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"How come no one brought this CGDI to the Board in a BIG WAY.?"
No idea. But it's not too late. This one's got PLENTY of legs based on fundamentals.
It could move big tomorrow when they report annual numbers- probably .10-.12/share earnings and $22-25M in deferred/future revenues.
Could be a gapper...
CGDI (China Growth Development Inc.) moving up again.
Will report 2008 earnings today or tomorrow.
GROSSLY undervalued with commercial holdings of $66,000,000 USD (or $1.89/share), ttm eps of .11 for a PE of under 2, and BOOKED DEFERRED REVENUE of .70/share in future quarters.
It's a $1+ stock IMO.
my pick CGDI up 112% today- here's why it will ROCK WAY MORE!
CGDI- China Growth Development
reports earnings for 2008 tomorrow or Wednesday.
ttm eps of .11/share
BV .79/share
Commercial real estate valued at $1.89/share
and
$25,000,000.00 in DEFERRED REVENUE, or .70/share in REVENUE yet to be recognized over the next two quarters.
This is ABSOLUTELY UNHEARD OF in a penny stock.
If you research the filings (including their annual due out tomorrow or Wednesday), you'll see I'm not BS-ing here.
This is a $1.00+ stock!
Good info here:
http://www.investorvillage.com/iv2/smbd.asp?mb=9845&mn=898&pt=msg&mid=7054707
CGDI.OB (China Growth and Development) up 112% today and more to come.
Here's why:
http://www.investorvillage.com/iv2/smbd.asp?mb=9845&mn=898&pt=msg&mid=7054707
"non-current deferred revenue was $25,724,975"
This is UNHEARD of in a penny stock!
read on here...
http://www.investorvillage.com/iv2/smbd.asp?mb=9845&mn=898&pt=msg&mid=7054707
Thanks- except the ticker is CGDI, (not CDGI) as it is listed.
Incidentally, this stock has only 35M shares, a ttm PE below 1, and over $60M in assets for a book value well over $1/share,,, if anyone is interested in it as a long position.
It's one to look into- China Growth Development Inc. (CGDI.OB)
Pick for week ending Friday April 17: CGDI (China Growth Development)
Will report 2008 numbers this week- look for .10-.12 for year...
Correct website link (the I-box above is wrong)
The I-box above has the wrong link for the URL to the CGDI.OB website.
Here is correct link:
http://www.chinagrowthdevelopment.com
Pics of their properties:
http://www.chinagrowthdevelopment.com/cgdi_subsidiary.html
Management shares locked until May 2010...and no IR firm (yet)!
Management owns 31M of the 35M shares of this company, and their shares are LOCKED until May 2010. They can't sell a single share until then.
So...it's pretty easy to see what will happen next: Management/insiders will want to maxamize the share price (hell, at least get it to book value of $1.00/share!) by May 2010,(a year from now).
Hiring a good IR firm soon after annual numbers are released, supplying 2009 projected eps, and a few good PRs on their future growth plans in the next few weeks seems like a given here.
Buying now and holding for 12 months while management gets the word out to maxamize their share value is a no brainer.
Absolutely LTUS has another leg up. catalyst will be their meeting the 2008 make good (should be announced by Wednesday this coming week), and approval by government for their pharmaceutical park plans.
Other catalysts are SFDA approval of the 10 or so drugs they have in their pipeline.
Going out 5 years, LTUS is planning big- VERY BIG, and I like that.
CGDI "sells a lot of shares" ???
Do you have links to demonstrate that?
Management owns 31 million of the O/S 35 million shares.These shares are restricted until 5/08/2010 and can not be sold.
There have been NO INSIDER SALES, and minimal dilution of their shares since the reverse merger was completed last year.
Share count in latest filing on page 2.
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6260517-1100-89734&type=sect&TabIndex=2&companyid=598161&ppu=%252fdefault.aspx%253fcik%253d1217021
The value of CGDI's commercial holdings is reported to the SEC as $66,000,000. With only about $35,000,000 shares outstanding (and trading float under 3M shares), the value/share of their commercial real estate is $1.89.
Put it this way, if CGDI were to stop all operations tomorrow, pay off all debt, sell their properties, and distribute cash to shareholders, shareholders would get well over $1/share back.
THAT is how undervalued the company is....and yet they're trading at a PE of under 1 (like CYXN was a few weeks ago).
When they report annual numbers next week, the stock will move.
