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Yes this news came out yesterday & Yes this company has bought pulp from CKGT in the past to manufactor cactus health drinks.
The big news is that CKGT plans to have their products distributed[cactus cigarettes] in Taiwan & other parts of Asia using this distributors network.
o.k. So eps won't be $0.22-$0.26 in 2010 as I projected "conservatively"before the new shares were added into that projection.
But the need for added facilities to fill increasing order backlog makes me think eps would have been at the upper end of my projection.
So 2010 eps will only be around $0.19 thats still up from $0.15 last year with like 50% more shares outstanding.
And the new plant is expected to add $20M in revenue gains on a full year basis.
On a per share basis off the top of my head this will add about $0.08 to 2011 eps & about $0.15 to 2012 eps.
With growth like that I don't think you can say this deal was dilutive to eps unless your taking a very shortsighted view.
I for one will be buying the dips as long as HFGB is doing deals that are accretive to longterm growth & can still increase eps this year while doing so..
I was a buyer @$5.00 today.
I am looking for a good report Friday & averaged down my original position.
Somebody has been selling shares at & below $5.00 since the reverse split & subsequent listing making NFEC a laggard with the ability to catch up if the fundamentals remain good.imo
Received on my aol account news wire...
Export contract signed with Taiwan Bantianshui Co. Ltd to deliver 100 tons condensed cactus pulp to produce health care beverage products for the Taiwan area.
Talks to distribute other CKGT products "cactus cigarettes were mentioned" also underway.
CKGT & Taiwan Bantianshui had a working relationship before this export contract.
First shipment will be 5 tons with the balance shipped within 1 year starting in Oct.
c,c, Friday 9;00am eastern
earnings press release prior
"Any other hidden gems"
Way to many to mention them all.
Heres a few I like ahead of earnings;;;
nfec wkbt hfgb jada bspm
$1.40+$0.21 or 17.65% was done on above average volume of 98,420 shares.
Although the pps made a upward spike on the charts the volume was not convincing enough to call this a breakout yet.imo
It looks to me like some relative value players are rotating funds into laggards.
CKGT surely qualifies as a laggard still down over 50% from its previous high @$3.00 in spite strong revenue gains so far this year.
As 3rd qtr numbers comfirm that the 3 pronged revenue thrust from beverages,animal feeds & cigarettes is real & that margins are continuing to improve from the awful margins shown in qtr 1 I look for continued upward support for the pps.
And yes these 3 pronged revenue drivers should occupy most of managements drive to increase current results.
However at some point I still believe "personnel care products" will be needed to propel growth thru the rest of this decade.LOL
It is hard to get information from management that is reliable since I have been told in 2008 & again in 2009 that personnel care products would be launched.
My latest e-mail inquiry directed at the vice president has gone unanswered but was delivered in his direction.
I am tired of waiting on this stock to trade.
Good luck selling stock when you get ready.
Taking this one off my watch list.
Its good to know they have sources of cactus other than what they grow on the acres they lease from the Government.
Beverage has been a product they have had for many years but even so 1st qtr revenue of $1,398,701 grew to $3.2M in the 2nd qtr.
Animal feed growth thanks to hogfeed adding to the continued growth from the original feed products saw 1st qtr revenue of $468,373 grow to $1.3M in the 2nd qtr.
Cigarettes revenue of $212,638 in the 1st qtr grew to $837,752 in the 2nd qtr.
Its easy to see with 3 pronged revenue drivers like those why record 2nd qtr revenue increased to $8.733M from $5.519M in the 1st qtr.
Even allowing for some slowing of this remarkable revenue growth trend the 2nd half of 2010 should see revenue qtrs of $10M or more.
And since this growth should continue in 2011 as well especially for cigarettes will they have enough cactus to also introduce a few "personnel care products."
I believe the answer is yes. And if I am right 2011 will be a year to remember as the best was saved for last.imo
I also like that eps were up in spite a four fold increase in R&D.
However some were disappointed that new products didn't contribute to revenue on a percentage basis.
The flagship product should continue its strong revenue growth with improving margins for a few more years so earnings should show solid gains regardless.
However as long as snbp is seen as a one product company with a large increase in shares outstanding the stock will probably underperform.
New products are not suppose to make a big contribution until next year but I would like to see revenue progress from newer products this year.
As a percentage of total revenue the flagship product is contributing a bigger share of total revenue because of its continued strong growth so when revenue from other products contribute enough to stop this trend I see SNBP deserving a higher p/e ratio since growth from their pipeline of new products can substain good longterm growth of 30%+ for many years after their original producer of revenue see's its growth slowing down.
smartscan chart analysis & my view
1]above 5 hour M.A.+10
2]3 day high on friday+15
3]above20 day M.A.+20
4]new 3 week high week ended Nov.6th+25
5]new 3 month high in Nov.+30
total +100% buy
The volume tapered off Thur. & Fri. keeping the pps below resistance @$0.90.
