China Marine Food - Motley Fool Tipp - 500 Beiträge pro Seite

[R-BgO]

One Wildly Mispriced Stock You've Never Heard Of
By Anand Chokkavelu, CFA
May 18, 2010 | Comments (23)


Question: Where are the biggest stock mispricings?

The general answer is that they lie in the dark corners of the market. The places with incomplete, unreliable, or conflicting information. The places where even Wall Street analysts rarely tread.

The specific answer is smaller-cap stocks and foreign stocks.

Now imagine the mispricings that can come with smaller-cap stocks that also happen to be foreign. Don't think too hard. I've got an example that's going to blow your mind.

How these mispricings occur
Before I reveal my example, you need to understand exactly why foreign small-caps can be wildly mispriced. One of the best ways to shine light on a dark subject is to study its opposite, and the opposite of a foreign small cap is an American large-cap stock.

When we talk about the prospects of an American large cap, we take a lot of things for granted, including:

* Firsthand knowledge.
* Safety in watchdog numbers.
* System stability.
* Track record.

Let me briefly explain.

Firsthand knowledge
Even folks who aren't tech-savvy can verify some of the claims AMD (NYSE: AMD) and Intel (Nasdaq: INTC) make. Per their income statements, Intel has more than six times the sales of AMD; as a very rudimentary sniff test, we can walk into a Best Buy and physically see the computers with "Intel Inside" stickers and compare them to the number of AMD-based computers.

Another income statement example: Intel's R&D budget is the same size as AMD's total sales, traditionally giving Intel a rare moat in the technology space. But with technology, advances aren't always correlated with R&D spend. AMD bulls are banking on AMD doing more with less. As investors trying to compare the prospects of their technologies, there is a wealth of credible information out there on numerous tech sites. That's not true for many foreign large caps, much less foreign small caps.

Safety in watchdog numbers
In the U.S. markets, we have the Securities and Exchange Commission and major stock exchanges like the NYSE and Nasdaq setting stringent reporting requirements and keeping watch.

Meanwhile, we get ample (if short-term-focused) analysis from Wall Street analysts. A famous stock like Disney (NYSE: DIS) has 31 Wall Street analysts following it. A less famous but just as big company like oilfield services provider Schlumberger (NYSE: SLB) has 32, while a smaller but popular stock like Netflix (Nasdaq: NFLX) has 33.

With safeguards like watchdog agencies and focused analysts in place, we have some assurance that past earnings are trustworthy. When we look at trailing earnings multiples (price-to-earnings ratios of 18, 28, 46 for Disney, Schlumberger, and Netflix, respectively), we can focus on whether those valuations are expensive rather than whether they're fraudulent.

We can combine the trailing and forward earnings multiples estimates (15, 17, 30 for Disney, Schlumberger, and Netflix, respectively) with key drivers (e.g., the Marvel acquisition for Disney, the growth of the oil and gas industry for Schlumberger, and the rise of video on demand for Netflix) to generate reasonable going-in positions on the companies.

For example, given the multiples, I'd be looking to make sure Disney and Schlumberger could defend and moderately grow their earnings. I'd also be looking to see if Netflix could not only defend itself against the decline of DVDs but also substantially grow its earnings.

Even with all these watchdogs in place, though, due diligence on these going-in positions is required. Fudged financials and outright fraud slip through the cracks ... but imagine how bad it could get when no one's watching.

System stability
The U.S. is about as good as it gets in terms of providing a safe environment for capitalism to operate. Management doesn't have to spend too much time fretting about the threat of civil unrest, a government arbitrarily enforcing property rights, or the illegal activities of competitors.

That's not necessarily the case for a foreign company, large or small.

Track record
No matter what you think of the investing thesis behind Disney, Schlumberger, and Netflix, these large U.S. stocks have verifiable track records. Disney, for example, was founded in the 1920s and went public in the 1960s.

Many foreign small caps have problems with both the "verifiable" and the "track record" parts of that request.

So why invest in a foreign small cap?
At this point you may be forgetting why anyone would invest in a small foreign company. Let me remind you. For those investors with a competitive advantage, there are serious opportunities to rake in outsized returns due to stock mispricings.

Let me give you an example.

