AgFeed Industries, Inc.
1095 Qing Lan Avenue
Economic and Technical Development Zone
Nan Chang City, 330013
China - Map
Phone: 86 79 1218 9878
Web Site: http://www.agfeedinc.com
DETAILS
Index Membership: N/A
Sector: Consumer Goods
Industry: Processed & Packaged Goods
Full Time Employees: NaN
BUSINESS SUMMARY
AgFeed Industries, Inc., through its subsidiaries, engages in the research and development, manufacture, marketing, and sale of fodder and blended feed for use in the domestic animal husbandry markets in the People's Republic of China. The company also involves in raising, breeding, and selling hogs for use in China's pork production and hog breeding markets. Its products primarily include additive premix fodder for use in all stages of a pig's life, and blended feeds for the infant stage of a pig's life. In addition, AgFeed produces three brands of premixed chicken feed. It offers its products primarily to distributors and large scale pig farms. The company was incorporated in 1995 and is headquartered in Nanchang City, the People's Republic of China.
-----------------------------------------------------------------------------------------------
AgFeed Industries Reports Record Fiscal 2007 Financial Results, Growth in Net Income of More Than 450%, Affirms 2008 Financial Guidance
Wednesday March 12, 6:00 am ET
SHANGHAI, CHINA--(MARKET WIRE)--Mar 12, 2008 -- AgFeed Industries, Inc. (NasdaqGM:FEED - News), a market leader in China's premix animal nutrition and hog raising industry, today announced record sales and earnings for 2007, primarily from the production and sale of premix animal feed products. AgFeed entered the hog production industry in November 2007 through the acquisition of a breeder hog farm. AgFeed sales in 2007 from hog production were not material.
The following are some of the key financial highlights of the Company for the fiscal year ended December 31, 2007.
FINANCIAL HIGHLIGHTS:
-- Revenues grew 321% to approximately $36.16 million from $8.59 million
in 2006.
-- Gross profit increased to $10.40 million from $3.15 million in 2006.
-- Net income grew 467% to $6.66 million from $1.18 million in 2006.
-- Earnings per share (basic) of $0.26, is an increase of 271% compared
to 2006.
-- Earnings per share (fully diluted) of $0.25, represents an increase of
257% from 2006.
-- Comprehensive income of $7.33 million increased by 482% compared to
2006.
-- As of December 31, 2007, AgFeed had approximately $7.7 million in cash
with no long term debt.
ADVERTISEMENT
Songyan Li, Chairman of AgFeed, commented, "In early 2007, AgFeed projected record sales and earnings for fiscal year 2007. We have delivered such results. AgFeed is now the largest premix animal feed company in China in terms of sales in a highly fragmented industry. We anticipate our feed business will continue to grow at a significant rate in 2008. We also anticipate doubling our independently owned exclusive AgFeed product chain stores to 1,000 stores in 2008."
Dr. Li continued, "Our feed segment and hog production are vertically integrated to produce the maximum efficiency between our two business lines. AgFeed's in-depth knowledge about the feed and hog raising industries, sufficient funding, favorable market environment and high quarantine standards at our hog farms will position AgFeed as a well managed, highly profitable market leader in China's vast feed and hog raising industries. We look forward to another year of success in 2008."
SUBSEQUENT EVENTS
-- In December/January 2008, the Chinese government granted the hog
raising industry perpetual income tax free status, along with government
grants and subsidies in light of severe hog shortage problems in China.
-- In January 2008, AgFeed acquired a majority interest in five
commercial hog farms. Currently, AgFeed owns six hog farms and anticipates
that its annual hog production at these facilities will reach 120,000 hogs
in 2008.
-- In January 2008, Mr. Robert Rittereiser became the Chairman of
AgFeed's Advisory Board to advise the Company's strategic initiatives. Mr.
Rittereiser is the former CFO and Chief Administrative Officer of Merrill
Lynch and former President and CEO of E.F. Hutton & Co. Mr. Rittereiser
joins Edward McMillan as a key strategic advisor to AgFeed. Mr. McMillan
served as President and Chief Executive Officer of Purina Mills Inc., the
United States' largest manufacturer and distributor of animal nutrition
products, from 1988 until 1996.
-- In March 2008, the Company completed a $41 million financing through
AgFeed's financial advisor, Deutsche Bank Securities, Inc.
SUCCESSFUL INTEGRATION OF OUR RECENT HOG FARM ACQUISITIONS
In January 2008, AgFeed acquired the majority ownership in five producing commercial hog farms with an estimated aggregate annual hog production capability of 100,000. AgFeed has successfully integrated these businesses within the last two months. By April 2008, AgFeed anticipates acquiring several additional hog farms that will enable the Company to reach its previously announced fiscal 2008 hog production target of 400,000. This would rank AgFeed as the 2nd largest commercial hog farm owner in China.
AGFEED AFFIRMS FISCAL YEAR 2008 FINANCIAL GUIDANCE
AgFeed believes the Company has sufficient capital to achieve its previously guided 2008 financial performance as follows:
-- Revenues are estimated to be about $135 million which would represent
an approximate increase of over 250% from the previous year.
-- Net income is estimated to increase by around 350% to approximately
$30 to $33 million over 2007.
-- Earnings per share (EPS) on a fully diluted basis would be between
$0.96 and $1.10.
-- Favorable foreign exchange rate could benefit AgFeed. The Company has
used an exchange ratio of RMB7.18 to US$1 in its 2008 guidance. Currently,
the exchange rate is RMB7.10 to US$1.
-- Live hogs are sold in China based on a hog's weight. AgFeed's
commercially produced hogs weigh on average between 100 and 110 kilos. The
Company's revenue estimates are based on RMB8 per half a kilo, which is
below the current live hog market price of more than RMB9 per half a kilo.
Due to an increased demand for pork related to China's Summer Olympics and
the continuing hog supply shortage, AgFeed anticipates that China's hog
prices will remain high in 2008.
About AgFeed Industries, Inc.
Through its China-based operating subsidiaries, NASDAQ-listed AgFeed Industries (www.agfeedinc.com) is a market leader in China's fast growing pre-mix animal feed and hog raising industries. The pre-mix market in which Agfeed operates is an approximately $1.6 billion segment of China's $40 billion per year animal feed market, according to the China Feed Industry Association. There are approximately 600 million hogs raised in China each year, compared to approximately 100 million in the U.S. Approximately 75% of China's total hog supply is from backyard individual hog farmers, while approximately 65% of China's total meat consumption is pork.
Safe Harbor Statement
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. AgFeed's actual results may differ from its projections. Further, preliminary results are subject to normal year-end adjustments. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect AgFeed's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in AgFeed's filings with the Securities and Exchange Commission.
AGFEED INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED BALANCE SHEET
AS OF DECEMBER 31, 2007 AND 2006
December 31, December 31,
2007 2006
--------------- ---------------
Total current assets $ 18,077,928 $ 5,335,752
Total assets 23,070,265 7,265,831
Total current liabilities 3,569,738 3,890,004
Total stockholders' equity 19,500,526 3,375,827
AGFEED INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005
Years Ended December 31,
--------------------------------------
2007 2006 2005
------------ ------------ ------------
Net Revenue $ 36,163,339 $ 8,594,876 $ 7,611,845
Cost of Revenue 25,763,479 5,446,332 5,339,067
Gross profit 10,399,860 3,148,544 2,272,778
Total operating expenses 4,079,089 2,114,650 1,392,007
Total non-operating income (expense) 148,921 41,000 (47,655)
Net income 6,662,895 1,175,280 560,706
------------------------------------------------------------------------------------------------------
AgFeed Industries Receives Hog Export License for the Hong Kong Market and AgFeed Experiences Higher Than Estimated Profit Margins From Hog Sales
Monday March 17, 6:00 am ET
Hog Prices in China Have Reached Historical Highs Due to Hog Shortage While the Cost of Hog Feed Remains Stable
SHANGHAI, CHINA--(MARKET WIRE)--Mar 17, 2008 -- AgFeed Industries, Inc. (NasdaqGM:FEED - News), a market leader in China's premix animal nutrition and hog raising industry, today announces that one of AgFeed's hog farms, the Wannian Xiandai hog farm, has been granted a direct export license by the Chinese Ministry of Commerce for hog export to the Hong Kong market.
