Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
JADA made .03/share for Q1 2009 on revenues of $4.9M
Q1 filing also states they have $11.5M in sales to be recorded in Q2 and/or Q3, so I would anticipate they will make .06 from that $11.5M, for 2009 eps of .09 with not a single sale or customer added.
Also, rights to the mine are paid in full, and they have reasonalbe debt with total liabilities under $4M now.
That gives them a ttm PE of under 1 here and a forward PE of about 2.
They also sate in the Q1 filing:
"Due to the nature of the Company's business as a reseller and distributor of raw jade, principal components of the Company's overhead, such as salaries and lease obligations, are relatively low. Management presently anticipates that the Company's present cash on hand and cash expected to be generated from operating activities will, under current conditions, be sufficient to finance the Company's planned operations until December 31, 2009"
A few thoughts on your questions icepicker;
I agree ARs can be an issue if they're not on top of them.
But ARs don't seem to have been a problem in the past, and these are the same cutomers. "due to the Company's experience in the sale and distribution of raw jade in 2008, and the nature of the Company's business, management did not expect any uncollectible receivables."
You also asked: "If JADA is not purchasing jade, then how is the mine funding operations?"
I'm not an expert, but I don't think there are many costs in operating an open pit mine like this if there is no excavation going on. Seems to me the jade just sits there...waiting to be sold and dug up. The cost of operations would be the cost of getting the jade out as orders come in.
Also, JADA is still requiring jade from the mine as they reported that they still have $11.5M in orders to fulfill, or more than 2x what was reported as saled in Q1.
JADA is my pick for next week.
I think having a basket of 5-10 China microcaps is the best strategy, and one that's worked well for me for a few years now.
The articles on the China Securities site look to me like commercials more than anything else as they try to differentiate themselves from others who provide the same service.
Naturally these are high-risk investments, but they also can give high returns for the assumption of that risk.
But not all Chinese companies on the OTC are in dire straights. There are many many of them with sound balance sheets, quality management, no problem with liquidity, more than enough cash flow to maintain their listing, and have made the move to Nasdaq already or will be in a year or less: CFSG, CNEH, PUDC, UTVL to name a few.
I'll continue to research these companies, continue to invest in the better ones, and continue to make money in them as I believe I will in JADA 3-6 months from now (or less).
I understand what you're saying runcoach.
And I agree, (as probably would anyone taking a position now), that this is a stock that is not without risk.
And I agree that you never said "some inside holder sold shares" (which I assumed you meant).
And I agree that you're not "bashing the stock", just looking from the side of caution, which I can appreciate.
And lastly, I agree with you when you state the stock is "likely to go up when the seller is over".
Damn- we agree on a lot tonight!
Have a good weekend.
runcoach
It's always possible there is somebody on the inside selling that knows something we don't.
But as you also know, large shareholders sometimes sell because they have to, (not necessarily because they want to), or because (as I believe may be the case in JADA), they want to create liquidity in the stock by slamming it to the floor and letting the bottom fishers come in and create volume and liquidity spike.
Do you know of anyone that owns 4.3M shares of JADA that might be interested in seeing liquidity on the stock, (which it never had before)and might have a hand in what we're seeing?
At this point, I think that my theory is as plausible as your "somebody on the inside is dumping because they're is something very wrong here" theory.
However,if there is no Form 4/insider sales filing by the end of next week , I think we can say the "An insider is bailing" theory is without merit.
lol- I hear you. It's definately not a daytrader stock.
But I think it can easily double in a few weeks.
It's current ttm PE is under 3 (they made .30 for ttm period)
and they've got an IR form coming on board "in the first part of June" (next week?), that will most likely start getting the story out on their directional change into patented feed and feed additives.
They've also got a patented cactus-based "health cigarette" (?)still to launch this year- presumbably with a tobacco company branding it in China.
https://www.entrepreneur.com/PRNewswire/release/64723.html
You might like CKGT if you like FEED
The Director of China's Ministry of Feed Agriculture is on CKGT's adv. Board of Directors. This is the group that develops patented feed products like CKGT's patented Cow Feed released in Q4 last year that helped take Q1 yoy eps from (.03)loss to .04+ this year.
It's very thinly traded and has a tiny float (total shares outstanding under 20M and float about 1 or 2M), but it's a buy and holder for me.
http://investorshub.advfn.com/boards/board.aspx?board_id=8174
"is the former shell price meaningless once it's officially BioPharm Asia?"
usually, yes.
