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Sunday, December 20, 2009

CCME Should Be The Next Chinese Momentum Stock

This year we have seen many Chinese momentum stocks make runs of $10-$20+ per share: TRIT, RINO, FUQI, CAGC and the list goes on. All of these stocks were in hot sectors with growing sales and EPS. TRIT and RINO were first called here at www.super-trades.com

Lately, Chinese out of home advertising stocks have been on fire. Focus Media holdings (FMCN), and VisionChina Media (VISN) are both at or near 52 week highs with strong trading volume. FMCN, closed at $16.81 on Friday, December 18, which represents a 20 P/E against the average 2010 EPS estimate of $0.83. VISN, closed at $12.05 on Friday, December 18, which represents a 22 P/E against the average 2010 EPS estimate of $0.54.

I think Wall Street is about to discover a third major player in the same sector and find it incredibly undervalued compared to FMCN and VISN. Enter China MediaExpress Holdings (CCME), which operates the largest television advertising network on inter-city express buses in China. CCME's clientele includes local brand names as well as those well-known international and national brands such as Coca Cola, Pepsi, Siemens, Hitachi, China Telecom, China Mobile, China Post, Toyota, Bank of China and China Pacific Life Insurance.

CCME, formerly TMI, was acquired in a SPAC transaction this October. They have $41m of cash with no debt. Revenues grew 65% last quarter and net income grew 43%.
Net Income through September 30, 2009 was $27.4m and the Company appears to be on track to take on management's full year target of $42m. CCME has approximately 24m shares outstanding and approximately 10m warrants with a strike price of $5.50. Estimated fully diluted shares outstanding using the treasury method will be approximately 29m at the end of 2009. EPS for 2009 should be $1.35-$1.45 if they hit the target. (The CEO said, “Historically, our fourth quarter is seasonally our best quarter. It appears that the 2009 fourth quarter will be no exception.”). For 2010, managment is targeting $83.5m in net income and fully diluted shares outstanding should be approximately 35m, for a targeted 2010 net income of $2.39 per share.

To apply the forward 2010 P/E of 20 that competitors FMCN and VISN currently have to $2.39 EPS would give CCME a price per share of $47.80. What makes CCME even more interesting is it currently has a trading float of only approximately 750k shares with 168k of those shares sold short.

If Wall Street likes FMCN and VISN enough to give them a 20 P/E, they should salivate over CCME once they discover the fundamentals of this Company.

Disclosure - I am long CCME since it was TMI under $8. This blog is my personal opinion and not investment advice. Never chase stocks and always do your own due diligence and be responsible for your trades.

Recent SEC Filing with Net Income Targets and Share Counts

Third Quarter Press Release

CCME Float Information

Saturday, December 5, 2009

super-trades.com update TMI EDS IDI HWG

RINO was my most successful pick so far this year, with a 364% gain, from $7.65 to it's peak of $35.50. However, it is interesting to point out that it took 121 days or approximately 4 months to get to that peak. Many of my stocks require patience. The way I make money in the stock market is to find undervalued stocks that have growth which will drive them higher. This is my style and it works for me but there are many other (better and faster) styles out there. I just do what works for me. I focus on quality not quantity as I have no need to daytrade. I will take some of my shares off the table when I am up 30-50% on a stock and manage the rest accordingly.
Everyone should do their own research and not follow any individual as the stock market has risks as well as rewards.

at www.super-trades.com in 2009 :

17 stocks have been blogged (average 1.4 per month)
Average gains so far 108%
Average time for each stock to get to the high is 37 days
Range of gains 45%-364%
Range of days to get to the high is 2 to 166
*** 16 of the 17 stocks are still above the original spot I entered them ( while I am not a long term holder of these stocks, it does speak to the quality of the ideas and the entry point) ***

My 4 latest stocks that I am in and I do not believe they are finished moving are:

TMI - Blogged at $7.50, currently at $10.54 and has hit $13.65 so far 82% gain at high
EDS - Blogged at $7.90 , currently at $9.04 and has hit $13.69 so far 73% gain at high
TMI - Blogged at $7.85, currently at $8.03 and has hit $9.02 so far 17% gain at high
HWG - Blogged at $40, currently at $41 and has hit $49.95 so far 25% gain at high

TMI - Has a very small float and has been shorted from the high in the $13's. They are about to go on a road show to institutions to get much needed exposure. Competitors VISN and FMCN were just upgraded with targets that give them P/E's in the 20+ range. TMI should do approximately $1.40 EPS in 2009 and over $2 in 2010. I believe this stock is on the verge of a powerful second leg higher. Eventual target $15-$25. I am in from the $8's.

EDS - This Company is virtually unknown by Wall Street thus far. They are a popular spotsgear Company in China (Think Nike, Reebok, UnderArmour ground floor). They should do approximately $1.40 EPS in 2009 and competitors have P/E from 17+. This Company just needs exposure. They are not required to report 2009 results until March 2010, however I have to believe they try to get exposure before then. This stock, when discovered should make a powerful second move higher. Eventual target $15-$25. I am in from the $8'S.

IDI - Same problem as EDS. just needs exposure. Another out of home advertising Company in China that should do approximately $1-$1.20 EPS in 2009. Competitors have P/E of 20+. Not required to report until March 2010 also. Just needs exposure to make a powerful first move. Eventual target $11-$15. I am in from the $7's.

HWG - 500k float, 1.5m shares outstanding and on a pace to do $10 EPS in 2009. Was a $140 stock before they had problems in their energy sub that have now been written down to zero. Should be slow going but steady move to much higher levels $60+. Very thin and volatile and meant for small positions that can handle 5 point swings on 5k shares. Eventual target $60-$100. I am in from $40.

General market conditions must be monitored as well as the macro environment in China for the Chinese companies.

Monday, November 16, 2009

HWG - 500k Float and $10 EPS Run Rate

DIT was a stock I blogged and bought on April 22, 2009 at $32 Read Blog Post. At the time I said the Company would do $10-$12 EPS this year. They reported $10.87 of EPS from continuing operations. DIT hit $71.75, 143 days after my blog post, for a 124% gain so far from the blog post.

I believe I have found a stock with similar characteristics as DIT. I think this stock over 1-12 months could make a similar move as DIT based on similar EPS.

Warning - Stocks that have such a low float and number of shares outstanding can trade thin and be very volatile. They can drop several dollars on low volume. I never take large positions in such stocks and I always understand that they can be illiquid and have risks.

HWG - Hallwood Group Inc. See Bloomberg
Shares Outstanding - 1.5m
Float 500k
EPS for Q3 - $2.67 per share Read Press Release
EPS for 9 Months of 2009 $6.94 per share

Industry Textile - Hallwood Group Inc., together with its subsidiaries, engages in the textile and energy businesses in the United States. It develops and markets fabrics, including breathable, waterproof laminate, and other fabrics for use in military clothing and equipment, sailcloth, medical equipment, industrial applications, and consumer apparel. The company’s products include woven synthetic products, and woven and coated nylon products. It also operates as a converter, finisher, and laminator in the textile industry.

Strong Textile Sales to Military: See Website
We serve the specialized fabric needs of the contractors who supply all branches of the armed services, including the Department of Defense, Department of Justice, United States Postal Service, United States Forestry Service, and others.

The Military Group offers diverse products ranging from fabrics that meet our soldiers’ basic needs to the highly technical performance fabrics for combat and special forces requirements.

Military sales of $32,415,000 and $92,845,000 for the 2009 third quarter and nine month periods, respectively, were 52.9% and 14.4% higher than the comparable periods in 2008 of $21,194,000 and $81,148,000.

Among branded products that Brookwood manufactures are the following:

•ASSAULT
•BARRIER ASSAULT TEXTILE TECHNOLOGY
•BATT
•GLACIER X-TREME
•STORM-TECH
•X 202 U.S.A.

Litigation : The Company is involved in some litigation that they believe they will win but should be noted. Per Note 11 on pages 21-22 of Form 10-q Read Note 11

super-trades.com analysis:

Small position at $40 with a 1-12 month target range of $60-$100

Friday, November 6, 2009

14 Stocks Blogged in 2009 - Average Gain 111% Average Time to Peak 47 Days

14 super-trades.com Stock Ideas Blogged in 2009
Average Gain 111%
Average Trading Days From Mention to Peak 47 Days
Range of Gains 45% to 257%
Range of Trading Days From Mention to Peak 2 days to 143 days
13 of 14 still above original entry price (although I am not long term trader)

3 New stocks in progress TMI, EDS, IDI Read Blog Post


TRIT 139% Gain Called at $8.50 on Sep 9th Hit $20.33, 26 days later on Oct 14th. Read Blog Post

RINO 257% Gain Called at $7.65 on June 16th. Hit $27.30, 87 days later on Oct 14th. Read Blog Post

AIM 77% Gain Called at $4.20 on June 15th Hit $7.44, 2 days later on June 16th. Read Blog Post

SKBO.OB (now SKBI) 104% Gain Called at $11.00 on June 5th Hit $22.49, 18 days later on June 29th. Read Blog Post

EVK 62% Gain Called at $1.85 on June 2nd Hit $3, 4 days later on June 5th. Read Blog Post

UTA 124% Gain Called at $7.60 on May 29th Hit $17.20, 49 days later on August 5th. Read Blog Post

SMCG 67% Gain Called at $1.35 on May 21st Hit $2.27, 11 days later on June 4th. Read Blog Post

MRM 109% Gain Called at $6.40 on May 19th Hit $13.38, 16 days later on June 9th. Read Blog Post

FIT 153% Gain Called at $3.50 on May 7th. Hit $8.87, 56 days later on July 23rd. Read Blog Post

JVA 58% Gain Called at $3.15 on May 6th Hit $5.21, 101 days later on Sep 23rd. Read Blog Post

