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www.corporateinformation.com
I like their charts a lot for a quick glance. Also covers lots and lots of foreign stocks.
I agree with businessweek. MSN money is also not that bad!
To be honest, all I care about is a share buyback. Nothing else.
They have paid high multiples for their previous acquisitions, yet they don't want to buy their own stocks? They are the only ones who know exactly what their shares are worth.
They have been trying to acquire unlicensed producers without success lately. They stated in a previous CC that they have made several bids, but after the strong bromine prices, nobody wants to sell. Shifting to leasing fields and keeping every cent for themselves lying around at 0.5% is not the best choice.
So even though spending their earnings only on bromine acquisitions is their master plan from day one, I would make not only an exception but also make it a priority at this stage.
Considering the Daying Facility. Well, it's the same as always. I would love to hear more about it and discuss funding possibilities and it would be definitely a big chance for their future.
But in the RTO space, nothing matters but hard cash (various verifications don't seem to work either). As soon as they show money flowing in the other direction in form of dividends or buybacks (IMO the better choice), they can think about future projects. Just to stress that again, in my opinion no verification, bank statement or whatever would do any good to counter the miserable atmosphere, hit pieces, inventory or ownership issues.
230 Mio are needed minus cash on hand, minus strong cashflow, does not leave too much to fill. Capital raise is deadly at this level and we have barely seen any bank loans in the sector at all. Look at Longwei, will they ever get one? I would even say, that bank loans on the balance sheet have become a big PLUS in due diligence, because local authorities seem to acknowledge the assets and earnings. Maybe they can stretch the payment a little, first pay upfront in cash to begin the construction process and then add money when it's needed, having more time to talk to banks or collect cash from cashflows.
Organization graph of Haoyuan Group has been changed!
The bromine and chemical operations have been removed.
http://www.haoyuangroup.cn/cgi/search-en.cgi?f=introduction_en_1_+purchase_en+company_en_1_&t=introduction_en_1_&title=Organization
Older article about ICL and China mentioning GFRE
http://www.haaretz.com/print-edition/business/icl-making-hay-as-china-eases-out-of-bromine-production-1.292062
Link to old buyback announcement 9/2010
http://www.prnewswire.com/news-releases/gulf-resources-announces-10-million-share-repurchase-program-103849883.html
If that is true, they should add BSPM and CBP while they are at it ;)
Both amazing balance sheets, but as always.. are they real??
HAP's cost basis
As far as I remember, Top King, Billion Gold and Topgood each acquired their shares through the share offering at 1$ pre-split, which made GFRE debt-free.
Split-adjusted 4:1, their cost basis should be 4$ (not taking into consideration what HAP actually paid for the three stooges ;))
Corrections or remarks welcome.
HAP Selling Killed Price - This Proves It
This is a yahoo post from markhamburg, found at:
http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_G/threadview?m=te&bn=94018&tid=17568&mid=17568&tof=2&frt=1#17568
That's another point.
It sounds plausible to me, that they need US dollars for uplisting fees, attorneys or their US company holding. Everyone (me included) says, that is is almost impossible to get yuan out of China. Yet I cannot verify that for a fact, or just some repeated rumour someone has posted a while ago.
You can read some interesting passages about that in 10-Ks, stating that they need to be profitable and having paid an amount in some Chinese fund, until they are allows to pay dividends, which includes getting money out of china.
That's the one thing. But if this is the case, why didn't they write that explicitly write that in the offering, and not only "general purposes" and stuff...
More later, got to go.
I am more than happy with their results! Don't get me wrong, their balance sheet is amazing, strong (free) cashflow, bright outlook. Same goes for BSPM and CBP, I would buy all of them in a heartbeat.
But unfortunately, that is not the problem. We learned the hard way that we can not (always? sometimes? rarely?) trust the financials, that's why they have to step up. We all know a lot of points they should be doing, looking forward to actually seeing some action, or maybe even the first "real" buyout?!
Yes, that's it.
But my comment was also meant two-fold:
The companies don't get it and the market does not care either. I understand most of them are tiny and probably overwhelmed by accounting, GAAP, IR and so on. That's the homework for the companies.
The other side is, that with all the bad press, nobody touches Chinese stocks anymore. We will see auditors not taking jobs, analysts leaving and more blow ups. So it does not matter how cheap the companies are.
Forget shiny presentations or road shows, forget low P/Xs, forget the outlook, forget trying to prove everything by showing chinese forms no one understands. There is only one thing I would like to see. _1_ thing:
Buy back your f..cking shares when they are that undervalued and publish the numbers weekly on your web page.
1 stone kills "we care about shareholders"+"we have the cash"+"our company is legit"+"we are undervalued"+......
I admitted my mistake, but I did not like your tone, that's it. I envy you if you never make mistakes, that was my remark with superman.
And I don't care if they are off in their calculations. Even bluechips regularly miss, and considering the price the market is willing to pay and the market cap of WKBT, nothing else is expected.
In WKBT's case, only one sales agent needs to be off a few days, and there's is your discrepancy. Looking at the low AR, it seems that they pay upfront, otherwise I can't explain that.
But why bother talking about specific numbers and why they didn't hit their preliminary ones, when noone believes or gives a damn about them anyway? It's getting more and more annoying...
Yes almighty superman, I was too hasty to post that, I was wrong.
Keep your bad mood to yourself please, mistakes happen.
This table was the cause for my error:
WEIKANG BIO-TECHNOLOGY GROUP CO., INC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010
Adjusted Net Income
Fiscal Year Ended
December 31, 2010
Net Income (Loss) and Diluted EPS
Net Income
Diluted EPS
Adjusted amount (non-GAAP)
$28,316,548
$0.95
Stock-based compensation adjustment (1)
3,878,864
0.08
GAAP amount per consolidated statement of operations
24,437,684
0.87
(1) Stock-based compensation expense for shares issued to financial and investor relations consultants.