On an eps basis, yes I agree joenatural.
But this is where I see the real value on JADA (and realize this company has under $4M debt total and the mining rights are 100% paid for now):
JADA mine "Proven and Probable Reserves" 6.1M tons
http://www.reuters.com/article/pressRelease/idUS120320+02-Apr-2008+BW20080402
They sold the jade for over $3,000/ton last year.
Do the math.
This is why I originally posted that I don't care if they had ZERO customers and ZERO sales for the next 12 months, the stock is grossly undervalued here.
CHFI'ers know DOMR pretty well.
Some of us believe CHFI helped launch the company on the nasdaq and a PR will be issued soon on it.
More info on the CHFI board I-box that connects the dots.
They actually have until Monday to file since the filing deadline officially ends on the weekend.
I don't expect a good report- I don't think anyone should either. I'm looking for some hint that the pipeline is firming up and a pr re: their involvement in BioPharm Asia.
My complete guess is that they'll report the quarter after the close, it will look uglty, and they'll pr BioPharm Asia and pipeline/forward look Monday before the open.
Pics of the JADA mine- pretty cool
http://tinyurl.com/mrqjou
I wouldn't assume that if you have to call Ameritrade to place the order that something is "seriously amiss".
I've had Ameritrade, and they do that on many volatile OTC stocks, not just JADA.
In fact, Ameritrade made trading OTC stocks (especially China microcaps) so difficult that I switched to Fidelity. I use the Active Trader Pro platform and it's better than anything else I've seen out there by far, and I've NEVER had them give me a hassel with any China stock- including JADA.
I've heard that Scottrade can also restrict a lot of OTC and penny stocks sales also... even over the phone.
Good to see I'm not the only one who thinks JADA's undervalued here.
Once our "seller" is done, I expect we will see a snap back to much higher levels.
Looks more and more like CHFI part 2 every day.
CKGT annotated chart please.
TY
More on their debt: "The liquidity crisis continues with the company facing repayments of over $24.3 million due by Q2 ’09" (This was the statement in the AMI research PDF file from November 2008).
I just wanted to say again that that "liquidity crisis" is now past according to their annual report. A poster on IV (Millstone) has come to the same conclusion I have:
Here is what the 10-K says...
"During the year ended December 31, 2008, the Company met its working capital and capital investment requirements by using operating cash flows, and borrowing through the issuance of Notes payable totaling $10,000,000, including
$3,000,000 to a related party. The Company repaid all of such borrowings, together with applicable interest, during 2008. The Company is obligated to pay the remaining balance of $903,074 owed to former GHL shareholders in connection
with the Merger Transaction on or before March 31, 2010, together with interest at the rate of 4% per year."
Line items in the cash flow statement seem to show that the dividends payable were also paid:
Cash paid for dividends (12,069,649)
There are another couple lines that cancel out another:
Cash paid for notes receivable
(14,652,653)
Cash received from notes receivable
14,652,653
____________________________________________
TOTAL DEBT for JADA as of March 31, 2009 was under $4M.
Yes, I'm thinking that CHFI might be the seller.
But since the N-Q for CHFI will only include their share sales up to March 31, we may not know for awhile.
I agree with you that this big drop and high volume looks very much like CHFI's back in the first week of May. CHFI got through it and the end result was an increase in trading and liquidity, and even a few articles written about the company, increasing exposure even more.
I'm thinking JADA will get whip-sawed over the next few days just as CHFI did as this all plays out.
Longer term I can't see this crazy low price holding.
yep...you're right Bob
the seller isn't done yet...
Nice paint job for the close anyway... and it wasn't me that did it!
GL
CKGT.OB @ 52 week high AND GOLDEN CROSSOVER
Some SEED & FEED folks taking profits and coming into CKGT?
Float is 1.2M on this one folks.
http://stockcharts.com/c-sc/sc?s=ckgt&p=DAILY&b=5&g=0&i=0&r=1880
Am I missing something here?
Somebody tell me if I am.
The filings are telling me:
- Rights to the jade mine are fully paid
- Total debt remaining of $3.9M
- Positive cash flow of $2.5M from Q1 2009
- Made .03/share in Q1 2009
- Revenues of $4.9M in Q1
- Revenues pending for $11.5M in q 2 and 3(stated in Q1 filing)
- Low operating costs and cash flow + , no need for cash even with no new customers until next year.
