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Furthermore if they do another deal within 6 months or April 30 they have to pay Seaside.
Don't know if this has been posted but I noticed it on their web-site. Looks like baby food is next. Good be old but I have not noticed it.
03.Packaged-food
¡¡Currently, China Kangtai produces a wide variety of packaged foods containing cactus or utilizing cactus as the primary raw material. The Company produces cactus in many edible varieties or as the main ingredient in other food products such as noodles, bagged cactus fruits and vegetables, cactus biscuits, and pickled cactus. Cactus based foods provides a unique and healthy alternative for consumers. Chinese consumers are continually making the switch from loose products up to packaged foods, and value added packaged foods which are expected to experience stable growth. This evolution of consumer food expenditures is looking good for China Kangtai as their products precisely target these consumers. China Kangtai will be introducing a number of baby food formulations in the near future. Baby food is a very attractive and rapidly growing segment of China’s packaged foods industry.
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GeoTeam - Monday, May 24, 2010 12:00 AM
Admin with 1,902 posts since Nov 3 2007
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On May 17, 2010 CKGT reported first quarter results.
First quarter ended March 31, 2010 increased 66% to $5.5 Million
GAAP net income was $2.4 Million versus $956,673
Adjusted net income (absent revaluation of Series A preferred Stock and A, B, C and D warrants) rose 20.5% to $836,723 of $0.04 per diluted share versus $693,948 or $0.04 per diluted share in Q1 2009
Gross profit margin was 27% compared with 37% in the first quarter of 2009.
Income from operations increased 34% to $1.2 Million from $880,530 in 2009.
Weighted average number of diluted shares outstanding was 21.7 Million as of March 31, 2010 compared with 19 Million as of March 31, 2009
The stock has since sold off on this report. We suspect that even though the first quarter is historically the weakest quarter for CKGT, investors were likely expecting some EPS growth. Even though sales were robust and more than we had anticipated, lower margins did not allow operating earnings to keep pace.
Ideally, as a company expands, growth is also preferred in the slowest quarter even though the EPS is less then each of the remaining three quarters. It is unfortunate that U.S. investors analyze stocks on a quarterly basis. But we can't ignore the typical investor’s point of view.
We believe that the decline in CKGT shares could have been averted if the company did a better job of educating investors in its press release.
1. Recall from our Rodman conference interview, the company maintained that in order to accelerate its EPS grow rate it would require financing. Although the company's growth assumption may have been conservative, this issue could still lead to investor trepidation. The company did receive funds from a land deal which happened last year between China Kangtai and Government of Qitaihe Cityand and also canceled a pending private placement deal involving 2,100,000 shares. These events may ease the concern of possible dilution. CKGT needs to put this issue to rest.
2. The company did not reiterate guidance or explicitly mention that the first quarter is typically the weakest. Investors need clarity, so the fact that CKGT won't give net income guidance could be causing a perception problem as it pertains to margin uncertainties.
3. Operating income grew at a lesser rate than sales
Product mix played led to decreased margins:
"Sales of raw and intermediate materials were up 170% to $1.6 Million. This had a negative impact on our gross margin because the gross profit rate for raw and intermediate materials is about 11%, compared with substantially higher margins in the other two categories."
Management did not indicate if this situation would change. We can make the assumption that it will, but we need to hear it from the company. Maybe this is a clue to management's own margin uncertainties and lack of net income guidance?
4. We also have to remember that many novice investors are most likely applying a trailing GAAP EPS of $0.08 as opposed to non-GAAP EPS of $0.39 to value CKGT shares.
The GeoTeam has attempted to roughly calculate what the 2010 future quarters will look like.
Revenue estimates using:
2010 company revenue guidance of about $35.0 Million
Past trends (Revenue per Qtr/total sales). This relationship has been remarkably consistent and can provide us with a conservative starting point.
