I noticed many people worrying about the quarter HOGS recently posted. Main concerns were missing on revenues and margins decreasing. Pork sold for approximately 40-50% more this time last year. This is a big (albeit i did not calculate exactly) reason for decreased margins. It also stated that if pork sold for Q208 prices then they would have had 36M more revenues which would have been 196M. This 196M would represent beating the analysts. I believe with hog prices recovering the stock will recover with it. If hog prices recover the 40% I could see this stock moving 100-150%. The fundamentals haven't changed. Don't miss this oppertunity at this price
I'm surprised at this stock. It's a commodity, growth, small cap china stock trading at a P/E of under 10. Furthermore, it has about 10% of market cap in cash and a huge line of credit to deal with credit which is incredible to say about any company right now. I've seen plenty of small caps have to take bonds out at 8.5-9.5% which kills future profits. 18% increase in rev yoy, 25% increase in net income yoy! Stockholder equity increased 11% in the last 6 months. They made 7M in cash from operations in Q209 even with an 11M write down in inventory and 12M write down in accounts receivable. They are expanding quickly and are making approximately 30M in cash a quarter to help expansion. I see debt as no problem assuming prok bellies are going up in price and not down (avoid write downs). Also the accounts receivable (couldn't find exact info on this) could be repayed which would add about $0.40 a share to earnings some quarter or spread over a couple quarters.
Either way this company really is a keeper. I'm not a big fan of the stock market now. I think it is very over bought but this is one of my few personal holdings.
Excellent point. Frankly, I didn't even think about that. I'm with you - the Q309 report should be dynamic, carrying this stock to a deserved level. Maintaining guidance despite the swine flu factor, etc. speaks volumes about this company