3SOF

SVA: Short Interest UP 41.7% to 1.2M in Dec 2005

Wednesday, December 21, 2005 16:17 ET

According to new short interest data from AMEX, short interest for Sinovac Biotech Ltd (AMEX: SVA) INCREASED 41.7% to 1,191,872 shares for the month ended mid-December, 2005.

SYMBOL       NOVEMBER        DECEMBER    CHANGE     %CHANGE  DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
SVA              841,243       1,191,872        +350,629       +41.68%           2
Based on SVA's 20-day average daily share volume of 865,260, it would require approximately 2 day(s) of buying to cover this short interest.

Bouncing today from trend line

chart
http://tinyurl.com/7odcb

If you do not own then maybe wait for stochastics to get back above the 20 line

Is that a WolfWave forming??

Wolf will bite you during the next month....

SVA breaking out this morning

Yes bounced from trend line and stochastics moved above 20 again

http://tinyurl.com/7odcb

The eagerly awaited ....

http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?FilingID=4122688&Type=HTML

And for those of you who it might have escaped, "randstory" is running a nice group here ...

http://finance.groups.yahoo.com/group/Sinovac_Investors_Group/

Where you can get some real info on SVA without the abuse one have to endure when reading the yahoo message-boards.

(Nice work, rand!) 

SVA filed a Form 6-K on 1/10/2006 with information through 6/30/05.  Relevant information includes:

Approved Products in Production

•  Healive(TM) - a vaccine to prevent hepatitis A.   Been sold for years

•  Bilive(TM) - a vaccine to prevent hepatitis A&B. SVA began sales of Bilive(TM) in July 2005.

Approved Product, Pre-Production

•  Anflu(TM) -- a vaccine to prevent influenza. Sinovac developed the Anflu(TM) vaccine in response to the persistent shortfall of influenza vaccines in China.  The SFDA granted the Company with a New Drug Certificate in March 2005 and a Production License in July 2005.  The 2 million-dose production capacity manufacturing facility was almost completed and the final preparations are being made before submitting an application for Good Manufacturing Practices (GMP) certification. *** Sinovac intends to establish itself as the market leader for split-virion vaccine production.  With an aging population and a growing health-conscious middle class, the demand for safe and efficacious influenza vaccines is growing by as much as 16% (compounded annual growth rate) per year in China.  Ideally, if SFDA approves Anflu ™ for sales, Anflu(TM) marketing will begin in late summer of 2005, with sales expected to begin in the last quarter of 2005.  After it is approved for sales to the public, Sinovac will utilize the same sales and distribution channels as it does for Healive(TM) and Bilive(TM).

Products in Research and Development

•  Severe Acute Respiratory Syndrome (SARS) Vaccine.  Results of SARS vaccine Phase I clinical trial determined the safety of the vaccine for humans.  *** 

•  Avian Influenza (Bird Flu, Pandemic Influenza) Vaccine.  Sinovac is co-developing a human vaccine targeting the avian flu virus in partnership with the China Center for Disease Control (CDC).  The CDC controls the Chinese vaccine market through its two main functions: commercial sales agency and governmental department in the pharmaceutical sector for China.  The Company began working on an avian flu virus with its New Human Influenza (H5N1) Vaccine and Development Project in 2004.  Sinovac is currently advancing its recombinant vaccine through the later stages of pre-clinical studies.

Production Capabilities

The Company has two separate production facilities.  The combined Healive(TM) ™ and Bilive(TM) facility ***  has a production capacity of 5 million vaccine doses per year (any combination of Healive(TM) ™ and Bilive(TM)).   The Company's new flu production facility has a production capacity of 2 million flu vaccine doses per year. This production line can also be used to produce a pandemic influenza (avian flu) vaccine for humans against the H5N1 virus.

Regulatory Changes to the Vaccine Distribution System in China

In March 2005, China's State Food and Drug Administration (SFDA) announced a new regulation for vaccine distribution in China. The new regulation simplifies the distribution channel and enables vaccine manufacturers to directly sell their vaccine to any CDCs or hospitals. Previously vaccine manufacturers could only sell vaccines through CDC system. Since Sinovac's products are targeted at the private market, our executives believe this regulation will benefit the Company.

Operating Results

The Company generated revenue of $2,699,000 in sales of Healive(TM) for the six months ended June 30, 2005.  Gross profit margin ... 73.0%.  The Company's net loss was $3,466,000 for the six months ended June 30, 2005. 

Liquidity and Capital Resources

Sinovac's capital requirements have generally been funded by cash flow from sales revenue and issuances of common stock.  Unrestricted cash and cash equivalents totaled $1,342,000 at June 30, 2005, which is sufficient to fund the Company's business over the next 12 months, although the Company is seeking to raise additional capital to finance expansion.  Sinovac plans to raise capital from the sale of equity securities.