ADVERTISEMENT
Hong Kong is one of China's most prominent international cities. The export license allows AgFeed to directly supply hogs to the Hong Kong market. Hong Kong typically commands the highest quarantine standards during the hog production process as well as pays premium prices for hogs to those producers that have met stringent quality requirements.
Due to continued hog shortage in China, hog prices have recently reached historical highs. AgFeed is currently selling its hogs at approximately $250 per hog, which is higher than the Company's previously estimated $221 per hog.
AgFeed has also observed that the cost of corn, which is a major hog feed component, has remained stable despite rising hog prices. China's hog raising industry is an income tax exempt business.
Songyang Li, PhD., Chairman of AgFeed commented: "AgFeed's hog raising business benefits from a favorable market environment and expanded profit margins due to China's severe hog shortage. We anticipate China's hog shortage to continue throughout 2008. We are on track to complete our planned hog farm acquisitions by mid April towards our target of producing 400,000 hogs for sale in 2008."
About AgFeed Industries, Inc.
--------------------------------------------------------------------------------------
AgFeed Industries Expands Its Agricultural Product Distribution Platform in China Through Its 630th Independently Owned Exclusive Retail Chain Store
Thursday March 20, 6:05 am ET
AgFeed Is on Track to Have a Total of 1,000 Independently Owned Chain Stores in 2008
SHANGHAI, CHINA--(MARKET WIRE)--Mar 20, 2008 -- AgFeed Industries, Inc. (NasdaqGM:FEED - News), a market leader in China's premix feed and hog raising industry, today announces that the 630th independently owned exclusive premix feed product distribution chain store has opened in China. At the end of 2007, there were 503 stores.
ADVERTISEMENT
Since January 2007, AgFeed has developed a highly effective retail product sales channel of distributing premix feed through independently owned stores across China. These stores exclusively market AgFeed premix products to end users including small and medium-sized hog farms and individual hog farmers. Approximately 75% of China's 600 million annual hog production is supplied by individual backyard farmers.
Comments by Songyan Li, Ph.D., AgFeed's Chairman: "As China's hog prices have reached historical highs, AgFeed benefits from growth in both of our integrated businesses -- premix animal feed and hog production. Our independently owned retail chain stores have become an effective distribution platform, selling AgFeed's and potentially cross selling other global companies' agricultural products in the vast Chinese agricultural markets. We believe our premix feed distribution channel represents significant enterprise value for our shareholders. We are on track to have a total of 1,000 independently owned chain stores by the end of 2008."
--------------------------------------------------------------------------------------------
AgFeed Industries Engages Leading US Hog Industry Experts to Explore Strategic Options as a Platform for Access to China's Vast Feed and Hog Raising Markets
Monday March 24, 11:05 am ET
NEW YORK, NY--(MARKET WIRE)--Mar 24, 2008 -- AgFeed Industries, Inc. (NasdaqGM:FEED - News), a leader in China's premix feed and hog raising industry, announced today that the Company has engaged a leading US agricultural expert, Spectrum Agribusiness, led by senior industry executives Dennis Harms and Gerry Daignault, to advise AgFeed in pursuing opportunities with selected global agricultural companies to provide them with entry into the China market.
ADVERTISEMENT
Founded 13 years ago by founders/managers, AgFeed has two integrated profitable business lines in China: premix animal feed and hog production. AgFeed is currently the largest premix feed company in China in terms of revenues and intends to expand its hog production through multiple acquisitions in 2008.
Dennis Harms, CEO of Spectrum Agribusiness, commented: "China represents tremendous opportunities for global companies in the feed and hog production industries. Developing the right relationships to access the Chinese markets is key and AgFeed with its foot print and private sector ownership structure represents a unique opportunity. With a solid management team already in place, its transparency and accountability as a NASDAQ company, AgFeed provides an ideal shortcut for companies that are considering entry into China."
Songyan Li, Ph.D., AgFeed's Chairman, said: "AgFeed intends to pursue strategic discussions with various global companies that have expressed an interest in entering China. The engagement of Spectrum Agribusiness will help us explore the best strategic fit. We trust and rely on our advisors. While we continue to focus on achieving or exceeding our plans, AgFeed intends to explore all possibilities that would enhance our shareholders value."
About Spectrum Agribusiness and its Founders Dennis W. Harms and Gerry Daignault
Spectrum Agribusiness provides strategic guidance to leaders in the food and agriculture industries globally, advising corporate boards and CEOs with industry repositioning strategies and the execution of successful acquisitions. The Company also engages in operational and organization reviews along with temporary CEO/CFO assignments. Founded by former industry executives Dennis Harms and Gerry Daignault, the firm has more than 50 years of experience in agribusiness. After working for 15 years in a variety of positions with Cargill and Central Soya, Mr. Harms founded Premium Standard Farms ("PSF"). He led the company as CEO for ten years and grew from startup to $450 million in revenue with more than 2,600 employees. PSF is recognized as one of the premiere pork production companies worldwide and was acquired in 2006 by US hog industry leader Smithfield Foods (NYSE:SFD - News) for approximately $800 million. Mr. Daignault has 26+ years of experience in financial and managerial positions including 18 years at the CFO level for domestic and international agribusiness. (www.spectrumagribusiness.com)
About AgFeed Industries, Inc.
-------------------------------------------------------------------------------
It's a great sector to be in ......
AgFeed Industries, Inc.
1095 Qing Lan Avenue
Economic and Technical Development Zone
Nan Chang City, 330013
China - Map
Phone: 86 79 1218 9878
Web Site: http://www.agfeedinc.com
DETAILS
Index Membership: N/A
Sector: Consumer Goods
Industry: Processed & Packaged Goods
Full Time Employees: NaN
BUSINESS SUMMARY
AgFeed Industries, Inc., through its subsidiaries, engages in the research and development, manufacture, marketing, and sale of fodder and blended feed for use in the domestic animal husbandry markets in the People's Republic of China. The company also involves in raising, breeding, and selling hogs for use in China's pork production and hog breeding markets. Its products primarily include additive premix fodder for use in all stages of a pig's life, and blended feeds for the infant stage of a pig's life. In addition, AgFeed produces three brands of premixed chicken feed. It offers its products primarily to distributors and large scale pig farms. The company was incorporated in 1995 and is headquartered in Nanchang City, the People's Republic of China.
-----------------------------------------------------------------------------------------------
AgFeed Industries Reports Record Fiscal 2007 Financial Results, Growth in Net Income of More Than 450%, Affirms 2008 Financial Guidance
Wednesday March 12, 6:00 am ET
SHANGHAI, CHINA--(MARKET WIRE)--Mar 12, 2008 -- AgFeed Industries, Inc. (NasdaqGM:FEED - News), a market leader in China's premix animal nutrition and hog raising industry, today announced record sales and earnings for 2007, primarily from the production and sale of premix animal feed products. AgFeed entered the hog production industry in November 2007 through the acquisition of a breeder hog farm. AgFeed sales in 2007 from hog production were not material.
