|China Food Co.
||EPS - Basic
||Market Cap (m)
Real-Time news about China Food Co. (London Stock Exchange): 0 recent articles
|flateric: Sir Alex Ferguson considering retiring as Manchester United manager before end of the week
Sir Alex Ferguson's Manchester United future was shrouded in doubt on Tuesday night with the Scot understood to be giving serious consideration to ending his 26-year reign as manager.
As rumours of the 71-year-old's imminent retirement swept Manchester, senior figures at the club failed to respond to repeated attempts to confirm or deny the story, which emerged following United's player versus coaches golf day at Dunham Massey on Tuesday afternoon.
With United now forced to adhere to the strict rules and regulations of the New York Stock Exchange in terms of the release of significant information relating to the running of the club following last August's partial flotation, any change of management would fall within those requirements.
As of Tuesday night, no statement over Ferguson's future had been issued by United.
However, with sources close to the players confirming that the squad's golf day had been overshadowed by suggestions that the Scot would be making an announcement ahead of Sunday's clash with Swansea at Old Trafford, any ongoing uncertainty is unlikely to be allowed to continue to the point where it would affect the confidence of investors and, in turn, United's New York share price.
When United's owners, the Glazer family, issued its prospectus for the club's £500m bond issue in January 2010, the prospect of Ferguson leaving the club and potentially jeopardising future success was raised by the Americans as one of the risk factors attached to investing in the club.
Full story: http://www.telegraph.co.uk/sport/football/teams/manchester-united/10042798/Sir-Alex-Ferguson-considering-retiring-as-Manchester-United-manager-before-end-of-the-week.html|
|woodcutter: sold all my stock at a loss of few £K Reasons:
Poor quality management and seemingly deceptive particularly over the feed business sale, they have lost credability. Why are they building a new factory inorder to sell the business, they clearly can't sell it and there's no guarentee that they will once it's complete.
Completely underestimated the requirements for launch of the new product Xaka, again due to poor mangagement and inexperience. Maclean should take full responsibilty for this he clearly knows the region but has very little operating experience imv, typical of a consultant.
The selling of 10% of soya to another provider is a poor decision it pretty much confirms they have built a factory with excessive capacity relative to their own ability to deliver product.
The finances now look very weak and it's almost inevitable that there will be further share issues to raise capital or loan notes at discounted share price conversion.
Too much emphasis on EBITDA, at the end of the day these are real costs, particularly the markting costs.
I've looked at a number of aim chinese companies now and, invested in a few and they all suffer from the same problem underlying weak inexperienced management.
I can see the share price drifting down to 16/18p now.
As Cisk stated i would need to see several quarters of growth in earnings before before considering buying back in.
look like you i am a holder too and have quite a large stake so i'm not in the business of bashing CFC. However the article i posted was to give some indication of how difficult it is to launch an new product and some of the pitfalls even the most experienced players like coke have had. Indeed i'm well aware of the formula change episode but the coke launch referred to in the article was a later attempt to change the male population habits which clearly failed.Did you read the article?
So this brings us to Xaka and CFC.
I'm not sure what comments you refer to as speculative and unsubstantiated.
Some clear points to note to add to those good points already made by 1nf are:
Before Xmas they were clearly unprepared for the launch of the product despite it's success at the trade fair and the successful sign up of distributors. They weren't able to deliver in sufficient quantity, hence a shortfall in sales. This somewhat resembles Flaw 1 in the link i provided at my last post, they couldn't meet the demand for the product.If you read the past rns they were caught with their pants down i'm afraid.
They have since made significant play on the marketing expense incurred so far and that this will continue into the first half of this year, again in the rns's. Now i may be wrong but what that seems to be saying is that their profits for this year will be affected by this marketing expense. Granted we do not know how this will affect sales in the second half and i will be more than pleased to see a vast improvement.
They have consistently (in many rns's) said they need to strengthen their management team.
It is well documented that the chinese are wealth savers and we need to get them to become more consumer orientated and yes we don't know how sophisticated their shopping habits are but human psychology is pretty similar the world over and if you had read the article i posted the research seems to suggest that shopping habits are hard to break, hence very little change in what's in your basket. As pointed out by 1nf you stick with the brand you know.
And finally as Cordwainer pointed out quite elequently why are they looking to use an external international business, there's no explanation as to the purpose of this.
Remember this business turns over £17m and spent £2.6m on the product launch so far, not an insignificant sum relatively. And there'll be more to come in the first half. Time will tell if it's been value for money.
Azalea I'm as interested in you in seeing the share price move forward but we have to be realistic and question some of the actions of the company in respect of the Xaka launch as imo it has not been handled particularly well. And yes it's easy for me to sit here in hindsight and make these points but i would have expected them to have engaged someone with sufficient experience of doing this type of launch so as to avoid some of the pitfalls they have clearly fallen into.
Fwiw in the long run this business should be successful and if we are all prepared to hang around for a few years then i'm sure it will come good but in the short term considering the size of my holding i think i have to consider looking at other better alternatives where i would get a better return on my investment. As of now i'm still holding but that is constantly under review.
At present we are looking at earnings of about 1p to 1.4p i guess this year. Do you think the share price will be where it is now if they have to spend more on marketing and only deliver a similar result next year, that's my fear. It will drift to 15p share price and i cant allow myself to fall into that position. I could sell now and wait for the eventual upturn, should it materialise.