DIT 124% Gain Called at $32 on April 22nd. Hit $71.75, 143 days later on Nov 6th. Read Blog Post

VIFL 122% Gain Called at $1.35 on March 26th Hit $3, 15 days later on April 13th. Read Blog Post

NIV 45% Gain Called at $3.80 on March 17th Hit $5.50, 2 days later on March 18th. Read Blog Post

LZR 140% Gain Called at $5.40 on December 23,2008. Hit $11.14, 125 days later on June 15th. Read Blog Post

650k Float TMI retires 19% of warrants = bullish

less warrants - less dilution = higher EPS


China MediaExpress Holdings, Inc. Repurchases and Retires 1.9 Million Warrants in Private Transaction


Press Release
Source: China MediaExpress Holdings, Inc.
On 8:45 am EST, Friday November 6, 2009
Buzz up! 0 Print.FUJIAN, China--(BUSINESS WIRE)--China MediaExpress Holdings, Inc. (NYSE Amex: TMI; TMI/U; TMI/WS) (“CME” or the “Company”) today announced that it has repurchased and retired a total of 1.9 million of its publicly-traded warrants in a private transaction, for an aggregate purchase price of $950,000 ($0.50 per warrant). The repurchase of these warrants, which represent approximately 19% of all of CME’s publicly-traded warrants, was made pursuant to a warrant repurchase agreement dated October 12, 2009, which was amended on November 1, 2009. All of the terms of the remaining publicly-traded warrants remain the same.

Zheng Cheng, CME’s Founder and CEO, noted, “We believe it to be in the long-term interest of our shareholders to repurchase and retire these warrants thereby eliminating the dilution that would have occurred in the event these warrants were exercised.”

Saturday, October 31, 2009

TMI FLOAT IS ONLY 752k !!!

TMI, a stock I recommended at $8 (upon approval of its business combination)See Blog Post, only has a float of 752k by my research below !!!

TMI is forecasting to earn $42m this year which would equate to approximately $1.45 EPS fully diluted after the transaction.

(23.9 outstanding + Treasury method on the warrants 12.3m warrants X $5.50 conversion = 67.6m dollars divided by current market price $9.15 = 7.4m shares that could be bought back. 12.3m warrants - 7.4m treasury method buyback = 4.9m dillution on warrants. 42m net income divided by 23.9m + 4.9m fully diluted = $1.45 EPS)

Competitors FMCN and VISN have P/E Ratios of 17-20 for this hot chinese sector.

FMCN $12 stock .69 EPS estimate per yahoo finance = 17 P/E
VISN $8 stock and .39 EPS estimate per yahoo finance = 20 P/E

If TMI were to have a 15 P/E on $145 EPS that would be $21.75 share price.


But the best part is that TMI only has a tradeable float of 752k !!


1) 23,917,413 Common shares outstanding after the transaction:

Read Link


Page 187 CME owners received the following in new TMI shares:

Zheng Cheng 13,266,684

Thousand Space Holdings Limited 6,095,085

Bright Elite Management Limited 2,303,231

That equals 21,665,000 of the 23,917,413 (leaving 2,252,413)

The 21,665,000 are locked up (cannot be sold) for 6-12 months

Page 92:

Lock-Up Agreements

At the closing of the Transaction, the Sellers will enter into lock-up agreements with TM, providing, among other things, that they not sell or otherwise transfer any of the shares of TM Common Stock received in the Transaction, subject to certain exceptions, for a period of:


• twelve months from the closing date of the Transaction or, with respect to the earn-out shares, from the date of issuance of such shares, for those shares beneficially owned by Mr. Cheng; and

• six months from the closing date of the Transaction or, with respect to the earn-out shares, from the date of issuance of such shares, for those shares beneficially owned by Thousand Space Holdings Limited and Bright Elite Management Limited.

Read Link

2) Of the 2,252,413 shares remaining, 1,500,00 are owned by the original TMI IPO investors (also on Page 187 of the Proxy). (Leaving 752,413 float).

The 1,500,000 are locked up for one year (cannot be sold) following the business combination, unless the stock trades over $11.50 for 20 consecutive days.

Page 49 of the TMI S-1

All of the initial shares outstanding prior to the date of this prospectus will be placed in escrow with Continental Stock Transfer & Trust Company, as escrow agent, until one year after the consummation of our initial business combination. The
initial shares may be released from escrow earlier than this date if, within the first year after we consummate a business combination:


• the last sales price of our common stock equals or exceeds $11.50 per share for any 20 trading days within any 30-trading day period; or

• we consummate a subsequent liquidation, merger, stock exchange or other similar transaction which results in all of our stockholders having the right to exchange their shares of common stock for cash, securities or other property.

Read Link

THAT LEAVES A TRADING FLOAT TO THE PUBLIC OF 752,413 SHARES !!!

Tuesday, October 20, 2009

TTY Acquisition Approved - Symbol Changed to EDS

2020 ChinaCap Acquirco, Inc. Stockholders Approve Acquisition of Windrace International Company Limited

* Press Release
* Source: 2020 ChinaCap Aquirco
* On 11:25 am EDT, Monday October 19, 2009


MARLBOROUGH, MA--(Marketwire - 10/19/09) - 2020 ChinaCap Acquirco, Inc. ("2020") or (the "Company") (NASDAQ:EDS - News), (NASDAQ:EDSWW - News) and (NASDAQ:EDSUU - News) announced that its stockholders have approved all proposals related to the acquisition by 2020 of Windrace International Company Limited ("WHL"). WHL is one of the largest branded sportswear companies in China that is engaged in the design, manufacturing, trading and distribution of sporting goods, including footwear, apparel and accessories, in the People's Republic of China ("PRC"). The vote to approve the acquisition took place today at the Company's special meeting of stockholders. The transaction is expected to close on October 21, 2009. Prior to the completion of the transaction, the Company will be merged into its wholly-owned subsidiary incorporated in the British Virgin Islands, Exceed Company Limited ("Exceed"), with Exceed as the surviving entity. This will result in the redomestication of the Company to the British Virgin Islands. 2020 changed its ticker symbols from TTY, TTYWW and TTYUU for its common stock, warrants and units respectively to EDS, EDSWW and EDSUU, respectively on October 19, 2009. Upon completion of the transaction, the common stock, warrants and units of Exceed will continue to trade on the NASDAQ Stock Market under the new ticker symbols.

"We are very pleased that our stockholders approved the acquisition of WHL," stated George Lu, Chairman and Chief Executive Officer of 2020. "This transaction provides the business of WHL with a public listing on NASDAQ and the capital to execute its growth strategy of scaling up its distribution network through continued supply chain management enhancements and expansion as well as continued product innovation. WHL has a strong track record of growth, having emerged as one of the leading sporting goods companies in China over the last six years, and we look forward to working with the WHL management team to take the business to the next level and build shareholder value over the long-term."

ABOUT 2020 CHINACAP ACQUIRCO, INC.

2020 is a public acquisition company organized as a corporation under the laws of the State of Delaware on August 21, 2006. It was formed to effect a business combination with an unidentified operating business having its operations in China. In November 2007, it consummated its IPO from which it derived gross proceeds of $69 million, including proceeds from the exercise of the underwriters' over-allotment option. $68 million of the net proceeds of the IPO and a private placement completed prior to the IPO were deposited in a trust account and such funds and a portion of the interest earned thereon will be released only upon the consummation of the business combination or to holders of 2020's common stock in connection with its liquidation and dissolution. Other than its IPO and the pursuit of a business combination, 2020 has not engaged in any business to date.

Thursday, October 15, 2009

TMI Deal Approved and Final Oct 16

TM Entertainment and Media, Inc. Announces Shareholder Approval of Business Combination with Hong Kong Mandefu Holding Limited (d/b/a China MediaExpress "CME")



NEW YORK--(BUSINESS WIRE)--TM Entertainment and Media, Inc. (NYSE Amex: TMI; TMI/U; TMI/WS) (“TM”) announced that the proposed business combination with the shareholders of privately-held Hong Kong Mandefu Holding Limited (d/b/a China MediaExpress) (“CME” or the “Company”) was approved at the special meeting of its stockholders held this morning. Additionally, TM stockholders approved all other related proposals that were voted upon at the special meeting. The transaction is expected to be consummated by October 16, 2009, subject to satisfaction of all closing conditions of which there can be no assurance.


About TM Entertainment and Media, Inc.

TM Entertainment and Media, Inc. is a Delaware blank check company incorporated on May 1, 2007 in order to serve as a vehicle for the acquisition of an operating business in the entertainment, media, digital and communications industries and to seek out opportunities both domestically and internationally to take advantage of its management team’s experience in these markets. The entertainment, media, digital and communications industries encompass those companies which create, produce, deliver, own, distribute or market entertainment and information content, products and services.

About CME

CME is China’s largest television advertising operator on inter-city express buses. The Company generates revenue by selling advertisements on its network of television displays installed on over 18,000 express buses originating in twelve of China’s most prosperous regions, including the four municipalities of Beijing, Shanghai, Tianjin and Chongqing and eight economically prosperous provinces, namely Guangdong, Jiangsu, Fujian, Sichuan, Hebei, Anhui, Hubei and Shandong which generate nearly half of China’s GDP.

Tuesday, October 13, 2009

3 New China Stocks May Be Coming To Market

A special purpose acquisition company, or (SPAC), (sometimes called a blank check company or an empty shell company), uses an initial public offering (IPO) to raise money it will use to purchase or merge with an existing company. Definition

The acquisitions close after shareholder vote approval. It is not recommended to buy them prior to shareholder approval / acquisition close. If they do not get an approved acquisition, SPAC's can sometimes liquidate and distribute cash back to shareholders.