The following are some of the key financial highlights of the Company for the fiscal year ended December 31, 2007.
FINANCIAL HIGHLIGHTS:
-- Revenues grew 321% to approximately $36.16 million from $8.59 million
in 2006.
-- Gross profit increased to $10.40 million from $3.15 million in 2006.
-- Net income grew 467% to $6.66 million from $1.18 million in 2006.
-- Earnings per share (basic) of $0.26, is an increase of 271% compared
to 2006.
-- Earnings per share (fully diluted) of $0.25, represents an increase of
257% from 2006.
-- Comprehensive income of $7.33 million increased by 482% compared to
2006.
-- As of December 31, 2007, AgFeed had approximately $7.7 million in cash
with no long term debt.
ADVERTISEMENT
Songyan Li, Chairman of AgFeed, commented, "In early 2007, AgFeed projected record sales and earnings for fiscal year 2007. We have delivered such results. AgFeed is now the largest premix animal feed company in China in terms of sales in a highly fragmented industry. We anticipate our feed business will continue to grow at a significant rate in 2008. We also anticipate doubling our independently owned exclusive AgFeed product chain stores to 1,000 stores in 2008."
Dr. Li continued, "Our feed segment and hog production are vertically integrated to produce the maximum efficiency between our two business lines. AgFeed's in-depth knowledge about the feed and hog raising industries, sufficient funding, favorable market environment and high quarantine standards at our hog farms will position AgFeed as a well managed, highly profitable market leader in China's vast feed and hog raising industries. We look forward to another year of success in 2008."
SUBSEQUENT EVENTS
-- In December/January 2008, the Chinese government granted the hog
raising industry perpetual income tax free status, along with government
grants and subsidies in light of severe hog shortage problems in China.
-- In January 2008, AgFeed acquired a majority interest in five
commercial hog farms. Currently, AgFeed owns six hog farms and anticipates
that its annual hog production at these facilities will reach 120,000 hogs
in 2008.
-- In January 2008, Mr. Robert Rittereiser became the Chairman of
AgFeed's Advisory Board to advise the Company's strategic initiatives. Mr.
Rittereiser is the former CFO and Chief Administrative Officer of Merrill
Lynch and former President and CEO of E.F. Hutton & Co. Mr. Rittereiser
joins Edward McMillan as a key strategic advisor to AgFeed. Mr. McMillan
served as President and Chief Executive Officer of Purina Mills Inc., the
United States' largest manufacturer and distributor of animal nutrition
products, from 1988 until 1996.
-- In March 2008, the Company completed a $41 million financing through
AgFeed's financial advisor, Deutsche Bank Securities, Inc.
SUCCESSFUL INTEGRATION OF OUR RECENT HOG FARM ACQUISITIONS
In January 2008, AgFeed acquired the majority ownership in five producing commercial hog farms with an estimated aggregate annual hog production capability of 100,000. AgFeed has successfully integrated these businesses within the last two months. By April 2008, AgFeed anticipates acquiring several additional hog farms that will enable the Company to reach its previously announced fiscal 2008 hog production target of 400,000. This would rank AgFeed as the 2nd largest commercial hog farm owner in China.
AGFEED AFFIRMS FISCAL YEAR 2008 FINANCIAL GUIDANCE
AgFeed believes the Company has sufficient capital to achieve its previously guided 2008 financial performance as follows:
-- Revenues are estimated to be about $135 million which would represent
an approximate increase of over 250% from the previous year.
-- Net income is estimated to increase by around 350% to approximately
$30 to $33 million over 2007.
-- Earnings per share (EPS) on a fully diluted basis would be between
$0.96 and $1.10.
-- Favorable foreign exchange rate could benefit AgFeed. The Company has
used an exchange ratio of RMB7.18 to US$1 in its 2008 guidance. Currently,
the exchange rate is RMB7.10 to US$1.
-- Live hogs are sold in China based on a hog's weight. AgFeed's
commercially produced hogs weigh on average between 100 and 110 kilos. The
Company's revenue estimates are based on RMB8 per half a kilo, which is
below the current live hog market price of more than RMB9 per half a kilo.
Due to an increased demand for pork related to China's Summer Olympics and
the continuing hog supply shortage, AgFeed anticipates that China's hog
prices will remain high in 2008.
About AgFeed Industries, Inc.
Through its China-based operating subsidiaries, NASDAQ-listed AgFeed Industries (www.agfeedinc.com) is a market leader in China's fast growing pre-mix animal feed and hog raising industries. The pre-mix market in which Agfeed operates is an approximately $1.6 billion segment of China's $40 billion per year animal feed market, according to the China Feed Industry Association. There are approximately 600 million hogs raised in China each year, compared to approximately 100 million in the U.S. Approximately 75% of China's total hog supply is from backyard individual hog farmers, while approximately 65% of China's total meat consumption is pork.
Safe Harbor Statement
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. AgFeed's actual results may differ from its projections. Further, preliminary results are subject to normal year-end adjustments. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect AgFeed's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in AgFeed's filings with the Securities and Exchange Commission.
AGFEED INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED BALANCE SHEET
AS OF DECEMBER 31, 2007 AND 2006
December 31, December 31,
2007 2006
--------------- ---------------
Total current assets $ 18,077,928 $ 5,335,752
Total assets 23,070,265 7,265,831
Total current liabilities 3,569,738 3,890,004
Total stockholders' equity 19,500,526 3,375,827
AGFEED INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005
Years Ended December 31,
--------------------------------------
2007 2006 2005
------------ ------------ ------------
Net Revenue $ 36,163,339 $ 8,594,876 $ 7,611,845
Cost of Revenue 25,763,479 5,446,332 5,339,067
Gross profit 10,399,860 3,148,544 2,272,778
Total operating expenses 4,079,089 2,114,650 1,392,007
Total non-operating income (expense) 148,921 41,000 (47,655)
Net income 6,662,895 1,175,280 560,706
------------------------------------------------------------------------------------------------------
AgFeed Industries Receives Hog Export License for the Hong Kong Market and AgFeed Experiences Higher Than Estimated Profit Margins From Hog Sales
Monday March 17, 6:00 am ET
Hog Prices in China Have Reached Historical Highs Due to Hog Shortage While the Cost of Hog Feed Remains Stable
SHANGHAI, CHINA--(MARKET WIRE)--Mar 17, 2008 -- AgFeed Industries, Inc. (NasdaqGM:FEED - News), a market leader in China's premix animal nutrition and hog raising industry, today announces that one of AgFeed's hog farms, the Wannian Xiandai hog farm, has been granted a direct export license by the Chinese Ministry of Commerce for hog export to the Hong Kong market.
ADVERTISEMENT
Hong Kong is one of China's most prominent international cities. The export license allows AgFeed to directly supply hogs to the Hong Kong market. Hong Kong typically commands the highest quarantine standards during the hog production process as well as pays premium prices for hogs to those producers that have met stringent quality requirements.
Due to continued hog shortage in China, hog prices have recently reached historical highs. AgFeed is currently selling its hogs at approximately $250 per hog, which is higher than the Company's previously estimated $221 per hog.
AgFeed has also observed that the cost of corn, which is a major hog feed component, has remained stable despite rising hog prices. China's hog raising industry is an income tax exempt business.
Songyang Li, PhD., Chairman of AgFeed commented: "AgFeed's hog raising business benefits from a favorable market environment and expanded profit margins due to China's severe hog shortage. We anticipate China's hog shortage to continue throughout 2008. We are on track to complete our planned hog farm acquisitions by mid April towards our target of producing 400,000 hogs for sale in 2008."
About AgFeed Industries, Inc.
