GuangzhaoIFB   

Guangzhao IFB

No idea too. Didn't manage to find any info on GuangzhaoIFB.

 

Any one to comment on the target price for this counter?

 

GuangzhaoIFB is really a money tree. didn't know that trees really can turn into money $$$. heavy voulume and lots of transactions today and the share price has rise steadily for these few days.

 

Seem like the East wind has started blowing again. Volume high and price advancing steadily.  

 

This tree is slowly transforming into a money tree even before harvest time.... hahaha.... 

 

multiple buy ups between $0.295 - $0.30...see previous post on 10 Jul...hopefully it will materialise

 

the volumes were pretty high...substantial

 

Good time to accumulate on dip. Keeping my holdings until harvest... no worries with routine flutuations in price...

 

if sentiments are good...should go beyond $0.305..market rather flat now for the penny stocks

 

This counter has advanced back to formal glory. Seem like the steam has not yet run out!! It will continue to cheong..... cheong cheong cheong

 

Managed to kio some today for long haul. Hope there is no forest fire, floods and droughts until harvest time late 2007/early 2008......

Farmers really depend on heaven for a living ......

 

This counter has been quiet for so long. Time for it to advance.....  Will good profit announced and strong investors...

 

Anyone know what news?

 

Trading halt on this stock pending annou. 

 

Anyone know why this stock moved the last two days?

 

DBSV said it has initiated coverage with a 12-month price target of $0.18.



This should cap the upside for the stock. Hope you guys didn't chase after it.



The brokerage believes the firm is still in its "infancy stage", until next year, and only expects revenue growth spurt in 2008.



"The group expects to start harvesting its Guangzhao poplar trees in early 2008. This should unlock the value of its biological assets, and result in a 31% revenue growth from 65.9m yuan in 2007 to 101.8m in 2008," DBS said in a client note.



"Although potential upside to the stock is supported by our (discounted cash flow) valuation of $0.28, we chose to price the stock at the lower value to reflect the execution risk the group may face for its agriculture business," it added.

 

RSI - looks quite overbought. Stochastic - still has some upside. Has numerous resistances - 0.18, 0.19, 0.20, 0.21, 0.22.

 

Anyone knows whether this stock still can buy? On TA basis...

 

At $0.14, it is trading at very attractive forward PERs of 2.4x and 3x and cheap P/B of 0.84x. KE has a price target of $0.30 on the stock based on 6.4x FY08 earnings.



Since late 2004, its share price has been cut down by several key concerns:

1) shift in business strategy from sale of seedlings/saplings to tree cultivation meant that cash flow will be weak in the early gestation years;

2) delay in securing land use and clearing rights for certain land parcels;

3) risk of damage from bad weather and

4) difficulty in ascertaining and valuing the growth of its poplar trees.

While some of these fears are real, investors may be missing the trees for the wood as the risk-reward of harvesting timber will outweigh that of saplings over the long haul.



Currently, it has 13,400 ha (about 25m trees) under poplar cultivation, of which about 28% will be ready to be logged by end 2007/early 2008. The group has also applied for the necessary approvals to commence commercial logging on part of its 5,333 ha pine forest in Jiangxi province, acquired in 2004 for RMB20m (15-year lease). This would enhance earnings in the short and long run as sales of pine timber would then be followed by replanting and harvesting of GFGPs. Meantime, it has replanted its Anhui plots, where 0.75m trees were destroyed by abnormal flooding due to typhoons, repaired and built additional dykes, improved the drainage systems and taken full insurance coverage.



Reforestation a national priority in China. Two major environmental initiatives under China's 11th Five-Year Plan will present immense opportunities - reforestation of the coastal eastern cities and planting of a protective wind barrier in the northern belt. To this end, it has successfully developed a strain of Oriental fir, which has deep roots and excellent soil retention abilities for large scale cultivation and a salt tolerant poplar variant that is suitable for arid terrain with high soil salinity.



It is fulfilling China's insatiable appetite for wood products. Timber prices in China have been on an uptrend in recent years, fuelled by the burgeoning demand from domestic consumption and re-exports, which far exceeds local supplies. With China's annual consumption of pulp paper set to rise from 40m tons in 2003 to 60m tons by 2010, 2.7m ha of forests has been set aside for pulp plantations. By 2015, the State Forestry Administration projects 13.3m ha of fast growing trees to supply up to 140m cubic metres of timber or approx 40% of domestic demand. It is as a major beneficiary of these programs.



Management is exploring various options to improve its tight cashflow and fund future expansion. Apart from a warrant issue in Jun 06, which raised $6m, the company is arranging for mid-term financing, which together with pine lumber sales, will provide adequate working capital (about RMB70-80m/year) till it commences large scale harvesting from late 07 or 08. The company currently has little net gearing and is expected to turn cash flow positive by FY08.



KE believes that interest in the stock will pick up when cash flow starts to kick in from the sales of pine and polar lumber in 2007/08 and actual profits realized.

 

trading pick for this pick :D http://kelongstocks.blogspot.com