C C
13 years ago
Glickenhaus Says Shorts 'Blatantly Lied' in China Agritech Report, According to Bloomberg
Posted April 27, 2011 4:54PM PST
Glickenhaus & Co., a New York asset management firm that invested $4 million in embattled China Agritech, has said it may take action against short sellers it alleges drove stock prices down by communicating false information about the Chinese fertilizer producer, according to Bloomberg.
Trading in China Agritech was halted by Nasdaq on March 14 when shares were $6.88. Glickenhaus is not the only institutional investor holding a position in China Agritech. The Carlye Group holds 22% of the company, according to the article.
Equity research firm Lucas McGee Research alleged in a February report that China Agritech was a fraud. Glickenhaus took exception to the report and actually sent a member of the firm on a three-day tour of company facilities. After returning to the states, Jesse Glickenhaus filed a report regarding his visit, disputing the claims made in the Lucas McGee report.
Source: News Article, Glickenhaus Report
c c
lemm
14 years ago
Press Release Source: China Agritech, Inc. On Tuesday February 22, 2011, 8:00 am EST
BEIJING, Feb. 22, 2011 /PRNewswire-Asia-FirstCall/ -- China Agritech, Inc. (Nasdaq:CAGC - News) ("China Agritech", or the "Company"), a leading organic compound fertilizer manufacturer and distributor in China, announced that it has expanded its sales partnership with China National Agrochemical Corporation ("CNAC") for the Company's Green Vitality organic granular compound fertilizer products.
Pursuant to the agreement, China Agritech will supply Green Vitality organic granular compound fertilizers worth an estimated value of RMB 44 million (approximately US$6.8 million) through December 2011.
By the end of 2010, the Company had become an official supplier of organic liquid compound fertilizers to the China National Agrochemical Corporation ("CNAC"), China's largest developer, manufacturer and seller of pesticides and one of the major players in the domestic fertilizer market. China Agritech's sales contract with CNAC in 2010 was valued at approximately US$2.0 million, focused upon the Company's Green Vitality organic liquid compound fertilizers.
Mr. Yu Chang, Chairman and Chief Executive Officer of China Agritech, commented, "We are excited about the expansion of our relationship with CNAC, which is one of the largest players in the Chinese agricultural market with over 1,000 points of sale nationwide. This new contract further acknowledges the superior quality of our organic granular fertilizers, and the potential yield enhancement and economic benefits our products can provide to the large number of farming communities in China. Going forward, we are confident that our high-quality organic compound fertilizers will reach a wider audience of farmers in China through our comprehensive distribution channels that capitalize on our regional distribution center network, as well as our strategic relationships with major domestic agricultural enterprises such as CNAC and SinoChem."
bob smith
14 years ago
i remember when i was on the google boards back in oct-nov 2008,
i was like HELLO, HELLO......anyone out their...........lol
i never heard of investor hub back than, and only came here to discuss MCLN after the fact.
i was getting frustrated because the numbers looked too good, and couldn't even get a reply back from anyone, even the company....it was like .50 to .60 cents back than.
i finally called the company in china, and asked a buddy of mine who was living in hong kong at that time, and confirmed a few things.
solid investment........1 1/2 years in the making.
it was amazing run, steady, but nicely handled by the company.
the future is bright.
as you know, feb, and march are the worst times for potash companies, this will fly and challenge POT if the company plays its cards right.
gl
murphdog
14 years ago
Chardan Capital Initiates with "Sell" and $16 price target
Volume Growth Coming At Expense Of Margin Erosion. During FY:09, China Agritech expanded its sales of humic acid fertilizers to over 80k metric tons, up from 13k tons in 2008. On the other hand, we suspect that China Agritech's gross margins declined to the mid-20s in Q4:09 from 35.5% in Q3 and 53.3% in Q3:FY07. Concurrently, the company has re-focused its humic-acid (HA) fertilizer business from the high-margin liquid segment to the low- margin granular segment. Granular product accounted for 44.3% of total revenues in Q3:09 vs. 25% in Q3:08.
HA Fertilizer Industry Growing, But Discipline Required. We believe the trend towards farmland consolidation coupled with growing adoption of advanced agricultural methods in China will result in growers increasingly utilizing liquid HA solutions, as part of their overall soil/plant nutrition regimen. However, with these trends still in the early stages, we believe companies that aspire to be volume leaders will increasingly be forced to direct production capacity to lower-end margin formats, such as granular solutions.
Elevated DSOs Limit Revenue Visibility. As of Q3:09, we estimate that China Agritech had an average daily sales outstanding (DSOs) of 157 days. However, we note that DSOs have exceeded 200 days in Q4 during prior years. While we see an opportunity for the company to improve its DSO performance, our sense is that cash flow improvements may be partially offset by supplier pressure on China Agritech to reduce its payment cycle. More importantly, we remain cautious on potential future receivable write-offs in light of China Agritech's current and past DSO levels.
See ~50% Downside Risk In Shares, Excl. Potential Dilution. With shares of China Agritech trading at 38.5x our FY:10 EPS estimate of $0.79, and a premium of 181% to its peer group, we see significant downside risk to shares during the next 12 months. We believe valuation now exceeds the company's current growth profile. In addition, we believe the company may raise additional cash for working capital/expansion purposes through a follow-on offering.
We are initiating on China Agritech with a Sell rating and a 12-month price target of $16/share.
scottmba
15 years ago
It's over for now. I'm out. After the split, subsequent pop, and monstrous shelf, along with the insider warrants at $5, this is now overvalued. I hope it comes back into a proper range, because I love the company. When Carlyle got that deal, I called IR, because I was shocked at how good it was. Well, now that is major overhang. If you add up 6 million shares at the current price for the shelf, 4 million for cheap Carlyle warrants, and the 17 post split, you have 27 million shares!! Take next years NI prediction of 22 million, ( a 50% bump due to a 50% revenue projection bump by the company) and you get a P/E of:
22/27= .81
17/.81= 21
The stock currently has a PE of 21. That is high for an emerging market small cap stock.
scottmba
15 years ago
I agree with you, but the post split open will not be $25. Why would it? If it splits today, maybe $15. But, I agree that the big move is imminent. Let's put it this way, 10x their guidance is 26.50, so you could have a move to $40, which is where it was anyway. Not a bad way to make 50% in a month.