BBC will host a Q3 CC for investors. First time they have ever done that....

Press Release Source: Bodisen Biotech


Bodisen Biotech, Inc. to Report Third Quarter 2006 Financial Results On November 15, 2006
Thursday November 2, 8:30 am ET


SHAANXI, China, Nov. 2, 2006 (PRIMEZONE) -- Bodisen Biotech, Inc. (AMEX:BBC - News) (website: http://www.bodisen.com) announced today that it will report its financial results for the third quarter ended September 30, 2006 on Wednesday, November 15, 2006.

The management team will also host its earnings conference call on the same day at 5:00 pm Eastern Time. Bodisen Chairwoman and Chief Executive Officer Karen Qiong Wang and President Bo Chen will be on the call to discuss the quarterly results and highlights, and to answer questions.

The conference call will be available on webcast live at http://www.bodisen.com and available for replay at the company's corporate web site for 90 days. A replay of the call will be available by dialing 800-405-2236 (international 303-590-3000), and entering passcode 11074999#. The replay will be available starting at 8PM EST on November 15, 2006 and through 5PM EST November 22, 2006.

About Bodisen Biotech, Inc.

Bodisen Biotech Inc. (AMEX:BBC - News) is a leading manufacturer of liquid and organic compound fertilizers, pesticides, insecticides and agricultural raw materials certified by the Petroleum Chemical Industry Administrative office of China (Chemical Petroleum Production Administrative Bureau), Shaanxi provincial government and Chinese government. Ranked the 16th fastest growing company in China by Forbes China in January 2006, the company is headquartered in Shaanxi province and is a Delaware corporation. The company's environmentally friendly ``green'' products have been proven to improve soil and plant quality, and increase crop yields.

Safe Harbor Statement

This press release may contain forward-looking statements within the meaning of the ``safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Bodisen Biotech, Inc. management and are subject to a number of factors and uncertainties that could cause changes to the planned earnings conference call from the description in the forward-looking statements.



Contact:
The Piacente Group
Investor Relations:
E.E. Wang
(212) 481-2050


--------------------------------------------------------------------------------
Source: Bodisen Biotech

Hi cmk....biggest question here is will the company get enough respect from investors to get a forward multiple of 12-15x earnings? If so, there is still a lot more upside for this year, if we assume the company can earn 0.23 fd eps for FY06. That would put fair value at 2.75 - 3.45. Plus, if the stock can get above 3, then Collins might consider applying to the AMEX.

2morrow, thanks for posting that analyst report for HRBN. As you know, I'm pretty bullish on China in general, so I've kept close tabs here.

Here is a key paragraph:

Net Income and Earnings Per Share
In arriving at our projection on net income figures, we assume that proceeds from $50 million floating rate notes at the end of August 2006 will not be repaid before their maturity. This liquidity will earn interest at an average rate of approximately 3.6%, compared to 8.7%–10% interest charges based on today’s LIBOR. Net interest expenses are estimated at $0.8 million in FY2006, $3.1 million in FY2007 and $3.4 million in FY2008.

The Company’s net income is expected to grow 35.1% year-on-year to $13.5 million in FY2006 against $10.0 million in
FY2005. Diluted earnings per share are expected to rise 19.7% to $0.79 in FY2006 from $0.66 in FY2005. The lower
increase in diluted EPS relative to net income is due to the dilution impact of issuing some 2 million new shares during the year.

In FY2007, we expect the Company’s net income to increase 23.5% year-on-year to $16.7 million. Increase in diluted
earnings per share will be slightly lower at 3.8% to $0.82 from $0.79 in FY2006. Due to the issuing of new shares for the
acquisition of Harbin Taifu in the first quarter of 2007 and 2.1 million shares related to the warrants attached to the $50
million floating rate notes, the impact of dilution on EPS in FY2007 is visible.

In FY2008, we expect net income to increase 93.6% to $32.3 million, largely driven by the 74.6% increase in revenue.
Diluted earnings per share will rise 93.9% to $1.59 from $0.82 in FY2007.

---------------------
So, we have a mediocre year in FY07 for eps growth, followed by what could be really strong comp in FY08. With the stock currently trading at 9, HRBN trades at 11x FY07 estimates. Not bad, but given the tepid earnings growth projection for next year, you may get a chance to buy it cheaper, IMHO.

A few chinese stocks I follow are trading at 5-7x FY07 estimates, and I would put them a bit higher up on the buy list...for now.

Which ones?

CSSTF
BBC
TBYH
CAGC
CXTI
CPHI
CKGT

R59 and Hweb, I think the reason that CRLI has been beaten down is the threat that Dialog4 will be selling their 1.25MM shares into the market at some point. The SEC declared the registration of those shares effective back in July.

There are also some significant risks that the company could be forced into a bad equity for cash deal to meet its debt obligations (copied from their risk statements in the last 10Q):

As a result of our outstanding debt obligations, we have significant ongoing debt service requirements which may adversely affect our financial and operating flexibility.

