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Fushi International (FSIN) presentation from today 8-K 2/20/2007
http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204%2D07%2D008991%2Etxt&FilePath....
Almost at the bottom of the report was the Financial Performance with FYs 03, 04, and 05 audited while 06 was unaudited.:
Fiscal Year-------------03------04-------05-------06
Revenue-----------------$11.9---$15.7---$33.7---$67.9
Net Income--------------$3.6----$3.8---$7.8-----$17.8
EPS---------------------$.23----$.25---$.50-----$.81
Fushi International Inc. is the largest China based manufacturer of bimetallic wire with a market share over 50% among domestic suppliers. The company is located in the city of Dalian, a major city in Northern China's Liaoning Province. For more information visit the Company's website at http://www.fushiinternational.com.
FSIN is trading around $7.30. PE less than 9 based on full yr 06
Here is a link that works for the FSIN investor presentation from todays 8-k Feb 20
http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204%2D07%2D008991%2Etxt&FilePath...
FSIN presentation from today 8-K 2/20/2007
http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204%2D07%2D008991%2Etxt&FilePath...
Almost at the bottom of the report was the Financial Performance with FYs 03, 04, and 05 audited while 06 was unaudited.:
Fiscal Year-------------03------04-------05-------06
Revenue-----------------$11.9---$15.7---$33.7---$67.9
Net Income--------------$3.6----$3.8---$7.8-----$17.8
EPS---------------------$.23----$.25---$.50-----$.81
Fushi International Inc. is the largest China based manufacturer of bimetallic wire with a market share over 50% among domestic suppliers. The company is located in the city of Dalian, a major city in Northern China's Liaoning Province. For more information visit the Company's website at http://www.fushiinternational.com.
FSIN is cheap trading around $7.30. PE less than 9 based on full yr 06
And with $60 million in capital that should enable them to continue on their growth projections.
FYI on the Fushi (FSIN) Presentation. On the slide entitled "financial performance", unaudited numbers for Q4 06 are $5.4 million in net income which is .24 EPS for Q4. Full year 2006 unaudited numbers project to .81 EPS. Should bode well going forward imo.
In China, Abaxis has to have a third party to get approval and market their products in that country so you are correct. And that 3rd party is S3. Manufacturers of their kind are not allowed to sell direct in China. That was the whole point of tying up with S3. The approval process in China is slow because it is a centralized government.
One definite cost is the cost of materials that Sino is responsible for. S3 has to purchase Abaxis products in bulk for resale into China. My initial thought when Mr. Bickel mentioned Abaxis pre-launch activities on the trip to China was that perhaps S3 has already pre-ordered the Abaxis line so that when approval hits they are ready to hit the ground running. But I dont know if that is the case or whether it is even possible until approval is granted.
Basically the wholesaler (S3) purchases the product in bulk at a discounted rate from the manufacturer (Abaxis) and then sells it into China for a premium over the discounted manufacturers rate.
The following links prove my point. SIVC cancelled the deal with Lajolla because they got a much better financing opportunity. Learn to read. This is why MCF & Company are running the show now. They have the $$$$$.
http://www.s3investments.com//upload/SEIH_PR_11_09_06_LJCWarrentCancelled_final.pdf
http://www.s3investments.com//upload/SEIH_PR_11_22_06_MCFcontract_approved.pdf
snowflake,
Why would S3 have cancelled their agreement with Lajolla if they were about to go under? Lajolla was their source of financing right? The stated purpose for bringing in MCF & Company was so MCF could provide the capital for the subsidiaries to grow.
Provides the capital to me means provide the funding.
Is it possible S3 could go under? Yes. If they dont start closing some deals then they will go under. They hired additional staff which is a drain on their expenses so if they dont close deals then they will go bankrupt. As Sloth pointed out, they fired previous management at Redwood and just hired additional Redwood staff several months ago. It takes time for new management to take hold and accomplish intended results.
As for the Bickels misleading MCF & Company I suppose that is possible. But I can assure you that if they did then they will be looking at a potential lawsuit. So I cant imagine them being that stupid. Well wait, let me take back that last sentence.