I believe that resistance could be overcome next week with another good earnings report.
Lets hope that management is correct in saying growth will continue in the traditionally strong 2nd half.
So far management has been very conservative & beat every projected revenue & earnings given.
I am still here as well.
Actually I have been waiting on ther fundamentals to improve & that seems to be the case presently.
I was about to pull the trigger & buy more shares in the $4.75-$5 dollar range but I will wait out whoever is currently selling shares into a thin market.
"Very nice. $4 is very possible...within 2 years!"
And if hfgb continues its current pace of growth it will still be undervalued then as well.
2011 eps around $0.35 followed by around $0.50 in 2012 if hfgb follows the current pace of growth factoring in some dilution.
Management has visions of increasing the pace of growth even more than that over the next two years so only time can judge where the pps will or should be in 2 years.
I have yet to sell one share as I have steadily averaged down since my 1st buy @$0.95.
I was luck enough to have picked the very bottom to double up so my average buy was far below the current pps.
I still consider the pps a steal below $0.95 my 1st buy point.
Decided to take a nibble & get back in jada today as I continue to rotate into some deserving underperformers in the China space.
o.t. hfgb a stock that has moved off its lows but is still well off its 52 week high of $1.40 in spite revenue & earnings gains in triple digits since that time is rated 100% buy by smartscan chart analysis.
1]above 5 hour M.A.=+10,,,2]above 20 M.A.=+20,,,3]3 day high=+15,,,4]new 3 week high Nov.6=+25,,,5]new 3 month high=+30
Using the above formula jada would not fair as well since hfgb is a growth stock & jada is a value stock.
However both stocks are well off their respective 52 week highs & deserve a spot in my relative value portfolio.
My pps target are $1.40 for hfgb & $1.00 for jada assuming increased trading volume & continued good financial results.imo
Smart scan chart analysis;
1]above 5 hour M.A.=+10
2]3 day high =+15
3]above20day M.A. =+20
4]new 3week high =+25
5]new 3 month high =+30
total score +100% buy.....
This score can be updated daily however as of now it is rated a 100% buy & why not the fundamentals have improved while the pps has dropped from a high of $1.40.
Volume is the key but any increase should push the pps to next resistance around $0.90 in the nearterm.
Intermediate term resistance of $1.40 would then become the next challenge.
And with the fundamentals remaining intact $2.00 on 2011 outlook would seem possible.imo
We finally broke out above the $0.75 barrier today.
The rest of the week will be interesting to watch.
Revenue is exploding & no body but us is buying currently.
1st qtr revenue of $5.519M was surpassed by the 2nd qtr $8.733M thanks to the three pronged revenue gains from drinks, cigarettes & hogfeed.
The 2nd half is traditionally stronger than the 1st half but last years record 4th qtr revenue of $8.507M was beaten in the 2nd qtr of 2010.
The 1st qtr revenue numbers were far better than last years 1st qtr numbers but margins were way down because of the product mix.
In the 2nd qtr margins improved mainly because of cigarettes having high margins & a better product mix.
As revenue from hogfeed continues its strong gains margins should improve there as well.
Revenue of $10M a qtr is very likely to occur in the 2nd half of 2010.
I believe this revenue trend is likely to continue into 2011 as well as ckgt is broadening the distribution channels to all of China & other parts of Asia as well.
2011 should finally be the year personnel care products get introduced since every other product category should be well along in being accepted by the Asian consumer.
The Asian consumer especially in China is gaining in weath which bodes well for companies like ckgt that have the consumers heath in mind with all their products.
The one product that has the best margins & can really fit into middle class consumer lifestyles [personnel care products] should find a ready consumer ready to accept cactus heath care products.
I have sent a e-mail directly to the vice president of ckgt asking about when personnel care products will be launched.
I don't expect a reply but who knows for sure.
I do think it is time for ckgt to take the next step & become a major player in delivering cactus based products especially the ones with the highest margins like cigarettes & personnel care products & hogfeed as well as revenue continues to expand.
Export oriented companies may well suffer in Chinas shift to a consumer led economy but companies like ckgt should do quite well.
If ckgt does decide to introduce some of the many products not yet intoduced I could see eps approaching $1 in 2011 otherwise $0.75 to $0.80 would be more likely.imo
No trades the last two days.
I would like to buy some if & when it starts trading again.
