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China Recycling Energy Corporation Message Board

  • lion_guru_1 lion_guru_1 Apr 9, 2012 9:53 AM Flag

    UN played ADY legit China at 1/3rd Book P?E 3

    Flying under the radar for sure but like last 10 Years ADY trades closer to $10 then $3 will be % winner of 2012

    ADY Mkt Cap 60 Mill $$$ Projected $1.00 EPS remember share count lowered to 19 mill from 21.4 mill as ADY elected to buyback preferred shares instead of letting 65 Mill $$$ worth convert at $3 a share. Tell me 1 China smallcap that has done this ??? ALL would have let them convert instead of coughing up 65 mill $$$ in Cash to Sequioa Capital.

    Another Rare event ADY sold dairy farms for 133 mill $$$ UNLIKE every small cap chiscam buying over priced land or buildings or factories or other business that have little or no value.

    ADY has Net Tangible Assets after Debt of $9.33 a share & tiny Mkt Cap of 60 Mill $$$ compare with sector peer SYUT at 340 Mill $$$ Mkt Cap even though they both have similar sales & earnings BUT SYUT has tons more debt & $1.54 a share Net Book Value....

    Float is very small approx 9 mill shares as Insiders own almost 10 mill Shares...

    Infant formula & milk is one of the highest regulated biz in China thus reducing fraud chance to nil & ADY celebrating it's 50th year in biz.

    ADY the only China infant formula co. doing clinical research trials being conducted by china Govt & had stellar results.Also of note ADY 1 of the Only China milk co.s NOT involved in any way of the Melamine debacle of 2008 & has never had any quality issues.

    Pull up a 5 Year Chart ADY was NEVER under $6 a share till a few months ago then look at Vol that dropped it from $8.70 to $2's ??? Low to No Vol every day no mill share days

    Cash flow from operations in 2011 was Positive 87 million dollars & reduced their debt from 147 Million dollars in Dec 2010 to currently 82 million dollars reducing debt by almost 66 MILLION $$$$. Also please note Sequoia will be 100% paid off this month = total repayment of 65 million dollars.

    Couple of other quick points ADY still will receive another 101 Million Dollars over the next 5 Quarters from farm sale & will most likely be completely Debt Free by Years end.

    ADY's line of credit is for 111 Million Dollars with 31 Million used & 80 Million Dollars in Unused credit & BTW Interest rates are Tier 1 rates at 5.8% to 6.2% very low for China .

    As far as other assets they could sell if needed would be one of their multiple newer updated GMP compliant production facilities which imo they wont sell as they have no need to but could

    While I agree there are some negatives on ADY like the quality of their earnings & relying on Govt subsides the bottom line is their Premium Astrobaby formula is gaining real traction & becoming a higher % of sales every Qtr enhancing margins nicely. Avg selling prices for ADY formula thanks to Astrobaby line rose from $7.94 per kilo to $10.57 per kilo 33% Increase

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