David Dodds
Administrator
Added another 1200 shares of FEED at $2.35
FEED - AgFeed Industries, Inc. (AgFeed) is engaged in the research and development, manufacture, marketing, distribution and sale of pre-mix fodder blended feed and feed additives primarily for use in China's domestic pork husbandry market.
I love this Chinese companies business model a ton and I plan on continually adding to my position through the year. Essentially they make hog feed. Once this segment became very profitable for them, they started buying hogfarms (and obviously converting those farms to use their own feed). People were skeptical that they knew anything about managing hogfarms and pushed this stock way lower. Their quarterly report showed both industry segments were immensely profitable and the stock exploded (Stock is up 48% year to date).
But I think this thing is just starting to get wheels and here is my logic:
- Institutions only own 14% of this company. All it takes is a few more mutual funds wanting a large stake here and this stock pops big.
- They have $137M in assets against just $18M in liabilities yet their market cap number is just $91M.
- They have cash around $50 million and will likely use that to acquire even more hogfarms which in turn has them selling more feed as well.
- Many other China hogfarms are struggling in this economy. I believe provisions are in the China stimulus to assist some of these troubled companies too. And with Agfeed looking to acquire more hogfarms, many competitors are switching to agfeed for their food to put themselves in play for acquisition.
I picked this stock in the FBG stock contest when it was trading at 1.62. All that's happened since then is that they have shown they can run both sides of this integrated company. I fully expect this stock to be over $4.00 by year's end.
FEED - AgFeed Industries, Inc. (AgFeed) is engaged in the research and development, manufacture, marketing, distribution and sale of pre-mix fodder blended feed and feed additives primarily for use in China's domestic pork husbandry market.
I love this Chinese companies business model a ton and I plan on continually adding to my position through the year. Essentially they make hog feed. Once this segment became very profitable for them, they started buying hogfarms (and obviously converting those farms to use their own feed). People were skeptical that they knew anything about managing hogfarms and pushed this stock way lower. Their quarterly report showed both industry segments were immensely profitable and the stock exploded (Stock is up 48% year to date).
But I think this thing is just starting to get wheels and here is my logic:
- Institutions only own 14% of this company. All it takes is a few more mutual funds wanting a large stake here and this stock pops big.
- They have $137M in assets against just $18M in liabilities yet their market cap number is just $91M.
- They have cash around $50 million and will likely use that to acquire even more hogfarms which in turn has them selling more feed as well.
- Many other China hogfarms are struggling in this economy. I believe provisions are in the China stimulus to assist some of these troubled companies too. And with Agfeed looking to acquire more hogfarms, many competitors are switching to agfeed for their food to put themselves in play for acquisition.
I picked this stock in the FBG stock contest when it was trading at 1.62. All that's happened since then is that they have shown they can run both sides of this integrated company. I fully expect this stock to be over $4.00 by year's end.
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I do appologise to KGB mistaking him for BGP. I get dislexia some times (this ins't the 1st time I have confused the 2).