Forecast for the Second Half of 2005

Seasonal vaccine sales patterns in China affect the timing of Sinovac's sales.  The major users of vaccines come from middle school and college students, who need booster vaccination. Students break for summer holidays in July and August, hence large-scale vaccination programs do not take place during this period and sales are relatively low in July and August.  In September, new students are required to receive vaccinations during registration.  This vaccination requirement thus drives up sales in September. In anticipation of the January – February Chinese spring festival, the Center for Disease Control usually purchases a large order of vaccines in preparation in December. Historically, December is Sinovac's largest sales month, with December sales accounting for approximately 25% of the annual total.  Judging from the sales trend of the Company's first six months of 2005 operations, each quarter's sales has been higher than the same quarter in 2004.  The Company expects that the seasonality effect described above will result in the second half of this years sales to exceed last year's, in comparative quarters, with about $10 million in total revenues for 2005.

wow 
sold too early

Sinovac Reports 18% Sales Growth and 73% Margins for First Six Months of 2005
Thursday January 12, 8:00 am ET


BEIJING, Jan. 12 /Xinhua-PRNewswire/ -- Sinovac Biotech Ltd. (Sinovac) (Amex: SVA - News) announced its semiannual report revealed 18% Sales Growth and 73% Margins for First Six Months of 2005.
Company sales were entirely comprised of Healive(TM), generating $2,699,000 in sales, corresponding to revenue growth of 18%. The growth was attributable to an increase of the number of salespersons and marketing activities. However, new regulations for vaccine distribution in China caused sales growth to be slower than the corresponding period in 2004. Management believes sales growth is accelerating as the market adapts to the new regulations.

Gross profit margin increased to 73.0% from 66.7% in the six months ended June 30, 2004. The increase in gross profit margin was due to economies of scale, which enables increased Healive(TM) production while decreasing the average cost per unit.

Sinovac CEO, Mr. Weidong Yin said, "Our performance in the first half of 2005 proves our ability to grow in spite of major changes in how we market and distribute our products. I am confident we have the right business strategy and balance between product pipeline, marketing and sales; we are now positioned for accelerated growth in 2006."

Selling, General and Administrative Expenses ("SG&A expenses") increased 18% to $2,201,000 due to increased marketing expenses for exploration of new markets and sales persons' bonuses for 2004. Marketing expenses included in the SG&A increased 104% to $1,071,000. Sinovac expects additional increases in SG&A to support continuing market penetration and brand awareness.

Research and Development Expenses reflect amounts spent on the split flu, pandemic influenza vaccine (avian flu vaccine for humans), and Japanese encephalitis vaccines. Total research and development expenses aggregated $216,000. The expenses associated with SARS vaccine development were funded by a government grant.

Stock-Based Compensation

The Company took aggressive steps to reduce the number of stocks options granted; canceling, with the consent of the option holders, 1,977,000 stock options that had been granted in April 2004. Under U.S. generally accepted accounting principles, the expense associated with the granting of stock options is normally recognized over the vesting period. On cancellation of stock options, the full remaining amount of the expense is recognized immediately. As a result, cancellation of the April 2004 stock options resulted in an abnormally large stock-based compensation charge in the current period. The Company incurred stock-based compensation of $2,897,000. About $1.4 million was attributable to the cancellation of the April 2004 stock options.

The Company's net loss was $3,466,000. While sales and gross profit margin increased, the resulting increase in gross profit was more than offset by increased SG&A expenses and stock-based compensation. However, stock based compensation does not affect the Company's cash flow. On a pro forma basis, the net loss was $568,000 before stock based compensation charge and $2,069,000 before the stock based compensation relating to the cancellation of stock options.

Sinovac's capital requirements have been funded by cash flow from sales revenue and issuances of common stock. The Company's working capital was $1,589,000 at June 30, 2005. Unrestricted cash and cash equivalents is sufficient to fund the Company's business over the next 12 months. Additionally, the Company is seeking to raise additional capital to finance expansion.

Changes in Internal Control over Financial Reporting

During the reporting period, management identified shortcomings in Sinovac's disclosure controls relating to the accounting treatment of purchased intellectual property. Since then, the Company has revised controls relating to the cost of whether such assets should be capitalized or charged to operations as in-process research and development. In conjunction with this change, Sinovac revised its controls relating to when amortization should commence on the purchase of vaccine rights, and revised controls relating to the presentation of reverse merger transactions.

Apart from these, there were no changes in internal control for financial reporting during the fiscal period ended June 30, 2005 that have materially affected, or are reasonably likely to materially affect, our internal control for financial reporting. Sinovac's executive management now concludes that Company disclosure controls and procedures are effective, and will endeavor to disclose all future financial filings in a timely manner.

http://biz.yahoo.com/prnews/060112/lnth002.html?.v=22

SVA: Reports 18% Sales Growth & 73% Margins For 1H
Thursday , January 12, 2006 08:06 ET

Sinovac Biotech Ltd. (Amex: SVA) revealed 18% sales growth and 73% margins for first six months of 2005. Company sales were entirely comprised of Healive, generating $2.7 million in sales, corresponding to revenue growth of 18%.

For SVA, my first target would be 5.88$, I can't roll out a first retracement to the strong support level made of the 50ema and the 4.82$ support line before rebonding to the 5.88$ target.
I can't wait seeing SVA escaping from its descending channel and 6.5$ would be its next and      last descending resistance line before heading freely Nord!

I am holding sva currently and was wondering if anyone had feedback.

I am anticipating 7.00 in the near future.

have you checked via search functionality the different analysis?
cheers
O.

Hey ihi

Here is the chart 4 u, I hope the best 4 u
Best of luck

Bye
YUNUS

Here is something more abt SVA

http://www.stockconsultant.com/consultnow/basicplus.cgi?symbol=SVA#ttop

YUNUS