Zhongpin, Inc. (HOGS)

[fung_derf]

China-based Zhongpin Inc. (HOGS) has agreed to be taken private by a group that includes its chief executive in deal that values the meat and food processor at about $503 million. CEO Xianfu Zhu, along with Golden Bridge Holdings Ltd., will offer shareholders $13.50 a share in cash, a 24% premium over Friday's closing price and a 47% premium over the closing price March 26, which is the last trading day prior to the company's announcement that it had received a going private proposal from Mr. Zhu. Under the terms of the deal, shares owned by Mr. Zhu and others who are part of an equity contribution agreement will be contributed to Golden Bridge immediately prior to the effective time of the merger. Mr. Zhu owns more than 17% of the company according to FactSet, while the entire buyout group collectively holds about 26%. The $13.50-a-share offer by Mr. Zhu was first unveiled in March. At the time, based on the number of shares outstanding, the offer valued the China-based pork processor at about $520 million. Zhongpin had said its board would form a special committee to review the offer. Following the offer's announcement earlier this year, the Securities and Exchange Commission froze the assets of six Chinese citizens and one British Virgin Islands entity charged with insider trading in shares of Zhongpin. The SEC's complaint alleged the seven defendants reaped more than $9 million by trading in Zhongpin ahead of the announcement about Mr. Zhu's offer. On Monday, the company said its board had approved the merger, acting upon the unanimous recommendation of the special committee. The current deal is expected to close in the first quarter of next year. Golden Bridge intends to finance the merger through a combination of an equity commitment of $85 million by China Wealth Growth Fund I L.P. and a $320,000,000 term loan facility from China Development Bank Corp.'s Hong Kong Branch. Zhongpin, which specializes in pork and pork products, vegetables, and fruits, has a distribution network in China covering 20 provinces plus Beijing, Shanghai, Tianjin, and Chongqing and including 3,447 retail outlets as of the end of September. Zhongpin's export markets include Europe, Hong Kong, and other countries in Asia. Shares of Zhongpin came under pressure last year as it, like a handful of its Chinese counterparts, battled claims on financial blogs of alleged accounting missteps. Zhongpin has previously denied those allegations and stressed that the information contained in its filings with the SEC is accurate. Shares closed at $10.86 Friday and were inactive in recent premarket trading. The stock has climbed 27% so far this year.

[fung_derf]

China-based Zhongpin Inc. (HOGS, $12.56, +$1.70, +15.65%) has agreed to be taken private by a group that includes its chief executive in a deal that values the meat and food processor at about $503 million. The $13.50 a share offer price was first unveiled in March.

[ScovilleUnits]

Special Committee to Evaluate Non-binding Going Private Proposal

8-K... http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=8196891

Friday , April 13, 2012 06:00ET

BEIJING and CHANGGE, China, April 13, 2012 /PRNewswire-Asia-FirstCall/ -- Zhongpin Inc. ("Zhongpin" or the "Company," NASDAQ: HOGS), a leading meat and food processing company in the People's Republic of China, today announced that it has established a special committee of its board of directors (the "Special Committee") to consider the preliminary, non-binding proposal received from Zhongpin's Chairman and Chief Executive Officer, Mr. Xianfu Zhu, on March 27, 2012 to acquire all of the outstanding shares of the Company's common stock not currently owned by him in a going private transaction (the "Zhu Proposal").

The Special Committee is composed of the following independent directors of the Company: Mr. Raymond Leal, Mr. Xiaosong Hu, and Mr. Yaoguo Pan. The Special Committee has retained Akin Gump Strauss Hauer & Feld LLP as its legal advisor and intends to retain independent financial advisors to assist it in its evaluation of the Zhu Proposal and any additional proposal that may be made by Mr. Zhu and his affiliates, if any.

No decisions have been made by the Special Committee with respect to the Company's response to the Zhu Proposal and there can be no assurance that any definitive offer will be made, that any agreement will be executed, or that the Zhu Proposal or any other transaction will be approved or consummated.

[ScovilleUnits]

I don't.

[BigOnChina]

Any take on what does does for the potential buyout?

