s-b
I too am very disappointed in my CC holdings...bought around $12 last December. Here's the Vancouver Sun story that I get off of Stockwatch Canada. I don't claim to understand the ins and outs of the ginseng market, or any market for that matter. However, Mr. Gill sounds too much like a victim on all fronts. Where's there any optimism for a future for Chai-na-ta?
Helmut
Chai-Na-Ta Corp -
Van Sun profits need a hit of ginseng
Chai-Na-Ta Corp CC
Shares issued 3923646
1997-07-30 close $5
Thursday Jul 31 1997
The Vancouver Sun reports in its Thursday edition that Chai-Na-Ta, the world's largest ginseng grower and distributor, blames wet weather and the cancellation of sales contracts for a loss of $5.8 million, or
$1.43 a share, in the three months ended May 31. Reporter Rod Nutt says that in the same quarter last year, Chai-Na-Ta lost $100,000, or $0.03. Revenue crashed to $657,000 from $3.7 million. The second-quarter loss includes a one-time pre-tax charge to earnings of $6.7 million, or $4.4 million after tax. Chai-Na-Ta president and chief executive Gerry Gill says this charge results from cancellation of sales contracts entered into at the end of the 1996 fiscal year. He says the industry's 1996 harvest quality was adversely affected by wet weather across North America. Mr Gill says this factor delayed the delivery of root to the primary traditional market, Chinese New Year, and also created problems with root appearance and processing.
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