.yongyeintl.com.
5 Stocks We Own -- Here's Why
By Alex Dumortier | More Articles
October 25, 2011 | Comments (3)
Hedge fund pioneer Michael Steinhardt is arguably the greatest investor you've never heard of. At Steinhardt, Fine, Berkowitz & Co., he achieved a 24% annualized return over a 28-year period. Steinhardt coined a wonderful expression for a concept that was at the heart of his success: "variant perception." Simply put, if your view is no different from the consensus when you buy a stock, you may as well be putting that money into an index fund. Below, I'll describe the Motley Fool's variant perception on five stocks from our real-money Million-Dollar Portfolio service.
Yongye International (Nasdaq: YONG )
After a spate of accounting scandals at Chinese small-cap companies, a cloud of suspicion has understandably tainted the entire group. As a result, investors want nothing to do with Chinese small-caps right now.
We believe there is evidence that fertilizer manufacturer Yongye International isn't one of the frauds. In May, the Asia private equity unit of Morgan Stanley invested $50 million in Yongye after conducting "extensive due diligence." Private equity investors typically have access to a company's detailed accounts, along with its management and operations, prior to making an investment. Homer Sun, one of Morgan Stanley's top executives in China, now sits on Yongye's board of directors. Furthermore, Yongye has used KPMG, one of the "Big Four" auditors, since May 2009, well before the recent scandals erupted.
Berkshire Hathaway (NYSE: BRK-B )
The last few years have not been kind to Warren Buffett's reputation. His investment in and defense of Goldman Sachs and the botched handling of former Berkshire executive David Sokol's trading in Lubrizol shares immediately prior to its acquisition has raised eyebrows. That said, it's Buffett's age (he's 81) that really has the market worried.
We think these concerns are overblown. Berkshire's current valuation doesn't contain much of a Buffett premium, if any, and he has put in place a carefully considered succession plan. In last month's share repurchase announcement, Buffett indicated that the shares are significantly undervalued at 1.10 times book value; shares currently trade at 1.18 times book.
Yahoo! (Nasdaq: YHOO )
Yahoo! made a monumental error in 2008 when it rebuffed Microsoft's (Nasdaq: MSFT ) generous buyout offer of $33 per share. Since then, it has done little to convince shareholders that it was justified in choosing to remain independent. Last month, Carol Bartz, the fiery CEO who was brought in two years ago to turn the company around, was summarily fired. Meanwhile, Facebook and Twitter appear to be well on their way to carving up the social networking space, overshadowing "old tech" companies like Yahoo!, Microsoft and Google (Nasdaq: GOOG ) in the process.
Investors have understandably soured on Yahoo!, but the company's high-profile missteps have obscured a very valuable asset: Yahoo!'s 43% ownership interest in Alibaba Group, which owns the top Chinese e-commerce platform. That's a significant oversight: We believe the Alibaba stake could be worth as much as twice the value of Yahoo!'s U.S. operations.
Bridgepoint Education (NYSE: BPI )
Between a high-profile short-seller and intense government scrutiny, the for-profit education sector has received a lot of negative exposure. In March, Senator Tom Harkin called Bridgepoint Education "a scam." Last month, the House of Representatives proposed a cut in Pell grants, which are a critical source of funding for lower-income students.
The market hates uncertainty; as a result, we believe the market is overweighting the regulatory risk in this sector. At eight times forward earnings, Bridgepoint's share valuation reflects a very grim outcome for a company that continues to add students and generate generous amounts of cash flow.
Denbury Resources (NYSE: DNR )
Oil driller Denbury Resources is expert at buying and extracting oil from fields that no longer produce under conventional methods. Denbury's process for recovering the oil is called tertiary recovery and it consists of pumping carbon dioxide into the wells.
Combine rapidly increasing global energy consumption with finite resources, and the result is that incremental sources of oil will become increasingly valuable. Denbury Resources already masters a complex drilling process and is a low-cost producer. Oil stock prices are linked to the spot price of oil, which has pulled back recently on fears of slowdown in global economic growth. We believe that investors who can look beyond the next six to 12 months -- which is the typical timeframe of many institutional investors -- stand to earn healthy returns on Denbury's shares.