Fiscal 2010 out: Final EpS 0.97
The difference from the preliminary EpS of 1.04 to the actual EpS of 0.97 is exactly the Stock-based compensation adjustment (1) of 0.08 (rounded)
Discussion about GFRE
Some points about GFRE, everyone feel free to add and take part
I have also noticed your posts here about GFRE, a big thanks to you back! Haven't had the time to listen to the CC yet and read all recent posts, but I also think it is a very strange decision to drop the Q&A, which I found very interesting the last times by the way.
I am also well aware of the situation of the sector, it's everything but pretty. I try to weigh all factors, but it is clear that something has to change. For one, I can understand and accept that GFRE won't pay a dividend (past acquisitions using cash+stock, current outstanding offers and negotiations), but I am very disappointed that they did not buy back stock. Maybe it makes sense for them regarding acquisitions, HAP or whatever, but for me this is one of the strongest weapons they have to fight short-selling and create not only shareholder value but also trust. And I can only hope that they have learned in the past and got that chinese vision out of their head I have seen a lot lately: Namely trying to build an empire through raising money at laughable valuations.
The future of GFRE is bright, it is still my favourite pick. Bromine prices are high, strong support by government (see latest land lease for example), cheap valuation, impressive balance sheet, and so on.. But the pity is, that these factors are unimportant until other issues are not solved.
I have often thought about writing a huge email to the management, but who knows if they even get it, read it, think about it.
To be fair, GFRE has really shined in a lot of areas:
They have always provided a clear guidance with lots of information. And they even kept/beat it :)
Their acquisitions have strengthened the company and produced better EpS. Their plan has been clear and logical from the start.
Their response to the allegations was one of best I have seen, I would have hoped that they disclosed SAIC/SAT numbers directly (note to myself for my virtual letter ;))
Got to go (for now), I'll post that on iHub as well. Usually it is a better place to talk over there, strangely the GFRE board is an exception on Yahoo.
All the best.
GFRE is hiring: 15 job offers
.. can be found at:
http://china.alibaba.com/company/buyer/offerlist/ronboo.html
Using Google Translate gives us:
http://translate.google.com/translate?hl=en&sl=zh-CN&tl=en&u=http%3A%2F%2Fwww.qlrc.com%2Fperson%2Fcompanys.asp%3Fcompanyid%3D8624970
10-K and Press release out
17.03.2011 10:00
Gulf Resources Reports Fourth Quarter and Fiscal Year 2010 Results
NEW YORK and SHANDONG, China, March 17, 2011 /PRNewswire-Asia-FirstCall/ -- Gulf Resources, Inc. ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2010.
Fourth Quarter Highlights
-- Revenue was $37.1 million, a year-over-year increase of 26.4%
-- Gross profit was $19.6 million, a year-over-year increase of 45.0%
-- Gross margin increased to 52.7% from 46.0% for the fourth quarter of
2009
-- Income from operations was $16.1 million, a year-over-year increase of
57.6%
-- Operating margin was 43.4% compared to 34.7% for the fourth quarter of
2009
-- Net income was $12.0 million, or $0.34 and $0.35 per basic and diluted
share, respectively, an increase of 77.5% from $6.8 million, or $0.21
per basic and diluted share a year ago
-- Cash totaled $68.5 million as of December 31, 2010
Full Year 2010 Highlights
-- Revenue was $158.3 million, a year-over-year increase of 43.6%
-- Gross profit was $78.1 million, an increase of 59.8%
-- Gross margin was 49.3%, compared to 44.3% in 2009
-- Net income was $51.3 million, or $1.48 per basic and diluted share, a
year-over-year increase of 67.6% from $30.6 million, or $1.00 per basic
and diluted share
Fourth Quarter 2010 Results
"We are pleased to report another strong quarter both in terms of top line growth and profitability, driven by high bromine prices. For the three months ended December 31, 2010, our average selling price for bromine was approximately $3,800 per tonne compared with approximately $2,100 per tonne in the corresponding quarter last year. In light of the high bromine prices and as we moved towards the winter maintenance season for bromine production, we maintained our utilization rate at a moderate level," said Xiaobin Liu, Chief Executive Officer of Gulf Resources. "Our chemical business also contributed to the record earnings in the fourth quarter of 2010. These events allowed us to exceed our financial guidance for 2010."
Gulf Resources' revenue was $37.1 million for the fourth quarter of 2010, an increase of 26.4% from $29.4 million for the fourth quarter of 2009. The increase in net revenue was primarily attributable to the strong performance of the Company's bromine and crude salt segment.
Revenue from the bromine and crude salt segment was $26.5 million, or 71.5% of total revenue, an increase of 36.4% from $19.5 million in the corresponding period last year. The increase in revenue from the Company's bromine and crude salt segment was mainly due to an increase in the average selling price of bromine and crude salt.
Revenue from the chemical products segment was $10.6 million, or 28.5% of total revenue, for the fourth quarter of 2010, an increase of 6.6% from $9.9 million in the corresponding period last year. The increase in revenue from the Company's chemical product segment was mainly due to solid demand for environmentally friendly oil and gas exploration chemicals and agricultural intermediaries.
Gross profit for the fourth quarter of 2010 was $19.6 million, an increase of 45.0% from $13.5 million for the fourth quarter of 2009 and gross profit margin for the three months ended December 31, 2010 was 52.7%, compared to 46.0% for the corresponding three-month period last year. The improved gross profit margin was due to the higher average selling prices of bromine
Sales, marketing and other operating expenses for the fourth quarter of 2010 were $41,889 compared with $5,031 for the corresponding quarter last year. The increase was mainly due to increased sales.