Sorry for the long post.
post note nice to see it moving back up today.|
|1nf3rn0: "CFC has made its investments on new plant, production, distribution and a new award winning product. Where is the evidence that it needs to spend more?"
Again, where is the marketing/brand building expenditure? Nowhere.
"Where is the evidence that it needs to spend more?" Possibly in the share price.|
|mafia music: not much volume today. Todays Rns was very good . not much happening with the share price, and not much interest.
Was the 25,000 a sell at 39?
after that there's a 5,000 buy at 39.7p|
|morecliff: promises, promises, but the share price drifts away.latest info gives company trading well. what is wrong here?|
|mafia music: i have a share price at around 232p by 2012-2013 which seems very possible
gives a market cap of 150million which is very tiny! does this seem at all correct please feel free to correct me and put me right..|
|mafia music: how many tonnes of soya are china foods producing at the moment?
anyone worked out what potential the share price might be when the new facility produces extra 50,000 phase 1
phase 2/3 adding extra 100,000|
|mafia music: what results are you expecting. what effect will this have on the share price
i have read some broker notes which are old but none the less show some potential here. The soya sauce facility in Shou Guang City will be the key here where adding extra value is concerned.|
|snurkle1: Not invested here but got this in my inbox around 16.00 this avo. Might explain the rise.
btw Well done you guys and good luck for the future.
A date for China Food shareholders to remember
A share price that's hard to fathom
For any potential equity investment in China, the main selling point is its sheer size. The country is mind-bogglingly vast.
The population of a single province is greater than that of any single European country. Look up as you start to cross the road in China and you are likely to be confronted with not just a lone cyclist, but something that looks like the charge of the Light Brigade.
Any business that can conquer just one small corner of China will become a vast enterprise. Take the China Food Company PLC (ticker: CFC) for example.
As with so many penny shares, I stumbled across this fascinating AIM-quoted company quite by chance. As I looked through the company's annual results, I came across some forecasts from the broker FinnCap.
FinnCap believes that the China Food Company will grow its annual sales by 136%, to £68m, over the next two years.
The broker thinks that in 2011 the China Food Company will make a profit of £9.5m, which equates to earnings of 10.5p for each share.
At today's share price of 31.5p, the prospective price/earnings ratio is just three times. I don't think that there is a single share in the FTSE350 on such a derisory rating as this. There certainly isn't one that appears to offer the sort of growth prospects of China Food....
A date for China Food shareholders to remember
If you happen to be a shareholder in China Food already then the day that you should mark in your diary is May 12. This is when China Food is going to officially open its new 270,000 sq ft factory in Shou Gang city.
The new factory is going to be producing soy sauce. By the sound of it, the output of this one factory alone would be enough to cater for the entire UK population. But in China it is a mere drop in the ocean.
Although it dominates the market in the province of Shandong population 94 million the China Food Company is only the ninth-largest producer in China. But it clearly has plans for major growth and its strategy makes a good deal of sense.
The Chinese food business is changing. Not so many years ago housewives bought all of their meat, their fruit and vegetables and rice at the market. But now the supermarkets are taking over.
It is easy to underestimate the pace of change. Already Wal-Mart has a staggering 260 outlets in China, while Tesco has 79. As in any other country, these retailers demand consistent quality, prompt delivery and products that are not going to leave their customers with gastroenteritis. Last year the Chinese government introduced a Food Safety Law, only accelerating a general rise in standards.
Another trend is that towards the growth of a sophisticated urban middle class. In 2005 just one third of those living in China's huge cities were classified as 'affluent'. By 2025 that percentage is forecast to be 87.5%.
Forget the old image of Chinese peasants herding ducks through the streets and laundry of dubious quality hanging from upstairs windows. Today, Chinese cities are more like Manhattan. Citizens want a certain quality of life. The old ways are changing. And that applies to food as much as anything else.
A share price that's hard to fathom
Given this promising background it is a surprise to find the shares of China Food languishing at 31.5p.
I have warned before that Chinese companies quoted on the London Stock Market are not always quite what they seem. But China Food seems to be suffering from the shock of a poor year. It was hit by the recession, particularly suffering as a result of a downturn in farm income (more than half of its sales come from selling animal feed).
Another problem is that the shares of China Food are tightly held by its founders and directors, precluding any serious interest from City investors.
But for a private investor looking for a punt on China's changing tastes, this certainly looks a saucy candidate. It's one that I'm adding to my watch list of penny share China plays.
Be sure to take a look at this...
Here's something I recommend you take a look at. We're stepping away from the world of penny shares for a moment. In fact, it's a chance to dip into the world of big, boring Blue Chip companies... and make them a whole lot more exciting (and profitable).
Bear with me. This really is worth two minutes of your time. Just let me explain the idea.
As you know, large caps don't normally move as far or as quickly as penny shares. Typically, they are also more 'stable'. Those are facts. That's why you and I go for penny shares, right? Higher risk, higher reward potential.
But I bet you didn't know there's a very simple way you can turn a 5% Blue Chip gain into 42%... or 15% into 52%. All of a sudden, boring Blue Chips get my attention!
I'd like you to see how you can do this, because it's dead simple. But rather than go into it today, I'll send you everything you need to know tomorrow. Just be sure to take a couple of minutes to read it you'll understand straight away what this can do for your wealth.
And if you'd rather find out about this straight away, I'm including a shortcut link that takes you right there. It's just after my sign off.
For The Penny Sleuth|
China Food Co. share price data is direct from the London Stock Exchange