The lack of liquidity in some of these underdiscovered gems is scarey.lol
Hank i just sold my 3k shares after seeing some of the restated results.
I was very surprised to see it execute for $0.25.
My ask was $0.15 or better.lol
I agree ckgt has wasted money hiring low class I.R. firms.
However I don't think ckgt wants to communicate with I.R. firms any better than they do with investors.
The only communications I was ever able to have with ckgt that gave me helpful information was with vice president [Ren Hu] thru e-mail.
He sent me a very useful investors kit in 10/09/07 ahead of a presentation at the RedChip small-cap conference aUG. 16-17,2007.
Since that time ckgt hasn't really attempted to reach out to investors.imo
They may not trust I.R. firms enough to give out future plans anymore for whatever reason since dealing with redchip as the quality of information released has dropped off since the above dates.
"They seem to have a time frame for releasing information currently."
Management has held a longterm strong ownership position in ckgt without taking advantage of the upswings in the pps as they have never sold any shares to my knowledge.
I think they are confident in their abilty to deliver strong longterm results & are not really interested in the short term stocks pps except for the ability to raise funds to expand.
Reading the Chinese mind is not a exact science of mine but I feel I have some understanding of management views.
It is upsetting my greymatter as well.
Rather than trinkle down a bit week after week I would rather see someone unload their shares & lets get a bottom wash.
The future growth & pps are completely out of wack now so a final drop to $0.75 letting those that believe its not a fraud load the boat,AGAIN.
Not really just trying to be conservative.
They did $0.06 in the 2nd qtr & $0.04 in the 1st with 25% more shares outstanding.
If they have eps of $0.06-$0.08 in the 3rd & 4th qtr that would bring 2010 eps in at $0.22-$0.26.
In 2009 eps was only $0.14 fully diluted so with the increased share count that is still a net income gain of over 100% from last year.
That is a o.k. conservative estimate in my opinion.
I haven't heard anything new about seeking listing other than their earlier statement,,,however the pps was close to $1.40 at that time.
The reason they were seeking listing was to raise more money for ambitous expanding.
I think they can grow at a nice clip from current growth so why be in a hurry to seek listing until the pps regains a more reasonable level.
I have a small position in NFEC that did a reverse to get listed.
The pps has been making new lows in spite getting new business so uplisting hasn't worked out to well for some Chinese stocks lately.
I think $0.06-$0.08 in 3rd & 4th qtr is more likely since they have 25% more shares outstanding.
That would be enough to beat company estimates with 2010 eps of $0.22-$0.26 fully diluted.
I think not.
However I have lots of cash to buy more on pullbacks.
There is no fundamental reason for UTA to be lagging its peers on a continuing basis.
While fundamental are a great reason to own uta the large & growing short position is another.
As Chinese stocks once again gain favor shorts will find that going against the trend is a expensive mistake.
I am starting to rotate from stocks like ccme where shorts have been routed into stocks like uta where the panic on their part is just beginning.
After 3 straight weeks of solid gains ccme may have even further to go but by rotating some funds into stocks like uta which is still far off its 52 week highs the relative gains maybe better at this point in time.
I been adding to ccme wkbt & most of all hfgb but its sure good to see ckgt finally joining the party today since I already had a large position.
Market Advisors in a poorly written report has a target pps of $6.05 on WKBT based on 8x2010 eps of $0.75.
They do mention the new products WKBT will be releasing in the 2nd half of 2010 & in 2011 but defer to WKBT's website for detailed information leading me to believe a minamal effort was put into this report.
While I believe WKBT has a bright future hiring someone to write such a brief report with lack of details is not the proper way to get the word out.
It does show me that they are making a effort to meet listing requirements.
If they execute their business plan without dilution as stated & are still able to do a small acretive acquisition along the way the pps will get to the next level.
If they want analyst exposer they will have to earn their way by continung to perform & delivering the excellant results they have delivered in spite the flood effected 2nd qtr.
The increased volume over the last couple of weeks is proof the word has been getting out.
Overall Chinese stocks have gone into increased favor since last month & this along with the small float WKBT has & a spread that has narrowed has made WKBT a favored attraction to new investors.imo
I sold my position in "born" a while back to buy more "ccme"because I like the upside in ccme much better at this time & I wanted to take profits in a stock that had outrun the pack.
While holding my cash position to help bury the shorts as the time arrives like almost now.
My pps target for ccme remains a momo run above the previous 52 week high that in my opinion will happen with or without the help of 3rd qtr numbers, however 3rd qtr numbers could prove to be the icing on the cake.jmo
2010 revenue of $55M with net income $21M & eps $0.75
5 new therapeutic products expected to add $17.3M in revenue & $6.4M to net income in 2011 with overall revenue wexpected to increase 30-50%.