2008 full year earnings should be out next week.
Probably around .10/share for the year or better, for a ttm PE well below 1 here.
The value of their commercial holdings alone are listed at $66M as of the November filing. With only 35M shares fully diluted, that value translates to $1.90/share!
Add to that value the fact that they are cash flow positive, made .08/share for the first 9 months of 2008, and have managable debt load they can pay down with cash flows from operations ($2.4M in operating income for last reported quarter), and I see a truly undiscovered diamond here.
Hell, this company could stop operations tomorrow, sell off their assets, pay all debt, and shareholders would realize nearly $1.20/share!
CGDI.OB won't be undiscovered much longer.
I'm buying here.
This one's gotten waaay too cheap.
I'll post some dd I have on it in a few days.
Im buying some CGDI here also- a totally unknown one that barely trades.
It reminds me of CYXN when I bought it at .08-.10
Should move up on volume when they report full year 2008 next week.
here's some info on it you might be interested in.
Of my China micros, this is the one that will be a 10 bagger by eoy based on fundamentals and extremely low float. Pullbacks will be short IMO, and they report Q1 in a week.
http://theperfectstock.blogspot.com/
HCI Emerging Growth Client- Spring 2009 newsletter out today
scroll to page 16
http://www.newsandearnings.com:80/ViewFile.asp?ID1=32483&ID2=187915110&ssid=3&directory=9135&bm=0&filename=HCI_China_Client_Newsletter_SPRING_2009_Draft_(FINAL).pdf
My guess would be not today, unless buying comes back in the afternoon. Had a big runup already, and has pulled back. Some weak hands out now which will fuel next runup. I do think the stock will be above .50/share when they report Q1 in a week so I'm still looking to add a few more shares before then.
Thanks- eps projections look pretty optimistic as I don't see $60-$65/ton coal prices as "conservative". (I think $55/ton would be conservative.) But anyway you look at it, this one's way undervalued in the .20/share range given their likely eps growth this year.
im still here- holding half the shares I bought at .10 and under still for the long haul.
Yes, this week should be interesting- they should report by April 14.
yep- looking good, even with the NT10-K filing.
Did you have a chance to check out the stock I emailed u about? Up 15% again today on good volume. That's as undervalued as LTUS here IMO.
Late filing notification out.
pisses me off every time.
There is a much better discussion board for CHGY.OB over at InvestorVillage.
http://www.investorvillage.com/smbd.asp?mb=14575&pt=m
Well, it's good that's it's getting off the ground a bit here.
But I'm buying this one for a longer ride so am not too concerned about short term movement up or down.
That said, there are a lot of catalysts for upward momentum that could come at any time now:
***A good earnings report (because I think a miss is priced in at these levels)where they meet or beat the $13.1M net income target.
***Final SFDA approval on one or more of the late stage development drugs they have in the pipeline.
***Final central government approval of their pharmaceutical park plans.
***Securing a government grant, low interest bank loan (collatoralized by the land rights they now have), rental or sale of the large chunk of land they won't be using, etc.
***Hiring of a new IR firm/attendance at a road show or two/etc.
Lots of good things to come, and to think entire market cap of the company is now priced at about the annual revenues generated by one drug they aquired last month.
42M shares x .25/share = $10.5M market cap.
Revenues from Yipubishan were $9.8M last year, and expected to be $75M RMB, or $10.5M in 2009 with 75% profit margins.
I just can't see this stock being priced under .30 much longer- especially if any of the above events happen soon.
lookin good again today.
Still very undervalued fundamentally IMO.
Check out the revenues on the drug LTUS bought rights to last month using cash. The entire LTUS market cap is well under that figure alone...that's how mixed up/stupid cheap it's gotten in this market.
http://finance.yahoo.com/news/Lotus-Pharmaceuticals-Inc-prnews-14400544.html
Investor presentation from September:
http://www.lotuspharma.com/images/Lotus%20Presentation.pdf
re CYXN: I got an email reply from Hayden that they were not(as of Friday anyway)anticipating a delay in filing the annual report. I'd be surprised if they report on time (by the 31st), but that might be why we've seen a little run here- numbers might be on time and better than expected. Who knows- but it was goot to see CYXN get off the bottom with a little volume yesterday.
up 70% today- wow.
I think LTUS.OB might move up nicely soon also.
Even more undervalued than CYXN.OB is (now anyway).
