Low market cap of $140M (easy to manipulate by HF)
About 50% revenue growth annually
CEO bought 245000 shares in July from his own money
Low float of 13M shares out of 28M outstanding
39% of shares held by insiders
Experienced year over year growth in every sales territory
Growing middle class in China
Takeover target (recent article in China magazine)
Accumulation by HF
Oversold condition after crashing from $9 level
**************************************************************** "We are very pleased with our second quarter results, which was driven by 36.1% organic growth in seafood snack food products line. We added an additional 400 retail points to our network and experienced year over year growth in every sales territory for our core product line," began Mr. Pengfei Liu, Chairman and CEO of China Marine. "Sales of our new beverage line, "Hi-Power", exceeded our expectations, as we experienced strong demand across our home province of Fujian. We expect continued sales growth for our beverage segment in the second half of the year. Accordingly, we increased the number of "Hi-Power" sales and marketing staff from 23 at the beginning of the year to 188 currently as of June 30, 2010. In our recruiting effort, we have also retained top marketing talent from well-known international beverage brands to enable us a competitive edge in this fast-growing sector. "
Murray Securities has great reputation in WS as a honest broker company and they initiated CMFO with BUY recommendation. ( on 6/1/2010). Brean Murray was rated as 11th best broker in 2009 by Barron's magazine
Brean Murray Initiates Coverage on China Marine Food Group (CMFO) with a Buy; Solid Performer with Near-Term Catalysts June 1, 2010 8:27 AM EDT Brean Murray initiates coverage on China Marine Food Group (NYSE Amex: CMFO) with a Buy rating. PT $9.
Brean analyst says, "We base our recommendation on China's rising appetite for healthy, covenient seafood snacks and beverages, the company's strategic expansion into new, high-margin segments, strong growth prospects, solid mgmt team and prudent local gov't relationships, as well as an attractive valuation."
To see all the upgrades/downgrades on shares of CMFO, visit our Analyst Ratings page.
Second Quarter 2010 Highlights -- Revenue was $27.6 million, up 86.8% from Q2 2009. -- The Company expanded its retail footprint for seafood snack food products by 400 sales points to 2,900 and sales grew 36.1% year over year. -- Retail locations for "Hi-Power", the Company's marine algae-based beverage, crested over 10,000 retail points by the close of the second quarter 2010 while quarterly revenues grew 183.6% sequentially to $7.8 million. -- Gross margins expanded by 379 basis points to 37.0% with operating margins of 29.0% for the quarter. -- GAAP net income was $6.8 million, up 83.1% from Q2 2009; Adjusted net income was $7.4 million*. -- Earnings per diluted share were $0.26 based on 26.4 million shares; Adjusted EPS was $0.28*.