Sovgem Share Discussion Threads

[jonwig] 13/12/2005 12:26

H-P,
post #129 - well spotted: they've just amended the RNS.
Clearly avid readers of this thread...

[jonwig] 13/12/2005 12:08

worc0670,

the discount on the share price to NAV is -some of us see- an opportunity.
Possibly frustrated selling from the 50p level was overdone; possibly the China stocks were viewed as high risk?

Note that liquidating the company would (just about) provide 100% uplift to the current share price But I wouldn't think that's on the horizon, now.

The Benchmark agreement has been terminated -to mutual agreement, judging by the fact that Benchmark's new parent, Global, has taken a stake.

If you want to get up to speed on SOV, the posts on this thread are pretty well all good, informative ones!

EDIT: the share price seems to have noticed today's RNS a bit late...

[jhan66] 13/12/2005 11:51

nature of quoted NAV discount has always irked me.
18p assets & 9p share price is a 100% upside rather than 50% discount. Semantics but I think it better reflects the true picture. Taking a view on current share price rather than perspective from underlying assets just seems more sensible.
minor grumble. moving on, share price is up & I'm off to find out about Soya extraction. Pass the Tofu.

[worc0670] 13/12/2005 11:28

I'm new to Sovgem but why is the share price being held so far below NAV? I just read the Benchmark agreement and I didn't like the bits about liquidating the company if Benchmark don't come up with appropriate investment opps. Have I understood this right?

If so perhaps this risk is what is holding the price down. Any ideas?

[hugepants] 13/12/2005 10:46

John, I wonder if theyve made a mistake with the dates. The share prices theyve quoted for Bodisen and Harbin are more or less the current ones. Should 9th November be 9 December? Im happy that the NAV of 18.1p is about right.

[jonwig] 13/12/2005 09:14

H-P,

the 18.1p NAV was on Nov 9; looking at the charts, I think my 19.4p as of Dec 7 will be about right.

EDIT: backtracking to Nov 9, cash would be about $2,700,000 to reach the 18.1p NAV.
The AOB would come later, judging by the RNS on its website.

[milner2] 13/12/2005 09:11

　American Oriental Bioengineering, Inc. ("AOBO") is a Nevada registered corporation. The Company's corporate office is in New York and its headquarters (production and R& D facilities ) in Harbin, China. The Company keeps its sales and marketing subsidiary in Beijing and an Asia-Pacific representative office in Hong Kong.
　　AOBO was established in 1970. The Company was listed on OTC bulletin board through a reverse merger of Harbin Three Happiness Bioengineering Co., Ltd. in 2001. The Company name was changed to American Oriental Bioengineering, Inc. after the merger.
The Company was approved to be listed on American Stock Exchange (AMEX), on July 8, 2005, and the ticker symbol is AOB.
　　AOBO's business lines cover two segments: plant based pharmaceuticals and plant based nutraceuticals.It operates through its wholly owned subsidiaries of two pharmaceutical plants, two nutraceutical plant, one R&D institute, and one sales and marketing company.By the end of 2004 the Company has a total of 800 full time employees.AOBO has adopted a growth strategy that seeks a combination of continuous organic growth together with merger and acquisitions within the pharmaceutical industry, in order to implement accelerated updates in its product mix, industrial structure, marketing strategies.
　　AOBO is a high tech company which benefits from a blend of the Eastern and Western cultures. The Company is constantly renewing its strength in the global economic competition under a management team that consists of multi-national, and multi–racial professionals, who are working hard for the mission of improving human health.
AOBO engages in the development, manufacture and marketing of all natural plant based pharmaceuticals and nutraceuticals, which feature a soybean peptide series, serving the health needs of all people.
　　In the AOBO's operating history, the sales and marketing team has earned a great reputation for the Company, keeping our revenue on sustained growth, and our China based market on constant expansion.

[hugepants] 13/12/2005 08:39

Dont have much time but the new investment looks good. Similar growth profile to Harbin and Bodisen.