Congrats all CYXNers! We could see this move continue right through earnings.
Agreed. There's a lot of value here any way you look at it. I'm amazed that the February announcement of the new drug rights for Yipubishan/octreotide acetate injection solution (trade name Sandostatin made by Novartis in the US), didn't have an effect on the share price. The stock only traded about 63k shares on the day the announcement was made, and closed unchanged. I'm sure the overall market had a lot to do with it as I believe that was a PR that in better times would have shot the stock up 20-30% in a day or two on heavy volume.
This is a drug they are paying for with CASH, that will have an immediate effect on earnings this year to the tune of $10.5M in revenues, and an estimated $13.1M in revenues next year. With 75% margins, that's going to add a lot to the net income....and yet they got this drug for just $7.9M cash.
For me, the HUGE plus in LTUS (and why I've been buying shares down here after waiting patiently for months for what I believe to be a near bottom formation), is the fact that their accounts receivable numbers are/were REAL. Far too many China pharmas (even the big ones) pad their revenues with large AR balances that never seem to go away, or are only slightly reduced, Q after Q after Q. Sure, it's easy to report huge increases in sales if you never collect from your customers!
But from what they're telling us, LTUS has been very successful in colleting the money owed them...so the ARs wern't trumped up-they were very real. Now LTUS has taken that cash from the ARs and turned it into future income gains in buying rights to a drug that will bring in over $10M in revenues and 75% gross margins for only $7.9M. Then (also using cash), they added $26M in assets to their balance sheet in the land purchase.
At some point, more people will put all this together, look at the multiples LTUS is trading at, and realize what an absolute "stupid cheap" price this is.
srry about the preceeding blank post-
I was going to ask Bradford a question about another stock and then got my answer. Then I tried to delete it and was unable to.
Anyway, nice to see a series of lower lows put in on CYXN.
CYXN is up nicely today. Looks like somebody bought all the shares at .12 and is looking for more at .13 now.
Whoever it is, they won't get my shares- when they report their annual numbers (in next 1-4 weeks depending on if they file for an extension) I think CYXN will get some positive attention. A lot of people looking for the next FEED or CHGY that moves on fundamentals/strong earnings.
Thoughts on the land use rights purchase...
I posted on Yahoo (in response to a shareholder whe thought it wasn't a smart move for LTUS) how I see the land rights investment as a positive for the following reasons:
1. They didn't use debt for the land rights purchase. They paid for the land already with cold hard cash from operations and aggressive collections of accounts revievables (ARs). The collection of ARs (reported as about $14M in their November filing) is very positive- especially in Chinese pharma companies. Some pad their earnings with ARs that they never collect to inflate revenue growth. Well if LTUS was able to collect these ARs to the point where they can pay $26M outright for land use rights (along with cash on hand and cash flow from operations), then the ARs they were reporting previously were REAL.
2. They bought the rights at a time when the global economy is struggling, and land values (even in China) have gone down. If they bought the rights to the same property two or three years ago, they probably would have paid far more for it.
3. The land rights are an asset for the company that will show on their balance sheet. They will be able to use the land as collateral for a low interest bank loan or government financing of the build-out.
4. The land (100 ms total) converts to about 960 acres. They are only going to use about 32 acres, and SELL or LEASE the remaining 128 acres. Their plans have already been approved by the local government, and now need to be approved by the national government. With all the money China's government is throwing into healthcare/pharmaceuticals (850B RMB) to stimulate their economy, it would seem to be something the central government would favor...perhaps even help fund as LTUS implied in their PR.
5. Paying for the build-out over three years is the next hurdle for them. They list how they plan to accomplish this in the PR and it sounds do-able with a combination of low interest bank loans collateralized by the land, cash flow from operations, sale/rental of large amount of unused land they hold rights to, etc. Just with the new drug they announced in February that they have rights to, they could damn near pay for this land. The actual sales (2008) on this drug were just under $10M with whopping margins of 75%. So you can see that over a period of three years, they could pay for a large part of developing the land from these sales alone. I believe it was not a conicidence that both of these developments were finalized in December- as the sales of this drug (known as Sandostatin by Novatrtis in the US)were probably looked at as a major driver in their ability to develop the land.
