Replies to post #1404 on Jade Art Group Inc (JADA)

[Millstone]

I think that is a solid comparison Glen, in my opinion, if it were the case that Zhang Guoxi does own the customers of Jade Art Group. I have not been able to confirm this through searches of the web with the newfound Chinese translation of "SheTai Jade". What I think is likely is that Zhang Guoxi, in owning the mine, is using his 10% contractual allotment (which amounts to about 4,000 tons if I'm not mistaken) to produce carvings for sale in his shops that it appears are being franchised around China and build the brand of SheTai Jade. JADA sold their artwork manufacturing/distribution network back to Guoxi, which it appears is being put to good use as a SheTai Jade distributor now as well. I think Jade Art is also marketing the brand, but at this point mostly wholesaling. Once Guoxi uses up the 4,000 tons, I imagine they go to JADA and pay the bump per the contractual price. Meanwhile, there was $9 million worth of sales in Q3 that came from somewhere - whether from a Guoxi affiliate or not, it amounted to an excellent net income. that Considering the extensive marketing that is going on, I'm more positive now than ever about JADA's prospects.

[value1008]

Glen, an interesting analogy you've provided here....

By contrast, in JADA's favor it would seem, if Controller119 at Yahoo has accurately sleuthed out just how much JADA is getting per ton for its jadeite, the amount is incrementally going UP each qrtr and their margins are getting better, not worse, unlike the case in your analogy of the guy who owns everything connected with the airline and he starts driving up the price of oil, worsening the airline's margins.

But let's see how this all shakes down with JADA.... I think Zhang's goal for JADA is to create the most (or one of the most) lucrative jade operations in the world.

Thanks for your post.

--Timothy