Even after giving effect to the restructuring of the debt we owe Harman, the settlement of our disputes with Dialog4 and other obligations, we will need to generate significant cash flow to meet existing debt scheduled principal payments. As of June 30, 2006 over the next twelve months, we need approximately $922,329 to pay scheduled installments of the principal on our existing debt. Not included in the $922,329 are obligations totaling $1,175,000 held by Jayson Russell Brentlinger, the father of C. Jayson Brentlinger, our Chief Executive Officer, President and Chairman. With respect to $475,000 of the total obligation owed to Mr. Brentlinger, if he were to demand repayment, we would have 30 days from the date of notice to satisfy the $475,000 obligation. If we fail to generate sufficient cash from operations to meet these and other ongoing financial obligations, our results of operation and financial condition may be adversely affected.

--------------

YTD cash flow: +104k. How are they going to raise the cash? Cash on hand as of June 30: 32k. I think there is substantial risk of the company having to issue more shares on highly unfavorable terms.....

Nice job, Mike, on ORXT. I bailed way too early on this one. Was concerned about the potential for lower margins, but they obviously were already discounted in the market.

I'm hopeful that TBYH is misunderstood as well. I think they may surprise investors, as the stock appears to already discount a steep drop-off in sales or margins going forward. If the company's outlook for FY07 can still be achieved (minimum 10% growth) then why can't it garner at least an 8-10x PE? ORXT looks to me to be trading around 15x my forward estimate of 0.15 - 0.16 eps, but maybe I'm too conservative. Certainly, the last quarter indicated some risks in margin pressure.

ORXT (a handset distributor/sales) at 2.25 is trading at 10x trailing earnings. TBYH is trading at 5x, and is in the handset design biz. Margins are much higher in design vs distribution, but could be under more pressure? At least that seems to be the market's decision up till now.

May not be the best place to post this, but I thought some of the issues raised in this article might resonate with the posters on the VMC board. I'm curious how many agree with this take?

Revolt of the fairly rich
Today's lower upper class is seething about the ultrawealthy.
By Matt Miller, Fortune columnist
October 25 2006: 8:43 AM EDT


(Fortune Magazine) -- Not long ago an investment banker worth millions told me that he wasn't in his line of work for the money. "If I was doing this for the money," he said, with no trace of irony, "I'd be at a hedge fund." What to say? Only on a small plot of real estate in lower Manhattan at the dawn of the 21st century could such a statement be remotely fathomable. That it is suggests how debauched our ruling class has become.

The widening chasm between rich and poor may well threaten our democracy. Yet if that banker's lament staggers your brain as it did mine, you're on your way to seeing why America's income gap is arguably less likely to spark a retro fight between proletarians and capitalists than a war between what I call the "lower upper class" and the ultrarich.

Here's my outlandish theory: that economic resentment at the bottom of the top 1 percent of America's income distribution is the new wild card in public life. Ordinary workers won't rise up against ultras because they take it as given that "the rich get richer."

But the hopes and dreams of today's educated class are based on the idea that market capitalism is a meritocracy. The unreachable success of the superrich shreds those dreams.

"I've seen it in my research," says pollster Doug Schoen, who counsels Michael Bloomberg and Hillary Clinton, among others. "If you look at the lower part of the upper class or the upper part of the upper middle class, there's a great deal of frustration. These are people who assumed that their hard work and conventional 'success' would leave them with no worries. It's the type of rumbling that could lead to political volatility."

Lower uppers are doctors, accountants, engineers, lawyers. At companies they're mostly executives above the rank of VP but below the CEO. Their comrades include well-fed members of the media (and even Fortune columnists who earn their living as consultants).

Lower uppers are professionals who by dint of schooling, hard work and luck are living better than 99 percent of the humans who have ever walked the planet. They're also people who can't help but notice how many folks with credentials like theirs are living in Gatsby-esque splendor they'll never enjoy.

This stings. If people no smarter or better than you are making ten or 50 or 100 million dollars in a single year while you're working yourself ragged to earn a million or two - or, God forbid, $400,000 - then something must be wrong.

You can hear the fallout in conversations across the country. A New York-based market research guru - a well-to-do fellow who's built and sold his own firm - explodes in a rant about ultras bidding up real estate prices. A family doctor in Los Angeles with two kids shakes his head that between tuition and donations, ultras have raised the ante for private school slots to the point where he can't get his kids enrolled. A senior executive at a nationally known firm seethes at the idea of eliminating the estate tax; it is an ultra conspiracy, in his view, a reprehensible giveaway to people whose outsized lucre bears little relation to hard work.

As one civic-minded lower-upper businessman told me, even his charity now feels insignificant: When buyout kings plunk down $1 million for a youth or arts group, his $20,000 contribution doesn't get him the right to co-chair a dinner, let alone a seat on the board.

There's only so much of this a smart, vocal elite can take before the seams burst - and a bilious reaction against unmerited privilege starts oozing from every pore. Especially when it's clear to lower uppers that many ultras are reaping the rewards of rigged systems: CEOs who preside over tumbling stock prices, hedge fund managers who barely beat the market.

It may seem far-fetched to think a revolt against extreme inequality will be led by posh professionals. But the conversations above suggest there's a potent political opening for a "comeuppance agenda."

