hogfan's picks

[hogfan2]

ALN...ALN, no-brainer really
Company sold 3.4M shares on Sept 8 in private placement to a Chinese investment fund at $2.80/share. This was slightly *above* where the stock had been trading. There were no warrants.
There was however a pledge of make-good shares by the Chairman/Founder (not the Company) wherein he has to deliver shares to buyer if ALN fails to make $.55 eps in 2010, $.68 in 2011, and $.81 in 2012. This is a solid company that could have easily raised the $10M in a typical sale of equity at a 10% discount. Hard to imagine the Chairman wasn't pretty positive that he'll hit those targets with room to spare.
This is #1 chestnut company in China, been around for a long time, has a significant amount of bank debt (which I consider a good thing actually), significant exports to Japan and Korea. Basically 0% fraud risk (or as close to 0 as one can find here).
Chestnuts will keep growing 10-15%/year. Faster growth is coming from their prepared/convenience foods that they've been expanding into over last couple years.
This company is not exciting, but it will be $6/share in 2 years.
I really want to find more of these myself.

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