This is the basis of beating the market: You must be prepared to articulate your variant perception for every stock you add to your portfolio. Million-Dollar Portfolio advisor Ron Gross follows that discipline in constructing the portfolio from the best picks across Motley Fool newsletter services. If you'd like to know his variant perception for another five stocks he owns in the portfolio -- stocks that remain actionable ideas today -- enter your email address in the box below and we'll send you Ron's free report, "5 Stocks for the Next Bull Market." Find out what the market is missing!
Next move up will be helped along by a short squeeze
Royal board compensation here today ,30-50k shares each at 0$
YONG September 2011 Company Presentation
http://www.yongyeintl.com/images/Yongye%20Investor%20Presentation%20September%202011.pdf
why huge selloff?? makes no sense.
Huge investment by MS.
P/E of 4.
huge increase in EPS last quarter.
what gives??
Check out YONG on the weekly chart. I think it has a strong chacne of turning here. Especially with the $7 mil stock buys from Morgan Stanley over the past month
the weekly, 2 year chart
The Street has taken notice
Hard to believe that the share volume is not much higher...MS is buying daily and the Street is missing it.
Morgan just filed another form 4 for YONG...475,864 more shares...including today 171,096 alone avg price $4.955 http://ih.advfn.com/p.php?pid=nmona&article=4902006
Yong is on it's way up...shorts will come out of the stock soon
ROTH - YONG: 2Q Beat Clouded by High Capital Needs and Concerns Over Outlook We remain concerned on YONG’s aggressive expansion strategy and demand of intensive capital to support its growth. MSPEA’s investment brings additional dilution and uncertainties as the company is still awaiting government approval on the coal mine acquisition. Maintain NEUTRAL rating and cut PT to $4.50.
YONG Betting this overlooked Chinese biotech servicing China's agricultural sector will gain awareness and tack north, based on yesterday's spectacular 2ND Qtr results:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=66032409
MG
Yongye International Announces Second Quarter 2011 Financial Results
- Company Raises Top and Bottom Line Guidance -
BEIJING, Aug. 9, 2011 /PRNewswire-Asia-FirstCall/ -- Yongye International, Inc. (NASDAQ: YONG), ("Yongye" or the "Company") a leading developer, manufacturer, and distributor of crop nutrient products in the People's Republic of China ("PRC"), today announced its financial results for the quarter ended June 30, 2011.
Second Quarter 2011 Financial Highlights
Revenue in the second quarter of 2011 increased 73.0% to $154.7 million from $89.4 million for the same period of 2010
Gross profit increased 83.4% year-over-year to $91.8 million
Income from operations increased 72.5% to $51.5 million
Net income attributable to Yongye increased 63.1% to $39.5 million, or $0.77 per diluted share, compared to $24.2 million, or $0.54 per diluted share, in the same period last year
Adjusted net income attributable to Yongye, which excludes non-cash expenses related to share-based compensation for management and independent directors, the amortization of the acquired Hebei customer list, and a change in the fair value of derivative liabilities, was $40.5 million, or $0.82 per diluted share, compared to $24.1 million, or $0.54 per diluted share, in the same period last year*
Mr. Zishen Wu, Chairman and Chief Executive Officer of Yongye International, stated, "We are pleased to announce strong second quarter results, with revenue and net income increasing 73% and 63%, respectively. This quarter was an important one in our company's history; not only was it our thirteenth consecutive quarter of year-over-year revenue and adjusted net income growth since we became a public company in 2008, but the $50 million investment by MSPEA Agriculture, an affiliate of Morgan Stanley, highlights the maturation of our business, the strength of our brand, and success of our sales and distribution strategy. This investment will help us meet the growing demand for our Shengmingsu crop nutrient product."
Mr. Wu added, "Moving forward, we expect to see strong organic growth in our business driven by increased penetration into existing markets, geographic expansion into new markets, additional marketing and brand building efforts, expanded production capacity, and improved productivity in our operations. Importantly, we are also focused on providing more color and clarity around our business. For example, in the 10-Q for this quarter we provided more detailed information on metrics that we have received questions about in the past, including sales breakdown by province and a more detailed description of our sales channels. We hope this increased commitment to disclosure and transparency provides our investors with valuable information that will help them better understand our company's business. We will continue providing this level of detail going forward."
