nuin.ob has some serious growth going for it as they continue the roll=out of their new health drinks which will expand to wine & other beverages in 2011.

They have margins that are not only expanding already among the best.

They hired a new CFO recently who seems to be very shareholder freindly.

Also a recent insider buy occured at prevailing market pps.

As the originator of the term amigos stock I would like to share my 5 amigos for 2011 for your dd[nuin.ob hfgb.ob wkbt.ob uta ckgt.ob]

regards ,pappy

I will add this board to my favorites list & thank you harley for the invite.

If it was these guys you may get another chance to buy cheap shares.

As no U.S. investors would seem to have a reason to sell at $0.59 that I am aware of.

In early Nov. Xi'an Runfeng Investment,Ltd. was issued 861,606 shares instead of cash for the $516,964 owed as of Oct. 30 2010.

HFGB has payed back debt with shares in the past & it seems vendors & some of these Chinese Investment companies prefer cash with little regard to the pps they receive.

As cashflow starts to catch up with the amount of money needed to finance growth I hope hfgb stops this practice.

But in the meantime investors with a longerterm outlook may get a chance to buy some more cheap shares.

I have noticed since hfgb upped guidance that the pps has not reacted very positive.

Thus if my opinion proves correct Xi'an may have already sold some shares before today so its hard to say how many shares still overhang the market.

With U.S. markets in tax-loss selling season these Chinese seem to have no sense about timing stock sells.

Since I still believe the pps of hfgb deserves to be North not South of $1.00 I may join you in buying some cheap shares however we may have until yearend to pick a buying pps to add shares if I am correct.

This old fart is often wrong so don't read to much into the thoughts I am putting out there.

Is every small-cap Chinese stock a fraud?

It seems the market thinks so.

Lets take a look at hfgb.

In spite showing eps accelerating every qtr in 2010 from $0.04 to $0.06 to $0.08 if my memory serves me right.

And having a current B.V of $0.84 & Increasing 2010 earnings guidance by $1M after reporting its 3rd qtr numbers I see a ticker pps of $0.65 today.

This stock has been growing quite well in past years & after reporting 2009 numbers the pps reached $1.40.

Todays pps is down over 50% from that 52 week high.

Its either time to quit investing in China stocks or time to load the boat but I am quite confused by looking at the market action in small-cap China stocks as to which one to do.

Mike & Rawnoc,

I want to thank you guys for helping me decide not to take a tax-write off on my shares bought earlier this year.

p.s. I bought asrg trying to deversify away from all small-cap China stocks I have done so well with in the past.

Needless to say until this buyout was announced it was looking like a disaster with how generous management has been to themselves at the expense of shareholder value & eps.

If you guys have one or two small-cap American company picks to reinvest this gain in I would like a name or two to dd.TIA

After investing almost exclusively in China stocks for 4 years I have decided to get a few small-cap American companies but only those that can grow revenue at 30%+.

I am building a portfolio for the future since I am still a young 73.LOL

"your buys and sells"

I hope this clarifies my last post for you foggy.LOL

Without going into details on why I didn't keep my core position this swingtrade round.

I sold my entire position in WKBT 10-14-10 after the nice run-up off its lows.

Rebought 1/3rd position back when the pps dropped to $3 after giving strong forward guidance.

Then when the pps hit $2.40 the announced pp price I rebought the rest of my previous position.

Buying at the pp price usually 20% below current pps in Chinese stocks has worked out well in the past with stocks like AOB & UTA & I expect it will also work out well for WKBT as long as growth continues & you like to swingtrade.



I am usually more than willing to give my opinion but I never give investment advice.

The form D read like greek to me but it had something to do with the pp done on Dec 2 2010.

I would like to hear them say cigarette sales were over $1 million dollars in the 4th qtr. leading up to this agreement.

They said 4th qtr revenue was $12.2 million so I would hope with all the time effort & money put in this direction that cigarette revenue has at last reached a noted percentage of total revenue.

I could then believe that the stated 20% of revenue in 2011 could indeed happen.

As for todays agreement without knowing the details it does still seem to be very positive going forward.

Tripled my position today @$2.40...

regards, pappy

Now that annual capacity has been increased from 55 tons to 72 tons as scheduled the roll-out of health drinks can spread to a wider consumer area in 2011.

And with capacity set to expand to 100 tons by yearend 2011 production will be almost double from early 2010 limits of 55 tons.

All the newer products are of the higher margin variety making net earnings increases very strong for the remainder of 2010 & all of 2011 & beyond.

With a low float & shares outstanding eps should accelerate at a very nice pace & the p/e ratio should begin to expand in recognition of this & the very real possibilty of a major exchange listing for this very fine company with a great product that the consumer should continue to buy on a regular basis.

As this growth acceleration continues I will be increasing my position in this amigo with such a fine balance sheet to go with a product in high demand.

Thanks I will look a little closer at the prospects of this company.

However after looking at the financials it is obvious that investors have priced in a lot of future expectations at the current pps.

regards pappy

Steve,

I was glad to see they guided for 4th qtr revenue over $12M rather than the just over $10M I was projecting.

I hope another concern of mine is cleared up when they actually report. [ Was the increase in A/R & the sequential drop in cigarette revenue connected & if so when will those A/R be collected since they need the cash to further expand cigarette sales.]

Anyway todays announcement was a positive in the right direction & hopefully these updates will continue to keep investors properly informed.

Just found out about this stock today...The source of my information said the pps was available in the $1-$1.50 range.

Real nice to get heads up timely information.lol

After looking at the financials fcpg appears to be a pump n dump with the current pps closer to dump time.imo

I was a little disappointed that 3rd qtr revenue didn't exceed $10M.

Looking at sequential growth its easy to see the reasons why,,,

nutriceuticals went from $3.338M to $3.581M

beverage from $3.173M to $3.907M

Not to bad for these big two established product lines.

But now lets look at the two big revenue gainers of the 2nd qtr.

Animal feed revenue went from $1.341M to $1.352M realitively flat with the strong 2nd qtr.

cigarettes well up on a year over year comparison was actually down sequentially from $837,752 to $659,609

These figures lead me to expect 4th qtr numbers should finally surpass $10M but will fall well short of $12.5M unless both animal feed & cigarettes pick up their pace of sequential growth.

When one looks at 3rd qtr cigarette revenue its obvious something effected revenue growth.

I think over time buying the patents for animal feeds will pay-off.

However paying out such a large chunk in 2010 instead of spreading the payments out & also trying to expand into in home manufactor of cigarettes while not collecting A/R in a timely manner have left ckgt short of cash presently.

I think management could have done a much better job of handling their finances in 2010 & the pps has suffered even while revenue growth has continued strong.

Hopefully A/R will not continue the 3rd qtr trend & cashflow will replenish cash.

Hogfeed,cigarettes & drinks should continue the strong revenue growth but they need to collect A/R in a more orderly fashion to restore cash levels to a higher level.

The current pps more than reflects the short coming of management in 2010.[ poorly done private placements,increasing A/R, poor use of available cash,poor margin management & hiring a terrible I.R. firm that hurt ckgt's image].

If management gets back to basics like in years prior to late 2009 & 2010 & quits trying to raise funds at big discounts to current shareholder values like they have done things could still look very bright in 2011 & beyond.

Grow the company mainly thru collecting A/R to restore cashflow should work very well for ckgt going forward as the big expenses associated with buying patents & becoming a major player in cigarettes are behind them.

That should allow more cash for launch of some of the many product yet to be launched into the expanded distribution network.

Those products which all have high margins would be a welcome trade-off for the low-margined products that comprised a lot of 1st qtrs revenue.

Your welcome foggysurf....

As the pps stablizes I will add to my position.

This stock reminds me of my 1st 20 bagger in this space AOBO.OB now AOB.

They also did pp 20% below market while in their early growth years with plenty of cash already on the books because like WKBT they were very cashflow positive.

Buying at around the pp pps proved to be a great time to buyback swingtrade shares for the next leg up.

I have had two 20 baggers in this space by swingtrading around a core position with uta being the other.

UTA also did pp's 20% below market with no seeming need to raise cash.

Contunued growth is the key...I still have a position in UTA but have stopped trading AOB because growth has stagnated.

And you can take that to the bank.lol

"This stock is way to cheap"

And getting cheaper after doing a pp @$2.60 after guiding for eps of a dollar or better in 2011.

They claim to have plenty of cash so why do this.

I guess they are tired of waiting for the pps to get to $4 & want to improve liquidity.