1st Qtr. 2010 Reported
2nd Qtr. 2010E
3rd Qtr. 2010E
4th Qtr. 2010E
2010 Full Year Estimate
Revenue
$5.5 Million $8.8 Million $10.4 Million $10.5 Million
$35.0 Million
Aggressive Revenue estimate using:
First quarter sales
Past trends (Revenue per Qtr/total sales).
1st Qtr. 2010 Actual
2nd Qtr. 2010E
3rd Qtr. 2010E
4th Qtr. 2010E
2010 Full Year Estimate
Revenue
$5.5 Million $11.0 Million $12.7 Million $13.1 Million
$42.3 Million
Please note that past Revenue per Qtr/total sales relationships may not hold as new products are now in the mix.
The fact that no net income guidance was provided and that no color on margins was provided in the press release will keep investors in limbo regarding EPS. Using our low end EPS estimate from our April 20, 2010 research note of around $0.50 yields the following:
1st Qtr. 2010 Reported 2nd Qtr. 2010E
3rd Qtr. 2010E
4th Qtr. 2010E
2010 Full Year Estimate
EPS $0.04 $0.10 $0.17 $0.20 $0.51
The EPS calculation assumes that non-GAAP net margins will come in around 30%. Of course, if first quarter margins do not improve, EPS could come in lower, unless revenue growth is more robust than company expectations.
Using our more aggressive revenue assumption would yield higher results.
Investors have taken CKGT shares down to its book value per share and an adjusted P/E of 3.3. This low valuation will prompt us to keep CKGT coded as a GeoSpecial until the second quarter is reported or more information becomes available. We will be speaking with CKGT's IR firm on the issues in this research note.
Reply
Bogus as far fetched as it is it could be in the cards, management has touted cactus as a health food since inception. They also have an entourage of experts from China Health Care that back these claims. Also very connected with Mexico. I believe something is happening and we should hear something in the future.
This is only a hunch because of a few comments made from prior filings.
Should have clarified...I was thinking the beverage mainly and in the event raw material is taking off it would be a nice time to increase margins. The growth here was 170% so obviously either a one time deal or they are possibly penetrating a new market with huge growth. If this were to happen and with the benefits of cacti it certainly would not be a surprize.
This Q. was answered with even more questions. Maybe answers come then. I just love the growth potential here.
AS far as feed products I agree with your comment on weight gain and mortality rates.
Company estimates feed & feed additive products to
reach 1% industry market share
This statement was made during the Rodmman & Renshaw dog and pony show which was last Sept. Does these new patents change this figure? If so, by how much?
What everybody seems to not be focusing on is their ability to raise prices.
Obviously they can NOT supply the demand as evidensed with record low inventory.
I have mentioned this to managemnt which would eliminate the tax issue and the increased share count.
Gross margins will improve from this Q as SGA had a few additional hits that will not show up in Q2.
Raw material margins will also increase. Waay to negative.
Throwerw, meet with management a give the board a clearer perspective on what to expect. How hard is it to show up and ask questions?
Cigs are not a flop as many have concluded.
I understand that you are in th esame camp as Traderfan in regards to stagnant earnings growth on a per share basis due to increased taxes and share count The fact that CKGT has phenominal revenue growth is testament to consumer demand with no let down. Did you see these health benefits...with NO DRUGS!
Whether you are right or wrong is FWIW not as important as what lies ahead. For starters their is only 1.9 MIl warants left to excersize totally. Nothing else hidden and very clean going forward unlike many stocks in the Chinese arena being touted on CGS with huge dilution going forward which is hidden deep in the 10k. CKGT.OB has excellent cash flow going forward which will increase proportionately going ahead. They have very little debt I believe around $6 Mil which is covered with cash flow alone.
With all the side-effects of drugs etc...wouldn't you expect people to seriously consider taking the safe natural way? Wouldn't ya think they have products that would appeal to health consious(sp) consumers worldwide? Wouldn't you think they could to a 5-10% price increase to cover the tax increase and share increase? This is the #1 reason I bought this stock and diabetes and blood pressure are rampant in China. The benefits are absolutely fabulous. Here it is for those who were to lazy to check it out.