6. Significant tax advantages to this land development: "We expect to realize significant cost savings by expanding into Inner Mongolia. Once our new facility is completed and sales begin, we expect our new Inner Mongolia operations, like our wholesale distribution business, to be free from income taxes for eight years and pay income taxes at a reduced rate for the subsequent eight years. Also, we expect to enjoy a preferential VAT policy in Inner Mongolia, labor is less expensive, and the cost of utilities will be lower there."
7. I know as a former shareholder of SGTI that pharmaceutical grade dextrose and other IV fluids are in large demand in China, and there is growing demand for new suppliers every year as China's government helps to get better healthcare for it's more rural population. IV dextrose and blood plasma substitutes are very basic products that will increase in demand as healthcare expands into more rural areas.
So at first glance I didn't think too much about the idea either- but after taking a second look, it seems that they're positioning themselves for future growth going out 3-4 years from now- and they might just be doing it with little or now debt.
I'd be interested in hearing what others think on this land use rights purchase- it doesn't appear to have been discussed here much.
"We expect revenues from prescription drugs in these stores equipped with this system to increase by approximately 20% during the next year"
Not bad.
Hopefully they'll announce full year income soon and this stock can start to go back up where it belongs again.
Also- re: HC International's "coverage" of CYXN...
The links to the CYXN website and fact sheet aren't working from the HC International website.
Nice "focus".
http://www.hcinternational.net/CYXN.asp
I work at a firm that specializes in emerging Chinese companies traded in the US on the OTCBB, AMEX, NASDAQ and NYSE exchanges. We are unique in that we specifically limit the number of clients we will represent at any given time and focus on those which we believe will outperform both from a business and stock perspective.
We currently represent China Yongxin Pharmaceuticals (CYXN), who you covered in your article, along with several other companies that are trading at significant discounts and are also experiencing robust growth on both the top and bottom line. I couldn’t agree with you more on your take with CYXN
Well Ted, CYXN has not had a PR in over 3 months and is barely trading. If this is an example of HC International's ability to "focus on those which we believe will outperform both from a business and stock perspective", I'm unimpressed.
Nice job Glen. CYXN is probably the most undervalued stock I've seen in years.
Just a matter of time before it moves IMO.
http://seekingalpha.com/article/124793-nine-top-china-plays
Apply for margin, or call them and place the order over the phone- insist that they fill it or you'll trade elsewhere. If they still don't fill the order, open a new account with another broker. This was the very reason I left AMTD when I was buying SNEN.OB (now on Nasdaq) a few years ago. I like Fidelity personally- never had these problems with them. AMTD and Scott Trade I hear, can be very unfriendly with these China microcaps.
"You know anything else that I want to know?"
I forgot to mention.
LTUS management has "disengaged" CCG for their Investor Relations.
Long overdue if you ask me.
They are actively searching for a new IR group to represent them. I expect they'll issue a PR on the new IR firm when finalized, and that it would come before the annual report is filed/announced.
Don't know what loan you're referring to. They've been funding their land rights purchase and the last drug rights through cash flow form opps and collections (finally) on accounts rec.
If you're talking about the development of the land itself, they spell out how they'll pay for it in the filing.
Nice to see LTUS hang in there these last few days in an unwinding market. I think almost anyone who wanted out of the stock has gotten out by now, and those remaining will hold or add to their positions as the annual report nears. I have entered about 1/4 of my position and will by "all in" before they report. LTUS management hinted in their last filing that business was growing still as of Nov. 2008, and in the conf. call they said they believed they would meet their target for the year.
The post on IV spells out how they can do it.
http://investorvillage.com/smbd.asp?mb=8475&mn=1380&pt=msg&mid=6816504
CYXN.OB chart above looks better than most here IMO.
Certainly their fundamentals are better than most with ttm eps .18/share and trading at .10 for a PE of about 0.5.
yoy net income growth was 120% 2006-2007- still waiting for full 2008 umbers to be reported.
At any rate, I've been buying it down here thinking it will move up again with earnings PR.
thoughts/comments on this one appreciated!
GL
Bought CYXN last week and looking for more.
Chart looks OK here- well off lows and coiled for a nice move up with earnings release or PR of new stores.
All I know is that with ttm eps of .18, buying this for anything below .20 is a great deal...if the company is legit.
I have no reason to believe it's NOT legit either as I had a lengthy conversation with the COO (Sam Liu) in California last week and came away feeling pretty damn good about CYXN's prospects for the remainder of 2009 and beyond.
Anyway- just thought I'd say hello if there's anyone left following this beaten down stock.