The company is called China Marine Food Group (AMEX: CMFO). It sells salty seafood snacks like dried squid and barbecued sleeve fish.

To the average sane American investor, this sounds (1) gross and (2) not worth further research. But Motley Fool Global Gains co-advisor Tim Hanson would disagree on both counts. These snacks won't play in Peoria, but Tim notes that "they're basically the Chinese equivalent of potato chips." And boy is he glad he investigated further.

He found a company trading for a P/E ratio under 5, but after backing out the cash, the multiple was just 1.7 times earnings -- for a stock expecting more than 20% top-line growth.

If you've been following along, you can probably guess why it was so cheap: It's a very small Chinese company that makes questionable-sounding snacks. It operates in a country known for its government interference, not its corporate governance. Kraft this ain't, folks.

So is China Marine Food Group a buy?
As part of his duties as Global Gains co-advisor, Tim supplements the knowledge he gains at investor conferences with trips around the world. On his trips to China, for example, he meets with companies' management and tours their facilities. These meetings not only allow him to vet specific stock picks, but also allow him to compare and contrast companies, industries, and countries.

This on-the-ground experience is why he judged the risk to be worth the potential reward on China Marine Food Group when he recommended it back in May 2009. It's gone up over 140% since then, so it no longer trades at that 1.7-times earnings figure -- but Tim still rates the company a "Best Buy."

[R-BgO]

01.06.2010 14:07
China Marine Food Group Expands Seafood-Based Snack Foods to an International Convenience Store Chain in Guangdong

SHISHI, China, June 1 /PRNewswire-Asia-FirstCall/ -- China Marine Food Group Limited ("China Marine" or the "Company"), a China-based manufacturer of Mingxiang(R) seafood-based snack foods, "Hi-Power" marine algae-based beverages, and distributor of frozen marine catch, today announced they have secured product placements for a selection of its flagship seafood snack foods at more than 500 convenience chain stores located throughout the Guangdong province.

Beginning in March of 2010, China Marine collaborated with their Guangdong-based distributor on a roll out of several squid and octopus packaged snack foods at a select group of stores and has expanded the program to almost the entire store network in Guangdong. An inventory of barbecued squid, sliced barbecued squid and sliced roasted octopus packaged snack foods are held at China Marine's distributor for restocking each store location on a monthly basis. Sales to each store have increased at a steady rate since the program's inception.

Product sales and marketing are supported by a combination of seafood-based snack food flyers and posters in each store location. Printed marketing materials advertise China Marine's seafood snack foods as a healthy, protein-rich snack food with the benefits of deep-sea harvested seafood. The products are prominently featured on the store's "end-cap" displays in the snack-food isles in each store.

"Global convenience store chains are a welcome addition to our customer base," began Pengfei Liu, Chairman and CEO of China Marine. "As international and China-based convenience stores expand their respective footprints in China, we are targeting this channel as one of our key growth conduits. In each instance where we achieved product placements in convenience stores, our team has demonstrated that our production and distribution capabilities can meet customer needs. Our goal with our current and prospective convenience store chains is to continually expand our product offering while driving incremental revenues through all store locations."

[R-BgO]

ups!:


China Marine Food Group: Where Did Your Money Go?
12 comments | by: Chimin Sang June 14, 2010 | about: CMFO


For anyone who truly understands finance and accounting, reading the 8-K filed by China Marine Food Group (CMFO) on March 16, 2010 could be a horrible experience. I have seen potentially fraudulent companies, and I have had to piece information from various sources to draw my conclusion. But I have never seen a company so openly aggregate self-incriminating evidences in one single file submitted to the SEC, challenging the intelligence of the investors.

Here I present China Marine Food Group, hereafter mentioned by its ticker, CMFO, as an ongoing example on how a company can possibly take money away from its public investors, all references coming from the SEC filing mentioned above.

A little background on CMFO first. According to Yahoo Finance, “China Marine Food Group Limited, through its subsidiaries, engages in processing, distributing, and selling processed seafood products in the People’s Republic of China.” It became listed on AMEX after a reverse merger in late 2007, during which it had a concurrent private placement to attract about $20m. It did not have any other significant financial events until it acquired 80% interest of another company called “XiangHe”, who supposedly makes an algae energy drink, at a price of $27.8m, and subsequently did a PIPE for $30m.