General and administrative expenses for the fourth quarter of 2010 were $2.9 million, compared to $3.2 million for the fourth quarter of 2009. The decrease was mainly due to lower warrant expenses.
Research and development expenses were $587,429 million for the fourth quarter of 2010 compared with $125,219 for the corresponding period last year. The increase was mainly due to research activities related to the Company's new waste water treatment chemical additives.
As a result, income from operations for the fourth quarter of 2010 was $16.1 million, an increase of 57.6% compared to $10.2 million for the corresponding quarter of 2009. Operating margin was 43.4% for the fourth quarter of 2010, compared to 34.7% for the fourth quarter of 2009.
For the fourth quarter of 2010, the Company incurred other income of $0.2 million compared to $0.6 million for the corresponding quarter last year mainly due to a decrease in sundry income.
Income taxes were $4.3 million for the fourth quarter of 2010, an increase of 45.7% from $2.9 million for the fourth quarter of 2009. The Company's effective income rate was 26.4% compared to 30.4% in the year ago period. The Company's effective income tax rate was higher in the three month period ended December 31, 2009 due to the loss from the disposal of assets not being deducted from taxation in 2009 and being recorded as a deferred tax asset.
Net income was $12.0 million for the fourth quarter of 2010, an increase of 77.5% from $6.8 million for the fourth quarter of 2009. Basic and diluted earnings per share in fourth quarter of 2010 were $0.34 and 0.35, respectively, compared to $0.21 per fully diluted share in the fourth quarter of 2009. Weighted average number of diluted shares for the three months ended December 31, 2010 was 34,667,614 compared with 32,250,669 for the three months ended December 31, 2009.
Fiscal Year 2010 Financial Results
Revenue for fiscal year 2010 was $158.3 million, an increase of 43.6% from $110.3 million for fiscal year 2009. Gross profit was $78.1 million, an increase of 59.8% from $48.9 million for fiscal year 2009. Gross margin for fiscal 2010 was 49.3%, compared to 44.3% for fiscal year 2009. Operating income was $68.9 million, an increase of 63.0% from $42.2 million for fiscal year 2009. Net income was $51.3 million, or $1.48 per basic and diluted share, an increase of 67.6% from $30.6 million, or $1.00 per basic and diluted share, for fiscal year 2009.
Financial Condition
As of December 31, 2010, Gulf Resources had cash of $68.5 million, current liabilities of $14.0 million, and shareholders' equity of $192.7 million. At fiscal year end, the Company had working capital of $79.8 million and a current ratio of 6.7. For the twelve months ended December 31, 2010, the Company generated $58.0 million in cash flow from operations, primarily attributable to net income, and used $39.1 million in investing activities, mainly due to the acquisition of additional bromine manufacturing assets and the construction of a waste water chemical additives production line.
Subsequent Events
-- In March 2011, the Company finalized an agreement to lease a property
with an area of 3,192 square meters and buildings adjacent to the
Company's Factory No. 1 from the State-Operated Shouguang Qingshuibo
Farm. There are currently non-operating bromine production facilities
on the property which have not been in production for more than 12
months. The annual lease payment for the property is RMB 5 million
(approximately $760,000) per year and the term is twenty years.
Shouguang Qingshuibo Farm has agreed to allow the Company to reconstruct
and renovate the existing bromine production facilities on the property
and to build 100 brine water drilling wells and transmission ditches on
Shouguang Qingshuibo Farm's land adjacent to the property.
-- In March 2011, the Company's internal control consultant Deloitte Touche
Tohmatsu ("Deloitte") issued a final report regarding the internal
control assessment performed. A follow up assessment was conducted in
February 2011, based on which the Company has put in place measures to
improve its internal controls in relation to the improvement areas
identified by Deloitte.
-- In December 2010, the Company signed an agreement to acquire a crude
salt field from the state operated Shouguang Qingshuibo Farm.
Consideration for the crude salt field purchase is RMB73 million
(approximately $10.6 million) in cash, of which 50% was paid upon the
signing of the agreement and the remaining 50% will be due within three
days thereafter. The acquisition of additional crude salt fields
increases annual crude salt production by 70,000 tonnes.
Business Outlook
For 2011, the Company continues to assess opportunities to increase bromine and crude salt production capacity through acquisitions and leases of production assets, although the higher bromine prices have impeded the progress of transactions. In order to leverage its bromine production capacity and diversify its revenue streams, the Company continues to assess opportunities to develop the market for downstream brominated products. The Company's management anticipates most growth potential from brominated pharmaceutical intermediates.
"In March 2011, we finalized a lease for a property adjacent to our Factory No. 1 with non-operating production facilities. Following improvements to the assets and the construction of brine water drilling wells and transmission ditches, we estimate that the property will contribute 2,500 to 3,000 tonnes in annual bromine production capacity," said Mr. Liu. "For 2011, we expect to maintain a utilization rate of our bromine production capacity of approximately between 65% and 75%."
Mr. Liu continued: "Bromine prices remained high throughout the winter slow season for bromine production. In March 2011, we recorded market prices of approximately $4,500 per tonne. As demand has remained resilient despite high prices, we believe Gulf Resources will continue to benefit from the current price environment in 2011."
Conference Call
Gulf Resources' management will host a conference call at 7:30 a.m. EDT on Thursday, March 17, 2011 to discuss its financial results for the fourth quarter and fiscal year 2010 ended December 31, 2010. To participate in this live conference call, please dial +1 (877) 275 - 8968 five to ten minutes prior to the scheduled conference call time. International callers should call +1 (706) 643 - 1666. The conference participant pass code is 51422230.
A replay of the conference call will be available for 14 days starting from 10:30 a.m. ET on Thursday, March 17, 2011. To access the replay, call +1 (800) 642-1687. International callers should call +1 (706) 645-9291. The pass code is 51422230.