Eliot Spitzer, an ultra by birth (like F.D.R.), has shown the power of turning against the sleazy self-dealing of his class. Once Spitzer's crusades against greed sweep him into the New York governor's mansion next month, imitators may follow. Shame as a strategy to constrain avarice may come back into fashion.

Like I said, it's just a theory. It could be sour grapes. But if I were in this for the money, I'd bet there was something to it.

Matt Miller is a senior fellow at the Center for American Progress and the author of "The 2% Solution: Fixing America's Problems in Ways Liberals and Conservatives Can Love."

--------------------
I think Lentinman has offered similar views on this subject. I wonder how many feel the same way out there?

Thanks. Curious that the company chose to describe it that way in the PR.

Anyone see the other income swing in Q4?
Something looks a bit screwy in the financials. Total other income/expense went up quite a bit in Q4 (+170k), and the main contributor was a big drop in "other income/expense". It went from -191k through 9 mos to being +67k at year end. That would mean a +258k increase in Q4 for what reason?

That's one of four components in that line item...int exp, impairment of assets, other exp - loan guarantee, and the catchall "other income (expense)".

Anyone able to provide a good accounting interpretation of what happened here? My guess is that they previously characterized those "start-up costs" as other expense.....check the ytd numbers in the Q3 10Q. They don't match up with what they show in the net change from Q3 to Q4.

Hweb, doesn't the 475k figure for start-up costs refer to the FY and not just Q4?


"In fiscal 2006, the Company incurred approximately $475,000 in costs related to the start up of its Palmetto facility prior to commencing production, compared to no such expense in fiscal 2005. "

Q4 was impacted by a couple of items:

"The Company incurred slightly lower professional, legal and marketing expenses in the fourth quarter of fiscal 2006. Additionally, year-over-year comparisons were affected by the Company recorded a non-recurring $99,000 provision for loss on disposition of assets in the fourth quarter of fiscal 2005, compared to no such expense in the fiscal 2006 fourth quarter."

-----------

Still trying to sort things out here. Perhaps this take isn't accurate, but its just a first glance at the report.

Spoke too soon. Two new filers so far today for BBC:

QIANG, XIN GUO N/A N/A 10/26/2006 N/A Form 144 N/A 261,665

LONG, WU FANG N/A N/A 10/26/2006 N/A Form 144 N/A 4,561

Unbelievable....

Qiang has an earlier filing too, for the same amount of shares:

QIANG, XIN GUO N/A N/A 9/26/2005 N/A Form 144 N/A 261,665

Are these two separate filings? Or duplicates? Given that there is a different transaction date, I'd say they are indeed separate.

BBC and 144 filings. Yesterday was the first day in a long while that there were no new filings. Perhaps the flood of newly unrestricted shares is over? Hard to say how much of that stock has actually been officially sold, as the filers have 3 months to sell their stock. Typically, most of the stock is sold just before or after the filing is recorded. We could still have an overhang waiting to sell into any uptick prior to or after earnings.

Check Vickers-stock.com for BBC. Watch the total number of "records found" which is currently 105. Hopefully, that doesn't go up for the rest of the week...

BTW - there appear to be duplicate filings, probably because of the confusion about Chinese surnames. (Its common in China to put the last name first.) Also, there appear to be typos:

Check out these filings:
LAN, WANG MEI N/A N/A 9/26/2006 N/A Form 144 N/A 232,614
WANG, WEI LAN N/A CHN 9/26/2006 N/A Form 144 N/A 232,614

Are these really two separate filings? I doubt it. Just for fun, I added up all the potential screwy filings and found about 644,000 shares that may have been double counted. Adjusted Form 144 share count: just over 4.5MM shares. This is close to the total number of shares that were issued to early investors, so I'd say we are getting close to the end of this.

With a solid earnings report and improvement in cash flow, combined with a decent update on capacity expansion and demand for FY07 and the stock could get a solid boost into the end of the year. If AOB is worth 18x estimates, then why is BBC worth around 9-10x? My answer is the operating model, combined with poor institutional support. If BBC generated solid cash flow throughout the year, I think the shorts wouldn't be as interested....

Wade, I agree with you that downside for BBC is around 10-15%, with a decent chance at 25-50% returns over the next few months. I think there are lots of traders in this stock, and without signs of institutional support, I don't think we can get the solid multiples that AOB gets.

AOB now appears to be trading at nearly 18x estimates for FY06. Pretty decent multiple for a non-Internet related China stock. Most of the ones that I know well are trading at 5-10x forward earnings, although most of those are getting the OTC:BB discount.

I think the stock has had a nice run, but looks reasonably valued (for China). Looks a bit extended, so I'd expect to see some profit taking soon.

Congrats worthylion. Who would have thought AOBO would have been the poster child for showing how to build a solid business in China? They did some terribly dilutive placements in the earlier days....and yes I remember the painful day that they announced their first really dilutive PIPE. I think the stock fell from the 1.70s down to 1.20s the next day, if memory serves.

Something to remember with BBC perhaps...

Wade, options and warrants are added to the fds count using the treasury stock method, which assumes that the company takes the exercised options (or warrants) and uses the cash to buy back stock. Thus, as the stock price rises higher than the exercise price, the greater the dilutive impact.