[ScovilleUnits]

Samsamsamiam, thanks for your post & reference link

Although the following PDF link to the extended filing is accessible via the link that you first provided, thanks again for that, going to go ahead and make it a bit more easily available by posting it separately as well….. http://www.sec.gov/litigation/complaints/2012/comp-pr2012-54.pdf

[martind18]

I wonder what the PPS is going to do on Monday morning in light of this??

[samsamsamiam]

SEC Freezes Accounts of Six Chinese Citizens and One Offshore Entity Charged with Insider Trading

FOR IMMEDIATE RELEASE
2012-54

Washington, D.C., April 6, 2012 — The Securities and Exchange Commission today announced that it has obtained a court-ordered freeze of the assets of six Chinese citizens and one British Virgin Islands entity charged with insider trading in Zhongpin Inc., a China-based pork processor whose shares trade in the U.S.

Additional Materials
SEC Complaint
The SEC’s complaint, filed in U.S. District Court in Chicago on April 4, alleges the defendants reaped more than $9 million by trading in Zhongpin ahead of a March 27 announcement of a proposal to take the company private. The complaint names as defendants one entity, Prestige Trade Investments Ltd., and six individuals, Siming Yang, Caiyin Fan, Shui Chong (Eric) Chang, Biao Cang, Jia Wu, and Ming Ni. The SEC alleged that Yang formed Prestige in January and funded its U.S. brokerage account in March with $29 million transferred from a Hong Kong bank.

According to the SEC’s complaint, the seven defendants bought substantial quantities of common stock and call options in Zhongpin between March 14 and March 26. Zhongpin’s stock price jumped 21.8% on March 27 when the company publicly announced that its Chairman and CEO Xianfu Zhu had made a non-binding offer to acquire all of Zhongpin’s outstanding stock at $13.50 a share, a 46% premium over the previous day’s closing price.

“The defendants in this action – all with seemingly limited resources - suddenly and inexplicably purchased more than $20 million in Zhongpin securities just before an important public announcement,” said Merri Jo Gillette, Director of the SEC’s Chicago Regional Office. “The SEC’s swift action to secure a judicial freeze order prevented millions of dollars from moving offshore.”

The SEC alleges that the purchases of Zhongpin stock and options were inconsistent with the defendants’ financial situations and prior investment behavior. In particular:

The defendants’ trades made up a significant portion of the trading in Zhongpin between March 14 and March 26. Prestige’s purchases alone represented about 41% of the common stock trading in this period.

Only one of the defendants had traded in Zhongpin before March 14.

For most of the individual defendants, the purchases of Zhongpin securities equaled or exceeded their stated annual income and represented a significant portion of their net worth.

Yang identified himself to his broker as an accountant in China with an annual income of $52,500 and a net worth of less than $250,000, when at the time he was a research analyst with a New York–based registered investment adviser.

Each of the defendants placed at least some of their trades from computer networks and hardware that other defendants also used to place trades.
The SEC alleges that the defendants violated federal anti-fraud laws, namely Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In addition to the emergency relief, the SEC is seeking permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and financial penalties. The emergency court order that the SEC obtained on April 4 on an ex parte basis froze defendants’ assets held in U.S. brokerage accounts, grants expedited discovery and prohibits the defendants from destroying evidence.

Jedediah B. Forkner, Marlene B. Key and John E. Kustusch in the Chicago Regional Office conducted the SEC’s investigation, which is continuing. Timothy S. Leiman will lead the SEC’s litigation effort.

The Commission thanks the Options Regulatory Surveillance Authority and the Financial Industry Regulatory Authority for their assistance in this matter.

###

For more information about this enforcement action, contact:

Robert J. Burson
Associate Regional Director
SEC Chicago Regional Office
[phone]

###



http://www.sec.gov/news/press/2012/2012-54.htm

[ScovilleUnits]

Oink, Oink...HOGS is squealing this morning

Zhongpin Announces Receipt of Non-Binding Going Private Proposal from its Chairman at $13.50 Per Share

Tuesday , March 27, 2012 09:06ET

CHANGGE and BEIJING, China, March 27, 2012 /PRNewswire-Asia-FirstCall/ -- Zhongpin Inc. (NASDAQ: HOGS) ("Zhongpin" or the "Company"), a leading meat and food processing company in the People's Republic of China, today announced that its Board of Directors has received a preliminary, non-binding proposal from its Chairman and Chief Executive Officer, Mr. Xianfu Zhu ("Mr. Zhu"), which stated that Mr. Zhu intends to acquire all of the outstanding shares of the Company's common stock not currently owned by him in a going private transaction at a proposed price of $13.50 per share in cash. Mr. Zhu currently beneficially owns approximately 17.5% of the Company's common stock. A copy of the proposal letter is attached hereto as Exhibit A.

