Bodisen Biotech Share Discussion Threads

[va va voom] 15/11/2006 21:36

Bloody hell - down to $5.29 in the States! Expect more carnage tomorrow. I'm kicking myself for buying and topping up with this punt of a dog now.

[sweetymonkey] 15/11/2006 21:31

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

[wiganer] 15/11/2006 20:37

It seems the shorters are in control in the US too:

[leighbarton] 15/11/2006 17:44

All getting rather messy and I suspect it will get worse before we see any upside. Holding for time being.

SweetMonkey I mentioned $10 not £10 in my previous post - a tad different!!

[hedgehunter] 15/11/2006 15:26

Evils in shorting it.

[hedgehunter] 15/11/2006 15:24

I see Evils in shorting it.

[miamisteve] 15/11/2006 10:20

From what I gather this is standard practice in America. Several law firms will pitch to investors on a no win no fee basis and end up settling out of court with the company.

The link below sheds more light on the issues with NYG.




I am revising down my 2007 forecast my a further 15cent, because of possible negative effects on forward orders and legal disruptions to operations. Will review when the results of the trade shows come in.

[cimbom] 15/11/2006 01:54

Investor Notice: KGS Announces Investigation on Behalf of Investors in Bodisen Biotech, Inc.
NEW ORLEANS, Nov. 14, 2006 (PRIMEZONE) -- Kahn Gauthier Swick, LLC announces that it has commenced an investigation into Bodisen Biotech, Inc. ("Bodisen" or the "Company") (AMEX:BBC) to determine whether it has violated federal securities laws by issuing false and misleading statements to its shareholders.

Late on November 12, 2006, Bodisen stated that it had received a letter from the American Stock Exchange warning that it is out of compliance with certain listing standards. The exchange said it believes Bodisen made insufficient or inaccurate disclosure in public filings on its relationship with, and payments to, New York Global Group and its affiliates both prior to and subsequent to its listing on the exchange. The Amex also expressed concern that Bodisen has internal control issues related to its accounting and financial reporting obligations in the context of its relationship with the company.

As a result of this news, Bodisen shares have tumbled almost 50% over two trading days, falling from a high of $10.84 per share on November 10, 2006, to an intraday low of $5.81 today. KGS is currently evaluating whether a class action lawsuit should be filed to assist Bodisen shareholders in recouping their losses.

If you purchased shares of Bodisen between November 16, 2005 and November 10, 2006, you are urged to call Lewis Kahn, Managing Partner, KGS, toll free 1-866-467-1400, ext. 100, via cell phone at 504-301-7900, or by email at [e-mail] to learn about your legal rights and KGS' ongoing investigation. For further information on KGS, please visit www.kglg.com.

CONTACT: Kahn Gauthier Swick, LLC
Lewis Kahn, President
[phone], ext. 100

[sweetymonkey] 14/11/2006 21:29

LeighBarton--

I do not think it is too bad. The correction has been over done. I believe it will be corrected positively shortly, if not tomorrow. As you said, it may not be so quick to go back around £10, but reaching to the range of £6-7 is not in distance.

Tell you the truth, I am confident about this Co. I will get some tomorrow.

[leighbarton] 14/11/2006 20:50

SweetMonkey - comment on the RNS is that they released the US figures last night. We therefore had to wait nearly 24 hours to get the release in London. Really I think these things should be done at the same time.

I am concerned at the tone of the release. The chairwoman is very upbeat when in fact there are a few numbers that need more explanation as to why they compare unfavourably with the prior year. There may be some good explanations, like the cost of building two new factories, but they are not in this release. Moreover we are told that the 4th quarter is traditionally their slow quarter so where does that leave us with these results?

Arthurly - I don't claim to be an investment guru, for every RCG I have an MRP lurking, however I have been effective at following my winners which helps counter my bad calls. This one I said right at the start of my investment was a speculative punt, based on the fact that Greenberg was unduly slamming the share. As it turns out he got some of it right, as a result of which the share has been hammered expecially on the back of a weak 3rd quarter that they had (and still do) say is strong. As it is I think I will get my money back on this if I hang on as I agree with Miami that we should get back to $10. However I think it now will take alot longer to get the sort of returns I had thought was possible. The trouble is everyone is going to be very sceptical about any newsflow from this company and so any real mark up is not likely to happen until we have the full year numbers. I am not sure now I will hang around that long. However I might take a short term speculative punt in addition to my ISA holding.