Posted by: Sloth97
In reply to: oilman57 who wrote msg# 3670 Date:2/16/2007 2:00:13 PM
Post #of 3697
Oilman, don't even listen to these posters. They're all claiming that they hold shares and are fed up. Yeah right. People that hold shares sell them, say a few parting words of dissappointment and move on from the board. We are all disappointed with some of recent decisions but S3 is still very strong in a strong market. I'm disappointed that they haven't closed any more RTOs through Redwood but I believe they have good people working on them and they will come. It wasn't long ago that Mr. Bickel got rid of Redwood's management and replaced them. Unfortunately, these RTOs go through many requirements to make it through the approval process. As time goes on, this process will become quicker and quicker to process as previous clients will be able to be used as reference. I am waiting patiently when the time comes when regular clients are being reversed into the American market. I would certainly like to hear more from management but what can they say if most things are a work in progress.
Sloth
Dutton Associates Report (Not rated) 2-Feb-07 08:24 am Fushi International Inc. announced today that it has closed a US$60 million financing with Citadel Equity Fund Ltd. (Citadel). In this hybrid debt financing, Citadel purchased (1) US$40 million of Fushi's Guaranteed Senior Secured Floating Rate Notes due 2012 and (2) $20 million of Fushi's 3.0% Senior Secured Convertible Notes due 2012 at an initial conversion price of US$7.00 per share. Citadel was granted certain corporate governance rights over the Company and its subsidiaries, which include the right to designate up to certain number of Fushi's board of directors, right of first refusal with respect to any financing sought by the Company and right to approve the Company's annual business plan and budget.
Based on the prevailing LIBOR of 5.36%, the Company will pay a rate of LIBOR plus 7.0% or 12.36% on its US$40 million Guaranteed Senior Secured Floating Rate Notes. This, along with the 3% interest rate on the $20 million Secured Convertible Notes, represents an annual interest burden of $5.54 million, which is quite substantial compared to its $14.74 million of income from operation for the nine months ended September 30, 2006. Nevertheless, we believe the new financing will have a positive impact on driving the Company's revenue and earnings ahead. It is because the Company's sales and capacity expansion has been restrained by lack of sufficient working capital. The Company's bimetallic copper wire products are actually in strong demand from various industries. In 2006, Fushi produced approximately 10,000 to 11,000 tons of bimetallic copper wires and it can basically sell whatever amount it can produce. Fushi enjoyed a gross margin of between 36-44% for the first three quarters ended September 30, 2007. As long as Fushi can increase sales, the interest rate burden would not be a problem. Besides, with the additional $60 million on hand, Fushi may be able to acquire some smaller companies to expand its operation.
Recently, copper prices seem to have found support near the $5,500 per ton level, after falling from its peak near $8,800 in May last year. Latest figures indicated that China's copper imports increased sharply in December 2006, suggesting demand is picking up again and inventory adjustment is near its end. Selected US stockers have begun to turn bullish on copper prices. We believe copper prices could be on their way for a recovery and bode well for sentiment for Fushi. With the additional $60 million cash on hand, the Company will probably release an expansion plan to drive sales during a road show in the US scheduled in February. We are waiting for additional data to revise our volume sales and price assumptions for 2007 and 2008. We reiterate our Strong Speculative Buy rating on the stock.
Sentiment : Buy
Rate it:
MCF & Company are running the show. Do I like this particular aspect of their policy? No.
Anyway back to lurking and waiting.
I know you were being sarcastic but lets hope SIVC actually closes on a Redwood client this decade. Mr. Bickel has to prove he can close a deal.
Nonsense. They could have not reported the 10Q results, put out a few pump releases and then dumped their shares.
Why would MC&F take S3 on as a client if they were in that condition? MC&F has a reputation to uphold. They wouldnt do business with a company that was in the condition you describe.
Why would S3 bother to submit their 10Q on time?
Use some common sense.
(Oh and btw, if you really feel that way sell your shares.)
I wonder what Sinopec is up to? We have a general idea of drilling plans by Anadarko and Addax but nothing has been mentioned regarding Block 2. I was really hoping that Sinopec and ONGC would hook up on a rig and get this party started.
Yes but part of that frustration is borne from other posters who continually put out unrealistic timelines on certain events only to leave the masses frustrated and dissapointed when they dont come to pass.
Why would they bother to file on time if that were the case?