The Company's Board of Directors intends to form a special committee of independent directors to consider this proposal and any additional proposal that may be made by Mr. Zhu and his affiliates, if any. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that a transaction with Mr. Zhu or any other transaction will be approved or consummated.

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=8158904

[Penny Roger$]

~ Monday! $HOGS ~ Earnings posted, pending or coming soon! In Charts and Links Below!

~ $HOGS ~ Earnings expected on Monday *
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.








http://stockcharts.com/h-sc/ui?s=HOGS&p=D&b=3&g=0&id=p88783918276&a=237480049




http://stockcharts.com/h-sc/ui?s=HOGS&p=W&b=3&g=0&id=p54550695994



~ Google Finance: http://www.google.com/finance?q=HOGS
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=HOGS#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=HOGS+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=HOGS
Finviz: http://finviz.com/quote.ashx?t=HOGS
~ BusyStock: http://busystock.com/i.php?s=HOGS&v=2


<<<<<< http://www.earningswhispers.com/stocks.asp?symbol=HOGS >>>>>>



http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916

*If the earnings date is in error please ignore error. I do my best.

[vhgier]

And I was right..........here we go folks!

[vhgier]

Technicals looking real good right now. Once we get passed 10.20 or so we are off to the teens.

[fung_derf]

Chinese Asset Bubbles: The IMF warned that China's biggest commercial banks face systemic risks if a combination of credit, property, currency and yield curve shocks that could be withstood in isolation were to occur together. However, the IMF said China can contain these dangers by freeing up financial markets to give investors, commercial banks and the central bank greater autonomy from government control. While not predicting an imminent disaster, the IMF made clear China needed to act quickly because it is vulnerable to destabilizing asset price booms. The fund said it ran a stress test on 17 banks that account for 83 percent of China's commercial banking system. The test showed banks' non-performing-loan ratios rose by at least one percentage point for each one-percentage-point drop in gross domestic product. Reuters.com

[fung_derf]

They don't necessarily all have to be bad. However, it is possible they have been overhyped and overvalued. They could have been printing shares as the price rose or gifting bonuses to board members. The problem is, we don't know how well enforced their whole exchange is. It could be like the Vancouver Exchange where you couldn't believe anything you read.

[vhgier]

yea i guess i'm a little behind the curve.

However, I agree but I wonder, how can all chinese stocks be bad? Hogs, again IMO seems more legit than some others. I guess next week will tell..........You never know. Could hit 10 and change than maybe 11-ish if we some volume. The sellers already washed out the stock.

[fung_derf]

LOL! Well, considering you responded to a post of mine that is three months old, I'd have to say your point is moot.
When I posted that, the stock was over $10. It nosedived from there to under $6.70 immediately after.
The short term trend may be decent, all the way to just over $12, however, it really needs to get above $12.50 before I would start feeling good about it.
I bought this thinking it was a legit company. My question isn't so much with the company itself as it is the entire Chinese market that was built up way too quickly. Short cuts taken aren't a good thing.
FWIW, I still own some of this at a much higher price. JMO, of course.

[vhgier]

I meant HOGS not hohs but that is sort of funny......

[vhgier]

No it's a buy at this point. It was a buy over 10. Not all chinese stocks cook the books and Hohs IMO is legit.

[fung_derf]

A chance to sell off today perhaps?

[fung_derf]

Any doubt there is bad news amiss?

[Pro-Life]

LOL!!! Let me know how it goes!!!

[fung_derf]

I'll have to send my Boston representative.

[Pro-Life]

Zhongpin to Attend Oppenheimer 11th Annual Consumer Conference on June 28-29, 2011
Date : 06/23/2011 @ 5:00AM
Source : PR Newswire
Stock : Zhongpin Inc. (MM) (HOGS)

http://ih.advfn.com/p.php?pid=nmona&article=48175145&symbol=HOGS

Zhongpin Inc. ("Zhongpin", Nasdaq: HOGS), a leading meat and food processing company in the People's Republic of China, today announced that it will meet with institutional investors at the Oppenheimer 11th Annual Consumer Conference in Boston on June 28 and 29, 2011.