"Due to the nature of the Company's business as a reseller and distributor of raw jade, principal components of the Company's overhead, such as salaries and lease obligations, are relatively low. Management presently anticipates that the
Company's present cash on hand and cash expected to be generated from operating activities will, under current conditions, be sufficient to finance the Company's planned operations until December 31, 2009"
Is there some huge red flag that I've missed?
Please advise if you see one.
I am aware they're down to just two clients and have gained no additional ones in the last Q, and that they may only make .06/share this year...but other that that, am I missing something specific in their filings that has caused this sell-off?
yep. Also, something's up with JADA (heading for record volume today)
It's trading like CHFI did the first few days in May, and I believe (as I've posted about CHFI) that the trading currently going on in JADA is exactly what JADA, CHFI, and their market makers want to see- a bottom on big volume with some much needed liquidity.
This could be good for CHFI if JADA finds it's bottom and starts to move up.
Incidentally, I wish CHFI could value JADA on their N-Q at BV or at some valuation that includes their jade mine, which would put it over the $1/share CHFI owns JADA at.
The first step in a valuation by stable trading range of CHFI was to have liquidity. That's been accomplished with CHFI as it's already traded 370k shares today, and I believe it's what is being done with JADA right now.
I suppose I sound like a conspiracy theorist, but can anyone explain what's happened with CHFI over the last month any better?
Can anyone show insider sales that caused CHFI to tank on record volume during the first week of May, or some terrible news that drove CHFI down to .05 intraday?
Do I believe that's exactly what CHFI wanted? Yes.
And I think that's what CHFI (and probably JADA too) wants in that stock as well.
Yes, LTUS looks good here.
I own a boatload of it from .17 and .18, near it's all time low.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36052411
If you guys like FEED, GRO and SEED, check CKGT.OB
CKGT= China Kangtai Cactus Biotech
Patented agriculture/feed products
Launches of pig and chicken feed pending
ttm eps now .30 following Q1
ttm PE 2.5
near 100% eps growth yoy
Zero long term debt
Purchase in march (with cash) of land to expand production.
Director of China's Ministry of Feed Agriculture is on their advisory BOD (huge unknown by those who haven't done their dd!)
Launch of cactus-based cigarettes this year?
etc.
If there were any time to load up on an undervalued stock, I'd say it was now- the only ones who know about CKGT ar hard core China microcappers from this board, IV, and I-hub. Once the broader investing public discovers it, we will see $1+ in no time.
Get your dd on here:
http://investorshub.advfn.com/boards/board.aspx?board_id=8174
Bottom fishers might like JADA.OB (China) Jade Art Group
Down 73% yesterday on no news.
JADA owns rights to one of China's largest jade mines, have almost no debt, and made .03/share in Q1.
Could this be the "undiscovered gem" everyone's been talking about?
Cool photos and video of their impressive mine here:
I-Box
http://investorshub.advfn.com/boards/board.aspx?board_id=11964
Photos of JADA mine opertions and a mountain of jade.
http://www.flickr.com/photos/27416545@N02/sets/72157605463625932/show/with/2556464042/
Photos of JADA's mine on flicker http://www.flickr.com/photos/27416545@N02/sets/72157605463625932/show/with/2556464042/
Shanxi to eliminate 20 Mt backward coke capacity
Shanxi, a coal-rich province in north of China, is set to close down a batch of backward coke production facilities and eliminate about 20 million tonnes coke production in three years, with the target to limit the coke output around 140 million tonnes per year by 2011, State Media reported.
Shanxi will work to control its coke production, optimize its industrial structure and avoid oversupply, according to the Planning for Adjustment and Reviving of the Coking Industry of Shanxi released by the local government on Apr 20.
The province has eliminated 60 million tonnes coke production capacity since 2004, and the plan also programmed that the province may cut 40 million tonnes backward coke production by 2015.
The total coke output in 2008 was 159.7 million tonnes, led to a severe oversupply.
http://en.sxcoal.com/NewsDetail.aspx?cateID=166&id=22273
----------------------------------------------------------
As one of Shanxi's larger and more modern coke facilities, (according to their website) this should be good news for Puda Coal on the coking side of their business from a longer term perspective.