There are 3 SPAC's about to conduct shareholder votes to purchase Chinese Companies:


1) TMI - TM Entertainment & Media, Inc.
Current Price : $7.50
Cash per last 10-Q - $81m
Current common O/S - 12.5m
Cash Per current common O/S = $6.48

Company to Acquire : China MediaExpress - CME is China’s largest television advertising operator on inter-city express buses. The Company generates revenue by selling advertisements on its network of television displays installed on over 16,000 express buses originating in eleven of China’s most prosperous regions, including the four municipalities of Beijing, Shanghai, Tianjin and Chongqing and seven economically prosperous provinces, namely Guangdong, Jiangsu, Fujian, Sichuan, Hebei, Anhui and Hubei, which generate nearly half of China’s GDP.

Date of Shareholder Vote on Acquisition - October 15, 2009

Approximate Fully Diluted Shares upon closing : 33 million

2008 Net Income : $26m
2009 Projected Net Income : $42m
2009 Projected EPS : Approximately $1.27 ($42m/33m O/S)
Competitor's P/E : FMCN trades at $12 with .65 avg EPS estimates = 18 P/E
VISN trades at $8.72 with .39 avg EPS estimates = 22 P/E
AMCN trades at $7 with .20 avg EPS estimates = 35 P/E

If TMI can achieve $1.27 EPS in 2009, a 15 P/E would be $19.05

super-trades 1-12 month target range if deal is approved - $13-$20

Investor Presentation


2) TTY - 2020 ChinaCap Acquirco Inc (The Nike of China?)
Current Price : $7.90
Cash per last 10-Q - $68m
Current common O/S - 10.5m
Cash Per current common O/S = $6.48

Company to Acquire : WINDRACE INTERNATIONAL COMPANY LIMITED
Windrace designs, develops and engages in wholesale of footwear, apparel and accessories under its own brand, XIDELONG, in China. It is one of the leading domestic sports and leisurewear brands in China in terms of market share by sales revenue. Since operations began in 2002, Windrace has experienced significant growth in the mass market concentrated in the second and third tier cities in China and has established a market leading position as one of the top five Chinese sportswear brands. Windrace has three principal categories of products: (i) footwear, which comprises running, leisure, basketball, skateboarding and canvas footwear, (ii) apparel, which mainly comprises sports tops, pants, jackets, track suits and coats, and (iii) accessories, which mainly comprise bags, socks, hats and caps.


Date of Shareholder Vote on Acquisition - October 19, 2009

Approximate Fully Diluted Shares upon closing : 27 million

2008 Net Income : $24m
2009 Projected Net Income : $38m
2009 Projected EPS : Approximately $1.41 ($38m/27m O/S)
Competitor's P/E : NKE trades at $63 with $3.63 avg EPS estimates = 17 P/E
Per Page 7 of presentation, Chinese traded competitors avg 17 P/E

If TTY can achieve $1.41 EPS in 2009, a 15 P/E would be $21.15

super-trades 1-12 month target range if deal is approved - $13-$20

Investor Presentation


3) IDI - IDEATION ACQUISITION
Current Price : $7.85
Cash per last 10-Q - $79m
Current common O/S - 12.5m
Cash Per current common O/S = $6.32

Company to Acquire : SearchMedia
SearchMedia is a leading nationwide multi-platform media company and one of the largest operators of integrated outdoor billboard and in-elevator advertising networks in China. SearchMedia currently operates a network of over 1,500 high-impact billboards with over 500,000 square feet of surface display area and one of China's largest networks of in-elevator advertisement panels consisting of over 175,000 frames in 57 cities throughout China. SearchMedia ranked first in market share of in-elevator advertising displays in 13 out of the 26 most affluent cities in China and ranked second in an additional nine of these cities, according to Nielsen Media Research. Additionally, SearchMedia operates a network of large-format light boxes in concourses of eight major subway lines in Shanghai. SearchMedia's core outdoor billboard and in-elevator platforms are complemented by its subway advertising platform, which together enable it to provide multi-platform, "one-stop shop" services for its local, national and international advertising clients that numbered more than 780 cumulatively from its inception to July 31, 2009.

Date of Shareholder Vote on Acquisition - October 27, 2009

Approximate Fully Diluted Shares upon closing : 22 million

2008 Net Income : $16m
2009 Projected Net Income : $26m
2009 Projected EPS : Approximately $1.18 ($26m/22m O/S)
Competitor's P/E : FMCN trades at $12 with .65 avg EPS estimates = 18 P/E
VISN trades at $8.72 with .39 avg EPS estimates = 22 P/E
AMCN trades at $7 with .20 avg EPS estimates = 35 P/E

If IDI can achieve $1.18 EPS in 2009, a 15 P/E would be $17.70

super-trades 1-12 month target range if deal is approved - $12-$17

Investor Presentation

Wednesday, September 9, 2009

TRIT - Low Float IPO China Water Pure Play - Compare to DGW

I am extremely excited about today's IPO and I am long in this name from 8.50-8.75.
This has all the makings to be one of the hottest momentum plays of the year.

- Water is a scarce resource, especially in China
- DGW was a Chinese water pure play and has gone up over 100%, at times with a 20-30 P/E
- TRIT has amazing growth prospects and an extremely small float for a pure play on Chinese water management

TRIT - 1.7m float 5.2m O/S shares
"Our company works with local and regional government bodies in China to design and implement systems to monitor and manage China’s natural and municipal water resources. Since we began providing these services in 2002, we have implemented more than 200 projects in provinces, municipalities, autonomous regions and special administrative regions throughout China".

We design sewage treatment and odor control systems for municipal supplies. These systems, which coordinate technological solutions (software, management information systems, enterprise resource planning and local and wide area networking) with hardware (sensors, distributed control systems, programmable logic controllers, supervisory control and data acquisition systems and mechatronics), allow our clients to monitor and control numerous variables in the sewage treatment and odor control processes. Our goal in this regard is to be a total solution provider for our clients, allowing them to engage us to design processes and systems that work seamlessly to manage the process from the initial intake of raw sewage through the return of water to consumers for reuse.

We also assist the government in monitoring natural waterways. We provide systems that combine technological solutions (software, geological information systems, management information systems, enterprise resource planning and local, wireless and wide area networking) with hardware (sensors, supervisory control and data acquisition systems and mechatronics) to track water levels for drought and flood control, monitor groundwater quality and assist the government in planning its water resource use and management.

Read 10-Q
Read Prospectus


Last Quarter Revenues increased by 54.5%
Net income increased 93.3%
EPS Run Rate with new shares $852k for the last Qtr X 4 = $3.4m / 5.2m O/s = .65 EPS. However, with growth prospects and current growth rate I can see this having potential to quickly climb to $.75-$1.00 EPS. DGW has had a P/E of 20-30 at various times since its IPO.

Based on Growth Prospects and DGW P/E range I get a personal potential target range of $15-$30 if momentum volume occurs. (Not a prediction, just a personal assessment).


Some Growth Prospects (From 10-Q)

New Opportunities in Water Resources and Wastewater Treatment

We are currently pursuing over 100 smaller river basin flood monitoring and forecasting systems with a market potential of approximately $72.5 million, and groundwater monitoring systems for over 100 counties across the country with a market potential of another $72.5 million. There can be no guaranty that we will be successful in all or any of these endeavors. Through local distributors and partnerships, we also promote our proprietary products targeting the water monitoring and dispatching systems of the Northward Rerouting of Southern River engineering construction, which has market potential of approximately $43.5 million.

South-North Water Transfer Project is a large, inter-basin, long-distance water transfer project that is charged with dozens of major urban water supply tasks for such cities as Beijing, Tianjin and Shijiazhuang. The current automated dispatch system monitors a total of 304 buildings. As a result of our ability to assist with (i) the use of information acquisition and processing technology, (ii) the modernization of the operations maintenance and management, (iii) the establishment of a sound system and (iv) the greatest degree of rational management of water to make full use of China’s valuable water resources, we expect an increase in sales of this project.

China frequently faces flash floods and similar national disasters, so strengthening the prevention and treatment of such disasters is essential. System monitoring of rainfall by the water system, early warning and early warning response system is comprised of three parts. Data and early warning information processing service as the core, through computer networks, databases, early warning command and control platform release constitutes a set of flash floods disaster early warning system, especially for Hubei and Qinghai provinces. We expect an increase in sales of this project.

Our wastewater treatment business segment focuses on Tianjin City and Hebei Province. Specifically, the Tianjin Binhai New Area spurs the growth of the total output value with major new infrastructure projects. The total GDP output value of the Binhai New Area is expected to increase by 22%. Within the next few years, Binhai New Area plans to construct over 40 large scale pumping stations and over 30 sewage treatment plants with a total market potential of approximately $8.7 billion.

Hebei Province is another targeted market. Hebei Province plans to construct over 50 sewage and grey water reuse treatment plants in the next two years.

We also actively pursue opportunities in the industrial wastewater and process tail gas treatment market in the petrochemical industry, such as SINOPEC Yanshan Plant, Petro China Jilin Plant, SINOPEC Anqing Plant, and Dalian.

Currently almost all newly designed sewage treatment plants have odorous gases containment and control requirements. As such, we expect an increase in sales of our proprietary biofiltration odor control systems.

To take advantage of these new market opportunities, we continue to increase our workforce to meet the increased work load. In order to pursue several major new water projects, we registered a branch office in Tianjin Dongli Economic Development Zone and set up a branch office in Hebei Province to get closer to our clients.

