Bodisen Biotech Share Discussion Threads

[leighbarton] 16/11/2006 18:06

Cimbom, I'm still in but will look closely to where the US closes tonight. I agree nothing has changed with the company's financials, but that is not what is now at issue. It is a question of trust. This whole issue would not have flaired up nearly so badly if it had not been for that 3rd Qtr update. Had they kept stum and just published the results then the Amex investigation would have looked historical (ie their dealings with dodgy dealer) and so not nearly so relevant to what is going on today. But the fact they gave a bullish update that Greenberg slated, and which came out to be anything but bullish not only gives credence to Greenberg's claims but also means that Amex is not just dealing with historical stuff. How many of the original investors cashed out on the back of that update?

I can't make up my mind if this is a cultural thing or it is per Greenberg and that the whole thing is corrupt. It sure has a nasty aroma about it though.

What it does mean that the market's trust with this company is blown. If they give a bullish update for the 4th Qtr whose going to believe it? If their 4th Qtr numbers are stunning there will still be grounds for people to attack it because of the high account receivables - who knows what they are hiding there if you no longer trust the company? If you really then start to worry - what about all those advance payments to supplier companies - are they strictly kosher and to unrelated third parties? Large sums are involved and you can see how the whole thing could start unravelling. (Not that I am stating there is anything wrong with those contracts, but just how the business model could give rise to suspicions once trust is out of the equation).

I am not sure what it is going to take to get recovery in the share price from this point. I think probably nothing short of their paying dividends but they are in no position to do that as their business model is cash intensive.

I am normally absolutely rigid about getting out of a company as soon as there is any official indication of wrong doing - lesson learned, never to go against that rule even if you think the financials will pull it round! That decision has cost me £8k to date and at the moment the US seems to have no floor as to how far this will go.

re class action I have registered with the address that Miami posted yesterday but have heard nothing back. I don't agree with it in principle as I went into this with my eyes wide open. However as an investor it is good to have an inside track as to how serious these guys are and to get a feel for how realistic a chance of success they have. With the amount of losses people have suffered (from a peak of $20 to $4 today), if the company is ordered to make restitution it could be enough to sink them in spite of their financials. What then will that do to the PRC's govt view on Foreign ownership?

As I said before this is going to get alot messier before we start to see any kind of recovery.

[vish65] 16/11/2006 18:02

Its a big all or nothing for me aswell but i wont be selling (yet)..

Despite all the bad news and bad sentiment the most important thing is now the new order details for 2007 and associated factory openings. This will give a view forward. The co is after all (as far as we) know profitable with (as far as we know) a good product. At the back of my mind i do wonder if there will be (should be) board changes at BODI.

[va va voom] 16/11/2006 17:54

cimbom,

If I thought that it was just procedure issues with AMEX then I would have held because they can be sorted out in time.

However, the reason that I would not hold on any longer is the very real threat of the company being delisted from AMEX and then effectively being worthless becuase unable to trade them.

There are now 2 class action laws suits in progress and further class action is also being considered. The accusations are misleading representations and insider dealing by the company and directors - this is serious stuff!

In the accounts they are also giving suppliers over 8 million USD (interest free) up front which I am sure is not good practice using shareholders funds washing around regional government officials hands etc.

Cancelling the conference call was also a sign of the directors running for the hills in the midst of being individually named in the class action law suits.

There is also some suggestion that the directors dumped stock recently before the crash having paid NY Global to issue recommendations - this could be a classic pump and dump. In any case, I think that it will be very hard for the management to restore any credibility.

What a nightmare.

Good luck to holders.

[zho] 16/11/2006 17:45

16.11.2006 - RC Group makes its mark

Everyone has been knocking the UK's relatively lightly regulated AIM market recently but part of this is due to its runaway success in attracting exciting young companies from all over the World. There have been so many new issues over the last 12 months that many are now referring to " AIM Fatigue " with brokers' clients simply unable to absorb any new offerings.

The other reason why investors are a little more circumspect is the fact that so many foreign companies do not quite have the same grasp of corporate governance as their UK counterparts. Just in the last few days, BODISEN BIOTECH, the Chinese fertiliser manufacturer, which we have tipped several times, has been instructed by the American Stock Exchange to sever links with a somewhat dubious corporate finance consultancy in Oklahoma. This has sent the shareprice into a tailspin despite quarterly figures announced the next day showing that profits for the first 9 months are ahead by another breathtaking 75 %.

BODI should earn around 40p for the full year leaving the shares at 300p selling at a mere 7.5 times earnings. This is silly money for a company growing at such a rapid rate and the shares should bounce back strongly if, as we suspect, the company's minor misdemeanour is proved to be more down to naivity than anything more sinister.

The Bodisen experience underlines what a double - edged sword the AIM market can be at times. AIM investors are spoilt for choice with so many of the World's fastest growing companies to choose from ( Bodisen for instance is ranked by Forbes as the 16th fastest growing company in China )but the downside is that things do not operate on the far side of the globe quite the same as they do in London .