--------------------------------------------------------------------------------------
AgFeed Industries Expands Its Agricultural Product Distribution Platform in China Through Its 630th Independently Owned Exclusive Retail Chain Store
Thursday March 20, 6:05 am ET
AgFeed Is on Track to Have a Total of 1,000 Independently Owned Chain Stores in 2008
SHANGHAI, CHINA--(MARKET WIRE)--Mar 20, 2008 -- AgFeed Industries, Inc. (NasdaqGM:FEED - News), a market leader in China's premix feed and hog raising industry, today announces that the 630th independently owned exclusive premix feed product distribution chain store has opened in China. At the end of 2007, there were 503 stores.
ADVERTISEMENT
Since January 2007, AgFeed has developed a highly effective retail product sales channel of distributing premix feed through independently owned stores across China. These stores exclusively market AgFeed premix products to end users including small and medium-sized hog farms and individual hog farmers. Approximately 75% of China's 600 million annual hog production is supplied by individual backyard farmers.
Comments by Songyan Li, Ph.D., AgFeed's Chairman: "As China's hog prices have reached historical highs, AgFeed benefits from growth in both of our integrated businesses -- premix animal feed and hog production. Our independently owned retail chain stores have become an effective distribution platform, selling AgFeed's and potentially cross selling other global companies' agricultural products in the vast Chinese agricultural markets. We believe our premix feed distribution channel represents significant enterprise value for our shareholders. We are on track to have a total of 1,000 independently owned chain stores by the end of 2008."
--------------------------------------------------------------------------------------------
AgFeed Industries Engages Leading US Hog Industry Experts to Explore Strategic Options as a Platform for Access to China's Vast Feed and Hog Raising Markets
Monday March 24, 11:05 am ET
NEW YORK, NY--(MARKET WIRE)--Mar 24, 2008 -- AgFeed Industries, Inc. (NasdaqGM:FEED - News), a leader in China's premix feed and hog raising industry, announced today that the Company has engaged a leading US agricultural expert, Spectrum Agribusiness, led by senior industry executives Dennis Harms and Gerry Daignault, to advise AgFeed in pursuing opportunities with selected global agricultural companies to provide them with entry into the China market.
ADVERTISEMENT
Founded 13 years ago by founders/managers, AgFeed has two integrated profitable business lines in China: premix animal feed and hog production. AgFeed is currently the largest premix feed company in China in terms of revenues and intends to expand its hog production through multiple acquisitions in 2008.
Dennis Harms, CEO of Spectrum Agribusiness, commented: "China represents tremendous opportunities for global companies in the feed and hog production industries. Developing the right relationships to access the Chinese markets is key and AgFeed with its foot print and private sector ownership structure represents a unique opportunity. With a solid management team already in place, its transparency and accountability as a NASDAQ company, AgFeed provides an ideal shortcut for companies that are considering entry into China."
Songyan Li, Ph.D., AgFeed's Chairman, said: "AgFeed intends to pursue strategic discussions with various global companies that have expressed an interest in entering China. The engagement of Spectrum Agribusiness will help us explore the best strategic fit. We trust and rely on our advisors. While we continue to focus on achieving or exceeding our plans, AgFeed intends to explore all possibilities that would enhance our shareholders value."
About Spectrum Agribusiness and its Founders Dennis W. Harms and Gerry Daignault
Spectrum Agribusiness provides strategic guidance to leaders in the food and agriculture industries globally, advising corporate boards and CEOs with industry repositioning strategies and the execution of successful acquisitions. The Company also engages in operational and organization reviews along with temporary CEO/CFO assignments. Founded by former industry executives Dennis Harms and Gerry Daignault, the firm has more than 50 years of experience in agribusiness. After working for 15 years in a variety of positions with Cargill and Central Soya, Mr. Harms founded Premium Standard Farms ("PSF"). He led the company as CEO for ten years and grew from startup to $450 million in revenue with more than 2,600 employees. PSF is recognized as one of the premiere pork production companies worldwide and was acquired in 2006 by US hog industry leader Smithfield Foods (NYSE:SFD - News) for approximately $800 million. Mr. Daignault has 26+ years of experience in financial and managerial positions including 18 years at the CFO level for domestic and international agribusiness. (www.spectrumagribusiness.com)
-------------------------------------------------------------------------------------------
VERY strong volume already today.
VERY strong volume already today
AgFeed Offers Piggyback Into Chinese Hog Market
Melinda Peer, 04.11.08, 8:20 PM ET
AgFeed Industries
AgFeed Offers Piggyback Into Chinese Hog Market
Melinda Peer, 04.11.08, 8:20 PM ET
Want to take little piggies to the Chinese market? AgFeed Industries is offering its Chinese hog and feed business as a platform for companies interested in entering the industry there.
In late March, AgFeed Industries (nasdaq: FEED - news - people ) hired Spectrum Agribusiness to help it pursue opportunities with global agriculture companies looking to enter China's feed and hog market.
The company's shares, which have been rising all year, went hog wild Friday, packing on an extra $1.20, or 9.1%, to close at $14.45.
Agfeed operates two product segments in China. Its premix animal feed line is China's largest in terms of sales, and the company is expanding its hog production unit through acquisitions. With Spectrum's help, Agfeed has offered its business as a platform for access to China's thriving feed and hog-raising markets.
"Agfeed provides an ideal shortcut for companies that are considering entry into China," said Spectrum's chief executive, Dennis Harms. "China represents tremendous opportunities for global companies in the feed and hog production industries. Developing the right relationships to access the Chinese markets is key and Agfeed with its footprint and private sector ownership structure represents a unique opportunity," Harms said.
Agfeed said it has retained Spectrum, which provides guidance to agriculture companies on business repositioning and acquisitions, to help it find the best strategic fit. Spectrum Agribusiness gives strategic guidance to leaders in the food and agriculture industry, helping them with industry repositioning strategies and the execution of successful acquisitions.
China's population growth, emerging wealth, and predilection for pork could mean fat profits ahead for those dealing in swine. Like much of the world, China has been hit by inflated food prices. At the beginning of the year, its grain prices rose 5.7% from the previous year, and could continue to climb as biofuel production threatens to clean out crops. High-priced commodities strain both feed and livestock companies.
In January, China's pork prices also reached squealing highs, up 58.8% from a year earlier, which could make meat unaffordable to many consumers (See: " China Inflation Wafted To Fresh High By Harsh Winter").
China rears roughly 600 million hogs a year, compared with 100 million in the United States.
Another strong day, very high volume. Good place to be.
Another strong day, very high volume, great sector.
New alltime high. Huge volume again. Anyone else in? Hope so.
New high, huge volume
Analysis from the one analyst covering the stock:
AgFeed Industries, Inc. (NasdaqGM: FEED)
Event: Initiating coverage with a Buy rating.
An industry leader in the premix animal feed market. Entry into the hog raising business adds significant growth potential.
Summary: We are initiating coverage of AgFeed Industries, Inc. ("AgFeed") with a Buy rating. AgFeed is a leader in China's premix animal feed market. In light of the increasing pork demand and prices in China, the company entered into the hog raising business and is expanding aggressively. We believe AgFeed is well positioned to become a consolidator in China's fragmented hog raising industry and to benefit from the highly favorable market conditions. We expect its hog raising business to drive significant growth and the premix feed segment to maintain stable expansion. We project a CAGR of 136% in revenue and a CAGR
of 125% in EPS over the next two years. We expect to see continued multiple expansion as the company executes its strategies. We are establishing a oneyear price target of $18.00, based on a peer group forward P/E multiple of 14x.
Investment Considerations
Market leader in China's premix animal feed industry. With 12 years of industry experience, a recognized brand name, strong R&D capability demonstrated by customized formula and high quality products, multiple distribution channels and strong customer service, AgFeed has become a leader in the highly fragmented and fast growing premix feed market in China.
A rising consolidator in China's hog raising market. AgFeed is expanding aggressively in the hog raising industry through acquisitions, adding six farms in the last three months. We expect hog raising to be the main revenue driver, growing from zero in 2007 to $90MM in 2008 and $140MM in 2009. With strong experience in the feed industry, established relationships with large hog farms, synergy between the two businesses and capital support as a US listed company, AgFeed is evolving into a consolidator in the commercialization process of China's hog raising industry.
Highly favorable market condition. China contributes 50% of the worldwide pork production and is the largest pork consumer in the world. Pork is the meat of choice for a majority of Chinese people. Pork prices have reached multi-year highs due to increasing demand and a severe shortage of supply. Government granted favorable policies towards the hog raising industry, including income tax exemption and cash subsidies and encourages industry consolidation to improve productivity and stimulate supply. We believe AgFeed is well positioned to benefit from this highly favorable market condition.
Strong execution expected from a solid management team.
We believe AgFeed has one of the strongest management teams in the feed and hog raising industry. The young management team is comprised of the five founders who started the company 12 year ago, with both industry knowledge and management capability. The company's advisors include well regarded Wall Street veterans and world renowned experts in the animal feed and hog raising industry.
Establishing an $18.00 price target. We project significant revenue growth from $36MM in 2007 to $135MM in 2008 and $200MM in 2009. We estimate EPS to grow from $0.25 in 2007 to $0.96 in 2008 and $1.26 in 2009. As the company executes its strategies, we expect to see multiple expansion in the next 12 months. We are initiating coverage with a Buy rating and established a one-year price target of $18.00, based on a P/E multiple of 14x.
Personal comment: Target price was reached and the stock reacted negatively. I wonder by how much will the share count increase after this run up. $513 M market cap for $19 M in book value. Beautiful.
Good luck with FEED BigSully1, I'm open to add another lesson to my extensive book if the stock moves above $20 over the next 12 months.
Personal comment: Target price was reached and the stock reacted negatively. I wonder by how much will the share count increase after this run up. $513 M market cap for $19 M in book value. Beautiful.
Good luck with FEED BigSully1, I'm open to add another lesson to my extensive book if the stock moves above $20 over the next 12 months.
[/quote]
I wonder what date the analyst wrote? The best stocks are those that estimates and targets continually get raised, and those same stocks usually hold seemingly high P/E's for years as they continue to grow. Yes the share count will increase and the news was out Thursday morning, you didn't see it? otherwise the stock just might not have paused, even though it ran up 50% in 7 days. I even thought about selling some today because of dilution, but they are using the funds to fuel their highly aggressive growth, and I don't believe the market acted all that negatively about it at all, as could be expected, at least not yet.
I already have a very nice gain in it and plan to hold on to it. Good luck with your picks also. Some of your picks could surprise me in 12 months also, I suppose.
AgFeed Industries Arranges $10 Million Equity Financing
Thursday April 17, 6:05 am ET
NEW YORK, NY--(MARKET WIRE)--Apr 17, 2008 -- AgFeed Industries, Inc. (NasdaqGM:FEED - News), a leader in China's premix feed and hog raising industry, announced today that it had arranged for the sale of 625,000 shares of newly issued common stock for $16 per share under its Form S-3 Registration Statement, for total gross proceeds of $10 million.
The closing for this financing is expected to occur no later than Monday, April 21, 2008.
The Company intends to use the proceeds from this transaction to acquire additional producing commercial hog farms in China.
About AgFeed Industries, Inc.
Through its China-based operating subsidiaries, NASDAQ-listed AgFeed Industries (www.agfeedinc.com) is a market leader in China's fast growing pre-mix animal feed and hog raising industries. The pre-mix market in which Agfeed operates is an approximately $1.6 billion segment of China's $40 billion per year animal feed market, according to the China Feed Industry Association. There are approximately 600 million hogs raised in China each year, compared to approximately 100 million in the U.S.
QuoteI wonder what date the analyst wrote?
March 4, 2008.
QuoteThe best stocks are those that estimates and targets continually get raised, and those same stocks usually hold seemingly high P/E's for years as they continue to grow.
I agree.
QuoteYes the share count will increase and the news was out Thursday morning, you didn't see it?
No, I didn't see the news, I just figured there would be dilution, since they had very little cash comparable to the market cap. Besides, that's what most Chinese companies do after a meaningful run up. So it has started, huh?
Quoteotherwise the stock just might not have paused, even though it ran up 50% in 7 days. I even thought about selling some today because of dilution, but they are using the funds to fuel their highly aggressive growth, and I don't believe the market acted all that negatively about it at all, as could be expected, at least not yet.
Yes ... well, I've been reading some more about their expansion plans and all those new stores opening in China. The story reminds me of JADE, remember that one? The method for dilution seems to be similar, a very strong growth story supported by guidance and an analyst coverage, with hundreds of stores opening in China.
JADE run up from $4 or so to $12 in a couple of months, then it spent 5 full months building a long term top and then it abruptly fell back down below previous lows, check it out:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=44898;image)
Now, FEED can be different, but looking at the market cap ($500 M plus) and the balance sheet I believe fundamentals absolutely don't support the run up in the share price. All bulls have is guidance, which can change meaningfully or don't be met at all.
Food and agricultural products are hot now, just like precious metals were hot at JADE's run up.
I'm not saying FEED won't double from here, I'm saying its long term investment story is suspicious to me and it's possible that the stock will be at, say, $5 in twelve months time, like it was twelve months ago.
QuoteI already have a very nice gain in it and plan to hold on to it.
Yes, of course, I wasn't trying to change your stance (which is probably more accurate than mine), I just wanted to express my point of view, which in this case is divergent from yours.
Good luck :)
awesome chart
Quote from: David Randolph on April 18, 2008, 01:05:42 AM
Personal comment: Target price was reached and the stock reacted negatively. I wonder by how much will the share count increase after this run up. $513 M market cap for $19 M in book value. Beautiful.
Good luck with FEED BigSully1, I'm open to add another lesson to my extensive book if the stock moves above $20 over the next 12 months.
[/quote
What do you think of it passing $20 on high volume in just 2 or 3 days since you wrote? It will will be a lesson to add to your extensive book in alot sooner than than 12 months.
AgFeed Industries Arranges $25.2 Million Equity Financing
Wednesday April 23, 6:05 am ET
NEW YORK, NY--(MARKET WIRE)--Apr 23, 2008 -- AgFeed Industries, Inc. (NasdaqGM:FEED - News), a leader in China's premix feed and hog raising industry, announced today that it had arranged for the sale of 1,322,836 shares of newly issued common stock for $19.05 per share under its Form S-3 Registration Statement, for total gross proceeds of approximately $25.2 million.
The closing for this financing is expected to occur no later than April 25, 2008.
The Company intends to use the proceeds from this transaction to acquire additional producing commercial hog farms in China.
Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw Capital Group, Inc. (NasdaqGM:RODM - News), served as the placement agent for the offering.
--------------------------------------------------------------------------------
Sold about 65% of position @ 19.70 to 19.54. Holding the rest....for now. Approximate gain 63%.
Quote from: BigSully1 on April 18, 2008, 01:37:02 AM
Personal comment: Target price was reached and the stock reacted negatively. I wonder by how much will the share count increase after this run up. $513 M market cap for $19 M in book value. Beautiful.
