What happened to CHINA AGRITECH INC
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Posted: Sunday Aug 19 11:34:30AM 2007
Listened to replay of Earnings Conference Call
US Callers 1888-286-8010
International callers 617-801-6888
enter code 22097404
A/R terms are 1 year! All a/r are within 1 year.
Company has granular organic fertilizer coming online as new product offering. Different plants are being expanded and should be ready to ship product in Q1 2008. 80,000 tonne capacity companywide. Product is expected to sell in the 3,000Renmimbi per tonne range(US$394/tonne) or US31.6 million gross rev possible. Gross margins are anticipated at 29-30% or US$9.2 million.
Company lowered bad debt reserves because of collecting 80K in bad debt over last qtr.
Large investor called and complained because they just participated in private placement and had an employee in China. Called Bejing Main Office and asked to visit plant several times during the past week. Was denied request to visit plant. CEO was out of town and unable to accompany visitor. Caller was not happy but employee will not be able to visit plant this trip. IR said at end of call they have conducted tours in the past and would attempt to coordinate any future tours.
Posted: Sunday Aug 19 9:28:41AM 2007
Has management commented on the A/R turn? thx
Posted: Saturday Aug 18 6:31:24PM 2007
I agree with your comments. Sales were flat Q over Q, but the gross margin was way up. This bodes well for the future as the additional production comes on stream and weather-related problems no longer obscure the underlying fundamentals.
The really good news, if you picked it up, was what the company said during the conference call about the new granular product, to be available in Q1 of 2008. On a preliminary basis, the company estimates that the 80,000 metric tons of granular will sell for something in the order of US$395 per tonne at a gross margin of 29-30%. If this comes to pass, it would result in a dollar gross margin of US$9.2-9.5M.
That is huge and, if my numbers are correct, the potential fully diluted eps from all planned production is somewhere in the neighbourhood of US$.80. And the company trades at US$2.50ish. Amazing!
Posted: Wednesday Aug 15 6:31:44AM 2007
I have been watching quote...