Tuesday, September 1, 2009

SKBI - $23 Target by Rodman & Renshaw

Skystar Bio Pharmaceutical initiated with a Mkt Outperform at Rodman & Renshaw; tgt $23 (13.74 )

Rodman & Renshaw initiates SKBI with a Mkt Outperform and price target of $23 saying dietary shift towards higher protein content and better food safety throughout the burgeoning Chinese urban/middle class population, has led to rapid developments in the animal husbandry sector. The gross output of animal husbandry sector has more than doubled from RMB684bn (or approximately $100bn) in 1997 to RMB1,612bn (or approximately $236bn) in 2007, growing at a 10-year CAGR of 9.0%. This rapidly developing animal husbandry sector has created a compelling market opportunity for veterinary healthcare products; in particular, strong demand for vaccines and micro-organism products far exceeds the current supply.

Thursday, August 27, 2009

Major News from China that will drive SKBI Momentum

Huge news from China that impacts SKBI. SKBI could do $3+ EPS this year and has only 3.5m shares outstanding. Now a major momentum theme is developing in the sector SKBI is in. I believe this stock will see major momentum on swine flu and animal disease threats.

BEIJING, Aug. 25 (Xinhua) -- Chinese lawmakers warned Tuesday of a "grave hidden peril" of epidemic animal disease because of inadequate monitoring facilities and a complex international environment.

Even though the government has set up a compulsory vaccination system, requiring immunization of animals against diseases harmful to people's health and the husbandry industry, the possibility of outbreaks of disease still existed, the lawmakers said in a report presented at the 10th session of the Standing Committee of the 11th National People's Congress (NPC).

The problems of excessive veterinary drug residues and banned food additives in livestock products were not fully under control in certain areas, the report said.

The lawmakers suggested the government subsidize treatment of animal carcasses that had died from disease or unknown causes to contain animal epidemics.

They also said there should be relevant authorities to standardize use of veterinary drugs, strengthen and improve monitoring of the production and distribution of livestock products.

The lawmakers also proposed nationwide inspections for excessive veterinary drug residues and banned food additives be put in place in the near future.

As the world's largest producer of poultry, livestock and aquatic food products, China has a lot to lose from outbreaks of animal diseases. It is estimated they cost China 40 billion yuan annually.

In 2007, China's top legislature adopted an amendment to the law on prevention of epidemic animal disease, which ordered all animal owners to comply with compulsory vaccination policies, especially owners of poultry and livestock bred in rural backyards, and pets in urban houses.

Tuesday was the second day of the legislature's four-day meeting, which is usually held every two months.



Read Article

Sunday, August 23, 2009

MELA - Speculative Second Half 2009 Stock

MELA had a very interesting article in Barrons this weekend. The success of this stock will depend on FDA approval, which is due by the end of the year. It is an all or nothing trade (FDA approval stock could go up 50%, FDA denial stock would tank), but one worth researching. Here is the article.

Taking Aim at Skin Cancer By NEIL A. MARTIN

If approved by the FDA, the handheld MelaFind device made by Electro-Optical Sciences will revolutionize the way patients are screened for skin cancer. Look for earlier detection and fewer unnecessary biopsies. Video: Taking Aim at Skin Cancer


ONE OF THE MOST CRITICAL decisions a dermatologist can make is whether a mark on a patient's skin might be melanoma, the deadliest form of skin cancer. Until now, doctors have been forced to rely largely on their own vision, sometimes aided by a dermascope -- a hand-held magnifying glass with a light to illuminate the skin area -- to decide whether a spot or wart merits a biopsy. It involves a lot of guesswork -- and untold numbers of unnecessary biopsies.

"Skin cancer is approaching epidemic proportions," says Dr. Joseph V. Gulfo, chief executive of EOS. He thinks the company's new tool will boost the rate of early detections and reduce unnecessary biopsies.

A small Irvington, N.Y.-based medical device maker may have a better approach. Electro-Optical Sciences (ticker: MELA) has developed a computer-assisted device, currently under expedited review by the Food and Drug Administration, that could revolutionize the way doctors screen patients for cancer, and transform the Nasdaq-listed firm into a powerhouse in medical devices. If all goes according to plan, its shares could surge at least 50%.

The device, called MelaFind, consists of a hand-held imaging "gun" that emits 10 different wavelengths of light to capture images of suspect pigmented skin lesions. Because MelaFind can see where the clinician cannot -- up to 2.5 millimeters below the skin's surface -- it is expected to help catch melanomas much earlier, without the need for as many biopsies, which is good news for most patients fearful about body scarring from the procedure.


Right now, for every 30 or 50 biopsies they order up, most doctors find just one case of melanoma. The hope for MelaFind is that it will more frequently rule out melanoma before a biopsy is performed, thanks to a database of some 9,000 pigmented skin lesions. Dermatologists say it could reduce to about seven the number of biopsies performed for finding one case of melanoma.

"There will still always be the need for the experience and judgment of the dermatologist," says Doris Day, Assistant Professor of Dermatology at the NYU Langone Medical Center. "But this is a very welcomed and useful additional tool in helping us identify melanomas with greater accuracy."


MelaFind comes none too soon. Melanoma is the deadliest form of skin cancer, responsible for killing one person an hour and accounting for 80% of all skin cancer deaths. It is also the fastest growing, with over 150,000 new cases reported annually in the U.S., partly the result of excessive sun-worshiping. Hundreds of thousands of other patients visit doctors out of fear that a mole or wart might be melanoma, experts say.

"Skin cancer is approaching epidemic proportions," asserts Joseph V. Gulfo, EOS's chief executive. "Early detection is the key to survival. But medical tools to help doctors detect the malignancy have been lacking, at least until now. We believe we have found the answer in MelaFind."

THE ACCURACY OF MELAFIND'S analysis was borne out by a pivotal Phase 3 study last February. Conducted at seven locations across the U.S., the study included 1,831 pigmented skin lesions from 1,383 patients, making it the largest prospective study conducted in melanoma detection. MelaFind's specificity, or ability to accurately rule out the disease, was 2.5 times greater than that of dermatologists. The company's volatile common shares skyrocketed 80%, from $3.53 to $6.36, the day the results were announced. They've lately been trading at $7.68.

"The device has the potential to save lives like nothing we have seen in this field," says Day, who has no connection to Electro-Optical Sciences. "With the incidence of melanoma on the rise, the machine may be that much more important for the everyday practice of dermatology."


The company has already won some big fans on Wall Street. "Once the general public catches on about the ease, simplicity and accuracy of the instrument and the added benefit of avoiding unnecessary biopsies, EOS' business will shift to a higher gear," says Jeb Besser, portfolio manager with Manchester Management, a Boston hedge fund that has held EOS' shares since it went public in 2005.

Roth Capital Partners analyst Matt Dolan figures sales of the devices could hit $10 million the first year, then climb to $40 million.


Nasdaq-listed Electro-Optical Sciences is taking some of the guesswork out of the way doctors detect melanoma. Barron's Neil Martin reports.

Still, with FDA approval still pending, the stock is clearly speculative. The company now has no product on the market, no revenues and no earnings. It has had to rely on dilutive equity financings, including a $15 million deal a month ago. It now has about $21 million of cash, enough to last more than a year, given its current quarterly cash-burn rate of about $4-million-to-$5 million.

"When dealing with the FDA, there is never a sure thing, but this is probably as close to that as you are going to get," says analyst Dalton Chandler with Needham Securities. "In addition to expedited review, which means a decision within 180 days, the company has additional clinical data that look compelling and will be presented to a panel of dermatological experts in a special FDA panel meeting, probably sometime this fall.

The Bottom Line:

If MelaFind passes FDA muster, medical device maker ESO could see its share price go from near $8 to $12.
"Best bet is formal approval by the end of the year or early 2010," say Chandler. He rates MELA a Buy with a price target of $12.

See the Article

Tuesday, August 18, 2009

Why I think SKBI will do $3 EPS in 2009 and $3+ in 2010

SKBI reported earnings last Friday. 40% Revenue Growth and $0.73 EPS (excluding one time non-cash charge) See Press Release

- SKBI's business is strongest in Q3 and Q4, with Q1 and Q2 being the weakest quarters. In 2008, (after adding back $1.1m of non-recurring financing expenses to the first half of the year), 72% of SKBI's annual revenues and 76% of annual net income were earned in the last six months of 2008. A similar trend occurred in 2007.
See flow of earnings
2008 Quarterly #'s

- SKBI has grown revenue 40% year over year (YOY) in the first six months of 2009.

- SKBI Non-GAAP (excluded non-cash warrant charge and IPO costs) Net Income was $2.4m for the first six months of 2009. The comparable Net Income was $490k for the first six months of 2008. However, this included $1.1m of non-recurring financing charges so the true comparable for the first six months of 2008 is $1.6m. SKBI has grown net income 50% YOY so far in 2009.

- SKBI's Net income for the second half of 2008 was $5.1m (as mentioned 76% of 2008 total non-GAAP net income)

2009 EPS Analysis

- If SKBI grows Net Income for the last six months of the year 50% (like the first six months) they would end up with $10m of net income ($5.1m last 6 mo. of 2008 X 50% + $2.4m first 6 mo of 2009). GAAP weighted average shares outstanding for 2009 will be approximately 2.669m (1.869m were outstanding the first 6 months of 2009 and 3.469m will be outstanding the last 6 months of 2009). 2009 EPS under this scenario would be approximately $3.75.

- If SKBI grows Net Income for the last six months of the year only 25% they would end up with $8.8m of net income ($5.1m last 6 mo. of 2008 X 25% + $2.4m first 6 mo of 2009. GAAP weighted average shares outstanding for 2009 will be approximately 2.669m (1.869m were outstanding the first 6 months of 2009 and 3.469m will be outstanding the last 6 months of 2009). 2009 EPS under this scenario would be approximately $3.30.

- If SKBI Net Income is flat for the last six months of the year they would end up with $7.5m of net income ($5.1m last 6 mo. of 2008 + $2.4m first 6 mo of 2009). GAAP weighted average shares outstanding for 2009 will be approximately 2.669m (1.869m were outstanding the first 6 months of 2009 and 3.469m will be outstanding the last 6 months of 2009). 2009 EPS under this scenario would be approximately $2.81.