This conference call will be broadcast live over the Internet and can be accessed by all interested parties by clicking on http://www.gulfresourcesinc.cn/events.html. Please access the link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a 90-day replay will be available shortly after the call by accessing the same link.
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through two wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC") and Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"). The Company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SYCI, the Company manufactures chemical products utilized in a variety of applications, including oil&gas field explorations and as papermaking chemical agents. For more information, visit www.gulfresourcesinc.cn.
China Botanic Pharmaceutical Receives a Tax Exemption in 2011
March 14, 2011 | PR Newswire Association LLC
Email Print Free Newsletter
HARBIN, China, March 14, 2011 /PRNewswire-Asia-FirstCall/ -- China Botanic Pharmaceutical Inc. (AMEX: CBP) (formerly Renhuang Pharmaceuticals, Inc.) ("China Botanic" or the "Company"), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and traditional Chinese medicines ("TCM") in China, today announced that the Company has passed the annual High-Tech Enterprise assessment, and that as a result, China Botanic will continue to enjoy a 10 percent tax exemption and will be entitled to a preferential tax rate of 15 percent in 2011 which is notably lower than the statutory income tax rate of 25 percent.
As previously disclosed on March 30, 2010, China Botanic has been awarded the State High-Technology Enterprise certificate. As a Certificate recipient, China Botanic will have access to a series of national and local government support programs, including favorable tax treatment. While the certificate is valid for three years, China Botanic must successfully complete an annual assessment to remain eligible for the tax benefits.
For fiscal 2011, the Company expects to see revenue in the range of $70.6 million to $71.7 million, and after-tax net income of $22.9 million to $23.2 million. These figures represent a 28% to 30% increase from fiscal 2010 revenue of $55.2 million and net income of $17.9 million. The Company's 2011 guidance does not take into account the impact of any potential acquisitions.
To achieve its guidance, the Company will focus on increasing average selling prices, introducing new products, expanding its marketing efforts to gain additional market share, continuing to develop a larger distribution network and expanding into overseas markets. China Botanic also anticipates that it will benefit from the burgeoning Chinese national health insurance program.
"Looking into 2011, we are optimistic about our growth outlook and the market prospects for our all-natural plant based remedies. As people learn more about depression in China, the market potential for China Botanic's scientifically-verified depression and anxiety fighters will continue to increase. The Company will capitalize on opportunities provided by health care reform, as well," said Mr. Shaoming Li, the Company's Chairman and Chief Executive Officer. "Our thorough market research shows that China Botanic has a stable customer base and our previous average selling prices were below the market price. We anticipate attractive revenue and net income growth to be largely driven by an increase in average selling prices of our key products, sales and distribution expansion, and the Chinese government's healthcare reform. We also expect increased sales contribution from our latest new products introduced in 2010."
New CFO and posted cemetery license documents
Interesting things happening at CGPI:
They hired a new CFO, see PR below
They also further cooperated in GeoInvesting's investigation by posting their (valid) cemetery licenses including a verification letter from today at
https://cgpi.box.net/shared/ttfak2x913
Clear roads ahead, Maj? Looking forward to the report.
Corrections in filing
It seems that Deloitte uncovered two typos and an error of the size of a salt field during their "assessement of the company's controls" as they call it :)
Presentation starting at 10:30 EST
1 1/2 hours to go.
http://viavid.na4.acrobat.com/bsi33192/
Maybe they are releasing unaudited numbers, october and november were already published. Wasn't there also a rumour floating around that they will upgrade their auditor after this 10k?
True. From my experience, I have barely seen any discussion with these folks which lead to constructive weighing of pros and cons and talking about chance/risk.
Because of the long uneventful period, SIAF under everyone's radar anyway. P/E, P/B is okay, considering SIAF is still on the Pinks with all other Chinese stocks approaching similar valuations due to the recent short attacks.
Anyway, I am looking forward to uplisting, many more divis and kept promises by the management. This years numbers might not be as good as hoped, since the HU plants were a little lower than expected, we will see if fertilizer+dairy can offset that. But next year is looking phenomenal, fishery better than expected, ramping up of HU, dairy and cattle..
Look at his previous posts strindberg, he is not here for reasonable discussion on SIAF.
Correction of 10K: EpS raised to 0.47!
On February 3, 2011, the Audit Committee concluded, after consultation with its independent registered public accounting firm Windes & McClaughry Accountancy Corporation (the “Auditor”) and a review of the pertinent facts, that the previously issued financial statements contained in the Company's Annual Report on Form 10-K for the year ended October 31, 2010 (“Form 10-K”) should not be relied upon because of an error in calculating the weighted average common stock outstanding on a diluted basis as of October 31, 2010 which affected the calculation of the diluted earnings per share. The Company’s management, in consultation with the Auditor, has determined that as a result of such error, its reported diluted earnings per share was understated by $0.03 for the year ended October 31, 2010. The diluted earnings per share for year ended October 31, 2010 should have been $0.47 based on the weighted average common stock outstanding on a diluted basis of 37,778,028.
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=7389384
GFRE has ASSETS
With all the recent discussion on CCME, don't forget that GFRE has lots and lots of producing bromine/salt fields. These are hard assets which are there for everyone to see.
GeoInvesting'ss attorney provided a link, where GFRE's production capabilites where proven on a public local website (21600 t + additional 10k!)
http://www.sgxsxh.com/newshow.asp?id=547
Well, they still could question their license, but how would they have had even the chance to purchase competitors?
10K is around the corner, no need to fight with each other!
Chimin's next article on SA is gonna be named:
"Red Flags At China MediaExpress: Its SAIC and SAT Filings Significantly Mismatch Its SEC Filings"
Spotted in my feed, sometimes the instablog articles show up before actually being published (same with michael's recent article)
We all know about the mismatching SAIC filings, but I can't recall SAT.