Second Quarter 2011 Results
Revenue for the three months ended June 30, 2011 was $154.7 million compared to $89.4 million for the same period in 2010, an increase of 73.0%. The significant increase in revenue was largely due to more effective channel management and continued retail network development in the Company's existing provincial markets like Jiangsu, Hebei, Hubei and Henan and expansion into new markets like Yunnan, Anhui, Jiangxi and Sichuan. Sales from those newly developed provincial markets were $40.1 million, or 25.9%, while existing markets contributed $114.6 million, or 74.1%. During the quarter, the number of branded retailers increased from 26,006 to 28,373. The number of branded retailers as of June 30, 2011 increased 52% compared to the end of June 30, 2010.
Gross profit was $91.8 million for the three months ended June 30, 2011, compared to $50.0 million for the three months ended June 30, 2010, an increase of 83.4%. The $41.8 million increase in gross profit was almost entirely due to higher gross profit from the Company's liquid crop nutrient product sales. Gross margin was 59.3% compared to 56.0% in the same period last year, mainly due to the fact that after the Company's Wuchuan facility became operational, Yongye started to use lignite coal as a key raw material, enabling the Company to bypass intermediaries from whom it used to purchase humic acid. The Company recorded non-cash expenses of $0.7 million related to the amortization of the acquired Hebei customer list as part of its cost of sales for the second quarter of 2011. Excluding the aforementioned non-cash expenses related to the amortization of the acquired Hebei customer list, second quarter 2011 adjusted gross profit was $92.5 million, or 59.8% of sales.*
Selling expenses were $29.2 million compared to $16.3 million in the same period last year, an increase of 78.4%. As a percentage of sales, selling expenses increased by 50 basis points to 18.8% from 18.3% of sales in the same period last year. The increase in selling expenses as a percentage of sales was mainly due to more marketing promotional activities in its existing and new geographic markets.
General and administrative ("G&A") expenses were $5.6 million compared to $1.6 million in the same period last year. As a percentage of sales, G&A expenses increased to 3.6% from 1.8% of sales in the same period last year, which was primarily due to the increase of employee compensation, including restricted stock issuance under management equity plan and training expenses.
Research and development ("R&D") expenses were $5.6 million compared to $2.2 million in the same period last year. The increase in R&D expenses mainly consist of new product development expenses as well as field test expenses for new crops and newly developed geographic markets.
Operating income was $51.5 million, or 33.3% of sales, compared to $29.8 million, or 33.4% of sales, in the same period last year. Excluding non-cash expenses related to share-based compensation for management and independent directors and the amortization of the acquired Hebei customer list, second quarter 2011 adjusted operating income was $52.5 million, or 34.0% of sales.*
Net income attributable to Yongye was $39.5 million, or $0.77 per diluted share, compared to a net income of $24.2 million, or $0.54 per diluted share, in the same period last year. The Company recorded a non-cash expense related to a change in fair value of derivative liabilities of $83,435 in the second quarter of 2011. Excluding the impact of non-cash expenses related to share-based compensation for management and independent directors, the amortization of the acquired Hebei customer list, and a change in the fair value of derivative liabilities, adjusted net income attributable to Yongye for the second quarter of 2011 was $40.5 million, or $0.82 per diluted share, compared to $24.1 million, or $0.54 per diluted share in the same period last year.*
(*) See the table following this press release for a reconciliation of gross profit, income from operations, net income and diluted EPS to exclude non-cash items related to the amortization of the acquired Hebei customer list, share-based compensation, and a change in the fair value of derivative liabilities.
Six Month Financial Results
Revenue for the six months ended June 30, 2011 increased 79.2% to $204.9 million from $114.3 million. During the same time period, gross profit was $119.1 million, compared to $63.9 million in the first six months of 2010. Operating income in the first six months of 2011 was $62.8 million, compared to $35.5 million in the first six months of 2010. Net income attributable to Yongye for the first six months of 2011 was $47.9 million, compared to $28.6 million in the prior year period. In the first six months 2011, net income per diluted share was approximately $0.94, as compared to $0.64 diluted earnings per share for the same period of 2010.