Good luck with FEED BigSully1, I'm open to add another lesson to my extensive book if the stock moves above $20 over the next 12 months.
I wonder what date the analyst wrote? The best stocks are those that estimates and targets continually get raised, and those same stocks usually hold seemingly high P/E's for years as they continue to grow.
[/quote]
Estimates raised, target price increased to $22.
FEED: Shares Gain 10% on Additional Food Shortage Woes
Monday , May 05, 2008 17:36ET
Monday's session saw food prices spike again with the recent typhoon in Myanmar over the weekend. The disaster had a death toll which was numbered as 4,000, but the number was expected to rise as to as many as 10,000 as more information became available and search rescue parties were deployed. If the numbers rise to the 10,000 area, it would become the second worst natural disaster in Asia since the tsunami in 2004 which killed over 180,000 in Indonesia and Thailand.
Disasters are always hard to morally use as an investment thesis, but the markets don't seem to care and must go on to ensure efficiency. With that in mind, food, water and energy companies will undoubtedly see increased action as more information becomes available as to the severity.
A barrel of crude was also on the rise as the age old adage "another day, another dollar" seems to be the only way to explain its recent rally. Increasing tension between the US, Iraq and Iran along with attacks in Nigeria have fueled the speculation fire.
In the food area, AgFeed Industries, Inc. (FEED) is engaged in the research and development, manufacture, marketing and sale of fodder and blended feed for use in the domestic animal husbandry markets in the People's Republic of China.
On May 1st, the Company announced the completion of a series of previously announced acquisitions of producing commercial hog farms located in several south China provinces where the population is the wealthiest and live hog prices are among the highest in the country.
With the addition of these newly acquired hog farms, AgFeed now owns controlling interest (on average more than 80%) in 22 commercial hog farms in several provinces in China. AgFeed expects these acquisitions to be immediately accretive to 2008 earnings.
The Company anticipates total hog sales of approximately 400,000 head in year 2008, with strong hog sales expected in the latter half of the year. On an annualized basis, AgFeed estimates that its hog farms have the capacity to produce approximately 510,000 hogs per year.
AgFeed noted in their release that they are currently selling hogs at approximately $270 each, and realizes net income on these sales of about $75 per hog. Hog sales in China have no accounts receivables since hog farms receive full payment up front from wholesale buyers.
With the food shortage in Myanmar and the lack of information of the severity of the damage, Monday's 10% gain may be the start of another rally if additional disparaging news is reported. Investors would be wise to watch.
EXPECTS FAVORABLE Q2: AgFeed Industries, Inc. (FEED) announced that Ag-
Feed expects to report favorable 2nd quarter financial results before the August 14
reporting deadline. During the 2nd quarter ended June 30, 2008, AgFeed sold a record
number of hogs. The Company experienced significant revenues and earnings
in a continued, favorable market environment in China. The Company believes that
lowered overall production costs due to greater operating efficiency resulted in expanded
profit margins in both of our two synergistic business lines -- premix animal
feed and hog production.
FEED...moving up
on 03/17/2009 after they announced their net income more than doubled yesterday.
I still think FEED is at rock bottom prices and is a well run company with huge growth potential. Getting in now may not be wise for the short-term, but FEED is a strong candidate to be a 10 bagger. Prey on others' fear!
52wk Range: 0.90 - 21.31
Volume: 7,377,880
Avg Vol (3m): 889,918
Market Cap: 82.33M
P/E (ttm): 4.93
EPS (ttm): 0.51
Div & Yield: N/A (N/A)
Technicals
Record Volume
Last Price Quote is:
85.90%above 13-day MA
64.34%above 50-day MA
RS Rating: 92
Fundamentals
Key Data:
Market Cap (M): $35.57
P/E Ratio: 2.23
PEG Ratio: N/A
Next Earnings: 05/07/2009
Last Analyst Rating: Buy
Last year at this time it went high, we'll see how it does this year. Maybe follow the same pattern. Hold it until the end of summer if it stays strong.
Flag, Pennant (Continuation) Pattern...
Flags and Pennants are short-term continuation patterns that mark a small consolidation before the previous move resumes. These patterns are usually preceded by a sharp advance or decline with heavy volume, and mark a mid-point of the move.
Even though flags and pennants are common formations, identification guidelines should not be taken lightly. It is important that flags and pennants are preceded by a sharp advance or decline. Without a sharp move, the reliability of the formation becomes questionable and trading could carry added risk. Look for volume confirmation on the initial move, consolidation and resumption to augment the robustness of pattern identification.
52wk Range: 0.90 - 21.31
Volume: 6,017,443
Avg Vol (3m): 1,115,350
Market Cap: 118.35M
P/E (ttm): 5.73
EPS (ttm): 0.53
Div & Yield: N/A (N/A)
Technicals
Most Actives
Percentage Gainer
Last Price Quote is:
32.26%above 13-day MA
57.15%above 50-day MA
RS Rating: 95
Fundamentals
Key Data:
Market Cap (M): $92.30
P/E Ratio: 4.62
PEG Ratio: N/A
Next Earnings: 05/07/2009
Last Analyst Rating: Buy
Some History....... 8)
-- Revenue grew year over year by 316% to approximately $49.4 million from $11.9 million
-- Gross Profit increased 279% year over year to $12.3 million from $3.2 million
-- Comprehensive Income increased by 279% to $8.5 million for the third quarter of 2008 from $2.3 million for the third quarter of 2007
-- Income from Operations of $9.3 million, an increase of 353% from 2007 period
-- Net Income of $8.2 million, up 296% from 2007 Q3 Net Income of $2.1 million and 110% from 2008 Q2 Net Income of $3.9 million
-- Earnings per Share of $0.25, up 222% from 2007 Q3 Earnings per Share of $0.08
-- Revises 2008 earnings estimate downward
-- Strategic discussions with leading global genetic companies
Last year at this time it went high... :D
History is repeating itself this year! ;D
Maybe follow the same pattern. Hold it until the end of summer if it stays strong. ;)
Volume: 6,174,005
Avg Vol (3m): 2,298,470
Market Cap: 197.21M
P/E (ttm): 9.25
EPS (ttm): 0.56
Div & Yield: N/A (N/A)
Technicals
Most Actives
Percentage Gainer
Last Price Quote is:
17.49%above 13-day MA
48.87%above 50-day MA
RS Rating: 98
Fundamentals
Key Data:
Market Cap (M): $153.94
P/E Ratio: 7.07
PEG Ratio: N/A
Next Earnings: 08/10/2009
Last Analyst Rating: Buy
FEED - Momentum...
AgFeed Industries, Inc., through its subsidiaries, engages in the research and development, manufacture, marketing, and sale of fodder and blended feed for use in the domestic animal husbandry markets primarily in the Peoples Republic of China.
Why This Stock Is a Winner...
If you could wave a magic wand and bestow just one characteristic on all of your investments, what would it be? (Besides the ability to print money, that is.)
I began thinking about this after reading Tom Gardner's "A 25-Bagger in Five Years," in which he identified three things that give a company the chance to achieve outsized gains over the years -- like 25-baggers that turn $5,000 into $125,000. Of the three he mentions, one characteristic is most important to me: a high level of insider ownership.
Why it matters...
But this makes sense, right? Think about any of your major personal investments:
1. You are a stockholder, with a good deal of your wealth riding on this company's performance.
2. Founders and managers with high levels of ownership also have their wealth riding on the company's performance.
3. They are doing everything they can to increase the long-term value of their stock -- of your stock.
With their reputations, their livelihoods, and their careers on the line, you can be fairly sure these managers and board members are motivated to do what's best for the company. It's like having someone on the inside, working for you. Every day.