Since they will need to do a 1-2 R/S while adding shareholders to meet listing requirements.

I wish I could think like a China CEO & read their thoughts because doing a pp 20% below the market pps makes little sense to me.

Now I am really glad I still have a 50% cash.

I have a nice size position in hfgb uta nuin wkbt ckgt which I have designated as my 5 amigos for 2011.

I consider all as both value & growth plays.

I have other stocks that are big revenue growers that are not quite as cheap so they don't qualify for my list.

I also am 50% cash simply because the trend is not my freind in this space.

However if & when the sequential growth continues on a qtrly basis while the pps stagnates I will continue to add to my amigos.

At least you know no my game plan going into 2011.

As for 2010 I have completed taking my profits & may yet take a tax loss or two as I weed out some non-amigos like jada a value play without the growth & going nowhere fast.

In 12 months a lot can change. True this space is sporting p/e ratios below 5.

But if the sequential growth nuin has had this year continues & I see little reason to think it won't I like the chances of a p/e of "ten" in 12 months.

Even ccme which has had good sequential growth got very close to a current p/e of 10 recently.

True it has given back a large portion of those gains but "if" sequential growth continues there it will regain its highs once more.

When a stock in this space doubles in a short period like ccme did one should at least sell their trading shares expecting some retracement.

As far as sequential eps continuing I have much more faith in nuin or even wkbt than I do in ccme because of share dilution in ccme that so far has been avoided by both nuin & wkbt.

In fact I sold my core shares in ccme along with my trading shares because I don't believe sequential eps growth can be expected to continue.

I do give stocks like ccme & hfgb a lot of credit for the eps growth this year in spite the large increase in share count.

However both are still adding sharecount hfgb to continue the strong revenue growth in 2011&12.

ccme on the other hand will have a large increase in share count because management is "over" rewarding itself.

They need to reward all shareholder by giving a dividend & "actually" buyback shares on the cheap to help furnish shares promised to management.

Just this old farts opinion once more.

Beverage on automatic as far as growth?

Yes I agree it will continue to grow & without all the expense of cigarette growth leaving far more time to promote & launch other products.

These other products could & should promote good health in humans & animals.

Cactus is a proven product for improving the immune system & disease's that can be avoided or controled by the use of cactus.

Why not continue with new products in that direction & spin-off or sell the cigarette business since it seems to be a product that doesn't fit the profile I think would work best for ckgt & its future pps. jmho

I don't like that ckgt is putting so much time,money & effort into cigarettes as a revenue source.

I alway liked ckgt for its balance of product offerings.

True the margins are above average from cigarettes but I have found in the past when management spends to much time & effort in a single direction other products are not promoted as they should.

To me nutritional drinks has been their best product as it has steady increasing revenue, good margins & hasn't been nearly as expensive to develop & market as [animal feed or cigarettes].

They need to market cactus products with the benefits for the immune system foremost in mind.

Who ever heard of a healthy cigarette?

I would like to see them either spin-off cigarettes as a seperate company or sell it out right & use the money to develop & market products for humans & animals that really do improve health.

With all the money time & effort put into cigarettes the percentage of total revenue from that source is not that great but the expense has been a major cause of cash drain.

Sequential growth is excellant "even" ahead of their health drink roll-out in the 4th qtr.

Dec09 revenue $3.783M net income $1.999M
Mar10 revenue $4.768M net income $2.721M
Jun10 revenue $5.458M net income $3.416M
Sep10 revenue $6.462M net income $4.066M

Current runrate is $1.00 & with 9 months fully diluted eps of $0.58 they are on pace to have eps of $0.83+ in 2010.

As you can see from the above as revenue is increasing net income is increasing at a even faster pace due to continuous increases in margins.

This company already has one of the best margins I have ever seen & has been able to raise the price of their products a sure sign that demand far outstrips supply.

Current ratio is improving very rapidly & they have no long term debt "anymore"& a small account receivable with plenty of cash & cashflow to support future growth.

This stock is one of my 5 amigos for 2011 along with UTA HFGB
WKBT CKGT.

Notice all the amigos have a small float with margins expected to increase faster than revenue gains going forward.

And all have strong cashflow to support future growth.

All but ckgt currently have plenty of cash on hand for immediate growth needs.

ckgt has depleted its current cash buying patents & manufactoring abilty & thus the current low valuation is somewhat warranted.