Financial Condition
As of June 30, 2011, the Company had $74.9 million in cash and restricted cash, compared to $42.0 million as of December 31, 2010. Working capital was $232.5 million, compared to $124.3 million at the end of 2010. The Company has $15.5 million in short-term bank loan and $1.5 million in long-term debt as of June 30, 2011. Stockholders' equity totaled $286.6 million as of June 30, 2011, compared to $225.1 million at the end of 2010. Cash flow used by operating activities was $27.8 million and $9.2 million for the six months ended June 30, 2011 and 2010, respectively. The increase was primarily driven by higher accounts receivables, and higher deposits to suppliers, but was partially offset by higher accounts payable and accrued expenses.
Recent Developments
On June 20, 2011, Zishen Wu, Chairman and Chief Executive Officer of Yongye International, completed the purchase of $3.0 million worth of shares of the Company's Common Stock in open market transactions pursuant to a Rule 10b5-1 plan. The weighted average purchase price was US$5.40 per share. The share purchase demonstrates Mr. Wu's confidence in the Company and his belief that the shares are currently undervalued.
In June 2010, the Company closed the announced $50 million equity investment by MSPEA Agriculture Holding Limited ("MSPEA"), an affiliate of Morgan Stanley, and also announced the appointment of Mr. Homer Sun, Managing Director of Morgan Stanley who leads Morgan Stanley Private Equity Asia's China Investments, to the Board of Directors of the Company. The Company entered into a Securities Purchase Agreement with MSPEA and the Company's largest shareholder, Full Alliance International Limited, pursuant to which MSPEA purchased 5,681,818 shares of the Company's convertible preferred stock for an aggregate purchase price of $50 million on June 9, 2011.
On June 8-9, 2011, the Company hosted an analyst/investor event in Beijing and Hohhot, Inner Mongolia.
In May 2011, the marketing team and Nan Xu, General Manager of the National Sales Center of Yongye Nongfeng received the "Jin Ding Award" at the 8th China Marketing Forum, a top honor in the marketing field in China.
Business Outlook
The Company also announced that it is increasing both top and bottom line guidance for 2011. Previous guidance included revenues of $315 million to $325 million and adjusted net income of $80 million to $82 million. Revised guidance now includes revenue of $335 million to $345 million and net income, which excludes non-cash expenses related to share-based compensation for management and independent directors, the amortization of the acquired Hebei customer list, and a change in the fair value of derivative liabilities of $85 million to $87 million. The Company also expects to expand its branded retailer network to at least 30,000 by the end of 2011, which represents a 24.8% increase over the 2010 year-end number of 24,036.
Conference Call
The Company will host a conference call at 8:30 a.m. Eastern Time on August 9, 2011, to discuss its second quarter 2011 results.
To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: +1 (866) 519-4004. International callers should dial +1 (718) 354-1231. The conference pass code is 900 00 337.
For those who are unable to participate on the live conference call, a replay will be available for fourteen days starting from 11:30 a.m. Eastern Time on August 9 to 23:59 Eastern Time on August 23. To access the replay, please dial +1 (866) 214-5335. International callers should dial +1 (718) 354-1231. The replay pass code is 900 00 337. A webcast recording of the conference call will be accessible through Yongye's website at www.yongyeintl.com.
Use of Non-GAAP Financial Measures
GAAP results for the three months ended June 30, 2011 include non-cash items related to the amortization of the acquired Hebei customer list, management share-based compensation expenses, and the change in fair value of derivative liabilities. To supplement the Company's condensed consolidated financial statements presented on a GAAP basis, the Company has provided adjusted financial information excluding the impact of these items in this release. It is a departure of U.S. GAAP; however, the Company's management believes that these adjusted measures provide investors with a better understanding of how the results relate to the Company's historical performance. These adjusted measures should not be considered an alternative to net income, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. These measures are not necessarily comparable to a similarly titled measure of another company. A reconciliation of the adjustments to GAAP results appears in the table accompanying this press release. This additional adjusted information is not meant to be considered in isolation or as a substitute for GAAP financials. The adjusted financial information that the Company provides also may differ from the adjusted information provided by other companies.