A great example is Amazon.com (Nasdaq: AMZN) CEO Jeff Bezos, who owns over 22% of the $24 billion e-tailer!
What is the opposite of that? Businesses where management has very little tied up in company stock. Where actions may be motivated by things that actually harm the stock's performance, like office politics, power plays, or working more with an eye on the clock (is it 5:00 yet?) than on improving the business model. Or, even worse, management that rewards itself with high salaries and bonuses that have nothing to do with outstanding performance.
Now, most of your larger holdings will have a low percentage of insider ownership. For example, Citigroup (NYSE: C) is only 0.4% owned by insiders. JPMorgan Chase (NYSE: JPM) sports just 0.5% insider ownership. The sheer size of those companies makes it awfully tough for anyone to own a significant share of the entire business -- though perhaps a different culture would have evolved in some of the large financial firms if management had held a greater stake in the future.
But smaller companies are a much different story. In small-cap land, CEOs and managers with high levels of ownership are much more likely to rise above the mediocrity and work toward the common goal of great stock performance.
Insider ownership, particularly in smaller companies, is one positive indicator in the quest for tomorrow's multibaggers. There are many more, of course, but insider ownership is one of the core variables
Small caps lead today's market...
Rounding Bottom (Reversal) Pattern...
The rounding bottom is a long-term reversal pattern that is best suited for weekly charts. It is also referred to as a saucer bottom, and represents a long consolidation period that turns from a bearish bias to a bullish bias.
A rounding bottom could be thought of as a head and shoulders bottom without readily identifiable shoulders. The head represents the low and is fairly central to the pattern. The volume patterns are similar and confirmation comes with a resistance breakout. While symmetry is preferable on the rounding bottom, the left and right side do not have to be equal in time or slope. The important thing is to capture the essence of the pattern.
52wk Range: 0.90 - 17.07
Volume: 9,782,499
Avg Vol (3m): 2,358,990
Market Cap: 236.27M
P/E (ttm): 11.08
EPS (ttm): 0.56
Div & Yield: N/A (N/A)
Technicals
Most Actives
Percentage Gainer
Last Price Quote is:
40.76%above 13-day MA
78.36%above 50-day MA
RS Rating: 99
Fundamentals
Key Data:
Market Cap (M): $197.21
P/E Ratio: 9.05
PEG Ratio: N/A
Next Earnings: 08/10/2009
Last Analyst Rating: Buy
Below are the 6 month and 9 month charts, where one can see the rounded bottom nicely on the bottom chart (9 Month)...
Nearing a Golden Cross...
Moving on up...
Let's see if she gets a bounce off the 13-day MA
Got The Golden Cross.......
updated chart look...
NEW YORK, Jan 13, 2010 /PRNewswire via COMTEX/ -- AgFeed Industries, Inc. (FEED, Trade ), one of the largest independent hog production and animal nutrient companies in China, today announced that its board of directors has authorized a strategic internal reorganization of its corporate structure to more efficiently align its business platforms in order to maximize the results of its anticipated growth in the Chinese hog and animal nutrients markets. After successfully executing its previously announced 2009 five-phase strategic plan, the AgFeed Industries board of directors and senior management believes that the development of two strong, parallel business operations is a key to its continued growth in 2010 and beyond.
AgFeed Industries will remain the holding company for two separate, wholly-owned businesses, one for its animal nutrients feed operations and one for its genetic hog production operations. The company will also continue to indirectly hold a 65% controlling interest in AgFeed International Protein Technology Corp., the joint venture it established with M2P2 LLC in 2009. Each business line will have a board of directors, an executive-level management team with strong industry experience, financial systems designed specifically for their operations and internal financing capabilities. The company's plan is to ensure that the best people, information, technology and operating tools are in place to propel its growth into a much larger company by pursuing expansion in its two key markets: animal nutrients and genetic hog production. The Company currently anticipates announcing executive-level appointments for each of its business units on January 29, 2010.
Dr. Songyan Li, AgFeed's Chairman, stated "our businesses are integrally linked and related to the improvement of Chinese agricultural practices and the standard of living for the people of China. This internal corporate reorganization will empower our business units to efficiently and aggressively pursue the growth of their respective market position and share, which will create shareholder value."
Mr. Junhong Xiong, AgFeed's President, added "our original core competence is in the animal nutrition business. We believe the new corporate structure will facilitate the expansion of our existing additive pre-mix business to include compound feed and concentrated feed. Today there are over 10,000 feed companies in China each averaging 10,000 tons of annual production and resulting in fragmented and inefficient industry capacity. In 2009, our animal nutrients business segment delivered over 95,000 tons of feed to the market. Through organic growth and strategic acquisitions we intend to become one of the largest market participants in this business over the next three years. The foundation for the future of our animal nutrient business is our 1,200 independent distributors and our 750 commercial farm customers, together with the development and implementation of our strategy to transition from being a price based competitor to being a provider of value based, total solutions to customers in our target markets."
With respect to the hog production business, Dr. Li commented, "Market forces, coupled with the Chinese government's policy of industrialization and commercialization of this key industry, continues to signal positive change for large integrated producers such as AgFeed. Our reorganized hog production business, coupled with our new joint venture with Hypor B.V., Hypor AgFeed Breeding Company Inc., will be positioned for aggressive growth in this industry going forward. Our breeding systems and commercial farms will produce the highest quality, most robust and healthy animals in the Chinese domestic hog production industry, resulting in products that are very attractive to the urban center markets where meat demands are changing together with the growth of the middle class."
ABOUT AGFEED INDUSTRIES, INC.
NASDAQ Global Market listed AgFeed Industries ( www.agfeedinc.com ) is a U.S. company with its primary operations in China. AgFeed has two profitable business lines -- premix and blended animal feed and hog production. AgFeed is China's largest commercial hog producer in terms of total annual hog production as well as the largest premix feed company in terms of revenues. China is the world's largest hog producing country that produces over 600 million hogs per year, compared to approximately 100 million hogs in the U.S. China also has the world's largest consumer base for pork consumption. Over 62% of total meat consumed in China is pork. Hog production in China enjoys income tax free status. The pre-mix feed market in which AgFeed operates is an approximately $1.6 billion segment of China's $40 billion per year animal feed market, according to the China Feed Industry Association.
SAFE HARBOR DISCLOSURE NOTICE
This press release contains forward-looking information about AgFeed Industries. You can identify these statements by the fact that they use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "goal," "potential," "forecast" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance, business plans and prospects. Readers are cautioned not to place undue reliance on such forward-looking statements because risks and uncertainties may cause actual results to differ materially from those expressed in, or implied by, such statements. Among such risks and uncertainties are the Company's ability to successfully implement its strategic plan and the risk factors described in the reports filed by the Company with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date of such statement, and AgFeed Industries does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.
Contact:
Investor Relations: AgFeed Industries, Inc.
Tel: 917-804-3584 (US)
Email:
[email protected]SOURCE AgFeed Industries, Inc.
updated chart look...
52wk Range: 0.90 - 7.96
Volume: 1,236,573
Avg Vol (3m): 1,500,650
Market Cap: 232.80M
P/E (ttm): 18.63
EPS (ttm): 0.28
Technicals
Percentage Gainer
Last Price Quote is:
3.66%above 13-day MA
7.74%above 50-day MA
RS Rating: 50
Fundamentals
Key Data:
Market Cap (M): $235.44
P/E Ratio: 17.91
PEG Ratio: N/A
Next Earnings: 03/15/2010
Last Analyst Rating: Buy
AgFeed Industries Announces Press Conference, NASDAQ MarketS...