These new products should increase margins thus 2011 eps should increase to $1-$1.15 per share without further share dilution.
"I think HFGB could easily fetch $2.00+ per share"
Under good market conditions that would be very do able.
Last time China stocks were in favor HFGB had eps of $0.15 & reached a pps of $1.40.
I have a conservative target of HFGB again reaching a pps of $1.40 with 2010 eps @$0.20+.
If the volume increase continues a forward p/e ratio of 9 would seem a fair target considering the outstanding organic growth of HFGB.
That would put a possible pps of $2.00 & up to $3.00+ on 2011 eps numbers.
Look how the pps has reacted in the last couple of weeks as our space has been in rally mode.
If this continues HFGB could have its pps north of a buck by November.
Quite board but cpqq had a nice increase in pps last week.
Unbelievable,,,
I took my profits to ccme a while back. But born just keeps on going & going.
1st qtr number should be any time now for the qtr that ended Aug 31.
I think investors were better off when ckgt had no IR.
At least the company did answer some of my e-mails then.
They really do need a "real" IR firm but they keep hiring the wrong guys.
Congrads. on jada today as Chinese stocks seem to be getting increased volume & rotation of late with all deserving stocks finding increasing volume & pps a good combination going into what should be strong 2nd half results for most.
Todays volume was still above average at 48,347 shares but the stock finished down at $0.635 -$0.0138 or 2.13%.
I believe the stock is still consolidating its recent rise off the yearly lows & will probably find a bottom & hold in the upper $0.50's or low $0.60's as the expected strong 3rd qtr numbers are not that far away.
IMO with the stock well below current B.V. of $0.77 & a p/e ratio of under 3 presently a strong yearend rally seems a logical expectation.
HFGB has already visited $1.40 in the TTM period when eps came in @ $0.15 for 2009 & now with TTM eps @$0.23 the pps is much lower.
I think for a couple of reasons.
1] The stock has had trouble digesting the 25% increase in shares outstanding in 2010 since Chinese stocks have all had a inbalance of buyers to accomadate the stocks.
This seems to be changing with the increase in volume lately.
2] The company plans to triple revenue by becoming a full service RX & to seek exchange listing.
Buyer preceive this as meaning more share dilution at a time when exchange listing hasn't added to company values.
HFGB has a strong & growing backlog & really has no need to be in a hurry to grow thru added share count as cashflow is enough to fund current growth.
At some point HFGB will be forced to raise cash for their ambitous future growth plans but I believe 30% revenue growth can be attained using only present cashflow.
At $0.63 hfgb is holding & digesting its gains of the past two weeks rather well.
Still the pps needs to rise another $0.14 just to get to B.V. & the current p/e ratio is still less than 3.
Volume has picked up in these last two weeks & if volume continues strong after this consolidation a return to previous highs of $1.40 by early next year would be my expectation.
But even then hfgb would be far below fair value for such a well run company growing very consistant & rapid organically & thru meassured acquisitions.
With 1st qtr numbers in a couple weeks this looks like a good time to buy some shares.
2010 bottomline went from -$0.03 to +$0.03 almost entirely from their flagship product that should see its astounding growth continue for 3 more years.
They have more drugs in development that could become World class products in there category.
At least one new drug should add to 1st qtr results & I will be glad to see snbp become more than a one drug pony even if that one drug has further growth ahead as it becomes a worlwide leading drug of choice.
Hold Hold Hold.....The heck with that....Buy this baby before it really takes off.eom
Hawks is being replaced by Equiti-trend contact is Brian Barnes 858-436-3350 or 800-953-3350.
The question I have is will ckgt give them the information they need to be effective.
Hawks seemed at a loss to answer my or others questions concerning ckgt.
Could it be that ckgt was piecemealing information out not wanting information released until they deemed that information should be released.
Prior to" Hawks" the I.R. firm was "Red Chip"
ckgt gave Red Chip enough information to write up a I.R. Kit with a 5 year plan of revenue & earnings projections broken down by product & category.
I found the Kit very useful even though actual results by category seemed to trail forecast results the total revenue & earnings for each year were close & the growth trend overall could be easily projected taking into account the slow introduction rate of new products.
Some products scheduled for launch in 2008 have still not been as they put their best efforts into the one's that were launched.
RedChip liked to pitch information about companies other than ckgt this might have been a short fall with ckgt as it was with me.
I hope Equiti-trend is given information more freely from ckgt to do their job than the slow response Hawks received from ckgt.
At least that seemed to be the case to me.
regards pappytom