2010 EPS Analysis

SKBI will have approximately 3.469m shares outstanding for 2010. Let's consider the three scenarios I presented above.

- If SKBI grows second half 2009 Net Income by 50% (compared to 50% for first half 2009), they would end up with net income of $10m. Applying this 2009 net income to 2010 outstanding shares that would equal $2.89 EPS. To achieve $3 EPS in 2010 ($3 X 3.469m shares outstanding) they would need $10.4m of net income. They would need to grow net income by only $0.4m or 4% YOY.

- If SKBI grows second half 2009 Net Income by 25% (compared to 50% for first half 2009), they would end up with net income of $8.8m. Applying this 2009 net income to 2010 outstanding shares that would equal $2.54 EPS. To achieve $3 EPS in 2010 ($3 X 3.469m shares outstanding) they would need $10.4m of net income. They would need to grow net income by only $1.6m or 18% YOY.

- If SKBI second half 2009 Net Income is flat (compared to 50% growth for first half 2009), they would end up with net income of $7.5m. Applying this 2009 net income to 2010 outstanding shares that would equal $2.16 EPS. To achieve $3 EPS in 2010 ($3 X 3.469m shares outstanding) they would need $10.4m of net income. They would need to grow net income by only $2.9m or 39% YOY.

They will have significant capacity coming online in 2010 that could significantly add to net income:

Business Outlook

"We are in the process of completing our vaccine manufacturing facility and expanding our existing micro-organism facilities, which are expected to be completed later this year," stated Mr. Lu. "Once completed, the vaccine facility is expected to increase our vaccine production capacity by 2,300%, from 250 million units to 6 billion units, with a will have a projected increase in revenue of $14 million and related gross margins of 60-70% in 2010. Our micro-organism facility expansion is anticipated to increase our micro-organism and feed additives production capacity by 48.7% and add $2.7 million in revenue with a gross margin of 70% in 2010."

By my estimates, I believe SKBI will achieve around or above $3 EPS in 2009 and $3+ in 2010 and therefore is significantly undervalued with a P/E of 4-5.

Monday, August 10, 2009

Skystar Bio-Pharmaceuticals to Report Second Quarter 2009 Financial Results

Skystar Bio-Pharmaceuticals to Report Second Quarter 2009 Financial Results and Host Conference Call on Friday, August 14, 2009

Press Release
Source: Skystar Bio-Pharmaceutical Company
On Monday August 10, 2009, 7:00 am EDT


XI'AN, CHINA--(Marketwire - 08/10/09) - Skystar Bio-Pharmaceutical Company (NASDAQ:SKBI - News) ("Skystar" or the "Company"), a China-based producer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, today announced that it will report its financial results for the second quarter of 2009, on Friday, August 14, 2009 at 8:00 a.m. Eastern time.

To participate in the conference call, please dial 877-941-2321 or 480-629-9714 from the US. Participants dialing in from China can access the call toll free by dialing 10800-152-1142. Investors may also access a live audio webcast of this conference call under "Events/Presentation" on the Investors Relations section of the Company's website at http://www.ir-site.com/skystar/events.asp.

A replay of the webcast will be available approximately two hours after the conclusion of the call. The webcast replay will remain available for 90 days. An audio replay will also be available approximately two hours after the conclusion of the call and will be made available until Friday, August 28, 2009. The audio replay can be accessed by dialing 800-406-7325 or 303-590-3030 and entering passcode 4138197# from the US. For toll free access to the replay from China please dial 852-2287-4304 and enter reservation number 109110#.

About Skystar Bio-Pharmaceutical Company

Skystar is a China-based developer and distributor of veterinary healthcare and medical care products. Skystar has four product lines (veterinary medicines, micro-organisms, vaccines and feed additives) and over 170 products, with over 40 additional products in the developmental stage. Skystar has formed strategic sales distribution networks covering 29 provinces throughout China. For additional information, please visit http://www.skystarbio-pharmaceutical.com.

To be added to the Company's email distribution for future news releases, please send your request to skystar@tpg-ir.com.

Tuesday, August 4, 2009

13 Stock Ideas Blogged in 2009. Average Gain 96% in 33 Days

13 super-trades.com Stock Ideas Blogged in 2009. Average Gain 96% - Average Trading Days From Mention to Peak 33 Days
Range of Gains 45% to 153% - Range of Trading Days From Mention to Peak 2 days to 125 days

FIT 153% Gain Called at $3.50 on May 7th. Hit $8.87, 56 days later on July 23rd. Read Blog Post

LZR 140% Gain Called at $5.40 on December 23,2008. Hit $11.14, 125 days later on June 15th. Read Blog Post

RINO 129% Gain Called at $7.65 on June 16th. Hit $17.50, 37 days later on Aug 5th. Read Blog Post

UTA 124% Gain Called at $7.60 on May 29th Hit $17, 48 days later on August 4th. Read Blog Post

VIFL 122% Gain Called at $1.35 on March 26th Hit $3, 15 days later on April 13th. Read Blog Post

MRM 109% Gain Called at $6.40 on May 19th Hit $13.38, 16 days later on June 9th. Read Blog Post

SKBO.OB (now SKBI) 104% Gain Called at $11.00 on June 5th Hit $22.49, 18 days later on June 29th. Read Blog Post

DIT 92% Gain Called at $32 on April 22nd. Hit $61.46, 80 days later on July 27th. Read Blog Post

AIM 77% Gain Called at $4.20 on June 15th Hit $7.44, 2 days later on June 16th. Read Blog Post
,
SMCG 67% Gain Called at $1.35 on May 21st Hit $2.27, 11 days later on June 4th. Read Blog Post

EVK 62% Gain Called at $1.85 on June 2nd Hit $3, 4 days later on June 5th. Read Blog Post

JVA 58% Gain Called at $3.15 on May 6th Hit $4.84, 20 days later on June 2nd. Read Blog Post

NIV 45% Gain Called at $3.80 on March 17th Hit $5.50, 2 days later on March 18th. Read Blog Post

Tuesday, July 21, 2009

Skystar to Ring NASDAQ Opening Bell on July 22

My latest research on SKBI

Press Release
Source: Skystar Bio-Pharmaceutical Company
On Tuesday July 21, 2009, 7:00 am EDT

Skystar Bio-Pharmaceutical Company (NASDAQ:SKBI - News) ("Skystar" or the "Company"), a China-based producer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, today announced that the Company's Chairman and CEO Weibing Lu, CFO Bennet P. Tchaikovsky and Director R. Scott Cramer, will ring the opening bell at the NASDAQ Capital Market on Wednesday, July 22, 2009, in New York City. Skystar's common stock began trading on the NASDAQ on June 26, 2009

The opening bell ceremony will take place beginning at 9:20 a.m. Eastern Time at the NASDAQ MarketSite in New York's Times Square and will be broadcast live on the seven-story NASDAQ tower.

"We are honored to participate in the NASDAQ opening bell ceremony," said Mr. Lu. "We believe that our recent listing on NASDAQ will expand our exposure to the U.S. investment community and further enhance shareholder value. Skystar is a leading supplier in the rapidly growing veterinary health- and medical-care industry in China. For fiscal 2009, Skystar increased revenues by 42% to $25.6 million, and increased net income by 73% to $5.6 million. We are anticipating adding approximately 40 new products to our portfolio this year and expanding our manufacturing capabilities, which we expect can add $16.7 million in revenues and improve gross margins by up to $11.7 million by 2010." Press Release

Accurate Research Results in 4 super-trades.com winners

RINO - Called this stock at $7.65 on June 16th Read Blog Post. This stock has been on an absolute tear, hitting $12.38 yesterday July 20th, for a 62% gain from my original call. Around $9-$10, mainly other stock gurus jumped on this great stock. Again, this company is on a $2 EPS run rate. Most growing, profitable, China stocks get a P/E of at least 10.

FIT - Bought at $3.50 on May 7th. See Blog Post It hit $8.19 (52 week high) yesterday July 20th for a 134% gain from original entry.

DIT - Bought at $32 on April 23rd See Blog Post. It hit $49.70 yesterday (52 week high) July 20th for a 55% gain from the original call. Lowest float out there and very volatile. What is better is that DIT reported earnings this week and EPS from continuing operations was $3.11. My original DD said a $10-$12 EPS run right and it was correct. See Press Release

And last but not least, the stock I believe has the most upside and momentum potential.

I have been buying and blogging SKBI (was SKBO.OB prior to Friday) since the $11 range See Blog Post.

Updated Float Analysis: Skystar has approximately 1.869m shares outstanding pre-secondary. On page 38 of the most recent S-1 Read S-1, it states that between management and two funds there are approximately 1.5m shares held. On page 7 it states management is locked up for six months from the date of the secondary. After the 1.6m shares were sold recently, I am guessing that not many will flip this stock for $5-$10 dollars with this EPS potential and a P/E of 4. Depending on how many hold these shares, SKBI could have a float range of approximately 1m to 1.5m (Mid-point is 1.25m).
Also, according ot this article out last week, SKBI is on the naked short list (have not confirmed) Read Article

Updated EPS Analysis: In 2008 (see the presentation and the S-1 they did $3.07 EPS on the shares outstanding), Skystar had $5.6m of net income that included $1.1m of non-recurring expenses, or $6.7m adjusted net income.

Skystar had approximately 1.869 shares at the beginning of FY2009. They will sell 1.6m shares this week, however those shares will only be outstanding approximately six months of FY2009. So fully diluted weighted average shares for FY2009 should be approximately 2.769 (1.869 + half of 1.6m).