[arthurly] 14/11/2006 19:26

Had a few of these after the first quarter results and felt these could be a very big multibagger within a couple of years. Sold out after the 2nd Q results as things not quite on track. Saw the Q3 update but something about it seemed wrong (like a bad fish in your pocket - ie it smelled). Results are actually dreadful imho.

I'm not usually very good at sussing these things out but had a couple of hard knocks last year - FMJ and the notorious LGB - and maybe I've wised up. Bit shocked at LeighBarton being in this as he's in the wonderful RCG (no smells there in my opinion), which I reckon will one day do us all proud.

[sweetymonkey] 14/11/2006 18:30

LeighBarton--
You wrote, "One thing I don't understand surely the 3rd Qtr should be given out as an RNS (as I write I see it has but not til 5pm!)". As I understand, GMT 5pm today is 1am Beijing time tomorrow, 15th November, which is the planned date of release of the results.

[sweetymonkey] 14/11/2006 18:23

Go up to 400p tomorrow!

[leighbarton] 14/11/2006 17:41

Here's Bodisen's fan Greenbergs take on the results, I have to say for once he is not far off the mark except the rise in bad debt is down to the rapid expansion and the fact that the company does allow farmers up to 12 months credit...

"Bodisen's third quarter quietly disclosed

Updated to include today's stock action

Bodisen Biotech's (bbc) stock is off around 30% this morning -- more than 50% in two days -- after sneaking out third-quarter earnings Monday night in a 10-Q rather than a press release. (I first pointed this out on this blog Monday night.) This is the same Chinese fertilizer company, you may recall, that issued a stock-touting press release on October 18th hyping its soon-to-be-released "strong" third quarter revenue and net income growth, without providing any detail. It's no wonder there was no detail -- and no wonder there wasn't a press release preceding or conjunction with the 10-Q. (I wrote about this at the time in a column headined, "Bodisen shows how to hype a stock.")

Quick and dirty: Revenue in what historically has been its strongest quarter was up 21% to $12.7 million, a far cry from the 95% year-over-year gain in the second quarter or the 124% gain in the first quarter. While net income rose a mere 11% to $3.1 million-- down from a 118% gain in the second quarter -- earnings per share of 17 cents per were down 5% from a year earlier, when there were fewer shares outstanding; a quarter ago, when there were just as many shares outstanding as now, earnings per share were up 82% from the prior year. One reason for meager earnings performance this time around, the company said, was a steep rise the allowance for doubtful debts; it didn't elaborate.


Maybe it's just being extra conservative, which would be a good thing. But it could also be a sign of the company's concern that it may have been too aggressive with its sales practices; it books sales when its products are shipped. Indeed, receivable days outstanding leaped 118% from a year ago and 47% from the prior quarter to 144 days. And operating cash flow for the second time this year was negative.

Can't wait for that now-delayed conference call -- if it ever happens. (The call was delayed, the company said, until it resolves issues with the American Stock Exchange, which is asking the company to provide information that would cause it not to be delisted.)"

One thing I don't understand surely the 3rd Qtr should be given out as an RNS (as I write I see it has but not til 5pm!)

[miamisteve] 14/11/2006 17:36

This year will come in with earnings of 85cent. Next year with the Xinjiang contract and no growth in trade show business revenue should double and come in at around $95m and if margins fall to 25% then eps will be 130cent putting the stock on a forward p/e of 4.6 at $6. Once AMEX is cleared up and providing trade shows come in ahead of last year (probably around $50m), then I can see this back to around $9-$10. We will have these issues clarified in the next 4 weeks.

[leighbarton] 14/11/2006 17:30

I can't see a quick bounce from here - as I write we have gone sub $6. Will wait and see on this.

[va va voom] 14/11/2006 17:23

I wish I could share your optimism.

[sweetymonkey] 14/11/2006 17:11

After reading all the comments, I do not feel there is anything to worry about. Given this level of price, I am going to buy some tomorrow. It may go up over 400p tomorrow though. It is still cheap. I see it will double shortly.

[ponderer] 14/11/2006 16:43

Quality geezer, he is a fireman

[leighbarton] 14/11/2006 15:44

cimbom, don't know what it is about pcquote but never loads properly on my Mac - I only get the far right (adverts) of their screen with no ability to scroll to see what their site says!

[leighbarton] 14/11/2006 15:41

Wiganer - a v fortunate call, It will be interesting to see how much further this has to go. I will stay in for the time being and may invest further as a recovery play if they can satisfy the compliance issues and assuming they have positive things to say about the trade show.

[cimbom] 14/11/2006 15:33

This link gives you live prices: