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The float is about 1.786 million shares. At some price, possibly much higher than the current price, we shall see some decent volume of selling and buying.
there are buyers at 1.02-1.05, but not sellers. At the same time, buyers do not want to pay at 1.30. So, no volume. That is not important. Fundamentally, the company is doing very good. It is fast grower and looks to me that they are going to double their revenue evey year or the next 4 years or so together with expansion in gross margin. It takes some to have a big winner. I can wait. I am not interested in fast profit here. Quarter report will be out next week. It should be a big jump in revenue and earning.
It is probably around 35-40 cents per share for Q3 for my speculation assuming they file Q3 on time this month. Pork price has increased 20-30%, so does the hog price (their imput cost). Their gross margin may be around the same, but the gross profit will increase based on higher revenue due to higher pork price at the same sale volume.
There were 1.6 million shares of trading volume since Pinnacle filed 13G form. I think that they are gone or very close to be gone.
I had a chat with CFO of ENHD a few weeks' ago (by the way, she was the worst Chinese CFO I had ever talked to as far as communciation skill was concerned). Uplisting to Nasdaq was supposed to happen last month (their original target). Because the share price does not meet Nasdaq requirement, it is now postponed to possible early next year. They do not want to go to AMEX, they want to go straight to Nasdaq.
Hi George,
Please find the link below for my approach for trading/investing. My approach is concentration and low valuation. If I find a stock with very low valuation and a high margin of safety, I usually make a big bet on it. When I find an interesting stock, the first step is to assess the risk. There is no certainty in the stock market, but I want the risk that can be controlled and at a level I can affrod.
http://investorshub.advfn.com/boards/board.aspx?board_id=4067
Nelson
Hi George,
I agree that SAIC filings are very important data points. Unfortunatelly, they are not available for us. It needs quite a bit of effort to get those data. It may not be applicable to some US listed Chinese stocks since they only went public for some parts of the whole group. SEC filings are for the public companies listed in US, but SAIC filings are for the whole business group.
Thanks.
Nelson
Poor selling Records of Pinnacle China Fund
Right after they disposed their major positions of HOGS, CBPO, YUII, CPBY, MNTX, etc., the stocks soared 100-200%. Their selling meant nothing and only povided good buying opportunity if their pass records are any guide. See the link below:
http://biz.yahoo.com/t/66/970.html
Hi George,
Thanks. KnowledgeIsKing is very active on VMC board as listed below. You will see his new posts over there
http://investorshub.advfn.com/boards/board.aspx?board_id=3251
I will follow BFTI for the next 2 - 3 years. So we can communciate with each other here on this board.
Best Regards.
Nelson
I think that it would repeat for this upcoming Q3 since pork price has be going up about 20-30% for the last 3 months. Basically, their gross margin is about the same whether pork price up or down, which follows the hog price. But, at higher pork price, revenue per unit of pork will be higher; while gross margin about the same, the absolute gross profit will be higher. Thus net earning higher. It should be a good Q3 coming to be report by the middle of next month. We will see.
Chuming Group is the mother company of ENHD. Chuming Group has the following divisions:
(1)Chuming Meat Company
(2)Chuming Food Company
(3)Chuming Sale Company
(4)Chuming Feed Company
(5)Chuming Animal Husbandry
(1), (2) and (3) were combined and went public as ENHD. (4) and (5) are still private owned.
ENHD owns (1), (2) and (3).
Yes, even one position yesterday (October 24). Basically ENHD advertized 25 new positions in one week from October 17-24. It looks to me that they are expanding.
You may call them to find out:
KITT, BARRY
Phone: (972) 985-2121
Fax: (972) 985-2122
bk@pinnaclechinafund.com
It can be any reason: lose patient, take capital loss, shut down the fund, change the business direction, need cash, etc.
CEO and his faminly own over 14 million shares (over 65% total shares) and have not sold a single share. If it is the fundamental reason, CEO and his family would sell some stake here.
All my previous experience with big selling from big seller, GFRE, LPIH, CHGY, etc. None was due to fundamental reason.
The chance for ENHD to go wrong is very low. No guarantee, but the odd is very favorable here for a big winner.
Read 13G filing again
In Item 4 - ownship
It indicates that Pinnacle China Fund owns less than 5% of ENHD shares. It is down from 9.7%. So it does not say that Pinnacle China Fund has completely sold the entire position. It only reduced its holding to less than 5%. Considering the filing date is October 20. It looks to me that Pinnacle may still have up to about 500K shares left because of about 550K volume from October 20-22.
It is now gone instead of it is not gone. Sorry for the typing error.
Pinnacle Fund LP owned 2.045 million shares of ENHD per 10K as listed below. It is not gone:
"(2) Barry Kitt exercises investment discretion and control over the shares of common stock of the Company held by The Pinnacle Fund, L.P., a Texas limited partnership (“Pinnacle”) and Pinnacle China Fund, L.P., a Texas limited partnership (“Pinnacle China”). Pinnacle Advisers, L.P. (“Advisers”) is the general partner of Pinnacle. Pinnacle Fund Management, LLC (“Management”) is the general partner of Advisers. Mr. Kitt is the sole member of Management. Pinnacle China Advisers, L.P. (“China Advisers”) is the general partner of Pinnacle China. Pinnacle China Management, LLC (“China Management”) is the general partner of China Advisers. Kitt China Management, LLC (“China Manager”) is the manager of China Management. Mr. Kitt is the manager of China Manager. As of December 31, 2007, Pinnacle and Pinnacle China were the beneficial owners of 2,045,454 shares of Common Stock. Mr. Kitt may be deemed to be the beneficial owner of the shares of Common Stock beneficially owned by Pinnacle and Pinnacle China. Mr. Kitt expressly disclaims beneficial ownership of all shares of Common Stock beneficially owned by Pinnacle and Pinnacle China. "
This gave us great opportunity to accumulate ENHD share. Without its selling, we would never be able to buy so many shares at such an absurd valuation.
Yes, the big seller gone. The total volume in the last 2 months is about 2.5 million shares. This matches well with Pinnacle China's holding together with the rest of S3 holding. S3 may be gone too.
HOGS is on Nasdaq and ENHD is on OTC BB. HOGS has institutional investor support with big trading volume. HOGS has be on Nasdaq on a few years and everybody knows. ENHD is unknown and has a big seller driving the price down.
After ENHD moves to Nasdaq next year, the valuation difference between ENHD and HOGS should gratually narrow. That means either ENHD rises a lot or HOGS drops a lot. The former is more likely.
ENHD actually has better gross margin and operating margin as well as better balance sheet.
Consider ourselve lucky and given this opportunity to buy ENHD at this ultra low valuation.
After Nasdaq listing, ENHD is >10 stock.
NITE has been on ask for the last 2 - 3 weeks. It is now sitting on ask of 2.40. I suspect that the big seller sells through NITE.
The seller sells through NITE (MM). The seller has been there and still there.
This may turn out to be a great buying opportunity. I picked up some shares.
Hi Minding,
You are a good man.
Got you. Good point. How about Canadian oil sand? Enviromental damage? Or the companies involved in weapon export?
For Chinese stocks, I try to avoid the businesses that rely on export markets. I have concern about the appreciation of Chinese RMB.
Hi Minding, take a look at ENHD and CIHD. Infomration on both ENHD and CIHD boards.
It has been growing EPS about 25-30% in the last 3 years in their real business if you take our the no-cash warrant charge. They currently slaughter about 1 million hogs per year. Their original plan is to increase to 3.5 million hogs. I don't know the timeline. Their current capacity is about 1.8 million hogs. So they need to increase their capacity, which should be easy to do. I talked to the company about their future business expansion. They said that they planed to do, but did not give me the exact number. I would say that 20-30% growth rate for EPS looks feasible.
This is the new ENHD advertisements in the last 3 days to fill 28 new positions. The company is expanding:
http://special.zhaopin.com/dl/2009/cm050824/
This is the new ENHD advertisement for CFO. It is in Chinese. Note the position requires fluent in English:
http://search.51job.com/job/44171686,c.html
This is the news regarding that ENHD exported 25 metric tons of pork to Singapore in August this year. This is the 1st batch. News is in Chinese.
http://www.21food.cn/html/market/2010-8-26/1757523.htm
This is the list of CIHD products:
http://www.3456.tv/business/changda/product.htm
Most of CIHDn profit is from their fertilizer business. You can see that in 10Q and 10K filings. When their new Heze fertilizer plan is production, they will double their fertilizer production, double revenue and earning. They will make about $5.3 million USD net earning this year. When the new plant (Heze) is in production, they will make about $9 million USD net earning per year. They have invested about $5 to $10 million USD in this new fertilizer plant. They need to invest about $15-20 million USD to complete the new plant. They can do it without financing per my discussion with VP, but it will take much longer, probaply about 2-3 years without financing considering that they have about $8-9 million USD in the bank and about $5-6 million USD cash flow from operation per year.
ENHD's mother company, Chuming group has hig farm supplying about 70% hogs if my memory serves me. The rest of hogs is from hog farmers who use Chuming breeding hogs. Chuming also has a breeding hog base like OINK (see the link below).
As a producer, ENHD's risk is low. When hog price rises, so is pork price. When hog price drops, so is pork price. As a producer, they can maintain stable gross margin of 15-16%. You can go back to the last 4 years to see that, the period of sharp rise and fall of hog price due to foot and mmouth as well as blue ear problem.
Financing would be postponed to next year until much higher share price.
Not a first hand. But, from what I know, ENHD has 51% market share in fresh pork in Dalian. ENHD is #1 in the province and #2 in the three Northeast provinces of China. It is the largest 50 producers of pork meat in China (ranked #45 I think). It is the only producer having the green food certification for their pork products. It has received certification from Singapore for fresh pork. ENHD exported 25 metric tons of fresh pork to Singapore in August this year. It is currently looking for a English speaking CFO. I saw the advertisement for CFO position together with other positions yesterday.
I have a chad with their VP. I was told that this would be resolved in 3 - 4 weeks.
Hi Minding, They don't need financing at this stage per their presentation until the new production has been ramped up to full capacity within 3 years in Phase 1. Their revenue projection is >$150 million USD in phase 1. In phase 2, they will double that revenue. That is about 3 years' later. They mentioned that they might need financing for their phase 2 and protential acquisitions. Fiscal Q1 earning report will be out next month.
No, I sold half a million shares at $3.08 - $3.98 share price getting back my original capital plus huge profit. But I still hold a big position in CHGY. All free shares.
KiK, I have not read the book. It mentions the wrong guy. It is KiK and others on the board who are the kings of the microcaps. I believe that I got NEP from you, from which I had made excellent profit. Many thanks.