Website:


Its cost them about 3p cash per share so they should till have around 8p cash per share with another 10p in assets per share. Good to see an updated NAV as well to 18.1p. Even given spread/illiquidity etc the 50% discount to NAV is far too big (bought some more this am)

[jonwig] 13/12/2005 07:19

Nice new investment announced - looks like an immediate paper profit.
Will update header details soon.

[jonwig] 08/12/2005 19:44

EnterpriseAsia [EPA] might be worth a cursory glance for comparison/contrast.
Asset discount is 33%, and its admin costs are astronomical.
If ours were at 33% discount, the share price would be 13p.

[jonwig] 08/12/2005 17:31

Archery Capital's own website won't let you through the door without authorisation, but this from elsewhere:

About Archery Capital
Established in 1996, Archery Capital, a New York-based firm, consistently
has been on the leading edge of high tech investing, and continues to
seek and provide capital and strategic advice to emerging global market
leaders.

It's also described as a a New York-based fund of hedge funds, and is mentioned alongside Benchmark ... small world!

Stuff happens - we hope!

[all found by googling]

[milner2] 08/12/2005 17:19

SovGEM Limited
08 December 2005

SovGem Limited (the 'Company')



8 December 2005



Notification of Interest



The Company has been notified today that Archery Capital LP and its management
have a notifiable interest in the ordinary shares of 0.001 pence each in SovGEM
Limited ('Shares') of 1,426,000 Shares (representing 6.27% of the issued share
capital of the Company) held as to:

Archery Capital LP 900,000 Shares (3.94%),

Archery Capital Management Defined Benefit Plan 441,000 Shares (1.93%); and

Archery Capital Management Defined Contribution Plan 85,000 Shares (0.37%).



End

[hugepants] 06/12/2005 23:09

The 20% rise in Bodisen today was due to 43M worth of new contracts!
So Bodisen at all time high. Harbin marginally below all time high




Bodisen Biotech Signs US$43 Million in Contracts, Sees Record Earnings for 2006 and Continued Favorable Market Environment; Company Updates Growth Strategies for 2006
- BusinessWire

NEW YORK, Dec 06, 2005 (BUSINESS WIRE) -- Bodisen Biotech, Inc. , the first China based environmentally friendly bio fertilizer company listed on a US stock exchange, announced today that the company has signed a total of US$43 million in contracts for 2006 product delivery with various new and existing wholesale distributors during two national agricultural product trade shows which take place annually in November in China. Bodisen expects to fill these and new orders throughout 2006. In 2005, Bodisen signed over $20 million in contracts in 2004 for 2005 product delivery from these trade shows. Bodisen believes the company has existing capacity to meet these demands.

Bodisen markets its products through over 600 nationwide wholesale distributors who then retail the products to farms and individual farmers. From the two trade shows, Bodisen noted that more and more Chinese farmers are identifying Bodisen products as quality and effective for higher crop yields. Bodisen expects this positive trend to continue.

Bodisen sees record 4th quarter earnings as well as record 2006 earnings on organic growth from existing product lines in a favorable market environment. Bodisen continues to experience over 30% on average net income margins across almost all products lines, which are several times higher than those of global chemical fertilizer companies.

Bodisen provides the following information regarding recent developments and 2006 outlook and growth strategies:

BODISEN OFFERS ENVIRONMENTALLY FRIENDLY PRODUCTS

Bodisen has proprietary technology with which it develops environmentally friendly bio-fertilizers that are easily absorbed by plants without the negative environmental effects of chemical fertilizers. Over the years, soil conditions throughout China have deteriorated due to heavy applications of chemical fertilizers. Driven by consumer demand, farmers have become conscious of plant quality and food safety. Bodisen notes that several global chemical fertilizer companies have recently announced production cuts due in part to decreased demand for their products in China. For the Chinese market, Bodisen believes this is largely due to farmers' shift in fertilizer preference from chemical fertilizers to environmentally friendly bio fertilizers. Chinese farmers who use bio fertilizers by Bodisen not only generate higher crop yields but also are able to label their crops as organically grown "Green Foods", which typically command much higher selling prices. Bodisen believes its products are gaining market share rapidly in the Chinese market at the expense of chemical fertilizer companies. Bodisen expects this trend to continue for years to come.

