Good Morning Bruwin,
It's been a while since I posted. Recently, I've been more active in the market, so I thought I would provide you with an update.
I traded out of GURE, formerly GFRE, into CHOP. There are a number of reasons behind the move. CHOP has had a greater stock buyback. They have more analysts covering the company. Their auditor is Baker Tily HK, a very reputable outfit. Going forward, the company should have improved earnings with the recently opening of more capacity.
finance.yahoo.com
Here is a company profile taken from Morningstar
"China Gerui is a steel processor, using advanced technology to produce higher value-added steel products from flat-rolled coil purchased from steelmakers. Even as a tiny player among the giant steelmakers prevalent in China, the company is the largest Chinese producer of high-precision thin-strip steel products with a market share of approximately 13%. The top five producers represent 36% of the market and the remainder consists of about 200 players, yielding a highly fragmented market that still relies heavily on imports to meet demand."
I also have built a large position in FEED. Agfeed is an interesting company as is has assets in both China and the USA. Management is basically US based. They PR this morning highlights the direction of the company as they plan to become more vertically integrated with higher margin products, increase their US based management.
finance.yahoo.com
The company went through a major restructuring in the last nine to twelve months. Hog prices are very high in China and feed prices have started to moderate. Their auditor is US based. I expect that they will easily beat past results in the next year. Here is a link to analyst coverage.
agfeedinc.com
If those aren't speculative enough, I have also purchase some shares in Deyu. The stock trades by appointment. The current PE reflects its speculative nature. Also, the company update, I believe, is a fair attempt to reflect the positives and negatives of the company. I also found it encouraging that the company is involved with the United Nations. The stock isn't for the feint of heart or for those who can't accept risk. But I find it compelling enough to invest in it as I believe it has a defensible niche with its farmland in China.
ir-site.com
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