If the avg share price in the Q is < exercise price, then by definition, the treasury method would be anti-dilutive (reducing the fd share count). As this option exercise would not happen in the real world, it is not allowed in the accounting world either. The options and warrants are said to be anti-dilutive, and are left out of the calculation.

Berliet, I agree with your logic. The non-Chinese names (Harlerden Assets Ltd, Finchley Intl Investments, Herve Thieren, Phillipe de Ramayen, etc) are probably some of the early promotors/hedge funds that bought stock from the financial consultants that intitially owned the shell shares. They had to file 144 declarations because the shares they owned were probably purchased 1 year+ prior to their sale but held less than 2 years.

What I would really like to know is how much of the original shell shares (approx 3.27MM) have already been sold into the market. Those shares no longer require any Form 144 filings, given that the 2 year restriction has passed. Based upon the actions of the 144 filers, my guess is that most of them have indeed been sold.

We'll see if our calculations are close to being accurate. I think the next two-three weeks will be very interesting here. BBC should report "strong" Q3 numbers sometime before Nov 15, but the details in their financials will be important.

Hi Wade....

Yes, I'm still long BBC, but this round of heavy Form 144 stock sales is hard to stomach. I think we are all clear on the difference between a Form 144 and Form 4 (which a company insider is required to file with the SEC.). I doubt any of these folks know much about the inside workings of the company, but who knows? Its very easy to argue that if the stock was worth much more, than a rational investor wouldn't be in a such a rush to sell.

I think there are several reasons for the heavy selling, but a lot of it is conjecture and speculation. First, these "early" investors have a low basis and have made many times their investment. Selling to lock in a profit is something we all do and is prudent if it is a substantial portion of one's net worth. Also, with the cost of living much cheaper in China, the realization of these stock sales will probably improve their quality of life immeasurably. It also appears that these early investors were not able to easily sell these restricted shares, either because current management wouldn't allow it or language and cultural barriers made this very difficult to do. Selling restricted stock requires one to get the "legend" removed from the stock certificate, prior to registering the stock with a transfer agent and broker.
http://www.sec.gov/investor/pubs/rule144.htm

In sum, there is a lot of reasons for these investors to cash out. The big question is how many more shares remain to be sold.

I have tried to examine this issue by looking at the original reverse merger details. From what I can tell, the original shell (Stratabid) contained 1,567,000 shares, and the original Bodisen shares were 3,000,000. Combined: 4,567,000.

The company then did a 4 for 1 stock split to create 18,268,000 shares. 3MM shares of the former Stratabid President were then cancelled, leaving the company with 15,268,000 shares. (This was the total fds count in FY04) From company filings at that time, I've been able to deduce that 48% of those 15.3MM shares were owned by Qiong and Chen, top management of BBC. The remainder were owned by a combination of shell shareholders + early investors.

Recap:
----------------
Chen/Qiong shares: 7,332,876
Shell shareholders: 3,268,000
Other chinese shareholders in Bodisen: 4,667,124
------------------------------------------------
Grand total: 15,268,000

If one were to count all the Form 144 shares over the past two years (look at Vickers-stock.com), I think the total number is 4,855,029 shares. I'm sure that some of this total is from the shell shares that were aquired by promoters of the stock in early 2004, but I don't have any way to verify the breakdown of shell shares vs original shares. Are we getting close to the end? I sure think so, but one would need to find the breakdown of restricted vs unrestricted stock in the fds count. Only the transfer agent knows for certain what that is, and they won't give that number out to the public. I know, because I've asked for it in the past for BBC.

I'm a bit concerned that BBC's PR only stated "strong" results for Q3 and not "record". Q3 is usually their biggest quarter, and so if they don't beat the Q2 number than it would be a disappointment.

Not sure how long I will hold beyond earnings. Last year, the stock rose on strong results, combined with a very positive outlook for FY06. At 9 - 9.50, the stock is valued around 10x my current conservative forecast for earnings in FY06. Until we get beyond the wave of 144 stock sales, I doubt it can move much higher without the actual Q3 earnings, plus signs of future growth in FY07.

linus, I think the common link here is NY Global. McManus is actually on three boards, CHNG, BBC, and HRBN. All three have a history with NYGG and Benjamin Wey. BBC has since terminated its relationship with NY Global.

One of the requirements for listing on a higher exchange is having independent directors on your board. How independent he actually is may be a good question.

Tullo still holds shares here, doesn't he? He might also be a source of that supply.

Interesting info Hog. If it is one of the M&M's unloading their stake in YPNT, then it should find its way into the filings very soon.....

Hard to tell how much stock these two entities (Morris & Miller and Matthew & Markson) control here. Looks like they've pledged stock to others as collateral. Stocklemon did a pretty thorough job exposing the labyrinth of connections of those off-shore funds and YPNT. Not a very pretty picture.

Tim, did you notice that the TGIS backlog was down sequentially and y/y? Not sure how sustainable the current run is....

Worthy, re BBC. Are you referring to this?

"For the third quarter ended September 30, 2005, the company recorded $10.5 million in revenues and net income of $2.9 million, or $0.19 fully diluted EPS."