As for nuin one of the most solid looking micro-cap stocks I have seen in over 50 years of investing it deserves a p/e ratio much higher than it currently has in spite of being Chinese.

I am setting a 12 month target of $8.30 on nuin a very conservative 10x expected 2010 eps & if China stocks regain respect in the investment arena I would think a p/e of at least 15 is highly deserved for this well managed little guy.

p.s. Remember to do your own DD as the above is just one old farts opinion & I make a misteke or two along the way.lol

When I sold bspm i had a nice size gain & on a relative value basis buying more wkbt made sense.

On its recent strong move up I sold my trading shares in wkbt.

It was those trading shares I rebought @$3.00.

I believe in trading around a core position.

As for news events I look for more as they continue to launch more new products.

I like bspm at its current pps however I bought nuin instead because it is much better than bspm in so many ways "currently."

low float,accelerating earning,strong product launch,increasing margins,very nice balance sheet...quite simular to wkbt...imo

I was a buyer today @$3.00 which is a forward p/e of 3 or less on a stock growing @30%+ with a outstanding improving balance sheet.

When any of my 5 star amigos for 2011 get this cheap with plenty of cash barring a acquisition to substain growth without "dilution" I have funds set aside to buy more.

Wonder who was selling today? Thank you.

Nice to see the buying continue again today.

Buy volume swamped sell at the bid volume almost 3-1.

With 6=50k trades done at the ask or between the bid & ask.

I have seen no news to account for this increased volume other than the new company presentations available on snbp's website.

I was asked on Yahoo where I might sell shares since the pps is increasing.

Well I believe the present fundamentals support a pps around $0.40 or 8x 2011 eps.

However snbp is a long term position for me based on the CEO's experience & ability to deliver expected results.

So I plan to trade around a core position as long as the bottomline continues to outpace the increased share count by at least 20%.

Let's see how & when they bring more new drugs on line as there is no doubt that the pipeline is very promising.

As more new drugs make a dent in overall revenue I would consider raising my fair value p/e but until then I feel a forward p/e ratio around 8 considering this is a Chinese pharm. is about right.imo

Henry Ngan a director on 11/26/2010 purchased 5k shares @$2.98-$3.00 his total holdings 45k shares.

As I just bought a starter position the week before his purchase @$2.95 this makes me feel more confident increasing my position knowing that the roll-out is probably meeting with some success.

It appears to me that ckgt is in a weak downtrend that is looking for a reason to reverse itself.

Good time for ckgt to announce they canned a I.R. firm that won't even answer the darn phone.

The forward accelerating trends I see for revenue & earnings in 2011 have me picking 5-5 star amigos for the next 12-18 months.

I see no fraud commited but I do see outstanding growth continuing for my 5 picks.

Just a old farts opinion mind you but this could be a very rewarding basket of 5 all presently have forward p/e ratios around 3.

Just a forward p/e of 9 or 10 would make for a average 300% gain over the above stated time frame.

All the 5 are either under the radar or taking a bum rap that seems to be effecting all Chinese stocks.

I have done my dd & suggest all do likewise.

1]uta 2]nuin 3]wkbt 4]hfgb 5]ckgt

They all seem like big winners "but" in investing in this risky space a basket approach seems to be wise.

disclosure I own the above names & have had two for a long time due to the persistant growth. uta 1st bought around $0.50 & ckgt 1st bought $0.80.

Both have been very disappointing in 2010 but 2011 should be better.

As for nuin wkbt hfgb they are somewhat newer to my basket making them even more exciting to hold.

Holy Moses traderfan,''

Did you see that fast blip down to $0.76....

You da man,,,Now one more question,,,,

Is the freakin bottom in.'''

The trend is your friend is a famous quote.

At the present time both the T/A & F/A are in the same trend.

I have a small 5k position here that is underwater.

Why should I average down against both the T/A & F/A trends.

Why shouldn't I sell instead?

At the current pps I will continue to hold because jada is "still" cashflow positive.

Besides management has a large position so if the pps continues to drop they will feel the pain more than I.

And even though management has done a poor job of running there business since buying the jade mine they may have a plan to take jada private & if so that could explain why the poor performance.

If on the other hand they are just plain stupid & shouldn't be running this company maybe they will do something to max. shareholder value before jada turns cashflow negative & possibly lose there total investment.