With the help of the 8-K filed to the SEC, we can rearrange the facts in sequence and assemble the jigsaw for this incredible acquisition.

1. January 2009, Mr. Qiu, the future owner of XiangHe, paid on behalf of the Company (XiangHe, later we will know that this company did not even exist at this time) an amount of $8,776 to Yellow Sea Fisheries Research Institute [YSFRI] for the development of the algae-based drink know-how. XiangHe did not make any application for the patent during 2009. (Page F-15 bottom)

2. April 2009, Qiu leased an office space from ShiShi Huabao Jixiang Water Products Co., a subsidiary of CMFO for a term of 3 years, but XiangHe never paid a dime for rent. A later agreement exonerated XiangHe from paying any rent to CMFO. (Page F-15 bottom)

3. July 28, 2009, XiangHe was finally set up. Qiu paid $44K for registered capital. (Later I will cast doubt on whether Qiu indeed paid the money. But for now look up Page F-15 top)

4. At the same time, CMFO paid $219 to apply for trademarks for XiangHe. (So I suppose that XiangHe either did not have the people or did not have the money to apply for trademarks. Page F-16 top)

5. Oct 2009, registered and paid-in capital was increased to $733k. (Later I will cast doubt on whether Qiu indeed paid the capital. Page F-15 top)

6. For the whole year 2009, XiangHe invested $414, which reads four hundred and fourteen dollars, on purchase of property, plant and equipment. (No, I did not miss a comma or any zeros after 414! See Page F-5) This fixed assets depreciated $19, and was recorded $395 at the year end. (Page F-3)

7. With the mere $400 fixed assets, indicated as ‘Office Equipment’ in Page F-8, cheaper than the laptop that I am using to type up this article, this marvelous XiangHe made $7.6m revenue, $3.0m gross profit and $1.7m net income in the last 5 months of 2009! (Page F-4)

8. With this impressive operating result, the inventory support was a mere $11k, composed of $8.6k raw materials and $2.3k packing supplies (Page F-13). Apparently XiangHe does not need any inventory for finished products manufactured from the phantom $400 office equipment. Knowing that it incurred $4.5m (Page F-4) cost of revenue for the last 5 months of 2009, we can calculate that this amount of input materials supports its production by 11 / 4,500 x 30 x 5 = 0.4 day. Put another way, the company's inventory turnover was 409x in its first 5 months of operation, 975x if annualized. I have no further comment on this amazing production efficiency.

9. November 27, 2009, XiangHe, Qiu and CMFO entered a three-party agreement, in which CMFO supplied a 3-month term loan to XiangHe in the amount of $26.4m for working capital purposes (Note that XiangHe had total assets supposedly at $3.3m). This loan was secured by all the registered capital of Qiu in XiangHe, which was supposedly worth $2.4m. (Page F-13)

10.The agreement also offers CMFO an option to purchase 80% of XiangHe at $27.8m, all cash consideration. (Page F-14 top)

11. On January 1, 2010, CMFO exercised the option. (Page F-14)

12. This acquisition cost $27.8m cash, acquired book value $0.8m, and classified $3.5m to goodwill and $23.5m to intangible assets which, if you have not lost track, was purchased one year earlier by Mr. Qiu for $8,776. (Page 4, almost the end of the file)

My dear readers, I sincerely hope that you haven’t dislocated your jaw by now. I, for one, have never seen such an unfair transaction before.

First, this business itself is nearly impossible. It has $400 fixed assets, little inventory, zero finished product inventory, but it has a magic ramp-up of sales. That $400 office equipment has more magic power than any wizard wand you may find in Diagon Alley.

Second, CMFO had a special relationship with Qiu. CMFO paid for nearly everything for XiangHe to start up, even including a minor cost for trademarks.

Third, why did CMFO loan XiangHe so much money for such a short time, which XiangHe never needed? How was this loan "secured" with less than 1/10 worth of equity from a no-name company?

Fourth, The purchase price was ridiculous given XiangHe’s book value, short history, and an impossible business model as I discussed in the first point. The P/B ratio went as high as 35!