New data on failstodeliver.com
I don't know if it has already been posted, but there's finally some new data on CCME on failstodeliver.com after it hasn't been updated after 12/31/2010
Forbes: CCME: Buffett Next Door Dissects Short-Seller’s Case
http://blogs.forbes.com/schifrin/2011/02/02/ccme-buffett-next-door-dissects-short-sellers-case/
CCME: Buffett Next Door Dissects Short-Seller’s Case
Feb. 2 2011 - 12:53 pm | 10 views | 0 recommendations | 0 comments
posted by KEN KAM
Click on this image if you want to see some short-busting proof that CCME's videos play on airport buses in China.
Two Wall Street shorts, Citron Research and Bronte Capital published negative blog posts today about China MediaExpress (CCME), a company that more than doubled its revenues last year and trades at a price-to-earnings ratio of 7. The stock closed down 6.6% so the shorts won the day, but are they right, or did they just create a buying opportunity?
I asked Mike Koza, a Marketocracy Master and Buffett Next Door, who has a long position in the stock, to take a look at the negative posts and let me know if they raised any issues that would change his mind. Here is his reply:
1. The companies Citron listed as CCME’s competitors, Towona, Bus Online and VisionChina Media, are in the television business – they retransmit broadcasts from large TV stations (such as CCTV) on a real-time basis to their networks of municipal transit buses. CCME does not do this – CCME is not really in the television business. CCME gets second-run (my guess) content for free from smaller TV stations and puts it on a hard drive along with their ads, and puts the hard drive on a bus. Thus, CCME’s business is more similar to an in-flight movie with advertising. Thus, I would not expect CCME to be mentioned in the same breath as these other companies. Television is the transmission of video signals over long distance, so CCME does not fit the strict definition, although CCME uses the word “television” in describing themselves (could be a promotional mistake on their part).
2. One of the links that Citron provided does not contain references to any of the above three companies, as claimed (unless there is another page to the linked document that I did not see). Another link appears to be over two and a half years old. It is surprising how few independent references to VisionChina were provided.
3. CCME has been public just a little over a year. They came public via a low profile method. Reverse mergers are not listed in the Wall Street Journal. All IPOs are usually listed/mentioned in the Journal when they occur, and even before they occur. Thus, VisionChina, which went public via IPO many years ago with major US investment banks, should have a much higher profile in the Chinese media. Plus they operate in the big cities that reporters are based in, whereas up until 2010, CCME had no big-city presence (in 2010, CCME entered the airport express bus market).
4. Outdoor Advertising - Citron said CCME was not shown in a Top 10 list. CCME has had no outdoor presence, until recently. Focus Media is a big outdoor (billboard) advertiser and would thus would appear in many lists that CCME would not appear in. See the Global Hunter report for one list that CCME does appear prominently on.
5. Margins – CCME’s margins should be higher than others, because:
CCME is not a roll-up as VISN, FMCN are. FMCN bought up a lot of its distributors/partners before going public. Even with that, FMCN’s gross margins for its core LCD business are in the 70’s, similar to CCME’s inter-city bus GM’s.
VISN is a middleman on many transactions – VISN sells ad time to networks outside of its own, and engaged in many poor acquisitions.
CCME has a captive audience for long periods of time. Advertisers will pay more for this.
CCME does not pay for content, as explained above. CCME is not trying to be a provider of the latest and greatest media experience, as VisionChina, Towona, etc. are trying to do IMHO. From what I understand, CCME’s content is meant to drive traffic to the TV stations to get the latest and greatest. In other words, the content itself is an advertisement.
The airport express bus segment has unusually high margins. I believe this is not sustainable, but CCME is probably the first to do the hard drive / free content approach, which will undoubtedly lead to copycats, or demands for increased fees from bus operators. Airport express is very new for CCME and they are taking advantage while they can – and apparently, CCME has been placing less programming and more ads on the airport express routes.
Here is a Web site that I came across that did a bit of detective work on CCME:
Ccme-info.xanga.com
These videos show real evidence of CCME’s business in China, putting big holes in the arguments of Citron et al.
As I said in my previous article about CCME, it is not possible for someone outside the company to truly know whether the short-sellers are right or wrong. No matter how strongly you feel about a stock, it is never a good idea to put so much into it that your could not recover if you are wrong.
Mike Koza’s Marketocracy portfolio has about 17% in CCME and our diversification rules would force him to sell some if the position grew to be over 25%. Still, 17% is a large position that I am only comfortable with as long as someone with a track record like Mike’s (10 years averaging about 33% a year) is monitoring the stock. In addition, when I look at the other stocks in Mike’s portfolio I see many that have the same profile of value and growth that characterizes Mike’s biggest winners.
I’ve tracked Mike long enough to know that his investment strategy does not depend on being right all of the time. In the last decade, 64% of the stocks Mike has put into his Marketocracy portfolio have been profitable. Furthermore, when Mike picks a winner, on average he makes 67% more than he loses on his unprofitable picks. I think this means that Mike is an excellent stock-picker who is also pretty good at cutting the losers off before they hurt him too badly, while also letting the winners run.
The short sellers may yet be right about CCME, but I think the odds are with Mike. I wouldn’t want to bet against him.
New article from t3live.com:
http://blog.t3live.com/2011/01/china-mediaexpress-ccme-candidate-for.html
GFRE sues WarChest Fund not to sell shares
https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=tirVQewp3Ws00FTGsPLToA==&system=prod
In 2009, GFRE repaid a loan from 2007 by issuing shares to three chinese entities to become debt-free. WarChest fund now obtained their shares and owns about 15% (5,25 Mio) of the float. WC wants to sell all shares, which is against the original contract and the point of this discussion.