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Thursday, May 20, 2010
Healthy life with China Kangtai Cactus Bio-Tec (CKGT)
China Kangtai Cactus Biotech, Inc. is a leading grower, developer, producer, and marketer of cactus-derived products, including nutraceuticals, nutritious food, health and energy drinks, beer, wine and liquor, extracts and powders, and animal feed. China Kangtai controls over 387 acres of plants and maintains an active group that holds 18 product patents and is seeking another 12. China Kangtai's high-quality “green” products are sold throughout China via a distribution network that covers 12 of China's 23 provinces and two of China's four municipalities.
In April they announced that it has signed a three-year marketing and sales agreement with Yongkangmen Health and Drug Chain Store Group Ltd. to sell its nutritious and patented cactus-based products, including nutraceuticals, health food, and health and energy drinks.
Yongkangmen Health and Drug Chain Store, headquartered in Beijing City, has controlling ownership in more than 3,000 drugstores throughout China. Additionally, Yongkangmen owns one pharmaceutical manufacturer and three pharmaceutical wholesalers in Hebei Province, and farms Chinese herbal medicine plants on its land in Baekdu Mountain (also known as Changbai Mountain) in Jilin Province.
Under the agreement, all the Yongkangmen drugstores nationwide will promote, market and sell China Kangtai’s cactus-derived products for the next three years.
China Kangtai CEO Jinjiang Wang said, “Traditional Chinese beliefs view herbal-based medicine and dietary supplements as an alternative to healthcare. The demand for our cactus health products has been expanding every year. By leveraging Yongkangmen’s prominence in the health product retail industry, we can expand our market share into new territories exponentially, which creates a win-win situation for both Yongkangmen and Kangtai.”
Last Monday they released their first quarter results (ending March 31). Revenues 2010 increased 66% to $5.5 million from $3.3 million. Net income totaled $2,352,638 as compared to the net income of $956,673 in the same period of 2009. The increase in net income was caused partially by the income from revaluation of Series A Preferred Stock and A, B, C, and D warrants with characteristics of liabilities at fair values. (See Note 11 to Financial Statements in 10-Q). Absent this income, the company would have had a net income of $836,723 in the first quarter of 2010, as compared to net income of $693,948; and basic and diluted earnings per share would have been $0.04 and $0.04.
With other words: Adjusted net income was up 20.5% to $836,723 or $0.04 per share. GAAP net income was $2.4 million versus $956,673. Gross profit margin was 27% compared with 37% in the first quarter of 2009, primarily attributable to the increased sales of our raw and intermediate materials. The gross profit rate is about 11% for our raw and intermediate materials products. Income from operations increased 34% to $1.2 million from $880,530 in 2009.
Weighted average number of diluted shares outstanding was 21.7 million as of March 31, 2010 compared with 19 million as of March 31, 2009
Especially the Q1 Product Categories Performance was good.
Nutraceuticals revenue increased 32.6% from $1.4 million in 2009 to $1.8 million, or 33% of the total Q1 2010 sales.
Beverages revenue increased 43% from $1.0 million in 2009 to $1.4 million, or 25% of the total Q1 2010 sales.
Raw and intermediate materials segment revenue increased 170% from $0.6 million in 2009 to $1.6 million, or about 30% of the total sales.
Cactus feed revenue increased 82% from $257,844 in 2009 to $468,373, or about 8.5% of the total sales, due to cactus hog feed launched in Q4 2009 after the successful launch of cactus cattle feed and fish feed in July 2008.
Packaged foods provided no revenue in the quarter, compared to $123,592 in Q1 of 2009
Cactus cigarettes, launched in Q4 2009, reported revenue of $212,638, or 4% of total sales.