They are talking about Q3's results for 2005, not Q2 2006. I think the wording is clear. They want investors to know what the y/y benchmark for comparison is when they describe future results as being "strong"......

Worthy, the upcoming quarter will be for BBC's Q3, which does end Sept 30. I'm not sure what you're referring to...

Nice to see Bodisen provide some news. They didn't provide much in the way of specifics, so this probably won't cause much buying IMHO. The use of the term "strong" instead of "record" results might mean some tempering of growth, but it may also be nothing.

Amaranth just filed its 13F.
http://www.sec.gov/Archives/edgar/data/1279990/000127999006000009/am13f36.txt

Value of stock holdings down to $175MM.

Compare to last quarter, which shows $5.7 Billion:
http://www.sec.gov/Archives/edgar/data/1279990/000127999006000006/am13f26.txt


And Q1, which shows 7.1B:
http://www.sec.gov/Archives/edgar/data/1279990/000127999006000004/am13f16.txt

Thanks for providing that link, pappy. I think everyone should read the full article, plus read the detailed comments. One of the comments is from Collins, CEO of DAAT.

Its nice to see the stock at least back into the 2s. My guess is that we could get as high as 2.20 - 2.30 by the time Q3 numbers come out.

FY07 growth will be important. Collins has begun to address this in the last PR; hopefully we'll get another update on his progress at adding some new lines to sell into Walmart/Kmart.

bbotcs, I believe that there are new regulations that safeguard against company execs borrowing directly from their company. Either way, the loan that DAAT made to David Collins was done back in 1999, according to the CEO himself:

David A Collins Says:
October 9th, 2006 at 5:58 pm
Keven,
My salary is $120K per year, 60K salary and 60K consulting and has been this for 6 years since going public even though my contract calls for 10% raise per year if the company is profitable-in 10K I am the only person who has not taken a raise in all these years, example James Buie make the same salary I do thru various raises. I make my additional money from commissions not bonus. The standard commission to reps in this business is 10%, I take a 5% commision on business I personally generate and do myself, 1/2 the normal rate.I have had a long term personal relationship with Wal-Mart that has been built on trust over 15 years. The 170K loan that is on the books as been the same for 6 years since we went public in June 2000 and is a carry over from DAC America which was merged into Dac Technologies in 1999 where I worked for 2 years without a salary.I have been in Floida since 1999 and have thought many times about moving back to Little Rock but the company seems to run better the way it is and I am not going to argue with success. I travel all the time and spend time in Little Rock and I think a 5K office allowance is very resonable. With todays computers and communications many people work from home/office and it has been very sucessful for DAC Technologies. We run a very tight ship I do not think you will find to many 15mm (and growing) companies with only 5 office employees (including me)and 3 shipping people most all being with the company since the beginning and the CEO makes 75% of his earnings from commisions on revenue he personally generates. I understand your concern with certain matter and I thought it might be helpful to exsplain these maters to you, also I woulf like to thank you for your positive comments on the company. Everyone at DAC has worked very hard to built a good and solid company and all of us will continue to do so.Please feel free to call me anytime.
DAC Technologies
David a Collins CEO
305 531 4634 office
954 465 8200 cell

See comments under this posting:
http://valueblogger.com/time-to-take-a-shot-at-dac-technologies-daatob

Hi Peeker, yes...I've continued to hold my DAAT stock. I'm hoping for a better Q3 and Q4 report that should get the stock moving. It seems that the stock has started to move a bit on anticipation of better results.

Zen, do you really think that Demarse is "leading" YPNT? The CEO is (unfortunately) one of the old guard, Dan Coury.

Demarse is on the BOD, and she got a grant of restricted shares for doing that, but how much of an operations role does everyone think she really has?

Anybody seen Marvelmeister around the web? He seems to have vanished on Ihub....

So why is CTDC up today?

This was a crappy earnings report:
http://biz.yahoo.com/prnews/061006/hkf001a.html?.v=1

The only thing I can guess is short covering; who would buy this one based on these numbers?

CSSTF out with some interesting news this AM:
http://biz.yahoo.com/prnews/061003/nytu132.html?.v=76

They've been able to create financing terms that should help them compete for larger contracts and still deal with lags in payment from Chinese municipalities, which is a big problem in China for small companies:

--------------------------------------

China Security and Surveillance Technology Inc. Secures New Factoring Facility With China Construction Bank to Capitalize on Safe City Projects
Tuesday October 3, 9:15 am ET


SHENZHEN, China, Oct. 3 /PRNewswire-FirstCall/ -- China Security & Surveillance Technology Inc., "China Security" (OTC Bulletin Board: CSSTF - News), a leading provider of digital surveillance technology in China, announced today that it has signed a factoring agreement with China Construction Bank which will provide a new receivables based facility to support the Company's efforts in securing new contracts from the Safe City Project initiative named "Plan 3111." This facility will provide financing of up to 80 percent of the total contract amount for projects which qualify under this initiative, while government customers will pay the difference to China Security throughout the implementation process. As part of this agreement, China Security will make periodic deposits with China Construction Bank, which, depending upon the specific project, will provide a maximum factoring capacity of five to ten times the amount deposited.
ADVERTISEMENT


The Safe City Project is a nationwide initiative to enhance general security in China's cities, which include the implementation of new surveillance cameras in highly trafficked areas throughout a total of approximately 660 cities. These security systems will be integrated and networked together both regionally and nationally to ensure safety and security for citizens and to help deploy public services in the most timely and effective manner possible. China Security has previously signed several smaller contracts related to initial trial projects, but the majority of the projects are expected to begin in 2007 and continue to ramp into 2008 in preparation for the Beijing Summer Olympics. Contracts for this project are typically a year or more in duration and are signed and paid for by both the national and local governments.