About Yongye International
Yongye International is a leading crop nutrient company headquartered in Beijing, with its production facilities located in Hohhot, Inner Mongolia, China. Yongye's principal product is a liquid crop nutrient which accounted for 99.7% of total sales for the three months ended June 30, 2011. The Company also produces powder animal nutrient product which is mainly used for dairy cows. Both products are sold under the trade name "Shengmingsu", which means "life essential" in Chinese. The Company's patented formula utilizes fulvic acid as the primary compound base and is combined with various micro and macro nutrients that are essential for the health of the crops. The Company sells its products primarily to provincial level distributors, who sell to the end-users either directly or indirectly through county-level and village-level distributors. For more information, please visit the Company's website at www.yongyeintl.com.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Contacts
Yongye International
Ms. Kelly Wang
Finance Director – Capital Markets
Phone: +86-10-8231-9608
E-mail: ir@yongyeintl.com
Ms. Wendy Xuan
Business Associate
Phone: +86-10-8232-8866 x 8827
E-mail: ir@yongyeintl.com
Financial Dynamics
Mr. John Capodanno (U.S. Contact)
Phone: +1-212-850-5705
E-mail: john.capodanno@fd.com
Ms. Mingxia Li (China Contact)
Phone: +86-10-8591-1060
E-mail: mingxia.li@fd.com
_______________________________________________________________
http://www.prnewswire.com/news-releases/yongye-international-announces-second-quarter-2011-financial-results-127293788.html
Did a more extensive paste since the iHub news doesn't reveal the data.
YONG
Second Quarter 2011 Financial Highlights
Revenue in the second quarter of 2011 increased 73.0% to $154.7 million from $89.4 million for the same period of 2010
Gross profit increased 83.4% year-over-year to $91.8 million
Income from operations increased 72.5% to $51.5 million
Net income attributable to Yongye increased 63.1% to $39.5 million, or $0.77 per diluted share, compared to $24.2 million, or $0.54 per diluted share, in the same period last year
Adjusted net income attributable to Yongye, which excludes non-cash expenses related to share-based compensation for management and independent directors, the amortization of the acquired Hebei customer list, and a change in the fair value of derivative liabilities, was $40.5 million, or $0.82 per diluted share, compared to $24.1 million, or $0.54 per diluted share, in the same period last year*
YONG 4$ now , Multibagger coming year. Morgan stanley big stakeholder
-Morgan Stanley on board of directors
-50mln preferred priced at 8.8-15$ depending on performance
-p/e under 3.55
Chinese stronggrowth company with a very low p/e.
Was attacked by short sellers with the rest of the China stock, but in june got a 50 million commitment by Morgan Stanley (on a 200mln market cap company, thats a big show of confidence). The morgan stanley involvement dismisses any fraud/scam/fake short seller innuendo.
"The Company also announced the appointment of Mr. Homer Sun, Managing Director of Morgan Stanley who leads MSPE Asia's China Investments, to the Board of Directors of the Company"
Morgan Stanley Invests $50 Million in Short-Sale Mark Yongye
(7 juni 2011)
Morgan Stanley agreed to invest $50 million in Yongye International Inc. (YONG), the U.S.-traded producer of plant nutrients in China that is the target of a short seller who says the company has misrepresented its business.
Yongye shares surged 42 percent, the most in more than two years, to $5.33 as of 4 p.m. New York time after Morgan Stanley, the sixth-largest U.S. bank by assets, said it will invest in Beijing-based Yongye through its Asian private equity unit. The stock, which began trading on the Nasdaq Stock Market in 2009 following a 2008 takeover of a U.S. company, is down 37 percent this year.
“After extensive due diligence, we believe Yongye to be an exceptional company that has built significant brand recognition in China’s agriculture industry,” said Homer Sun, managing director of Morgan Stanley (MS) Private Equity Asia, according to a statement released by Yongye. Sun will join the Chinese company’s board of directors, the statement said.