If I divide the FY 2008 adjusted net income by the new post-IPO share count of approximately 2.569m, I get EPS of $2.51. Skystar would only have to grow net income by approximately 20% in 2009 to have EPS of $3. However, in the first quarter of 2009, net income was up 72% YOY! It is easy for me to see how this Company could potentially do over $3 EPS for FY2009. Lastly, as discussed in my original blog post, in FY2010 expansion sales give the potential for approximately another $1 EPS. So I also see that potential for this Company to do over $4 EPS in FY2010.

Again most growing, profitable Chinese companies get a P/E of at least 10. Most do not have such a small outstanding share structure as SKBI (which can drive momentum).
With my estimated 2009 EPS range of $2.50-$3.50 and 2010 of $3-$4, a P/E range of 10-20 on 2009 EPS at the mid point of my range ($3) would be $30-$60 price per share. Combine that with a low float this stock is the most attractive out there for value/momentum. I believe hedge funds have been buying this stock and soaking up the float as they see the same potential I do.

This blog is just my rationale for my own investing and not a prediction or investment advice.

Tuesday, July 14, 2009

Skystar Bio-Pharmaceutical Announces Expansion Plans and Growth Expectations

Read My EPS Expectations for SKBI

Press Release
Source: Skystar Bio-Pharmaceutical Company
On Tuesday July 14, 2009, 7:00 am EDT

Skystar Bio-Pharmaceutical Company (NASDAQ:SKBI - News) ("Skystar" or the "Company"), a China-based producer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, today announced its business expansion plans and growth expectations following the Company's recent common stock listing on the NASDAQ Capital Market.

Skystar's veterinary healthcare and medical care products cover the major segments of the animal farming industry through its four product lines: veterinary medications, micro-organisms, feed additives and veterinary vaccines. The Company has a robust portfolio of over 170 products, as well as over 40 products under development for which the Company expects approval this year. Skystar has a strategic sales and distribution network of more than 1,128 agents and 400 direct customers. Skystar's distribution network covers all 29 farm producing provinces in China. Skystar is currently the only China-based veterinary supply company that is listed on a U.S. stock exchange.

"At this stage in our corporate development, we are pleased to increase our visibility by listing on the NASDAQ Capital Market," Weibing Lu, Skystar's Chairman and Chief Executive Officer, stated. "We are competing in a young and fragmented industry where demand exceeds supply. We hold a significant competitive advantage by offering four product lines that address key segments of the animal farming industry, whereas most of our competitors offer only one or two products. We also strive to deliver higher quality and more effective products, with lower prices and better service than our competitors. We are leveraging our extensive distribution network and solid customer base by adding an estimated 40 products currently under development. In addition, we are seeking to increase our manufacturing capabilities as well as exploring acquisition opportunities in our industry.

"We are in the process of completing our vaccine manufacturing facility, which is expected in the fourth quarter of this year," continued Mr. Lu. "Once completed, this facility is expected to increase our vaccine production capacity by 2,300%, from 250 million units to 6 billion units, with a projected increase in revenue of $14 million with gross margin of $8.4 to $9.8 million in 2010. We also expect to complete our micro-organism and feed additives facility in the fourth quarter of this year, which is anticipated to increase our micro-organism and feed additives production capacity by 48.7%. Once completed, the micro-organism facility is expected to add $2.7 million in revenue with gross margin of $1.9 million in 2010."

For fiscal 2008, Skystar reported $25.6 million in total revenues and net income of $5.6 million, compared with revenues of $15.1 million and net loss of $2.0 million for fiscal year 2007. For fiscal 2003 through 2008, Skystar has achieved a compound annual growth rate of 84.39% for revenues and 84.36% for gross margins.

Skystar Common Stock

Skystar common stock began trading on June 26, 2009 on the NASDAQ Capital Market. A public offering of 1.61 million shares of common stock at $12.98 per share was completed on July 8, 2009 for gross proceeds of $20.89 million.

About Skystar Bio-Pharmaceutical Company

Skystar is a China-based developer and distributor of veterinary healthcare and medical care products. Skystar has four product lines (veterinary medicines, micro-organisms, vaccines and feed additives) and over 170 products, with over 40 additional products in the developmental stage. Skystar has formed strategic sales distribution networks covering 29 provinces throughout China. For additional information, please visit http://www.skystarbio-pharmaceutical.com.

To be added to the Company's email distribution for future news releases, please send your request to skystar@tpg-ir.com.

Forward-looking Statements

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the progress of new product development. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

Contact:
ContactsThe Piacente Group, Inc. (Investor Relations Counsel)Kristen McNally(212) 481-2050Email ContactSkystar Bio-Pharmaceutical Co., Ltd.Scott CramerDirector - U.S. Representative(407) 645-4433Email Contact

Tuesday, June 30, 2009

SKBI at Higher End of Range - Free to Scream

Will it gap down first or gap up? I don't know. Don't know don't care. I would buy a gap down if it even happens (today may have been it). I just have learned that low floats and EPS like this (rare) usually attract strong interest from momentum/value funds/traders. Whether it be tomorrow, Thursday into the holiday weekend, or next week, I think momentum/value funds/traders/investors will come for this stock. Read my analysis below.

SKBI priced known secondary in accordance with NASDAQ listing tonight at $12.98 , 63%higher than the original $8 range! In my opinion this speaks to the strong demand and the fact that trailing 12 months EPS is $3.39 and Trailing P/E is only 5 at a share price of $18 See Link. Read my DD why I think at current run rate this company has potential for $3+ EPS this year and $4+ next year - after this offering. Again, read why I am in this stock (the purpose of this blog is to post my ideas only) and do not chase any stock or buy it because I am in it.


I have been buying and blogging SKBI (was SKBO.OB prior to Friday) since the $11 range See Blog Post. Well as expected the Company moved to the NASDAQ this last Friday and closed at $20 per share. This week I expect them to complete a known share sale as part of the move to NASDAQ and to fund amazing expansion capabilities for their business.

Updated Float Analysis: Skystar has approximately 1.869m shares outstanding pre-secondary. On page 38 of the most recent S-1 Read S-1, it states that between management and two funds there are approximately 1.5m shares held. On page 7 it states management is locked up for six months from the date of the secondary. That would put SKBI at a float of approximately 369k pre-secondary if my calculations are correct. When the 1.6m shares are sold this week, I would guess that not many are going to flip this stock for $5-$10 dollars with this EPS potential. Depending on how many hold these shares, SKBI could have a float range of approximately 369k to 1.769k (Mid-point is 1.1m).
Lastly, according ot this article out last week, SKBI is on the naked short list (have not confirmed) Read Article

Updated EPS Analysis: In 2008 (see the presentation and the S-1 they did $3.07 EPS on the shares outstanding), Skystar had $5.6m of net income that included $1.1m of non-recurring expenses, or $6.7m adjusted net income.

Skystar had approximately 1.869 shares at the beginning of FY2009. They will sell 1.6m shares this week, however those shares will only be outstanding approximately six months of FY2009. So fully diluted weighted average shares for FY2009 should be approximately 2.769 (1.869 + half of 1.6m).

If I divide the FY 2008 adjusted net income by the new post-IPO share count of approximately 2.569m, I get EPS of $2.51. Skystar would only have to grow net income by approximately 20% in 2009 to have EPS of $3. However, in the first quarter of 2009, net income was up 72% YOY! It is easy for me to see how this Company could potentially do over $3 EPS for FY2009. Lastly, as discussed in my original blog post, in FY2010 expansion sales give the potential for approximately another $1 EPS. So I also see that potential for this Company to do over $4 EPS in FY2010.

The expected price range of the share sale this week is $9-$11 ( I would guess the high end and personally question if they could get more)? The stock could either pullback creating what I would consider a nice opportunity to buy or gap up as it is already on the NASDAQ now.

One thing is for certain, considering the P/E of approximately 24 that recent IPO DGW is trading at as of last week, combined with my calculations of $3-$4 EPS potential and the ultra low float of SKBI, it is easy for me to be very excited of what SKBI potentially could do.

I am long SKBI with an average of approximately the $12 range.

Sunday, June 28, 2009

Skystar on the NASDAQ with Huge EPS and Low Float

I have been buying and blogging SKBI (was SKBO.OB prior to Friday) since the $11 range See Blog Post. Well as expected the Company moved to the NASDAQ this last Friday and closed at $20 per share. This week I expect them to complete a known share sale as part of the move to NASDAQ and to fund amazing expansion capabilities for their business.

Updated Float Analysis: Skystar has approximately 1.869m shares outstanding pre-secondary. On page 38 of the most recent S-1 Read S-1, it states that between management and two funds there are approximately 1.5m shares held. On page 7 it states management is locked up for six months from the date of the secondary. That would put SKBI at a float of approximately 369k pre-secondary if my calculations are correct. When the 1.4m shares are sold this week, I would guess that not many are going to flip this stock for $5-$10 dollars with this EPS potential. Depending on how many hold these shares, SKBI could have a float range of approximately 369k to 1.769k (Mid-point is 1.1m).
Lastly, according ot this article out last week, SKBI is on the naked short list (have not confirmed) Read Article

Updated EPS Analysis: In 2008 (see the presentation and the S-1 they did $3.07 EPS on the shares outstanding), Skystar had $5.6m of net income that included $1.1m of non-recurring expenses, or $6.7m adjusted net income.

Skystar had approximately 1.869 shares at the beginning of FY2009. They will sell 1.4m shares this week, however those shares will only be outstanding approximately six months of FY2009. So fully diluted weighted average shares for FY2009 should be approximately 2.569 (1.869 + half of 1.4m).