NEW YORK, Apr 8, 2010 (GlobeNewswire via COMTEX) -- AgFeed Industries, Inc. (FEED, Trade ) (NYSE Alternext:ALHOG), one of the largest independent hog production and hog nutrient companies in China, today announced a Media and Analyst Conference.
When: April 14, 2010, 12:15 pm EDT
Where: NASDAQ MarketSite, 4 Times Square, New York, NY
RSVP required for building security: 212 699-0999 or
[email protected] Click here to schedule the LIVE WEBCAST LINK into your Outlook calendar. Select "open" then "save and close" when prompted. Click here to watch the event 4/14, 12:15pm
This conference follows on AgFeed's recent announcement of their admission to the NYSE Alternext, 2010's first cross-listing from a U.S. listed company. The company has also been identified by Forbes as one of China's Best 'Up-And-Coming' Businesses. COO and CEO of Hog Production, Gerry Daignault will be available for interviews before and after the video conference. Please contact Christi Flood, above, to schedule.
ABOUT AGFEED INDUSTRIES, INC.
NASDAQ Global Market listed AgFeed Industries ( http://www.agfeedinc.com/ ) is a U.S. company with its primary operations in China. AgFeed has two profitable business lines -- animal nutrients in premix, concentrates and complete feeds and hog production. AgFeed is one of China's largest commercial hog producers in terms of total annual hog production as well as one of its largest hog nutrition companies in terms of revenues. China is the world's largest hog producing country that produced over 645 million hogs in 2009, compared to approximately 100 million hogs produced annually in the U.S. China also has the world's largest consumer base for pork consumption. Over 62% of total meat consumed in China is pork. Hog production in China enjoys income tax free status. The feed markets in which AgFeed operates represent a $20 billion segment of China's $58 billion per year animal feed market.
SAFE HARBOR DISCLOSURE NOTICE
This press release may contain forward-looking information about the Company. You can identify these statements by the fact that they use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "forecast" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans and prospects. Readers are cautioned not to place undue reliance on forward-looking statements because actual results may differ materially from those expressed in, or implied by, the statements. For a list of factors that could affect the Company's results, see the Company's filings with the Securities and Exchange Commission, including "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations," including "Cautionary Statement for Forward-Looking Statements," set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009. Any forward-looking statement that the Company makes speaks only as of the date of such statement, and the Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data. The information contained in this press release is made as of the date of the press release, even if subsequently made available by the Company on its website or otherwise.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: AgFeed Industries, Inc.
CONTACT: AgFeed Industries, Inc.
Investor Relations:
(917) 804-3584
[email protected]
Buy Signal...
Setting at good support level. Company's growth is expected to return this year.
Price Target $10.50
52wk Range: 2.36 - 7.96
Volume: 2,063,415
Avg Vol (3m): 1,278,090
Market Cap: 210.60M
P/E (ttm): 18.69
EPS (ttm): 0.25
Div & Yield: N/A (N/A)
Technicals
Last Price Quote is:
5.07%above 13-day MA
2.41%above 50-day MA
RS Rating: 20
Fundamentals
Earnings Expected on May 10
Key Data:
Market Cap (M): $198.92
P/E Ratio: 17.80
PEG Ratio: N/A
Next Earnings: 05/10/2010
Last Analyst Rating: Buy
Below is the 1 year chart...
FEED AgFeed Industries, Inc. Announces Filing of a Registration...
NEW YORK, Oct 11, 2010 /PRNewswire via COMTEX/ -- AgFeed Industries, Inc. (FEED)(nyse alternext:ALHOG), an international agribusiness with operations in the U.S. and China and one of the largest independent hog production and animal nutrient companies in China, announced that its wholly owned subsidiary, AgFeed Animal Nutrition Holdings, Inc. ("AANI"), has filed a registration statement on Form F-1 with the U.S. Securities and Exchange Commission (the "SEC") for a proposed initial public offering ("IPO") of its Class A ordinary shares. The number of ordinary shares to be offered and the price range for the offering have not yet been determined.
The registration statement relating to the IPO has been filed with the SEC but has not yet become effective. The Class A ordinary shares, which will be sold in this IPO, may not be sold, nor may any offers to buy be accepted, prior to the time the registration statement becomes effective.
Rodman & Renshaw LLC will act as the underwriter for the IPO.
Dr. Songyan Li, AgFeed's Chairman, stated, "We believe that the carve out of AANI will be a positive development for our shareholders and for the business prospects of AANI. Establishing a public market for AANI will provide an independent valuation of one of our business units that we feel has been overlooked by the market, thus unlocking value for AgFeed's shareholders. As a public company in its own right, AANI will have a sharp strategic focus and will have independent access to both debt and equity capital to support its pursuit of a myriad of growth opportunities."
THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF ANY OFFER TO BUY, NOR SHALL THERE BE ANY SALE OF, THE SECURITIES DESCRIBED HEREIN IN ANY STATE OR JURISDICTION IN WHICH SUCH AN OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF SUCH STATE OR JURISDICTION.
THIS ANNOUNCEMENT IS BEING ISSUED PURSUANT TO AND IN ACCORDANCE WITH RULE 134 UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
When available, a copy of the preliminary prospectus may be obtained from Rodman & Renshaw LLC via telephone at (212) 356-0500.
ABOUT AGFEED INDUSTRIES, INC.
NASDAQ Global Market Listed AgFeed Industries ( www.agfeedinc.com ) is an international agribusiness with operations in the U.S. and China. AgFeed has two business lines -- animal nutrients in premix, concentrates and complete feeds and hog production. AgFeed is one of China's largest commercial hog producers in terms of total annual hog production as well as one of the largest premix feed companies in terms of revenues. In the U.S. AgFeed's hog production unit, M2P2, is the market leader in setting new standards for production efficiency and productivity. The transfer of these processes, procedures and techniques will allow our Chinese hog production units to set new standards for production in China. China is the world's largest hog producing country that produced over 645 million hogs in 2009, compared to approximately 100 million hogs produced annually in the U.S. China also has the world's largest consumer base for pork consumption. Over 62% of total meat consumed in China is pork. Hog production in China enjoys income tax free status. The swine feed markets in which AgFeed operates represent a $20 billion segment of China's $58 billion per year animal feed market.
SAFE HARBOR DISCLOSURE NOTICE
Certain statements regarding AgFeed Industries and/or AANI set forth in this press release, including those regarding the completion of the transaction, contain forward-looking information and speak only as of the date of such statement. You can identify these statements by the fact that they use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "forecast" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans and prospects. This forward-looking information is subject to numerous material risks, uncertainties and assumptions, certain of which are beyond the control of AgFeed Industries and/or AANI, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, competition from other industry participants, stock market volatility, ability to access sufficient capital from internal and external sources, and uncertainty of receiving approval from members of AANI for the transaction described herein. Readers are cautioned that the material assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and there can be no assurance that AgFeed Industries and AANI will enter into definitive agreements or that any transaction will be consummated. Actual results, performance or achievement could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that AgFeed Industries and/or AANI will derive therefrom. AgFeed Industries and AANI disclaim any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. For additional information and risk factors that could affect AgFeed Industries, see its filings with the Securities and Exchange Commission, including "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations," including "Cautionary Statement for Forward-Looking Statements," set forth in its Quarterly Report on Form 10-Q for the period ended June 30, 2010. The information contained in this press release is made as of the date of the press release, even if subsequently made available by AgFeed Industries on its website or otherwise.
Contact: Investor Relations: AgFeed Industries, Inc. Tel: (917) 804-3584 Email:
[email protected] The Company's policy is to handle all questions by email to
[email protected] and they will be answered as soon as possible.
SOURCE AgFeed Industries, Inc.