BODISEN SEEKS EXPANSION IN CHINA WITH A BRANDING STRATEGY FOCUSED ON ORGANICALLY GROWN "GREEN FOODS"

Bodisen plans to expand manufacturing and marketing efforts throughout China's key agricultural spots primarily located in the north east and northwest farm regions. Bodisen will expand on its already well known brand and pursue a "Bodisen" agricultural product branding strategy which stands for environmentally friendly, healthy organically grown foods. The company believes this branding strategy will further enhance product sales and profit margins.

BODISEN'S INVESTMENT INTO XILAN NATURAL GAS COMPANY SHOULD LOWER RAW MATERIALS COSTS IN ADDITON TO A STRATEGIC INVESTMENT

Bodisen's recently announced investment in China based XiLan Natural Gas company, the only privately owned Chinese company that owns 120 kilometers of high pressure natural gas pipeline in China, will significantly lower raw material costs in urea, which is a major component of our compound fertilizer products. The XiLan natural gas company is in the process of becoming a public company. Once going public, it may be the first privately owned Chinese natural gas company listed in the US. Bodisen has a 13% equity ownership in Xilan.

MANAGEMENT COMMENTS

Ms. Qiong Wang, CEO of Bodisen commented: "Bodisen is an environmentally friendly company in a favorable market environment. Bodisen has been a public company for almost two years. During this time, our management team has been focused on earnings growth, market share growth and corporate governance. Our shareholders have taken notice of our stellar earnings growth as evidenced in growing number of institutional funds owning our shares. China's agricultural sector provides 900 million farm related jobs out of the country's 1.3 billion in population. With proprietary agricultural technology and less than half a percent of total fertilizer market share, Bodisen faces tremendous growth opportunities. With sound execution strategies, Bodisen is an access to China's environmental solutions."

About Bodisen Biotech, Inc.

A Delaware company, Bodisen is headquartered in Shaanxi, China's agricultural hub. The Bodisen brand is a highly recognized fertilizer brand in China. Its environmentally friendly "green" products support the mandate of the Chinese government to increase crop yields for the purpose of decreasing China's dependency on food imports. Among China's population of 1.3 billion, approximately 900 million are farmers whose incomes depend on their crop yields.

With over 60 products and approximately 600 (and growing) nationwide distribution centers, Bodisen has experienced rapid growth. Bodisen's products are based on proprietary agricultural technology jointly developed by company scientists and university laboratories. These products address grains, vegetables, and fruit crops and have been proven to increase crop yields by 10% to 35% while being 100% environmentally friendly.

BODISEN HAS WALL STREET RESEARCH COVERAGE

Wall Street firm New York Global Securities, Inc. ("NYGS", www.newyorkglobal.com) provides research coverage for BBC. NYGS' parent company New York Global Group (www.nyggroup.com) has a significant China presence.

Safe Harbor Statement

This press release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Bodisen Biotech, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

SOURCE: Bodisen Biotech, Inc.

[jonwig] 06/12/2005 19:31

Milner - excellent find!
Will put it in the header.

[milner2] 06/12/2005 19:29

Thanks jonwig, going back over the posts

Cheerfull reply from CEO, not giving much away, but did say that he thinks i wouldn't be dissapointed in becoming a shareholder,
suppose u can take that how ya want,good me thinks.

SOVgems website under construction i see, hope some good news will come along with that when up & running?

[jonwig] 06/12/2005 19:11

milner - yes, the number of shares is 80k BOD and 250k HRBN.
That's taken into account.

He's just back from China?
Well, business not pleasure surely - and good news ahead, we hope.

[milner2] 06/12/2005 19:07

jonwig i'm a fairly new invester

Bodison Biotec $13.5 2day,
if my reserch is right SOVgem still have 80.000 shares would'nt this make a change?.