Management Comment
China Kangtai CEO Jinjiang Wang said, "Our first quarter of 2010 was marked by continued strong product sales in our largest product segments nutraceuticals, beverages and raw and intermediate materials. Sales in our two traditional core businesses, nutraceuticals and beverages rose 33% to $1.8 million and 43% to $1.4 million respectively. Sales of raw and intermediate materials were up 170% to $1.6 million. This had a negative impact on our gross margin because the gross profit rate for raw and intermediate materials is about 11%, compared with substantially higher margins in the other two categories.
“We were pleased with the 82% gain in cactus feed, reflecting the introduction of new animal feed lines. And we saw our initial revenues from the sale of cactus cigarettes, which we believe will provide us with excellent growth for the remainder of the year,” Mr. Wang said.
What attracted me to this story were the health benefits that some Cactus plants seem to have. My wife is from Mexico and in Mexico Nopales is widely used in capsule form for all kind of treatments.
The Nopal cactus (Opuntia ficus-indica), also known as "prickly pear," is a plant native to the mountains of Mexico. It has been used since ancient times as both a food and as a medicine for its health benefits. The Aztecs considered the cactus, which derives some of its properties from the volcanic soil in which it grows, as a food fit for royalty and a fortifying substance for warriors. A powdered form of Nopal has become popular in modern times as a treatment for a variety of metabolic, digestive and heart problems.
Stabilizes Blood sugar
Nopal cactus contains a large amount of slowly-digestible fiber and tends to slow down the digestion of foods when it is taken just before or with a meal. The cactus has the effect of lowering the Glycemic Index (a measure of how quickly a food raises blood sugar levels) of any foods it is eaten with. Clinical testing has shown that people with high morning blood-sugar levels who ate Nopal cactus for breakfast subsequently had lower or normal blood- sugar levels.
Lowers Cholesterol
The fiber and sterols in Nopal bind with a bile salt in the intestines, which helps limit the amount of blood fats (cholesterol and triglycerides) absorbed by the body, thereby lowering blood cholesterol levels.
Scrubs Blood Vessels
Plaques are areas of inflammation that form on the walls of the blood vessels, where they trap blood fats that can harden or even block the arteries. Nopal cactus sterols, along with its polyphenols and glycoproteins, serve as antioxidants that help reduce inflammation and keep plaques from forming.
Sweeps the Colon
The insoluble plant fibers in Nopal cactus provide dietary roughage, which make it easier to maintain bowel regularity. Nopal also contains soluble plant fiber, which helps absorb toxins, including carcinogens, as it sweeps the colon clean.
Soothes the Stomach
Nopal contains a high amount of mucilage, which helps balance the pH of the stomach and soothes the stomach lining. Tests have shown that Nopal stimulates the healing of stomach ulcers and reduces stomach inflammation.
Protects the Liver
Because Nopal contains antioxidant flavonoids, it helps neutralize free radicals before they can overtax the liver. It also helps absorb toxins, decreasing the liver's load. By supporting the liver, it frees that organ to balance bodily functions, including the immune system.
Hangovers and Obesity
Nopal is sometimes used to help counteract the effects of alcohol consumption. It helps rehydrate the body, soothes the stomach, and improves liver function, thereby preventing the headache, stomach ache and toxic "morning after" feeling. When taken before meals, Nopal's roughage can help create a sensation of fullness that may help prevent overeating and helps stabilize the blood sugar, to ward off hunger. Nopal cactus also contributes calcium and valuable amino acids and other nutrients.
If you ask me a lot of health benefits, also the recent price drop from $ 3.00 in January to $ 1.60 right now makes it an interesting play in the health scene. The book value per share is around $ 1.56. Because of the marketing and sales agreement with Yongkangmen I think there is enough space for healthy growth.
Also the sale of low nicotine and zero nicotine cigarettes under the registered trademark "Shengcao" brand, has a huge potential for growth in China and abroad. China has about 390 million smokers, accounting for 30% of global smokers. Their revolutionary product can not only capture a significant portion of smokers, but also promote consumer consumption in their other health products such as nutraceuticals, nutritious food, health and energy drinks, beer, wine and liquor.