The new receivables factoring facility with China Construction Bank is important in not only securing but executing against these contracts as the milestone payment terms associated with the Safe City Project generally carry elongated timelines, which can be up to several years. With China Security now having the ability to convert some of these receivables into working capital at the time of contract signature, the Company can use these assets to secure new and larger sized contracts. Additionally, by having the access to these funds, China Security can differentiate itself in the competitive market place versus other undercapitalized competitors.

About China Security and Surveillance, Inc.

Based in Shenzhen, China, China Security and Surveillance, Inc. designs, manufactures and provides Security Surveillance solutions through its wholly owned subsidiary, the Golden Group Ltd. The Company has a manufacturing facility located in Shenzhen and a R&D facility which leverage an exclusive collaboration agreement with Beijing University. In addition, the company has built a diversified customer base through its extensive sales and service network that includes 37 points of presence throughout the PRC.

About China Construction Bank

China Construction Bank Corporation (formerly known as the China Construction Bank) was incorporated in China in 1954. CCB Corporation is a state owned bank operating in a commercial capacity. As one of the leading banks in the domestic banking sector, with 14,250 branch outlets, CCB Corporation retains leadership roles in key market segments in the areas of corporate banking, personal banking and treasury operations. The Bank continues to pursue innovative banking services such as online banking to stay in a competitive edge.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of China Security and its subsidiary companies, which can be identified by the use of forward looking terminology such as "believes, expects" or similar expressions. The forward looking statements contained in this press release include statements regarding the ability of China Security to ultimately obtain credit from China Construction Bank in conjunction with the ability of China Security to benefit from the Safe City Projects. These statements involve known and unknown risks and uncertainties, including, but are not limited to, general business conditions, managing growth, and political and other business risk. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks and other factors detailed in the Company's reports filed with the Securities and Exchange Commission. China Security and Surveillance Technology Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.


Contact:
Company: Terence Yap
(646) 713-4888
terence@goldengroup.cn

Investors: Brett Maas or Bryan Kobel
Hayden Communications
(646) 536-7331
brett@haydenir.com




The stock has perked up nicely over the past month. Seems to be a savvy management team here. I sure wish that CXTI had been able to negotiate a deal like this one....sure would have helped out that company last year.

Nice news from DAAT. Looks like they are likely to meet their guidance on the top line of 20-30% growth for FY06, but of course, its all about the net margins here. The past few quarters have been disappointing in terms of y/y eps comps. They should have an easy comp in Q4, which is typically their biggest quarter. We're finally getting to see news about next year:

"The Company announced today that it has received a commitment from Wal-Mart for a new aluminum camping table that will ship in January 2007 as a year-round module item with revenue in excess of $1,000,000.

I estimate that DAAT will do around 16.0 - 16.5MM in sales for FY06. If so, that means this order would boost sales by 6% assuming all else is stable. Plus, the company is working on additional items to boost sales in slower quarters:

""DAC Technologies will be adding new products for the camping and hunting area, mainly in tables, stools and chairs made of aluminum, steel and wood. This will give the Company additional revenue in the spring and summer months, which have traditionally been our slower months.

------------------

That will make for better y/y comps in the first half of FY07. That means that we could be setting up for a series of decent earnings reports, starting with Q3. I'm estimating the company can earn 0.22 - 0.23 fd, ft eps in FY06. I think FV should be around 10-12x estimates, so that would put the stock at 2.20 - 2.65 within the next 6 mos. Not an exciting company, but appears to be solid and well managed.

larry, the only things that i could see in a quick perusal of the SEC filings for SGRP:

1. Recent insider buys around the 1.00 area.

2. Favorable legal outcome?

Legal Matters

Safeway Inc. (“Safeway”) filed a Complaint against PIA Merchandising Co., Inc. (“PIA Co.”), a wholly owned subsidiary of SPAR Group, Inc. (“SGRP”), Pivotal Sales Company (“Pivotal”), a wholly owned subsidiary of PIA Co., and SGRP in Alameda Superior Court, case no. 2001028498 on October 24, 2001. Safeway claims, as subsequently amended, alleged causes of action for breach of contract and breach of implied contract. PIA Co. and Pivotal filed cross-claims against Safeway on or about March 11, 2002, and amended them on or about October 15, 2002, alleging causes of action by PIA Co. and Pivotal against Safeway for breach of contract, interference with economic relationship, unfair trade practices and unjust enrichment. Trial commenced in March 2006.

