August 18, 2009
– Comments (4) |
RELATED TICKERS: CGA
Since we've returned from China, I've gotten more than a few requests for pictures of the new China Green Agriculture (AMEX: CGA) production facility. I was hoping to use these as part of an In Focus video, but we're a bit capacity constrained on that end for the moment. Thus, in the interest of being responsive, here they are. Enjoy your virtual tour...The entrance to the compound. The new facility is on the left; the old facility is straight ahead.Inside the old facility. These are bags of weathered coal (the raw material) ready to enter production.The mixing vats...which are controlled by computer (see next picture).Here's the line where the fertilizer is bottled, labeled, and then packed. You can see that the packaging is the most labor intensive part of the operation.The outside of the new facility, which is set to open this month.New vats. You can see there are more of them.The temporary parking lot for construction workers alonside (I believe) a new packaging line. It gives you an idea of the size of the new building (much larger than the old one).New equipment.Overall, the new facility is much bigger than the old one and will represent a sigificant (4x) annual capacity expansion. The company was just testing some of the new equipment when we visited in July, but said they remained on track to have it up and running this month.
Sweet pics! This reafirms my pick for CGA all the way! (not really, but the larger facility does look a lot better)
As someone who has toured his share of pharmaceutical production facilities, these pictures are very similar to what I would typically see.
Thanks. Since CGA's financials in terms of fundamentals are rather lacking at this point, these pics alot of tangible information. I believe the company has considerable growth potential with PE values going considerably higher. Look forward to the company's next quarterly report. Given recent guidance on earnings expectations, that report should be interesting to say the least. I'm glad that I have a piece of the action.
When I added my comment yesterday, I failed to add an observation that I've made with regards to the behavior on the CGA stock in the market place:
1) Significant shifts in price and sales volume tend to occur with great tendency between opening and about 10:45ET; and then again between 3:15 and closing time.
2) Low sales volume, along with considerable price stability, tends to occur between 10:45 and 3:15ET period.
The overall market climate (bull or bear) seems to have considerable influence only at the beginning and at the end of the marketing day, with relatively small affect on the pricing during middle marketing period.
I believe CGA's behavior in the market yesterday and what will likely be the case today, underscores this observation. Today will be interesting though, in that the stock market switched drastically from a bear to a bull sometime around 11:30ET, thus far (1:30PM) since it is the middle of the marketing day there has been only a fairly small shift in price to the upside. If the overall market remains bullish after 3PM, I expect to see a significant increase in both volume and price.
I believe the underlying reason for CGA's stock pricing behavior is because a significant portion of the shares are owned, traded , otherwise dominated demographically by Asians. Hey, they have to sleep sometime too!!!
Does anyone have a different view or observation?
By the way, views on the potential of this stock is in any way diminished by this observation. I remain very bullish on CGA.