Those who are prepared to take the rough with the smooth and accept the added risk involved have a number of real AIM bargains from which to choose. Take, for example, the HongKong based RC Group who manufacture biometric security devices involving fingerprint and facial recognition systems. Because of the way the World is nowadays, this market is forecast to grow from $ 2.1 billion this year to $ 5.7 billion in 2010 and RCG is on course to grab a healthy slice of this cake via vigorous organic growth and an equally brisk acquisition programme. The latest interim figures speak for themselves with organic revenues up by over 200% and acquired revenues adding a further sizeable chunk leaving a grand total of 371%. Pretax profit growth was just as impressive - up 357%.

Brokers, Corporate Synergy, are forecasting earnings per share of about 7 p for the full year suggesting that the shares, which have already doubled this year to 71p, are still only selling on a price earnings multiple of 10. There should also be a small but fast growing dividend payout to anticipate. If RCG was headquartered in the UK, you would probably expect to pay nearer 20 times earnings for this one - you pays your money and takes your choice !

You can read all about RC Group's leading edge technology and products at www.rcg.tv.

[cimbom] 16/11/2006 17:38

LeighBarton:

I must say they have fooled all of us,but surely this company must be worth
something.At the end of the day if the issues are with just the disclosures to
Amex and there is nothing drastically wrong with the business then this seems to be well overdone.It's turned out to be a all or nothing play for me.

By the way is anyone pursuing in taking action?

[leighbarton] 16/11/2006 17:27

Agree it doesn't look good..

[vish65] 16/11/2006 16:44

latest drop.

Is there further bad news afoot or is this just shorters taking over ?

[blindfaith2] 16/11/2006 16:42

zho - thanks

[wiganer] 16/11/2006 16:41

Yup, that about sums it up.

That and stop losses getting taken out to exacerbate the slide.

[zho] 16/11/2006 16:40

Q3 results below expectations

Simon Cawkwell + followers shorting

Campaign by US stock market commentator Herb Greenberg

Yesterday's conference call cancelled

[blindfaith2] 16/11/2006 16:34

Anybodu know or care what caused this massive drop today ?

[va va voom] 16/11/2006 15:57

I'm out of this dog. Sold at a big loss but learnt a lesson. Never again!

Good luck holders.

[quidzinn] 16/11/2006 15:38

Bid @220p ! doomed ...

Q

[sheeneqa] 16/11/2006 15:26

kellerfong , think Kingzulu, meant he was monkeying about ramping BODI, not a racial thing.......Bargepole job here.

[leighbarton] 16/11/2006 12:23

King Shaka - I certainly have some egg on my face re Greenberg. Some of it he has got right, but an awful lot is still to be worked through. His main claim is the whole company is a sham and that I don't believe. The main issue for me is the company re-establishing its credibility after 3rd Qtr numbers which were not nearly as good as their trading update indicated. On that Greenberg was 100% right. It was the 3rd qtr update that kept me in and on that I feel v frustrated. It is also alarming that the company does not see any problems with its 3rd Qtr - that reeks of cultural differences and a company still getting to grips with western economics.

It is going to be a long slow climb from here and the company is going to need to get itself some good advisors going forward, because they clearly have not had it to date.

[kellerfong] 16/11/2006 11:34

Xenophobe means ingorance. king shaka

[wiganer] 16/11/2006 10:26

Not really.

I will give Herbie credit though- he delivered on his "mission".

[king shaka] 16/11/2006 09:53

You chinese monkey, stop pumping! Many on here should be eating a large helping of humble pie after the slating they gave Herbie.

[sweetymonkey] 16/11/2006 09:23

No panic, guys!

I tell you that I have a friend who is a Chinese from that area. He told me that the Company is the best of that king of Company in China. It has several Provincial Governments, namely the Agricultural Departments behind. It is properly managed and the sales are going up every day.

Apparently, the Company did not understand the very well about listing. They are confident they can get it over shortly by facts.

[stegrego] 16/11/2006 08:18

Sold out the rest of my holding today - wish i had done so when i sold half 2 days ago at 532 - now got 290 - overall loss 40% - still feel better for being out.

This share is a train wreck IMO - seems to get worse and worse

Note to self - next time it seems dodgy either dont invest in the first bloody place or sell at first sign of controversy...

Good luck all holders - got a feeling you might need it

[sweetymonkey] 15/11/2006 22:21

Well, I think they wish to shoot the Compnay as well if they could as they often shoot each other!!!

[stegrego] 15/11/2006 22:11

Class Action filed against the company

Bloody americans will sue anyone for anything...

Wonder when they will start suing each other for being American?
Bloody ought to bunch of chuffers

[sweetymonkey] 15/11/2006 21:56

The shorters are in action.

There were only 15 trades at LSE today, of which 2 were sells. Do not understand why the share price went down later.

Va Va Voom
Be calm!

I am a holder now and will NOT sell at the moment!