Morgan Stanley is offering a vote of confidence to a company whose stock was down 55 percent in 2011 through last week amid a hedge fund’s accusation that it manipulated earnings. Morgan Stanley will purchase $50 million of preferred shares, which are convertible into common stock at an initial conversion price of $8.80 a share, Yongye said. That amount may increase to $15 a share if the company reaches certain undisclosed profit targets.
Proceeds from the investment will be used to expand capacity, repay debt, add to working capital and for general corporate purposes, the company said.
Growth numbers impressive !
Lots of class action lawsuits...soon afterward Morgan buys in as well as the CEO and me.
anybody know anything about the class action against YONG ? I just received notification of it by mail today.... it is apparently on behalf of purchasers of YONG common stock during the period between 8/11/2010 and 5/11/2011. elliot greenberg plaintiff vs youngye. i wonder what this may mean for those of us who were in Yong during this period ?
Added today on weakness. I am sure 10 is within reach
Yong will not do business with them. Their business is with MS now.
I would not pay much credence to them. They are nothing more vultures looking for opportunities. If you give them business, you are their friend. If you dont, you are not.
Morgan stanley too. Sign of confidence
definately 10 in our lifetime. Just need people to wake up and think that not RTOs are frauds
Yong consolidating nicely. 5 should hold
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Overview of Yongye
Yongye International is a leading developer, manufacturer, and distributor of Shengmingsu brand plant and animal nutrient products and is located in the People's Republic of China. While we have only been in operations a short amount of time, our predecessor company, Inner Mongolia Yongye Company, had over 15 years' operational history which it has passed on to us. From this experience, Yongye International, through its sole operating subsidiary in China, Yongye Nongfeng aims to inherit its predecessor company's managerial experience and corporate culture to continue emulating its long-term success. Through our long term research and development efforts, Yongye has developed proprietary extraction techniques and patented mixture processes for our plant and animal nutrient products which sell under the brand name of "Shengmingsu".
Taking lignite coal and leonardite coal as the raw materials and by applying modern extraction technologies, we produce a highly pure and natural liquid nutrient. Yongye's plant nutrient product can significantly increase the plant's output and nutritional value and improve the taste. As a result of receiving greater value in the marketplace, our product helps increase farmers' incomes and improves their living standard.
Directly addressing the need for greater efficiency and more stringent environment friendly requirements in the agricultural sector, Yongye's products dramatically increase the quality of crops and yields, and improve the health of livestock.
Yongye International's sole operating subsidiary, Yongye Nongfeng, is headquartered in Beijing, and carries out its main operations in the city of Hohhot, Inner Mongolia, PR China. Yongye International was successfully listed on the OTCBB Market in the U.S.A. in April 2008 and now trades on the Nasdaq Global Select Market under the ticker of YONG. The majority of the Company's sales take place through a network of provincial level distributors and a retail sales model which includes a unique community based branded store footprint.
1. Greater yields, more production - sweet melon
In Tangshan, Hebei province, Mr. Shunli Yan sprayed Shengmingsu onto his sweet melon crop. He found that the melons onto which Shengmingsu was sprayed could be harvested up to 5 days earlier than those melons which did not receive any Shengmingsu. According to Mr. Yan, the previous year's production of sweet melons from his three sheds was very small, and generated total income of 30,000 RMB. This year, his yield was 7,000 grams of melons, which generated total income of 50,000 RMB, and his total income was 10,000 RMB more per mu.
2. Enhanced growth, stronger seedlings - cucumber
In 2007, Mr. Changliang Yang's cucumber seedlings were badly frozen after heavy snow falls in Cangzhou, Hebei province. After applying two bottles of Shengmingsu on them, they became stronger and their leaves became fuller and greener. Mr. Yang said, "With real effects, Shengmingsu helped my cucumber seedlings survive."