After March 2011, they will be able to sell with certain limitations (haven't seen the last part at first glance, 2% monthly?).
See the first 9 pages of the document, as well as the very last 2 letters by the attorneys for quick info.
Mashup - GFRE and Albemarle News
Wow, thanks a lot PDG for that info, would have missed it for sure!
Here is Albemarle's news:
http://www.albemarle.com/News_and_events/index.asp?news=text&releaseID=1519248
PR of Fiscal Year 2010 out now.
China Botanic Pharmaceutical Reports Fourth Quarter and Fiscal Year 2010 Results
Provides Guidance for FY 2011
PR Newswire
HARBIN, China, Jan. 25, 2011
HARBIN, China, Jan. 25, 2011 /PRNewswire-Asia-FirstCall/ -- China Botanic Pharmaceutical Inc. (AMEX: CBP) (formerly Renhuang Pharmaceutical, Inc.) ("China Botanic" or the "Company"), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and traditional Chinese medicines ("TCM") in China, today announced financial results for the three months and fiscal year ended October 31, 2010.
Fourth Quarter 2010 Highlights
Net sales grew 15.2% year-over-year to $16.7 million
Gross profit increased 13.3% to $9.1 million from $8.0 million in the fourth quarter of fiscal year 2009
Gross margin was 54.4%
Net income was approximately $5.6 million or $0.14 per diluted share, as compared to approximately $5.8 million or $0.15 per diluted share a year ago
New products, including Qing Re Jie Du Oral Liquid, Compound Schisandra Tablets, and Ginseng and Deer Antler Extract accounted for 8.2% of gross sales in the fourth quarter of fiscal 2010
Fiscal Year 2010 Highlights
Net sales rose to $55.2 million, an increase of 27.1% over fiscal year 2009
Gross profit increased to $29.4 million, up 27.4% from $23.1 million
Gross margin was 53.3% compared to 53.2% in fiscal year 2009
Net income rose 20.4% to $17.9 million or $0.44 per diluted share, as compared to $14.8 million or $0.41 per diluted share in fiscal year 2009
Introduced three new products: Qing Re Jie Du Oral Liquid, Compound Schisandra Granules and Deer Antler Extract, which together accounted for approximately 3.0% of gross sales in 2010
In July 2010, the Company's common stock began trading on NYSE AMEX market under the symbol "CBP"
"We are pleased to report double digit revenue and net income growth in fiscal year 2010. This fiscal year, we maintained a leading market position with our Siberian Ginseng product series and successfully introduced several new products, including Compound Schisandra Tablets, which strengthens our offering in the nerve-regulation and depression treatment segment," said Mr. Shaoming Li, Chairman and Chief Executive Officer of China Botanic. "During the year, we experienced increases in average selling prices of several of our products, reflecting the continued strong demand for our all-natural plant based remedies."
Fourth Quarter Fiscal 2010 Results
During the three months ended October 31, 2010, net sales increased 15.2% to $16.7 million, from $14.5 million during the same period in 2009. The rise was mainly attributable to growing market acceptance and resulting increased sales volume of the Company's new products. China Botanic also successfully gained additional market share during the quarter.
Gross profit increased 13.3% to $9.1 million compared to $8.0 million in the fourth quarter of fiscal 2009. Gross margin decreased to 54.4% as compared to 55.3% in the same period of 2009. The growth in gross profit was mainly driven by increased sales. The decline in gross margin was a result of changes in the Company's product mix and higher raw materials costs.
Operating expenses for the fourth quarter of fiscal 2010 were $3.5 million, as compared to $2.2 million in the same period last year. Sales and distribution expenses rose to $1.3 million from $1.1 million a year ago. The spending increase reflected continued investment in the Company's distribution network and TV advertising in order to increase product market share and create greater consumer awareness of the Company's premium quality products. General and administrative expenses increased to $1.4 million from $0.4 million in the fourth quarter of fiscal 2009, primarily reflecting warrants and options granted for services, increase in professional fees, and amortization of intangible assets purchased in the fourth fiscal quarter. Research and development expenses were $0.8 million, up from $0.7 million in the year ago period, reflecting the Company's commitment to continuing to build a pipeline of products.
Our operating income in the fourth fiscal quarter was $5.6 million, compared to $5.8 million in the fourth quarter of 2009. Operating margin decreased year-over-year to 33.6% from 40.0%. The Company did not incur income tax expenses as its subsidiary registered in the PRC has been granted a tax holiday for fiscal 2010. For the fourth quarter ended October 31, 2010, net income declined by 3.0% to $5.6 million, or $0.14 per diluted share, from $5.8 million, or $0.15 per diluted share in the prior year period.
Fiscal Year 2010 Results
For the fiscal year ended October 31, 2010, net sales were $55.2 million, up 27.1% from $43.4 million in fiscal 2009. The increase in sales was mainly attributable to the launch of new OTC medicines, increased demand and strong market acceptance of the Company's products, effective marketing efforts and product price increases. Gross profit was $29.4 million, up 27.4% from gross profit of $23.1 million in fiscal 2009. Gross margin was 53.3% compared to 53.2% in fiscal 2009. Operating expenses for fiscal 2010 were $11.6 million, as compared to $8.3 million for the same period a year ago. Income from operations was $17.8 million, up 20.2% from $14.8 million in fiscal 2009. Net income was $17.9 million, or $0.44 per diluted share, up 20.4% from $14.8 million, or $0.41 per diluted share, for the same period a year ago.
