i am a longterm CGA investor and strongly beleave that Chinese Agriculture investments ha a bright future. But i have learned that a lot of small shareholders are afraid of fraud, and that every Chinese stoch is accused of being fraud.
1. Are you afraid that the margins are fraud ?
2. Are you afraid that this company will make a going privat ?
Put it this way. Supposedly they have cash on hand of $76 million. Which is exactly what the market. So basically you could buy this company out for free after you back out the cash and you get an ongoing business that makes $50 million per year. If that was the case they would be long gone. Last quarter sales decreased 10% but net profit increase 9%, has that every happened in history? This company has supposedly made $30-50 million per year for the last five or six years yet they only have $76 million in cash? If you had more cash than market cap wouldn't you buy back stock?
It is hard to tell just going by info on YAHOO! They stop their coverage on CGA back in 2011...like with a lot of other companies. But I'm hoping the new CEO will do something about it. Or is that just being naive ?