If I divide the FY 2008 adjusted net income by the new post-IPO share count of approximately 2.569m, I get EPS of $2.61. Skystar would only have to grow net income by approximately 15% in 2009 to have EPS of $3. However, in the first quarter of 2009, net income was up 72% YOY! It is easy for me to see how this Company could potentially do over $3 EPS for FY2009. Lastly, as discussed in my original blog post, in FY2010 expansion sales give the potential for approximately another $1 EPS. So I also see that potential for this Company to do over $4 EPS in FY2010.

The expected price range of the share sale this week is $9-$11 ( I would guess the high end and personally question if they could get more)? The stock could either pullback creating what I would consider a nice opportunity to buy or gap up as it is already on the NASDAQ now.

One thing is for certain, considering the P/E of approximately 24 that recent IPO DGW is trading at as of last week, combined with my calculations of $3-$4 EPS potential and the ultra low float of SKBI, it is easy for me to be very excited of what SKBI potentially could do.

I am long SKBI with an average of approximately the $12 range.

Friday, June 19, 2009

Review of 3 Chinese IPO's- Week of June 22nd

1) DGW - Duoyuan Global Water Inc. - NYSE Listing

What They Do :
We are a leading China-based domestic water treatment equipment supplier. Our product offerings focus on addressing the key steps in the water treatment process, such as filtration, water softening, water-sediment separation, aeration, disinfection and reverse osmosis. Founded in 1992, we offer a comprehensive set of more than 80 complementary products across the following three product categories:
• Circulating Water Treatment Equipment
• Water Purification Equipment
• Wastewater Treatment Equipment

Links :
F-1 Filing
Road Show Presentation

The Numbers :
- Float will be 5m. Outstanding will be approximately 21m. (Each ADS represents 2 ordinary shares. There will be approximately 42m ordinary shares outstanding after this deal).
- Revenue growth 40% 2008 vs 2007 and 39% Q109 vs Q109. Net Income growth 63% 2008 vs 2007 and 92% Q109 vs Q109.
- They did 19.5m of Net Income in FY 2008.
- Expected Pricing $13-$15

super-trades summary : This is perhaps one of the sexiest sectors that exists. Water is a scare resource, especially in China. China is predicted to lead the world out of this recession. When I take the 19.5m of net income divided by the post-IPO ADS shares outstanding of 21m I get .93 trailing EPS with the company growing revenue and net income in Q109 by 39% and 92%, respectively. At $15 pricing that is about a 16 trailing P/E. Mix in a 5m float and I expect this IPO to generate strong interest. Only question is how high does it gap up. Under $20 I will try some shares.

Sympathy plays :
CLWT - Small cap play on this IPO similar business. Due to release annual report in June. I am sure those that like lower priced stocks come for this in a sympathy trade.

RINO.OB - Similar business with much better EPS and priced at what I consider to be ridiculously cheap. (Currently P/E of 4-5) Read why I think RINO.OB is a much better play than DGW. Applying the 16 P/E on RINO.OB recent EPS run rate would make it a $32 stock. Read Blog Post

2) CPC - Chemspec International - NYSE Listing

What They Do :
We are a leading China-based contract manufacturer of highly engineered specialty chemicals. In particular, we are the largest manufacturer of fluorinated specialty chemicals in China based on sales with a share of approximately 21% and 25% of the Chinese market in 2007 and 2008, respectively, according to a commissioned report prepared by Frost & Sullivan. We manufacture specialty chemicals, which are typically highly engineered chemicals used as building blocks in the manufacture of more advanced chemicals or to enhance the performance of the end products manufactured by our end users in various industries including electronics, pharmaceuticals and agrochemicals.

Links :
F-1 Filing
Road Show Presentation

The Numbers :
- Float will be 8.1m. Outstanding will be approximately 36m. (Each ADS represents 60 ordinary shares. There will be approximately 2.1B ordinary shares outstanding after this deal).
- Revenue growth 60% 2008 vs 2007 and 23% Q109 vs Q109. Net Income growth 34% 2008 vs 2007 and -44% Q109 vs Q109.
- They did 45.9m of Net Income in FY 2008.
- Expected Pricing $7-$9

super-trades summary : China is predicted to lead the world out of this recession. When I take the 45.9m of net income divided by the post-IPO ADS shares outstanding of 36m I get 1.28 trailing EPS. The company grew revenue by 23% in Q109, yet net income declined by 44% due to lower margins and increased R&D expenses. They also mentioned a slowdown due to the global recession that they gradually see recovering. I am sure that affected the pricing range. At $9 pricing that is about a 7 trailing P/E. I need to see how well this is received, but I think a 10 P/E range would not be unreasonable for this Company. It could get a higher one if they convince investors that net income growth will continue. Would try some around the pricing range or 10% above but will not chase unless I sense it is getting interest.

Sympathy plays :
CPC may not have enough interest to push some sympathy plays. However if this IPO is well received, then NOEC and SDTH are two small cap sympathy trades to watch.

3) SKBO.OB - Skystar Bio-Pharmaceutical Company - Nasdaq Listing

What They Do :
Skystar is a China-based developer and distributor of veterinary healthcare and medical care products. Skystar has four product lines (veterinary medicines, microorganisms, vaccines and feed additives) and over 170 products, with over 40 additional products in the developmental stage. Skystar has formed strategic sales distribution networks covering 29 provinces throughout China

Links :
S-1 Filing
Company Presentation

The Numbers :
- Float will be approximately 1.5m. Outstanding will be approximately 3m. Company currently trades on the OTCBB and will do an IPO on the Nasdaq with the placement of 1m shares.
- Revenue growth 70% 2008 vs 2007 and 42% Q109 vs Q109. Net Income growth 63% 2008 vs 2007 and 73% Q109 vs Q109.

Mind Boggling Numbers - In the S-1 filing, Skystar reported $3.07 EPS for FY 2008 and $0.57 EPS for First Quarter 2009. Revenue was up 70% in FY 2008 vs. FY 2007. Revenue was up 42% and Net Income was up 73% in the First Quarter of 2009.

More Mind Boggling Growth - From the S-1 "Manufacturing Facilities. We intend to complete a vaccine manufacturing facility with approximately $2.5 million from the net proceeds of the offering. Under our current plans, this facility is expected to be completed by the fourth quarter of 2009 and obtain GMP certification in late 2009. Once completed, we believe that this facility will increase production capacity by 6 billion units, or 2,300.0% from 250 million units, with a value of $14.0 million in projected revenue at a gross margin rate of 60-70%.

Additionally, we are planning to construct a new production facility for micro-organism and feed additives with approximately $1.5 million from the net proceeds of the offering. Under our current planning, the annual production capacity of this production facility will be approximately 4,000 metric tonnes, an increase of 48.7% from our current capacity of 8,200 metric tonnes. We anticipate construction to complete in the fourth quarter of 2009."

By my calculations, with the addition of these two facilities the Company will have the potential to add up to $14m additional revenue at 60-70% gross margin rate from vaccines and approximately $3m in feed additives (facility increases capacity by 49% and they did $5.9m in this category in 2008 at a 65% blended gross profit margin - see Presentation). If they can produce and sell this extra capacity I calculate that as an additional $10m in gross profit. In Q1 2009 the Net Income margin was around 28%. So this extra capacity (if produced and sold successfully and at these same margins) could add another $1 EPS in 2010 by my calculations.

In 2008 (see the presentation and the S-1 they did $3.07 EPS on the shares outstanding), Skystar had $5.6m of net income that included $1.1m of non-recurring expenses, or $6.7m adjusted net income. If I divide that by the new post-IPO share count of approximately 2.9m, I get EPS of $2.31. Now, in the first quarter of 2009, net income was up 72% YOY. If the Company hypothetically can even grow net income by 30% for all of 2009 over 2008, that $2.31 would go to $3.00 EPS with the new shares offered.

In 2010 if they have these new facilities in place and produce and sell with the above assumptions from the S-1 that would calculate to another $1 EPS. Going by my calculations, I see a scenario where if all falls into place perfectly this company could do $3+ EPS in 2009 and $4+ in 2010. (Not to mention potential growth from the many products they have awaiting approval) You can use your imagination with a 10-20 P/E ratio. Again, this is what I see as potential when I look at their numbers and information, not a prediction or guarantee.

Lastly, according to the Company website, they are also working on an Avian flu vaccine for the birds themselves. "While larger international companies are focusing on vaccines to prevent people from catching avian flu, Skystar's focus is on vaccines to be administered to farm chickens and other poultry to prevent them from catching H5N1 Avian Influenza. This type of vaccine is well within Skystar's current scope and expertise and could potentially prevent an epidemic/pandemic by controlling an outbreak at the source (the poultry)." See Website

super-trades summary : This is perhaps one of the most exciting scenarios I have seen in sometime. If the Company can do $3+ EPS in 2009 then this is pricing at a P/E of 3! If DGW ends up with a P/E of 20+, applying that to $3 EPS would be a stock price of $60. With this float and amazing EPS and low valuation, if the momentum/valuation crowd shows interest, I can see this stock being one of those rare stocks that runs to the $30-$50 range like EFUT did in 2006. Read Blog Post

Sympathy plays :
Any low float China stocks with great EPS and low valuations.

I am long SKBO.OB. This blog is my opinion and not investment advice or a prediction of future prices.

Tuesday, June 16, 2009

RINO.OB - Amazing Growth - Compare to Coming DGW IPO

There is an exciting IPO scheduled to trade the week of June 22nd. Duoyuan Global Water (DGW) They are a provider of water treatment equipment in China. China has a water scarcity issue so this is one of the hottest sector to me. Water and Air industry in China. By my calculations DGW would have done approximately $1 EPS with the post-IPO share count for 2008. The IPO is expected to price at $13-$15 for a 13-15 p/e and I would guess this gaps open much higher. The problem with hot IPO's in many cases is they gap so high that the only people that make money are the people who were able to participate in the IPO shares. I think I found a much better stock.