On May 26, 2006, the jury in this case returned a verdict resulting in net award of $1,307,700.64 to Pivotal, a SGRP subsidiary. This net award is to be paid by Safeway and resulted from separate jury findings that awarded damages to those SGRP subsidiaries on certain claims and damages to Safeway on other claims. In particular, the jury awarded damages to Pivotal of $5,760,879.70 for Safeway’s interference with Pivotal’s contractual relationships with third party manufacturers and also awarded $782,400 to Pivotal and PIA for Safeway’s breach of contract with those SGRP subsidiaries. The jury awarded damages to Safeway of $5,235,579.06 for breach of contract by SGRP and those SGRP subsidiaries. Judgment will likely be entered in the near future, and the parties will have 60 days thereafter in which to file appeals. It is not possible at this time to determine the likelihood of the filing or outcome of any such appeals. However, if Safeway appeals the awards to SGRP’s subsidiaries and overturns them, and PIA Co. and Pivotal appeal the awards to Safeway and fail to overturn them, that result could have a material adverse effect on SGRP and its subsidiaries.

-------------

I think this price action is wildly irrational, given the results of last quarter and the modest size of the insider buys.....

Wade, I noticed that BBC's DSO's had worsened over the prior year, and this is definitely something to watch for in the next Q. Cash flow and net income divergences are one of the prime red flags that shorts look for. In companies like BBC that offer lengthy A/R terms and are seasonal will look bad at this point in the ytd cash flow.

Last year, BBC had slightly positive cash flow from operations of 657k, but improved on that to +5MM by the end of Q3.

This year, BBC's OCF is -3.6MM through its first 6 mos. However, they also have 17.5MM in cash/cash equivalents on the balance sheet, plus 5.7MM in marketable securities.

The recent issues with Wey and NY Global are just distractions. The real problems, IMHO, are the large Form 144 sellers combined with the unanticipated problems with Amaranth (another significant shareholder). This has combined to create a huge (and hopefully temporary) overhang of stock available for sale. Its the perfect storm -in a bad way - for BBC. I would expect the stock to continue to decline until those sellers are exhausted. The shorts in BBC have had ample opportunity to cover, it will be interesting to see what they do.

Nice writeup of BBC on 10QDectective:
http://10qdetective.blogspot.com/2006/10/bodisen-biotech-bountiful-harvest-in.html

I think he does a nice job of summarizing the pros, cons, and red flags here.

BBC now trading near its 52 week low, after its mention in Herb Greenberg's Marketwatch column. Shorts have been very active in BBC......

Not sure if this has any relevance for HSOA... This is a small, pink-sheeter in the disaster restoration biz.

http://biz.yahoo.com/bw/060929/20060929005629.html?.v=1

Greenstone Holdings, Inc. Lower 2006 Revenue Projections
Friday September 29, 4:33 pm ET


NEW YORK--(BUSINESS WIRE)--Greenstone Holdings, Inc. (Pink Sheets: GSHG - News) announced today that its revenue has been negatively impacted by mild weather and delays in releases of Katrina recovery projects in New Orleans and Gulf Coast area.
ADVERTISEMENT




The projected sales by its wholly owned disaster restoration subsidiary, Anytime Anywhere Restoration Inc. for the twelve month period ending December 31, 2006, are expected to be approximately forty percent below 2005 level. This shortfall is primarily due to continuous industry wide slow down caused by mild winter, inactive hurricane season, and failure of the governments and their prime contractors to release the pending work orders which have impacted both emergency restoration and mold remediation business.

"I am disappointed with Anytime Anywhere's this year's performance so far," said Sal Miwa., Greenstone's chief executive officer. Mr. Miwa also stated that despite the industry slow down, which has caused the Company to readjust its projections, the Company continues to enjoy excellent relationships with its major customers and has been assured that as soon as governments reopen the funding channels that work releases will be activated and the Company will resume to operate on its anticipated levels of revenue and profits.

The Company has also repositioned itself to focus its resources on developing and marketing its chemical products to the building material industry. In this regard the Company intends to expand its marketing and management team in the very near future.

About Greenstone Holdings, Inc.

Greenstone® (www.egreenstone.com), through its operating subsidiaries, is in the business of providing a variety of unique chemical technologies that are primarily used in the building and construction industry. The Chemical Technology Division's first brand name product, GreenShield(tm), offers wood/paper based building materials such as plywood and drywall, protection from water, moisture, and fire. It also offers added thermal insulation into the material it is applied to. In addition to its chemical products, through its subsidiary, Anytime Anywhere Restoration, Inc. (www.anytimerestoration.com), Greenstone is one of the country's leading specialists in mold remediation and emergency restoration of properties damaged by water, fire, and mold caused by accidents, natural disasters, floods, and hurricanes. This division is instrumental in setting up the applicator network for the chemicals produced by the Chemical Technology Division. Greenstone is headquartered in Manhattan. The R&D production facility is located in Oxford, MS and the restoration service offices are in Hicksville, NY and Hattiesburg, MS. A corporate fact sheet can be downloaded at http://www.egreenstone.com/documents/FactSheet-60929A.pdf

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors effecting the Company's operations, markets, products and prices and other factors discussed in the Company's various filings with the Securities and Exchange Commission.