Total output for the region last year was almost 160 million tons and the're planning on cutting that back to 140 million tons in two years. This should help coking prices stabelize and even increase as supply goes down while the economy and demand recovers.
"Is this problem solved, otherwise it is very cheap here."
I see that on the AMI research blurb also, but I wonder if it was a typo where they meant $2.4M debt and not $24M?
I say this because JADA's 10-Q from just last week lists total liabilities now as only $3.9M.
So, according to their most revent SEC filing, they don't appear to have a lot of debt and are sitting on top of one of China's largest jade mines.
not sure about the debt you mentioned in JADA
I see it on the AMI research blurb, but I wonder if it was a typo where they meant $2.4M debt and not $24M?
I say this because JADA's 10-Q from just last week lists total liabilities now as only $3.9M.
So, according to their most revent SEC filing, they don't appear to have a lot of debt and are sitting on top of one of China's largest jade mines.
hey guys
This is a Great board- glad I found it.
I'm long most of the stocks in the ibox plus a few others like CKGT and PUDC that I think belong up there...but maybe not as much as the one I bought today.
Check out JADA.OB today- down 73%
JADA owns exclusive rights for 50 years to one of China's largest jade mines with an estimated value of $16B (billion) in reserves. JADA's market cap now? $14M. Even with ZERO SALES, the company is worth more than it's trading for and they managed to be eps+ at .03/share in Q1.
Reminds me of CHFI when I was scoopin' it up at .07-.10 for two days.
If you're bottom fishers, might want to keep an eye on it tomorrow- could also use an assistant over there too.
http://investorshub.advfn.com/boards/board.aspx?board_id=11964
I appreciate your warnings (going back over a year) on JADA
History says you were right to say JADA was overvalued when it had a market cap of $250M+
And I believe the future will show that I'm right that JADA is grossly undervalued with the current market cap of $14M.
And hey- don't "wait a few months" before checking back.
It's always good to hear from the other side...that's what these boards are all about.
CSP
Absolutely I know how close to reality that statement is.
I've been researching this company for several weeks, waiting for an entry point like this. I've poured over their filings and know exactly what I'm buying (as long as the filings are reporting their situation accurately).
That's exactly why I posted I think the company is worth far more than the $14M market cap it's now got when they have exclusive rights to one of China's largest jade mines...even though they have only 2 customers left.
So...I'll say it again:
Even if JADA had ZERO SALES for 2009, I believe it's worth far more than it's present market cap of $14M based on it's exclusive rights to high quality jade from the SheTai Jade mine for the next 50 years.
As China's economy improves, so will the market for jade on both the wholesale and retail level.
Is there risk here? Absolutely.
Would I suggest anyone buy shares of this with money they can't afford to lose? Never.
Does the risk/reward favor buying at these levels?
In my opinion, yes.
I'm buying JADA now and this is why...
I started buying JADA today after watching/waiting for a bottom. Here's why:
______________________________________________________
* 2008 eps .19
* Cash flow positive and made .03/share in Q1 2009
* They get raw jade at $275/ton (two hundred seventy five) and can sell it to wholesalers for 10x that amount.
* Gross margins running 85% last year due to low cost of jade
* BV .83/share
* I believe China's economy is improving and JADA will obtain new customers for their jade
* Untapped potential to sell jade at retail level, or online through popular portals such as Alibaba.com, etc.
* Even if JADA had ZERO SALES for 2009, I believe it's worth far more than it's present market cap of $14M based on it's exclusive rights to high quality jade from the SheTai Jade mine for the next 50 years.
I have requested moderator and will update I-box with some financial information (which is not nearly as bad as the present share price would suggest it is).
For now, I believe what's going on here is the same thing that "happened" at CHFI when it hit it's lows a few weeks back.
In short, a means to an end that is desired by both JADA and CHFI management, as well as their market makers. It's not hard to do, and the end result two weeks later is a stock with a much larger following, more liquidity, and a higher share price.
If you were loking for entry or to average down here, this is the time.
More to follow...
JADA ttm PE under 1
That won't last.
CHEAP. I'm buying today.
THIS
CKGT (next FEED) .84 resistance taken out.
CKGT bumping resistance at .84 since May 12th.
Looks like it may cross that today and move higher.
PE of 2.6 on that undiscovered China stock in the WHITE HOT Ag. sector.