Is it Offor's fault that there are no drilling rigs available? It isnt even ERHC's resonsibility to find a drilling rig. That is the main problem here. A lack of drilling rigs in West Africa.
Well I alsways thought the Meridian vs. Killerbee showdowns were quite good lol. Highly entertaining to say the least.
You forgot, "the JDZ will be active January through March". Well its Mid february and it hasnt been very active so far.
Lugs in all fairness I do recall the majority of posters being angry when Offor did his .175 funding. The rest of your post I agree with.
I was hoping that the alliance with MCF & Associates would enable Redwood Capital to convert more clients because MCF could provide the cash infusion that was needed to close the deals. But I havent seen any evidence of that yet.
P.S. On a side note. BG you know I am just kidding. I need something to laugh about right now. This stock definitely does not make me laugh.
Well according to Mr. Bickel, "This association enhances the potential of S3 as a U.S. public company, and we expect that MCF & Co.'s expertise in the financial services industry will allow S3 and its subsidiaries in the China market to access the U.S. capital markets."
"BG - my reading of the 10Q was the MCF got options for .0008 but not that they had exercised any."
Great, now bg is wrong 668 times in a row lol.
Let me tell you what I liked about it. They filed on time (bg said they wouldn't).
Now let me tell you what else I liked about it:
Emeka Offor will not allow that to happen. If Emeka Offor sells it will be based on what he feels is a fair value for the assets or a predetermined number is his mind that has nothing to do with todays share price. Emeka Offor is a dealmaker first and foremost. He will not be taken advantage of.
Why would something have to have changed? Just because Angry is buying or dumping? He has been doing that for years. He is a swing trader along with his good buddy oilphant. IMO
Thats just Oilphant swing trading.
Do I sound like I am negative regarding this upcoming quarterly report? Well I am. I am not expecting this one to be very good.
Well I concur with "what earnings?". I dont expect there to be any. So yes I agree, lets get this quarterly report out of the way. Last year they filed on the Feb 15th so that is probably D-Day.
When is the 10Q due? Is that the 15th? Or 16th?
Jerseyboy nice post. The Bickels have about 9 million reasons (aka shares) to want to see the price go up so your post below is spot on. Its unfortunate some have to show up on the message board and purposely deceive. Some aren't intelligent enough to make money the right way so they have to lie, steal, and cheat. Some are just plain morally bankrupt. The post preceeding mine is a perfect example of that. Nothing but lies and flat out distortion.
But I agree with your post below. At least someone here has some intellect:
"I see what they have done overall as positive, albeit that we took a big hit percentage-of-ownership wise. Before, they had no incentive to move the share price up, as they had no ownership. Now, the key to them getting rich is to develop the company well and drive the share price up. I think that they have been developing the company already, but we just don't know about it because they had no incentive to let us know about it. Now that they do, I think the information flow coming out of the company will be substantial, positive, and soon"
But hey I hope all of you are right. I really do.
That was a pretty economical post Lugs.....
In three sentences you ripped.
A) Oilphant (multiple drilling already in JDZ)
B) Umbra (rich by Easter)
C) Oilphant (say hello to new CEO)
LOL
But now Umbra says ERHC will be in the triple digits after the GOG is fully developed (we will all be dead by then so whats the point) and that we will be at $6 to $8 before drilling occurs so she has moderated her predictions somewhat LOL
And just one. Well lets hope Addax gets it in gear in Block 4. Hopefully they will be more aggressive.
One exploration well in 2007-2008? Thats it? Not exactly great news.
DesertSon that is correct. They did not need to go on the pinks to do the reverse split. They had the majority of votes anyway.
Well actually I was kind of kidding. Today is a difficult day to gauge what will happen here. I tried to purchase a few shares just for kicks and it said that it wouldnt be possible due to a pending corporate action. So many who would want to buy or sell today cant.
Nice job Mr. Bickel. The reverse split has wrung out the flippers and now the shares are in more solid hands. That is precisely why I was in favor of the reverse split. The shares are now locked up and are not so readily available. Fewer available shares are always a good thing. Now if you could give us our 40% back I would really be happy lol.
How are all you flippers doing who thought you could sell SEIH on Friday and buy back cheaper today??
You can buy back in today....
But you have to pay .15
LOL