interesting article ONP ByEric Jackson, RealMoney Contributor , On Thursday April 1, 2010 linked to Yahoo headlines:
My top long pick of all the companies I met with is Orient PaperNYSE" PRIMARY="NO"/> which trades on the New York Stock Exchange. The company sells fine writing paper and corrugated paper for boxes, and three weeks ago it started production of paper for digital photographs. Earlier this week, Orient Paper released its full-year 2009 numbers. Revenue grew 57% to $102 million for the year and 98% for the fourth quarter to $31 million.
Investors did not like the decrease in gross margins from 22% to 18% in the recent quarter and the increase in SG&A expenses by over $1 million from last year. However, the margins were affected by increased coal costs in the fourth quarter that were due to the colder winter near Beijing. The company uplisted to the NYSE in December and was required to take on more consultant costs in preparing for that. It also announced yesterday that it was selling 3 million shares at $8.25, taking the stock down 13%. My firm was a big buyer on the news, and ONP is now one of our top long positions.
I believe that the stock is now at a low point and will rise significantly in the year ahead. A doubling in the stock price from here in the next year seems very achievable. A better return than that over that time period is not unreasonable. The downside risk appears to be very low.
I would like to correct your analysis. Everything is based purely on consensus and hope, but the most important error you have made was saying that ONP was uplisted to the NYSE. Im sorry to tell you but it was uplisted to the AMEX. Big difference in status between the amex and the nyse. Hope you are correct about the share price. Market was roaring up 122 pts today and we lost money. No mention on anything I can find of a share dilution. Can you post the links to your sources of information?