Or then again maybe the buyers really do want more of jada's jade.

In that case they maybe willing to pay for what they buy in the future.

I suggest we eat some turkey & leave this one alone until management shows some concern.

Thank you.

And may you & yours enjoy the time together.

In the 1st hour of trading today blocks of 46-30-35-50k went thru at the ask.

Thanks Mike & some good d&d points that I in haste missed.

Rawnoc,

The sequential rise in eps & another possible dividend [imo] was the reasons I decided to continue to hold for now.

My biggest concern other than what I have already stated in prior messages is that in spite expanding into other states revenue gains were quite poor.

I am a little out of my space even holding for now.

"As I like big revenue growers cheap & ahead of expected bottomline gains."

ASRG doesn't seem to fit on either a top or bottomline basis, however the pps has suffered thus at the current pps I will give revenue increases a little more time.

Yes my position is just on hold for now.

Are you guys just seeing a pps that is cheap or do you like the chances that revenue gains will improve & management will become more shareholder friendly in the future.

The last dividend coupled with turning down bonus payments may be signaling a more freindly management going forward as well.

Time will tell.

Managements greed in issuing endless shares to themselves is the real problem with asrg.imo

I have been buying a starter position today as I continue my dd on this fine young company with increasing margins,cash,cashflow along with steady double digit revenue growth that should thanks to the roll-out of their energy drinks in 2010 & expand to wine & other continued roll-outs in 2011 have 2010 eps of $0.80 with 2011 eps of $1.00+.

I realize these eps numbers are higher than the make good numbers of $9M in 2010 & $11M in 2011 but I like the chances of them beating those make good numbers.

Remember I am still doing dd & could possibly take a bigger position when finished although I see the float is rather small.

Management of jada has performed there job about as bad as any management team could.

At a time when the price of jade is rising from increased demand & inflationary pressure they have been unable or unwilling to find "quality" or even new customers for jade.

Instead they have 2 of the current 5 customers as deadbeats.

They have been building cash but have been unable to find a use for it.

If that is the best they can do sell the company & distribute the proceeds to investors including themselves since they have held a large position but still have been unable to perform or keep shareholder informed.

The breakup value of this stock is much better than not being able or willing to take advantage of the mountain of jade not being mined or used properly.

So even though management the most important part of any companies success is "lacking" the value in holding this stock at the current pps should eventually be rewarding since this "seemingly" dim witted management will eventually want to find value from their shares.

The only thing the way they are running this company. [They may want to go private] Even then they would have to make a offer to other shareholders.

Even though I bought this stock as a value play I like to see a management team looking out for "all" shareholders values.

If they do plan to go private what will we get $0.50?

That would be far below fair value but then does management really care about us.

I bought jada as a value play,,,not as a growth stock.

Sure I would like to have seen better 3rd qtr numbers.

Currently the pps has been discounted to cash on hand with no value given for the mining rights they have for jade.

Jade has been increasing in value so just because these blockheads can't seem to get the jade out of the mine & into the hands of clients that value its worth & are willing to pay the "wholesale" price up front.

That doesn't mean someone out there won't.

In fact with the pps of jada now so low what's to stop someone that knows the value of jade from just buying jada & getting 1st pick of the mines production for there own use.

Like I said this is a value play & one way or another value gets its price.

I will hold my shares for the right price,,,why not.

$0.75+$0.012 a very small gain for the day all things considered.eom

I was looking for $0.06 to $0.08 in the 3rd & 4th qtr.

HFGB came in with $0.08 vs $0.05 last year when far fewer shares were outstanding.

For 9M eps of $0.18 vs $0.07 in 2009.

They guided for revenue of $20-$25M but are on pace to outdue the high end of revenue guidance.

Earning should also exceed the high end of guidance with latest 12 month eps now @ $).26 up from $0.15 for all of 2009 when far fewer shares were outstanding.

True with the 6.5M new shares added in eps won't be $0.26 for 2010,however with management able to deliver this kind of growth & further revenue gains of $20M expected from building the new plant its hard to 2nd guess why management found it necessary to raise cash below B.V. to get the additional plant done.

You only need to look at last qtrs revenue growth from drinks,cigarettes &animal feeds & the current expanding of distribution channels to realize this qtrs overall revenue was in the neighborhood of $10M.