MANAGEMENT has no pride in how their actions affect others. I suspect offeringt $1 dollar a share to make $5 plus is the easiest money they will make from here on out. No one trusts them anymore or this stock wouldn't be selling for 55 cents . Second quarter earnings will be out in late August, when the lovely CEO will make another statement about share value, that will not mean anything.
Can you believe this stock traded around $3.50 last year? The CEO stated at the last earnings release that she didn't understand why the stock was trading so low and would start focusing on shareholder value. This wouldn't seem hard to do when you have $7 a share in cash. Where is the pride of how shareholders are treated in China? How can Chinese leaders act so insulted when accused of third world behavior ? Confusious said, "actions speak much louder than words." Do the Chinese people ever consider changing their ways and adopting the Golden Rule? Guess not.
It amaze us how the Chinese want to be recognized and respected as a world power, while also wanting to be treated like they still warrant favored nation status on trade. The Chinese do not believe in paying for technology, and expect the rest of the world to also work at $2 an hour when selling goods and services to them. As far as letting money flow out of China like real world powers have done for over a century, forget it. Dividends to foreign investors are not allowed. How self centered. The US has provided China with an unlimited market place and yes, we have benefitted from their low prices. We have freely welcomed China's students to our great universities and even high schools. But wanting to leap frog over the US, China actively steals our technology, rarely pays for it in the form of royalties like the civilized world does. Look at Microsoft's annual report and see how much of their revenue comes from China. Very little as the Chinese simply steal all the software they use, not to mention movies and other costly ventures to create. Does the Chinese Government ever do anything about this? No, it is deeply embedded in the Chinese culture. And when you steal much of your technology, while polluting the environment by allowing sewage lakes in the middle of your towns, you can charge lower prices. China will continue biting the hand that helps them until we get a business mind in the Whitehouse. They will never stop playing nice with us while simultaneously . Americans will never stop hoping that the other side will come to their senses. We too are imperfect. But the Chinese do not try to correct their hypocracy.
This thing is so undervalued that I didn't buy the stock, but bought Dec call options and expect to double my money in 1-2 months. I admire their management for holding the line on costs. If I were a worker there, I'd be buying their stock and retire a multi-millionaire. Does anyone other than Buffet and myself buy for the long term anymore?
It appears as though Nutrastar has hit its floor and new money is taking a position at these levels, convinced the only direction is up. Eventually the CEO is going to have to make good on her word of sharing company success with its investors. Sooner or later, the company is going to have to take some risk abroad , as promised for some time. At least she finally addressed the low stock price recently, bewildered as to why it is so low. Eventually she will realize it is only because of her unwillingness to do anything for shareholders.