3. Resistance against disease and pests, improved effects - paddy
After using Shengmingsu, Mr. Guohua Lu in Huan'an, Jiangsu province saw his rice develop stronger individual plants and improved resistance against disease. His rice crop grew faster by an average of 4 to 5 days and were able to fight off the diseases which typically occur. Mr. Lu's average yields per mu increased by 18.6% and income per mu increased by 200 RMB.
4. Resistance against draught, prevention of frozen - chilli pepper
Located in a draught area, Mingqin county saw unprecedented snow in the spring of 2008. The county has 47 greenhouses. Mr. Yuhua Pei and five other households in Weiwu, Gansu province used Shengmingsu on their peppers in six greenhouses. Plants in 40 of the 41 other greenhouses froze to death. Plants barely survived in the one remaining greenhouse in which Shengmingsu was not used. Yuhua Pei said, "Shengmingsu has the amazing ability to help prevent plants from freezing."
5. Fights against continuous cropping, and reduces hazards to crops - cucumber
Ms Teng Zhang used streptomycin to prevent angular leaf spot disease on cucumbers. This caused burning, withering, fading, defoliation, and falling flowers and fruits. Three days after using Shengmingsu for the first time, life signs and normal growth returned to the cucumbers. Teng Zhang said, "Shengmingsu is a life-saving product!"
6. Improve product quality, better taste - white radish
Hohhot, Inner Mongolia
White turnips sprayed with Shengmingsu had stronger and faster growth, were fuller and crispier, and tasted sweeter than usual. They also went to market 10 days earlier than usual. Production per mu increased by 10,000 grams and total income per mu increased by 4,500 RMB.
7. Early maturity and longer picking period, higher price - tomato
According to Zhaoan Zhu in Weiwu, Gansu province, tomatoes sprayed with Shengmingsu were healthier and had a significant increase in disease resistance. They required a fifth as many fertilizer applications. Tomatoes sprayed with Shengmingsu went to market 17 days earlier than usual, and production increased by 1,200 kg per mu, generating additional total income of 2,800 RMB per mu.
8. Decrease in fertilizer residual, healthier products - cucumber
Xia Zhao in Cangzhou, Hebei province said that after using Shengmingsu, his cucumber plants grew longer, individual plant yields increased and his cucumbers tasted better. The harvest time increased by 20 days and production increased by 40%. Evidence showed that cucumbers absorbing "Shengmingsu" met all of China's national standards for green food.
China has a total of 155 million hectares of arable farm land and 1.3 billion people. This represents 7% of the world's arable land and 20% of the world's population. China's large population means that each hectare of land must feed an average of 10.3 people, versus 5.1 people in the European Union and 1.6 people in the United States. Because of its large population, China has only 0.04 hectare of arable land per person. This is approximately 50% of the amount of arable land per person in the United States (Source: US Census Bureau, www.census.gov). A limited amount of arable land and a large and growing population have created a significant need to increase the output of crops per hectare in China
As the China's economy continues growing, consumer demand for better quality food products is increasing. Food security has become a national priority in China. According to the China National Statistic Bureau, the proportion of middle class people in China will rise from 40% in 2005 to 66% in 2015. With a rapidly expanded middle class, consumer demand for better food products, "Green Food," is expected to grow.
Globally, crop nutrient demand remains very positive and has increased approximately 13% from 2006 to 2008 (IFA November 2008). In China, the demands for organic plant nutrients are expected to grow as concerns over food quality and environmental issues increase. Over reliance on chemical fertilizers has led to soil degradation and water pollution, raising the importance of alternative means of increasing productivity.
The Chinese government plans to spend approximately $169 billion, 1.6% of GDP, between 2006 and 2010 on projects associated with the environment. In 2007, China spent about $5.9 billion on direct subsidies for grain production and the purchase of agricultural materials, up 63% from 2006.The government currently is planning on additional farm subsidies, land reform initiatives and the elimination of certain agricultural taxes. It is promoting the production of organically grown products by setting new standards.
[b][u]Annotated Chart by BlackThought[/b][/u]
[chart]images.investorshub.advfn.com/images/uploads/2009/11/5/oh[vpYONG_3.gif[/chart]
www.yongyeintl.com/images/PDF/10-09-2009%20Yong%20Profile-Final%202.pdf
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