Asia Bio-Chem ABC.v /ABCXF.pk C$1.18
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Posted: Friday Aug 13 11:21:16AM 2010
ABC.v -.03 to C$1.25
Earned .06 eps for Q2 on 56million in sales. New plant continues to increase in gross sales and utilization. .28 eps forecast for 2010. Everything appears to be going as planned.
Posted: Wednesday Aug 11 6:51:25AM 2010
big jump today in ABC.v +.16 to 1.32
earnings are on 8/13 at 2PM EST. Earnings forecast to be up sharply in Q2 as the new plant capacity should have been online all qtr. Forecasted eps for 2010 is .28eps.
Posted: Monday May 31 8:12:47AM 2010
Bought a few more ABC.v at 1.26 today.
Reviewed packet that I got from ABC.v at Small Cap Conference. Included analyst reports from Mackie Research and Jennings Capital.
Here are some quick facts from each:
Jennings Capital Recommendation BUY
12 month target price 2.50
Expects .28eps 2010 .31eps 2011
Estimated 2010 qtrly eps
Q1 .02 Q2 .08 Q3 .09 Q4 .10
Mackie Research Recommendation BUY
12 month target price 2.30
Expects .28 2010 .35eps 2011
Estimated 2010 qtrly eps
Q1 .04 Q2 .07 Q3 .08 Q4 .08
Expecting big pop in Q2 eps due to full qtr of production from new plant. Should attract more attention for ABC.v.
Posted: Wednesday May 26 9:41:18AM 2010
I bought some ABC.v at an average of C$1.12 this week. Of all the presentations at the recent Small Cap Conference, I liked Asia Bio-Chem the best.
Here are the pluses:
Selling a widely used product in China that goes into food production chain
Big expansion in capacity from 300 to 900 tons just completed
Already profitable so full use of new plant should boost profits
Good assistance from local governments
Good technical expertise in mgmt
Corn is a huge China food product. ABC located in low cost production area and cheap shipping to big user provinces
Led by experienced financial mgmt and has just lined up loans and line of credit to assure opportunity to take full advantage of new plant
China stocks have been down lately and ABC is no exception, falling from a peak of C$1.70 in February 2010 to a low of 1.01 last week.
Not a sexy industry
Margins were squeezed in 2008 although has improved in 2009.
Commodity product with little differentiation.
Low trading volume on stock
Here is link to Small Cap presentation:
Q1 sales of 39million vs 2009 full year total of 88million are an indication of good things to come for ABC. Q2 will be first full qtr of production from new plant. Annual sales should triple to C$280-300 million range in 2011. 2010 will be transition year as plant improves efficiency and company finds new customers. ABC has a competitive/price advantage due to low cost of corn input.