The cash your right,the fees must eat into this a bit,
had email back from the CEO, he had just returned from china,

yep following them into their next deal could be good idea if their recent 2 are anything to go by.

CHEERS

[jonwig] 06/12/2005 16:30

Milner2,
See the end of the header for NAV details.
I updated the information on 22 Nov: not since, as I don't think there will be a significant change.
I use a fairly simple spreadsheet which incorporates the investee shareprices, £/$ rate, etc.
The cash is a guess. It will be gaining interest, of course, but every now and then there are chunky fees to pay out.
The interesting event to come will be the next deal - whatever share they buy, I may tailgate them into it.

EDIT: I suppose the discount will have narrowed - will recalculate.

[milner2] 06/12/2005 15:49

Hello

SOVgem said their net price per share is 15.3p, 27th september 2005,
this when 1 of the 2 companys {Bodison Biotec} they had invested in was trading at $7.50. up 67% on the oringinal $4.50.

Bodison Biotec now $12.40,
Harben electric now $7.85 up from $2.00.

So made small investment 2day considering this information, and guessing with money in bank for new investments, shares hopefully bargain?

[nappers] 02/12/2005 11:53

1/2 price sale now on.

Buy for 50p and get 100p back. get ém while they are hot !

Both companies could rally further from here as the revaluation continues and the Nasdaq rallies. 20p NAV soon ?

Which tip sheet are we going to get first ?

[jonwig] 01/12/2005 16:03

Holdings RNS:

By an email dated 1st December 2005 the Company was notified that Neill Etheridge no longer holds a notifiable interest in the Company.

According to the prospectus, his initial holding was 999,999 (4.38%), given free, I think.

[hugepants] 29/11/2005 21:58

Some chunky trades today. I assume the trades at 9.5p were buys?

[hugepants] 27/11/2005 22:34

John,
Theyre just using the 15.3p NAV as estimated for end Sept (see interims).
We are guessing but Harbin share price has doubled since then and Bodisen up significantly as well.

[jonwig] 26/11/2005 08:25

Thanks, John.
Sometimes you get the full story when you access the link, sometimes just an invitation to subscribe.
Seems I was lucky.
The price given was 8.75p, and date 23/11, so that's the reason for the buying.

SovGem has slid more than 80 per cent from its initial price of 50p last November, making it one of the worst performing new issues of the past year. However, this is unfair.

The current price values the Chinese investment vehicle at little more than its cash level of £1.97m. This means the group's two holdings in Chinese manufacturers – organic fertilizer maker Bodisen Biotech and linear motor producer Harbin Electric – can be picked up for nothing.

These are currently valued at £1.08m, giving the overall company a net asset value of more than £3m, or around 15p a share. The stock therefore trades at a discount of 40 per cent or so. This is unjustified, particularly as SovGem's major disappointment is being addressed.

SovGem's shares were suspended for five months this year, while chief executive Hugh de Lusignan attempted unsuccessfully to negotiate a reverse takeover. This left the company with an exclusive agreement to support some of the pre-IPO fundraisings carried out by Chinese specialist finance boutique Benchmark, now part of New York Global. Some investors felt this was too restrictive. De Lusignan has now managed to extract SovGem from this agreement, meaning he can select investments from a wider variety of sources.

Through a policy of selling investments judiciously, the company even made a £53,000 pre-tax profit in the first half, preserving the cash pile. Things are starting to look up at SovGem and the shares are worth a speculation.
Christopher Spink
Market cap: £2m
PE Forecast: n/a
Share price: 8.75p

Note they're taking lower values for the NAV than I am: will double check.

[jhan66] 26/11/2005 08:11

just noticed this entry in growthcompany.co.uk

SovGem
SPECULATIVE BUY 23/11/2005
SovGem has slid more than 80 per cent since flotation, valuing the Chinese investment vehicle at little more than its cash level of £1.97m. Read
Companies: SOV

I don't subscribe so this is just the headline