Financial Condition
As of October 31, 2010, the Company had cash and cash equivalents of approximately $27.8 million and total current assets of approximately $50.5 million. As of October 31, 2010, China Botanic had working capital of approximately $47.1 million as compared to $32.0 million for the fiscal year ended October 31, 2009. The Company has enhanced its working capital position as a result of tightened credit terms extended to customers and a decrease in the level of inventories. The Company had no long-term debt on its balance sheet as of October 31, 2010. Shareholders' equity stood at $69.8 million, compared with $50.5 million as of October 31, 2009. Net cash flow from operating activities increased to $23.8 million during fiscal year end October 31, 2010 from $13.1 million for fiscal year ended October 31, 2009, primarily reflecting increases in net income and trade receivables and a decrease in inventories.
Subsequent Events
On November 23, 2010, the Company successfully exhibited its unique portfolio of natural products at the 108th China Import and Export Fair recently held in Guangzhou, China. The Company attracted over 1,000 foreign and domestic visitors at its booth and signed letters of intent from 10 prospective distributors.
On November 29, 2010, the Company changed its name from Renhuang Pharmaceutical Inc. to China Botanic Pharmaceutical Inc. to better reflect the Company's corporate identity, brand image and business operations. The legal structure of China Botanic remains unchanged.
On December 2, 2010, Siberian Ginseng (Acanthopanax) Total Flavonoids Extract was awarded the third prize by the recently held Heilongjiang Province Science and Technological Progress assessment.
On December 14, 2010, the Company announced the appointment of Mr. David Dong as its new Chief Financial Officer.
Business Outlook
The market demand for pharmaceutical products in China is rapidly growing and China Botanic's growth strategy focuses on capitalizing on such opportunity through new product introductions, marketing efforts to gain additional market share and a larger distribution network. For fiscal 2011, the Company estimates net sales and net income to grow at 28% to 30%. Excluding any non-cash, non-operational gains or expenses, the Company expects fiscal 2011 net sales of $70.6 million to $71.7 million and net income of $22.9 million to $23.2 million. The Company experiences seasonality in its business, which is strongest in the first and fourth quarter and softer in the spring and summer season or the second and third quarter. Additionally, the Company's financial guidance also reflects its plan to continue to expand its sales and distribution network to drive growth in market share and to increase R&D spending on its pipeline projects.
"In 2011, we expect to see strong growth in revenue as a result of increased market acceptance and awareness of the benefits of our Siberian Ginseng Series in treating depression and nerve-regulation. We also anticipate many of our products will be listed in the reimbursement catalog of essential medicine for health insurance and we expect to grow as the PRC government moves forward with its Health Reforms in 2011," said Mr. Li. "We will continue to present our product offering at international pharmaceutical trade shows and conventions as they present outstanding opportunities to showcase our products to an international audience. In fiscal 2011, we anticipate continued sales growth from China and expansion into the overseas market."
...
CBP's 10-K is out, current valuation:
I am relieved it's on time, no problems before the CC and from the auditor Windes&McLaughry :)
http://www.sec.gov/Archives/edgar/data/926844/000114420411003696/v208541_10k.htm
Shares: 37,239,536
Price: 1.99
MCap: 74.10 Mio
Cash: 27.84 Mio (1/3 of MCap!)
equity-ratio: 95%
PR 1.34
PB 1.06
PCF 3.11
PE 4.15
On CGPI's Recreational Park
I posted this on yahoo about CGPI's plans to build a park:
Hi Mustrisa,
according the last 10Q:
"In February 2009, the Company recorded a prepayment related to a contract in the amount of $4,101,970 (7% of the contract), for the construction of entertainment boats. Chongqing Bo Goa Tourism Company (“Bo Goa”), an unrelated third party, and the Company were going to jointly develop the “Liang Jiang Yu” project. In September 2009, the Company took over as the sole developer on this project. This project includes development of a park near the Longqiao Lake as a way to attract more tourism in the Changshou area near the Company’s cemetery site. The scope of the project currently contemplates 10 to 20 entertainment boats, a welcome center, a large sailboat and nine docks. As of September 30, 2010, the Company’s total prepayment for this project is $8,682,600. The cost incurred with the project decreased by approximately $1,439,700 because construction costs was capitalized and moved into inventory. The total price of the contract is approximately $64,000,000."
So until now they have already spent 8,6 Mio out of 64 Mio $ for the total project. I would say that their park's sole intention is to provide long-term attractiveness to their whole area and therefore independent revenues after their cemetaries are at full capacity. So in the long-term, it's not the worst idea. I think, that this was more or less the reason they listed on the OTC, because at some point in the future they will definitely raise capital again.
What I don't like is, that they are already starting in spending all their cash on this project. I would rather see that they acquire other cemetaries and stick to their regular business. Or first collect some cash and then build the park in one go, but with clear plans what revenues and costs they expect, I haven't read anything on that matter.
So I think that they will definitely build that park, I just hope that they do it in an intelligent way, and don't raise capital at this low stock price. It's not the first time that a chinese small-cap has done that, without regards to us shareholders...
SOKO Fitness & Spa Group Reports Second Quarter Fiscal 2011 Financial Results
14.01.2011 12:01
Achieves Record Quarterly Revenue and Net Income of $9.8 Million and $3.3 Million, Respectively Company Narrows Fiscal 2011 Revenue Guidance to $39-$42 Million, or 30-40% YoY Growth
HARBIN, China, Jan. 14, 2011 /PRNewswire-Asia-FirstCall/ -- SOKO Fitness&Spa Group, Inc. (BULLETIN BOARD: SOKF) ("SOKO"), an operator of fitness centers and beauty salons and spas in Northeast China as well as Beijing, today announced its financial results for the second quarter and first six months of fiscal 2011, ended November 30, 2010.
Second Quarter Financial Highlights:
-- Revenue totaled $9.8 million, an increase of 32% over $7.4 million year-over-year.