What is ironic is that ckgt.ob only gets mentioned and brought up extensively is when something is negative.
Traderfan you have continually said this was in your top 3 but you have been negative for quite some time. It makes no sense as to why you don't sell and move on. Perhaps siaf.pk which still hasn't filed prior years.
I like how you can flip s story to meet your criteria. Again revert back to SIAF.PK
AS far as taxes don't forget ckgt.ob has $1 mil tax carry forward that must be used this year. That alone should help retain some of that 25% tax rate. Question is how much can/will they use.
Your a genius and we're all morons!
If my memory serves me correct either in a statement from management or possibly Rodman & Renshaw CKGT.OB had talked about getting 1% market share in the feed industry. Furthermore, I believe it was a muli-billion dollar merket. They had mentioned in something like 5 years.
I did the math when it was first brought up about getting 1% and my thinking it was over 100 Mil on feed alone within 5 years.
Management was asked about bringing hog feed to America and addressed it as no comment.
The future looks much clearer and right now it appears cigs may not be the blockbuster I was expecting but hog feed will. However, whatever cig sales are is still a bonus.
While a little disappointed with q1 I personally don't think this is going to change anything period. CKGT.OB is just going to grow faster in a different direction than me and many others anticipated.
Still holding.
Gary an idea as to why they spent all this money on patents? I thought these were patents they had already filed and secured.
I have sent this question up the latter as I believe it needs some clarification. With that much money being spent surely they have some very huge plans IMO.
Sitting with all shares and added a few more. The growth is going to be much higher than many are anticipating. Much much more to the tune of $40+ Mil this year.
Selling is totally unwarranted at these prices.
Traderfan, I too, am ver disappointed with the Q1 ER other than it was timely.
However, dont forget they have existing business that is growing rapidly with beverages up 42%, feed supplements up 82%, neutricals up 32%, raw materials up 170%, along with a statement from the CEO of excellent growth for cigs for the remainder of the year.
As far as the cash they did pay a lot of money for the last paecel of land to the tune of 9mil. Thats a lot of money for a small company and my guess is they are doing this without anymore dilution.
You also complained about the package business with no revenue. From my DD the sales had been declining for the last 2 years.
All in all I think many people are being very tough with CKGT.OB as they are just going thru growing pains. Yes i am losing my ass but still believe they are going much higher once the dust settles down.
Looks like the dump continues. What a buying opportunity we are currently at a PE under 3 with Pappy's estimate for this year.
With continued revenue growth in excess of 30% and over 60% this Q makes this a strong buy. Unfortunately my funds are drying up.
While many including myself expected more the reality is earnings were up over 25% with increased shares and not to mention an excellent explanation of the margin miss.
For all we know they gave a huge discount to drive sales 170% or perhaps a matter of much higher growth within this business segment and now a need to get control of the expenses.
Regardless, everybody was so focused on the cigs they totally missed the beverages which are growing at over 40% with excellent margins. Within 2 years I believe this division alone is worth $2.0 a share.
This is quickly becoming a franchise and did I fail to mention they have 60% market share and with that comes price controls and PROTECTION of margins.
Long time no hear?
Disappointing with the cig revs as I expected much more. The revenue growth is excellent and will probably continue to grow. The beverages are the real deal along with feed.
I'm up to my butt in cactus and it looks like I will be around for awhile. I too, grabbed a few shares today.
Never in my wildest did I think we would we would see shares at $1.90 with unlimited amounts.
Surely we will see another PR very soon.
I like the fact that most warrants have been excersized!
Let's pray for no more dilution.
Cigs was surely a disaster...however management said cigs wouuld provide excellent growth for the remainder of the year. Maybe a need for more cacti?
Looks like a margin problem directly with raw material. However, revenues increased 170%.
Revenues were about what I expected except in the cigs and not the raw material.
Looks like the real culprit was the excersizing of warrants which I had expected. I see very few shares left for either conversion or the excersize of options.