RINO.OB - RINO International Corporation, through its direct and indirect subsidiaries, including Innomind Group Limited and Dalian Innomind Environment Engineering Co., Ltd., its contractually-controlled affiliate, Dalian RINO Environmental Engineering Science and Technology Co., Ltd. ("Dalian Rino") and Dalian Rino's wholly-owned subsidiaries, Dalian Rino Environmental Engineering Project Design Co., Ltd. and Dalian Rino Environmental Construction & Installation Project Co., Ltd., is a leading provider of environmental protection equipment for the iron and steel industry in China. Specifically, RINO designs, manufactures, installs and services proprietary and patented wastewater treatment, flue gas desulphurization equipment, and high temperature anti-oxidation systems, which are all designed to reduce either industrial pollution and/or improve energy utilization.

This Company has amazing numbers:

Fiscal Year 2008 Sales Increase 119.8% to $139.3 million, **Adjusted Net Income Increases 119.9% to $39.0 million with EPS of $1.56 -- Reaffirms 2009 Guidance: Revenues expected to exceed $176.5 million Read 2008 Press Release

Q1 Net Sales Increased 87.0% to $35.6 Million while Net Income Increased 148.5% to $12.5 Million with EPS of $.50 vs. $.20 Read Q1 Press Release

"The first quarter represents a very strong start in 2009 as we made significant improvements in all of our key financial metrics," stated Mr. Zou Dejun, President and CEO of RINO International, "Our business continues to be driven by a number of fundamental factors all centered around China's desire to ensure that iron and steel manufacturers properly protect the environment, specifically the water and air. By collecting a significant portion of our receivables we ended the quarter with $47.9 million cash and cash equivalents on our balance sheet. This generated significant cash flow from operations, and puts us in an excellent position to capitalize on our growth opportunities for the balance of 2009. We ended the quarter with a backlog of approximately $61.8 million, which represents 8 desulphurization, 5 wastewater treatment and 1 anti-oxidation projects which will be implemented during the next two quarters. We are very confident that we will continue to provide incremental and robust top-line and bottom line growth for our Company".

There is one analyst that has estimates for RINO on yahoo that expect over $2 EPS. It does not look like they were updated for the recent Q1 results. See Estimates

If DGW is going to trade at a P/E of 20 or higher, it is easy to see why a Company like RINO seems extremely undervalued to me at current prices. If RINO is currently near or above a $2 EPS run rate with impressive growth and backlog, then a P/E of 13-15 like DGW is pricing at would be a $26-$30 stock.

Lastly, the Company stated in the 2008 year end conference call that they have applied to list on the Nasdaq. Listen to Conference Call

The float is 7.1m and outstanding shares are 25m according to Bloomberg Bloomberg

I am long RINO.OB

AIM Great News the Day After Great Earnings

Aerosonic Chosen as Key Supplier to AleniaSIA for the AleniaAermacchi M-346 Trainer Aircraft
On Tuesday June 16, 2009, 8:00 am EDT
CLEARWATER, Fla.--(BUSINESS WIRE)--Aerosonic Corporation (NYSE Amex: AIM), a leading supplier of precision flight instruments and systems for commercial, business and military aircraft, announced today that it has signed a Long Term Supply Agreement (“LTSA”) and received an initial production order from AleniaSIA to supply its Integrated Multi-Function Probe (“IMFP”) and related equipment for the production of AleniaAermacchi M-346 aircraft FBW Flight Control System. The deliveries to AleniaSIA will begin in March of 2010. Based on current forecasts, Aerosonic expects this program to generate up to $10 million in revenue over the next 4 years
Read Article

AIM - super-trades.com started off the week with a buy/alert on AIM at $4.20 today Read Blog Post. It hit $6.45 for a one day gain of 54%! This situation reminds me eerily of my recent stock pick MRM Read Blog Post, which I called at $6.40 on a similar earnings and EPS turnaround and hit a high of $13.38, or 109% from the original alert. While AIM may pullback, I think it has much higher to go based on what appears to be a potential EPS run rate of well over $1+. Now with a new contract I like it even further for a continued move. I am long AIM from $4.20.

Monday, June 15, 2009

super-trades Momentum Continues With Staying Power

AIM - super-trades.com started off the week with a buy/alert on AIM at $4.20 today Read Blog Post. It hit $6.45 for a one day gain of 54%! This situation reminds me eerily of my recent stock pick MRM Read Blog Post, which I called at $6.40 on a similar earnings and EPS turnaround and hit a high of $13.38, or 109% from the original alert. While AIM may pullback, I think it has much higher to go based on what appears to be a potential EPS run rate of well over $1+. I am long AIM from $4.20.

SKBO - I am extremely excited about this stock and cannot wait for it to get to the Nasdaq. I am long this stock with an average in the $11's and will be adding on any pullbacks. (Although it does not seem to want to pullback so far). Read my reasons for thinking this is the next EFUT type mover Read SKBO Research

LZR - Old super-trades favorite LZR which I nailed for 100% gain TWICE, still kept going. Today it hit a new high of $11.14 becoming a 140% super-trades idea gainer from low to high.

VIFL - Another old super-trades favorite. Bought at $1.35 Read Blog Post It hit $3.00 for a 122% gain. It then pulled back under $2. Today it closed at $2.80 on the strength of Friday's news of irradiation approval for oysters Read Article.

super-trades Notes:
- Very exciting to me that many of my picks are not only working , but showing staying power much higher than my original alerts. This proves the research was correct more than anything.

- When I have profit on a pick, I will always take some off the table and use a mental stop on the rest to ensure profitability.

- Look for more new ideas every week as I spend much time researching.

- Don't chase any stocks. Low float stocks can be volatile and dangerous. My blog is not investment advice but instead documents my trades/ideas.

In AIM $4.20

In AIM at $4.20 on a nice quarter. $0.37 EPS less an insurance claim so I get $0.28-$0.29 without it. Read Press Release

Float 3m Outstanding 3.7m per Bloomberg Bloomberg

Tuesday, June 9, 2009

SKBO.OB Also has Swine Disease Expertise

SKBO.OB is my latest position/idea Read Blog Post. I wrote how I am in this stock because I think this stock has potential to be the next EFUT. (EFUT went from $11 to $49 in 2006)

Aside from the $3-$4 EPS potential (by my estimates but read blog post it is based on information from the filings - they did report $3.07 EPS in 2008), the growth potential, and the Avian Flu angle, I found these articles from 2007 about SKBO.OB and swine fever/diseases:

Skystar Bio-Pharmaceutical Releases First Aid Kit for Swine High-Fever Syndrome
7/23/2007


The Company has developed prevention and treatment therapies specifically designed for large-scale pig farms.

XI'AN, China, July 23 /Xinhua-PRNewswire-FirstCall/ -- Skystar Bio-Pharmaceutical Co., Ltd. (''Skystar''; ''Company''), a leading bio-pharmaceutical company in the People's Republic of China (''PRC''), today announced that it has successfully developed a first aid kit to treat the recent outbreak of Swine High-Fever Syndrome (''SHFS'') among pigs in China. The kit is expected to generate about $526,000 in revenue during the second half of 2007.

SHFS is caused by mutated viral strains of porcine reproductive and respiratory syndrome, also know as blue ear disease, and is often complicated by porcine circovirus type 2 (PCV-2). The complication evolves in three stages. First, the viral infection damages pigs' immune system resulting in immunity paralysis or complete loss of immunity. Consequently, primary mixed infections usually follow including many other viral diseases such as hog cholera, pseudorabies, cephalitis B, parvovirus, rotavirus and influenza. Further, complicated viral infections lead to secondary mixed infections caused by highly contagious bacterial diseases such as streptococcemia, pleuropneumonia, colibacillosis, pasteurellosis and mycoplasma pneumonia. As a direct result of blue ear disease, SHFS often results in rapid infection and extremely high mortality rates.
Read Article


Skystar Receives Approval For 36 New Veterinary Medicines
Article Date: 12 Jun 2007 - 0:00 PDT

Three of the new products target a variety of indications in pigs and piglets and are expected to become top sellers. Chinese Goldthread (Huanglian) Detoxification Powder ("CGDP") is a TCM which clinical tests have shown is especially effective in treating pig diseases such as upper respiratory tract inflammation, acute bronchitis, pneumonia, diarrhea, contagious gastritis and blue-ear disease, also known as Porcine Reproductive and Respiratory Syndrome (PRRS). GGDP has overcome many of the shortcomings of traditional Chinese medicines such as slow effectiveness and unstable components. Its effectiveness in the prevention and treatment of viral diseases such as blue- ear disease is a significant advantage. CGDP is estimated to generate annual revenue of RMB 5 million in 2007.
Read Article


Here is what the SKBO.OB website says about the Avian Flu:
While larger international companies are focusing on vaccines to prevent people from catching avian flu, Skystar's focus is on vaccines to be administered to farm chickens and other poultry to prevent them from catching H5N1 Avian Influenza. This type of vaccine is well within Skystar's current scope and expertise and could potentially prevent an epidemic/pandemic by controlling an outbreak at the source (the poultry). See Website

I am long SKBO.OB

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Welcome to super-trades.com, blog home of Superman. Purpose of this blog is for me to discuss my trades and stock ideas (As well as opinions and rants on stock market related issues). I will mention the date and price I enter. As far as exits, I always try to take half off when I have some profit and if I believe in the stock, let the rest run further. I always also use mental stop limits, at which time I would exit and minimize any losses. I do not like to give price targets unless I can support them by P/E in some way or by comparison to another stock. I just post stock trades and ideas that I believe will go higher (or lower for shorts) and the reason I believe that. Individuals should have their own strategies for managing profits and losses. My stock picks tend to NOT be daytrades at all and many take time to move. I am not an investment advisor and this blog should not be considered or followed as investment advice.