BBC CEO responds to Herb Greenberg:

http://www.bodisen.com/html/news/letter.htm

Dear Investors,

Recently, there have been two articles published by Herb Greenberg, a MarketWatch columnist.While the author makes some good points about Chinese companies in general, we believe that some of Mr. Greenberg’s columns contain misstatements and/or overstatements regarding Bodisen.

Reverse Mergers.Mr. Greenberg has implied that any company – and in particular, companies based in China – who have gone public through a reverse merger are suspect.This broad generalization is unfair to all the successful companies that have used this lawful, above-board approach to going public. To suggest that a Chinese company that uses this technique is somehow a risky investment does a disservice to the company and its current and potential investors.



Bodisen has submitted three registration statements for review by the SEC and applied for listing on two stock exchanges to have its shares publicly traded in both the United States and on the London Stock Exchange. In each circumstance, the company's registrations statements were declared effective and its applications for listing effective.



New York Global Group.Bodisen employs several advisors and New York Global Group was one of the company’s U.S. advisors, a fact that was disclosed in the company’s Form SB-2 filing in February 2006.The company has since terminated the relationship with New York Global Group. Bodisen has never advised Mr. Wey not to disclose his position with New York Global Group.



Organic products.Mr. Greenberg’s statement here overlooks the fact that standards for what constitutes a product as “organic” differ from country to country.For example in the U.S. a product is considered “organic” if the original source is organic.In China, if the compound fertilizer’s organic material percentage meets the Chinese government requirements and results in no harmful material being contained in the final product, the compound fertilizer can be labeled as “organic”. Bodisen’s customers and investors understand that Bodisen’s products are manufactured and distributed in China and meet Chinese standards.



ISO 9001 certification.Bodisen is committed to transparency in its investor communications and public company filings. We have reviewed the situation and are taking immediate action to correct this mistake. It should be noted that we have never utilized our ISO 9001 certification in any sales or marketing advertising for our products and that Bodisen’s products are certified organic in accordance with the standards and guidelines set forth by the Chinese government.



English-speaking.While Bodisen’s management team are not highly fluent in English, the company employs English translators at its offices, contracts a U.S.-based investor relations firm with Chinese language capabilities to handle investor inquiries and utilizes English translators when interacting with English-speaking investors.While Mr. Greenberg is entitled to his opinion that companies doing business in the U.S. should have management teams that are fluent in English, this would imply that management teams of U.S. companies doing business in China should be fluent in Mandarin.



We believe that what is more important are the skillsets that the management team bring to executing on Bodisen’s strategic growth plan.In the last two years, our company has consistently delivered double-digit revenue and earnings growth and we believe our results speak to the quality and credibility of the management team.



Our focus remains to continue to execute on our business plan to grow revenues and earnings that we believe will ultimately enhance value for our shareholders.

There are other facts not included in the articles, but for the sake of time, we have only provided the above mentioned details. If you would like to discuss any element of the Company's business, as always, please feel free to contact us.

Sincerely,

Karen Qiong Wang

Chairwoman and CEO, Bodisen



________________________________________
Source: Bodisen Biotech

BBC getting whacked this AM on a negative article by Herb Greenberg:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B0556F644%2D4383%2D4906%2D90B4%2DAB75B3924EE...

Not fun being on the other side of Herb. He's a good reporter and I respect his points.

The timing of this is perfect as BBC is probably not going to comment on its Q3 until early November. Lots of time for investors/traders to dump stock. If I were short, I'd cover here in the 8s and move on to better opportunities.

BBC Form 144 flood....nearly 700k shares filed for sale in the last week.

Go to vickers-stock.com for BBC's insider trading report. NOTE: Form 144 sellers are not technically insiders, just holders of restricted shares.

That's been the reason for the decline in the stock, IMHO. Will take a while to soak up the extra supply, but with 1.2MM shares short they will have ample opportunity to cover.

This is the difficult part of capital raising for any small company, whether based in China or not. Lots of these older investors have shares purchased at a low basis and will want to cash out.

If the business conditions are still solid, any short term drop in price could be a good trading opp....

Yup. I think StockLemon's tactics are abrasive and "in-your face", but his research is usually pretty good.

BTW - YPNT was once on his hit list. He might decide to pick on it again....

Another was IIG. Looks like that stock has been a battleground for both longs and shorts.

IIG short interest is at record highs, but the stock is near a 52 week high. 52 week range: 2.87 - 16.50, closed today at 14.36. Good money could have been made on both sides of that trade....

Wade, I find it interesting that the stock that StockLemon attacked back in 2003 is now virtually worthless:
http://finance.yahoo.com/q?s=SGAL.PK

Here's what that link you provided had to say:

"Storage Alliance (SGAL). The stock is now 35.9% below its $1.95 high on March 24, 2003. We believe that Storage Alliance has been victimized by irresponsible statements from a professional short-seller who uses his Web site to create a highly profitable short-selling environment. Protect your profits for now and we will advise you when to repurchase the stock."

Looks to me like StockLemon was right about SGAL in the long run.....