Disappointing to say the least in regards to net income but with growth at 66% it is now time to start paring the expenses.
No longer buying but definately not selling.
I believe they already booked but a little confused on why they booked it in q4.
I suspect they will file late again.
With no material impact for Q1 Pappy's .05 IMO is still low as my expectation is still .07-.08 with very good revenue growth.
IMO, we will still see blowout revenues when compared with Q1 of 09. Remember we only did $3.3 Mil and IMO we will do over 5 Mil which is in excess of 50% .
Still believe $6 Mil is possible especially if we get the cig revenues I expect which is well over $1 Mil.
Come on management let's start getting things filed timely and act like a public company looking to get uplisted SOON.
Are we absolutely sure we get the property disposal gain in Q1? If not we will IMO see .07-.08 and not the shiny dime I'd like to see. Read the last line here which came from the 10k.
Other general and administrative expenses consist of auto expenses, bad debts expense, office, rent and utilities, salaries and wages and others. Other general and administrative expenses totaled $168,235 in 2009, a decrease of $100,562, or 37% as compared to $268,797 in 2008. The decrease is mainly attributable to a decrease of $58,517 in stock option expense incurred from $90,635 in 2008 to $32,118 incurred in 2009, and a decrease of $26,680 incurred for shares issued by the Company in 2008 to obtain a waiver of liquidated damages liability.
During 2009, the Company recorded a gain of $495,348 on disposal of property, plant and equipment (see Note 4 to Financial Statements) as compared a loss of $14,323 in 2008.
Surewould be nice to see something on earnings today even though they are not late unil Monday. Getting earnings out is just as important as a good IR firm IMO.
Sure aint gonna hold my breath as earnings will probably be late once again.
Congrats to Stillstephen on his NEWN.OB
Gary hopefully you get the opportunity to meet managment and possibly get a tour of the facilities. My understanding was Glen or somebody was going to China later in the year.
I believe it was a writer from the steet.com not really sure.
If you ever get the chance go over some of the key reasons why a much higher price is such a plus especially if they have any plans for a need of money. I've brought this up but no responce.
The higher the price the less the dilution but then again I believe this management understands dilution much better than most think. They surely put the screws to Seaside before they put it to them as this is basically unheard of.
Good luck in your new adventure
Sure would be nice to get an on time filing. Probably won't matter as the stock shoots up after awesome numbers only to drift back. When I think of Q1 the word AWESOME comes to mind.
Looks like we are actually seeing some good reports today which definately could bring the ocus back.
Who knows maybe they even beat my shine dime for earnings this Q.
What will that do for the price?
Stillstephen are you still here? You've not posted in awhile. Did you sell and move on after q4 earnings/ If so, that is understandable as we have had NO traction the bit whatsoever.
The joke is the fundamentals say this should be $3 without a listing. With earnings of .03 for q1 09 gives us an increase of 166% with sales up 50%.
I could go on and on but this is the reason CKGT is #1 on my list for the forseeable future barring any fundamental change.
FWIW, I totally appreciate your honesty and enjoy reading your posts and look forward to your replies.
News from CKGT.OB is kind of like the gospel(means good news) which IMO will continue to only get better.
While many people are waiting to hear about cig sales the reality is they are a huge winner without cigs. The beverage division grew by almost 80% and almost nothing said.
Maybe all the facts I've stated just don't matter as it's all about popularity.
Keeping above $2 with earnings of .08 is a joke when you look at YONG and a host of othes. You had FEED jusst announce earnings on Monday with earnings of .02 compared with .08 for prior year.
Feed increased sales by 25% yet profits are down. YONG just announced earnings which sales doubled yet earnings did not double. The list goes on and on with these examples yet with .08 on the weakest Q due to seasonality we can't hold $2.
Trader, I do not disagree with what you are saying but CKGT.OB is head and shoulders above 99% of all stocks(all metrics) other than growing at 100%. However, they are not only maintaining the margins, the net income is growing proportionately while others are not and cash flow is great.