During the conference, Zhongpin will present and attend one-on-one meetings with investors. Mr. Sterling Song, Investor Relations Manager, will represent the company.

The conference will be held at the Four Seasons Hotel in Boston.

If you are interested in attending this conference and meeting with Zhongpin, please contact your Oppenheimer sales representative.

[fung_derf]

Very nice bounce this morning. Bumped through last weeks high. There may be hope yet. Next resistance currently around $15.83 JMO, of course.

[fung_derf]

I'm not quite convinced this is the bottom yet. The whole Chinese market is looking suspect lately.

[Milo2]

I think has finally found support at 50% retracement (from $22 high). Executives buying stock too...

[fung_derf]

OUCH!!!! So much for the channel! Broke right through the second support line! DANG!!!!!!!!!!

[fung_derf]

Why? I see it trading in a channel for a while. Back and forth between $14.15 and $16.45. JMO, of course.

[Pro-Life]

I think this is starting to turn upward... watching intently.

[Pro-Life]

End of the week scoreboard: -2.6%!!!

[fung_derf]

Unfortunately, the technical support is at $16.64, and thus far it has just bumped against it. If it breaks below $13.25, I fear I will have to dump it.

[Bart Myers]

Global Hunter Securities upgraded Zhongpin (NASDAQ: HOGS) from Neutral to Accumulate in a research report published today. Global Hunter Securities also increased its Zhongpin price target from $15 to $18.

In the report, Global Hunter Securities states, "The company announced this morning that it has signed what it calls a “strategic cooperation agreement” with China Construction Bank which will provide credit access up to RMB 10B (~$150MM) in growth capital. In our view, today's announcement greatly reduces the risk of any further near-term dilution and serves as another material form of institutional sponsorship."


Source: http://www.benzinga.com/analyst-ratings/analyst-color/11/04/1007102/global-hunter-securities-upgrades-zhongpin-to-accumulate#ixzz1JbOh0Nvj

[Pro-Life]

Seems like the bottom has been found...

[Pro-Life]

Looking forward to the Q4 numbers.

[Pro-Life]

HOGS annotated technical observations:

[Pro-Life]

HOGS news can be viewed here:

http://zpfood.com/comNews.asp?BigClass=Corporate

[Pro-Life]

More upside to come in my view... based on the entire sector performance.

[BigOnChina]

sounds good to me! I'd put it at $25.00 in January, $30 in July of next year. I still think OINK will outperform HOGS but I own both.

[fung_derf]

HOGS broke out nicely today. Has some real upside and $45 seems possible. JMO, of course.

[fung_derf]

GEEZ! Have you looked at BORN?? If that product is legit, the uses could be amazing! Now THAT one intrigues me.

[fung_derf]

I'd feel better if the earnings were reported elsewhere than from Marketwire. JMO, of course.

[BigOnChina]

http://finance.yahoo.com/q?s=oink

[fung_derf]

Maybe I'm missing it, not seeing a price per share.

[BigOnChina]

http://biz.yahoo.com/e/100811/oink10-q.html

[fung_derf]

Don't know where you're getting those earnings. I'm showing them as unavailable.

[BigOnChina]

OINK IPO'd at $6.00 a share and as of this morning is trading at $6.10. The P/E is just 7.87 as opposed to HOGS which has a P/E of 14.09.

With both growing rapidly, I think I'd rather be in OINK.

[fung_derf]

You don't think OINK is ahead of itself as well? I would assume these two stocks will trade in sync. Nice pick by the way.
I also pulled money off the table here. Usually stocks make a three week run, then pull back. This is week three. JMO, of course.

[BigOnChina]

HOGS is getting a little ahead of itself at this price. We need to see a serious earnings beat for this thing to head much higher.

Until then, and it will happen, I'm taking some more off the table and moving it to OINK. Better valuation.

[BigOnChina]

yes, $6.00 was the IPO price

[fung_derf]

Very nice, although in overnight trading it has given half back. The stock just doesn't have enough of a history for me, but I've got to confess it looks very interesting here. If I'm reading it right, did it IPO at $6.00?