-- Gross profit increased 29% to $6.6 million, compared with $5.2 million, in the same period a year ago. Gross margin was 67.6% for the second quarter of fiscal 2011, compared with 69.5% for the second quarter of fiscal 2010, and 66.1% for the first quarter of fiscal 2011. The decline in gross margin was related to increased promotional activity in the second quarter of fiscal 2010, which contributed to increased sales of higher-margin services.
-- Net income attributable to SOKO improved by 2% year-over-year to $3.3 million, or $0.15 per diluted share, compared with $3.2 million, or $0.17 per diluted share in the same period a year ago. Net income for the second quarter of fiscal 2010 included the abovementioned increase in sales of higher-margin services.
-- SOKO increased total fitness club members 54% year-over-year and 11% sequentially to approximately 22,900 and beauty salon and spa clients 27% year-over-year and 11% sequentially to approximately 25,320.
-- Cash and cash equivalents was $15.0 million as of November 30, 2010, a decrease of $9.5 million over August 31, 2010. The sequential decrease in cash and cash equivalents was related to increased investment in new facility openings, consistent with SOKO's growth strategy.
-- SOKO has narrowed its expected revenue range to $39-$42 million for fiscal 2011, ending May 31, 2011. This represents an increase of approximately 30-40% compared with fiscal 2010. Second Quarter and Recent Business Highlights:
-- Expanded presence in Northeastern China and Beijing through the opening of four new facilities, including its first facility operated under a management agreement in the new market of Dalian, Liaoning Province.
-- Continued aggressive expansion initiatives, with nine facilities under construction or engaged in pre-opening activities; SOKO remains on-track to add up to 16 new facilities in fiscal 2011 through new construction, acquisition or operation under management agreements.
"We achieved record quarterly sales and net income based on the strength of our offering and the successful and continued implementation of our growth strategy to increase our member and client base, as well as our aggressive facility opening efforts," said Tong Liu, Chief Executive Officer of SOKO. "In addition to our new members, clients and centers, our renewal rates remain strong due to the high level of service we provide our customers. We continue to invest in the growth of our business through ongoing expansion in our traditional markets of Harbin and Shenyang, while taking steps to establish SOKO's presence in new strategic markets where we believe we can quickly build our brand and develop profitable facilities. In conjunction with the opening of new facilities, which we believe will give us exposure to a growing base of potential customers, we are constantly working to improve the level of service we provide to fitness center members and spa and salon clients."
"In addition to growing SOKO's presence in our core markets and expanding our geographic footprint with entry into Dalian, we extended our business model through the initiation of our first facility management agreement for our fitness center in Dalian. Under this agreement, we will operate the minority-owned facility and receive a percentage of the center's pre-tax sales, maintaining an option to acquire full ownership after two years of operation. We believe this approach will provide us with an effective, lower-risk way to enter new markets as it grants us the ability to acquire complete control of a facility without incurring the significant upfront capital costs typically associated with the launch of a new fitness center, spa or salon. Of our 16 new facilities planned for fiscal 2011, we expect that at least five will operate under this new model."
[...]
That is something that has also spooked in my mind the last days.
Are you remembering the interview with the ceo in chinese?
He said something about having 30'000 busses in their fleet, am not sure how much of that statement was lost in translation. What was the total number of buses in the market?
http://translate.google.com/translate?hl=de&sl=auto&tl=en&u=http%3A%2F%2Fwww.domyself.net%2F_d270753247.htm
So far, we dominated the country over 30,000 inter-city buses Ministry of advertising rights. ???????,???????????????????,?????????????? This trend, combined with our national highway mileage continues to refresh, we of course even more optimistic about our future. This trend, combined with our national highway mileage continues to refresh, we of course even more optimistic about our future.
01/12/2011 Weikang engages RedChip
12.01.2011 16:29
Weikang Bio-Technology Engages RedChip Companies to Lead Public and Investor Relations Efforts
HARBIN, China, Jan. 12, 2011 /PRNewswire-Asia-FirstCall/ -- Weikang Bio-Technology Group Co., Inc. (BULLETIN BOARD: WKBT) ("Weikang" or the "Company"), a leading developer, manufacturer and marketer of Traditional Chinese Medicine (TCM), Western prescription and OTC pharmaceuticals and other health and nutritional products in the People's Republic of China, today announced that it has engaged RedChip Companies, Inc., to lead its public and investor relations efforts.
Yin Wang, Chairman and CEO of Weikang, stated, "We selected RedChip based on their proven track record of increasing investor awareness for emerging growth companies, as well as their international presence and innovative multimedia platform of products and services. We are confident that RedChip will help us attract new investors while strengthening our relationships with current shareholders."
"We are pleased to have the opportunity to represent Weikang," said Dave Gentry, President of RedChip Companies, Inc. "China is expected to become the world's third-largest pharmaceutical market by 2020, with market growth driven by national healthcare reform initiatives and a rapidly aging population. Weikang has an impressive portfolio of high-margin pharmaceutical and nutritional products and has achieved strong revenue and net income growth in recent years. We look forward to implementing a comprehensive investor and media relations program and introducing them to our investor network."
About Weikang Bio-Technology Group Co., Inc.
Weikang Bio-Technology Group Co., Inc. is principally engaged in developing, manufacturing and distributing Traditional Chinese Medicine (TCM), and health and nutritional supplements in China, in compliance with requisite Chinese licenses and approvals. The Company is also expanding its business scope to develop, manufacture and distribute Chinese herbal extract products and GMP-certified western prescription and OTC pharmaceuticals through its acquisition of Tianfang Pharmaceutical Co., Ltd. For more information, please visit http://www.weikangbio.com/.
CHBT short interest 12/31/2010
Settlement Date Short Interest Percent Change Average Daily Share Volume Days to Cover
12/31/2010 3,325,342 (7.57) 335,175 9.92