Not to repeat myself but our time is getting closer and eventually people(investors) will come to the realization that this stock has over 60% of the market with demonstrated 30% growth with very little competition which equals the 800# gorilla.
Optimistic as ever knowing what I know.
GLTA...still adding.
Agreed Traderfan!
As far as when is near? That boils down to my other theory in which investors actually wake up and really look at the numbers and quit pumping board favorites.
With these numbers and the future laid out so nicely that even a laymen like myself can understand this, eventually everyone else will see it the same way I do(LOL)...and then we make lots of money(LOL).
AS I am heavily invested in CKGT it gives me time to pursue my real estate. I know our time is getting near. It's a lot easiar predicting earnings than PPS. As long as nothing changes fundamentally we should have a multibagger by X-mas.
No longer concerned about the PPS s-term as China is in the duldrums and palin and simple out of favor. Will continue to add to SRRY.OB, CKGT.OB, SNBP.OB, and CCME as money comes available.
Is the seller back? It sure appears to be the case with the warrants. Why would anyone sell with a forward PE of 3 for 2010. This is based on Pappys' .66 earnings projections which I consider low.
We knew 4 months ago between the warrants and the possibility of Seaside their would be continued pressure on the price. With Seaside gone I assumed the downward pressure was gone especially with a stellar q4 earnings.
My guess is the warrants being converted are being dumped once again. Although their is extreme weakness all around for example LTUS.OB is trading at .93 with earnings of .33 for a PE of less than 3 based on 09 earnings. Personally I'm buying.
FWIW,
China Kangtai CEO Jinjiang Wang said, “The demand for our newly launched cactus cigarettes has exceeded our expectations. This contract underscores our capability to distribute our health-preserving cigarettes to the Chinese domestic market. The cactus cigarette market shows huge potential for growth in China. China has about 390 million smokers, accounting for 30% of global smokers. Our previously announced five-year production agreement with Jiangsu Nanhuanghai Industry & Commerce Co., Ltd. will enable us to meet cactus-based cigarette demand.”
We shall see what this demand is very soon. Here are my thoughts on Q1 Cig Revenue
$500-700k successful launch. Meaningful revenues and a nice launch
$700k-1.0Mil Going to give the much needed credibility for cigs
$1.0-1.5 Mil Instant money flow into ckgt and its day finally arrives.
$1.5Mil + Instant game changer. This is my expectation for this Q(if wrong certainly we should fall over $1,0 Mil) Still expect $6.0+ Mil for the year.
Certainly .03 for the Q should open some eyes this week you'd think...and to think they should grow sequentially from this point for the forseeable future.
Is CKGT.OB really a company posting 30% revenue gain per year with 50% increase in net income?
Ready for a bomb to be dropped? PPS certainly is acting like it along with many Chinese Microcaps.
Still believe Q1 are goin be record setting and our time is getting near. This is based on my earnings expectations as we have had numbers for the last 2 quarters with earnings outpacing q/q by over 50% and with this being the third...surely a charm.
I see it coming..."Record Revenue up over 70% on a Y/Y comparison with Net Income up 230% .10 per share or .08 FD.
Certainly this is doable isn't it Pappy? my crystal ball seems to think so (LOL)!
Fortunately I grabbed lots of shares under $2.10 and will no longer be adding.
I believe earnings will be out either Friday or a week from tommorrow. They should be very good and at that time we will see a full Q of cigs and pigs.
Realistically with $3.3 Mil q1 of 2009 anything north of $4.3Mil is an excellent Q. I still think we come in over $5 Mil and will stick with my $6.1 Mil with .09 in earnings with potential to get a dime in the event cigs are over $1.0 in sales.
I'm very optimistic with ckgt's future and believe we have barely scratched the surface. Thus my expectation is still for $3 after Q1 earnings but we really need to be above .09 to get their. Anything below .06 and we're stuck till Q2 earnings without new product release or a $19 Mil cig contract.
I've beem extremely busy as I bought another multi-family apartment building and will not be around much this week so in the event we go sub $2 my friends on this board need to buy as many as possible!
Traderfan I just got home. I missed an excellent opportunity. Congrats to those who bought below $2.
Looks like nobody wants to touch these Chinese microcap.
Buy when their is blood on the streets...yada yada yada. Is this blood or just a scratch? For me I believe this is the blood but then who would have thought after Q ER we would go below $2 again.
Bought another complex and been very busy with closing and putting new management in thus no time for the market.
Hopefully be back to normal with a couple of weeks. GTG...Steven
Added more yesterday at $2.35 after no fill at $2.30 for 3 days.
Patience is a virtue with stocks but sometimes you have to go with your gut feeling.
Still expecting a great Q1 which should be announced next week.
In the event we get great numbers and the stock does not react I will start liquidating other holdings as I have been doing and continue to consolidate my portfolio to one stock.
Swinging for the fence can be very beneficial if you are right but devastating if you are wrong. Therefore, do not do as I do for I might be wrong!!!!!!!
Could anyone post the fully diluted shares here? My number is a tad bit over 22Mil. What is everybody else coming up with?
I believe that is only part of the criteria with the other being share price. With that being $4 they can uplist without having to be a certain amount. Not 100% sure on that but I think the SP alone can get them on the NASDAQ. If I'm wrong surely someone will let everyone know.
IMO, we also see managemnt start with a PR campaign soon but the idea was to get the numbers to do the talking which obviously they have.
I personally know of 15 people who own ckgt already. Wonder how many shares are in street name?
The PR stated that no early termination fees or further obligation. I for sure thought they had a 200k fee. In fact it may have already been paid. Anybody have anything on this?
We goin rock very soon!
I agree with you Traderfan that .07-.08 is an expectation. I also agree with you about the Seaside deal. I've been told that they did not give any shares to Seaside. They will be paying a $200k termination fee I believe.
Wonder why management no longer felt this deal was benenficial(LOL) or in the best interests of CKGT.OB?
This management is much smarter than most have given them credit for. Other than any mention of uplisting they are better than 95% of other Chinese companies who continually dilute to the extreme with no consideration for the shareholder.
As far as o/s Traderfan how many shares are you using? I believe totally we are going to max out around 22 mil. I thought we were a tad over 24Mil including the 2.1 mil from Seaside.
On a further note...my expectation is still for an uplisting this year. I certainly hope it will be Nasdaq and not AMEX.
Management knows what they have here and surely will not sell the shareholders short in lieu of their high ownership.
I like how the CEO uses the word exponentially. The meaning trully underscores the 35% growth that is forcasted especially in lieu of 3.000 more locations. I really don;t think anyone except a few really understand how trully undervalued ckgt.ob really is.
Under the agreement, all the Yongkangmen drugstores nationwide will promote, market and sell China Kangtai’s cactus-derived products for the next three years.
China Kangtai CEO Jinjiang Wang said, “Traditional Chinese beliefs view herbal-based medicine and dietary supplements as an alternative to healthcare. The demand for our cactus health products has been expanding every year. By leveraging Yongkangmen’s prominence in the health product retail industry, we can expand our market share into new territories exponentially, which creates a win-win situation for both Yongkangmen and Kangtai.”
About China Kangtai Cactus Biotech, Inc.
A very well written article.
http://www.brandchannel.com/home/?tag=/China+Kangtai+Cactus+Biotech
CKGT is not currently getting the buying power to proceed onto its journey to a fair market value considering it growthrate past,present or future.
Other than no mention of an uplisting I really don't understand why they have not been rewarded in terms of PPS The growth isn't phenominal(sp) until one releases that their is a 3 year history of this sustained growth.
Certainly our day will come and with that a new group of pumpers and bashers.
Pappy you had stated my revenue estimate was high at $6.1 Mil. What are your expectations for revenue? I realize you expect a nickel which I believe is low but heck that is 66% increase in net income.