Who is this Mr. Qiu? If this person were real, this person has a magic wand and this person has a personal Jesus, Mr. Liu, the majority owner of CMFO. His single payout of less than $9k in January 2009 rewarded him $28.7m in one year.

It is quite likely that this Mr. Qiu is merely a puppet of Liu. It may only exist as a name, or an ID card that you can purchase for ten bucks from a Chinese farmer who would never leave his land. The whole purpose of this transaction is quite likely to funnel $27.8m from the public investors' hand to the major owner’s private pocket.

The whole SEC 8-K filing challenged its intended readers' intelligence. To end this article, I would like to raise two more issues with this company.

First, the true payment of Qiu into the company may well be below the registered capital. It may be as low as zero. The balance sheet at the end of 2009 showed an amount due from Qiu, the sole owner, for $1.4m in the assets. No line in the bottom half of the balance sheet can offset this line other than owner’s equity. Qiu supposedly paid $733k into the company, and he apparently owed the company more than this amount! If this practice can be accepted, people like you and me can set up a company and claim that we have a billion dollar equity company. It is easy: add 1 billion in the equity line and add one line of 'due from owner' for 1 billion in the assets! (Page F-3)

Second, the quality of the accounting firm, ZYCPA, is very questionable. Not only did they present an impossible business, but they made an obvious accounting mistake as well. CMFO exercised the option to acquire XiangHe on January 1, 2010, before which date the money loaned to XiangHe should be reflected on the balance sheet at the end of 2009. Both the balance sheet (Page F-3) and the cash flow statement (Page F-5) were mistakenly treated in that the loan was not presented correctly.

My case rested.

Credit: This article is a result out of reading the ‘Chinese Company Analyst’ blog here. I read the 8-K myself and generated my own view of this 8-K. Our views overlap. Without the original article, I would not have noticed the 8-K. But without that, I would generate the same view regardless. I also recommend reading his other article regarding the discrepancies between SAIC and SEC financial statements of the same company.

[WiseJohn]

Game over !!!

Wer jetzt noch drin ist sitzt auf stinkendem Fisch - da haben sich wohl Spekulanten und Eigentümer kräftig den Magen verdorben, schade, dass man hier nicht Short gehen kann

[WiseJohn]

kennt jemand ein paar interessante Alternativen ??

[R-BgO]

Antwort auf Beitrag Nr.: 39.688.400 von WiseJohn am 16.06.10 08:15:41

Thai Union Frozen

Morpol

und natürlich die ganzen Norweger (Marine Harvest kennst du ja schon)


=======


Kurs hat sich zumindest ein bisschen berappelt, ich schaue es mir weiter an...

[R-BgO]

SHISHI, China, Oct. 11 /PRNewswire-Asia-FirstCall/ -- China Marine Food Group Ltd. (NYSE Amex: CMFO), a China-based manufacturer of Mingxiang® seafood-based snack foods, "Hi-Power" marine algae-based beverages, and distributor of frozen marine catch, today provided a summary of its Analyst and Investor Day held in Xiamen and Shi Shi on September 30th, 2010.

As announced in the press on September 8, 2010 and previous SEC filing, China Marine hosted an Analyst and Investor Day held on September 30 in Xiamen and Shi Shi in conjunction with the Company's 2010 Shareholder meeting at the Seaview Resort in Xiamen, China. Several investors and analysts attended the events, which included visits to retail stores in Xiamen where the Company's products are sold, tours of the Company's food and beverage manufacturing plants and a visit to the construction site at the Company's planned cold storage facility. China Marine has posted pictures of the events that day on its Website, http://www.china-marine.cn/ under the "Investor Day" section of the "Product Centre" tab. Specific links to each picture are also provided in the summary below.

Retail Site Visits with Mingxiang® and "Hi-Power" Distributors and Sales Teams:

The Analyst and Investor Day began with a guided tour by the Company management team, China Marine sales managers and one of the Company's Xiamen-based distributors. The group was lead through the aisles of Zhongmin Baihui Department Store, a retail food and beverage location in Xiamen, China which sells Mingxiang®-branded foods. Mingxiang® snack-foods were prominently displayed in the snack food isle of the location. As is the case in most food retail stores, snack foods represent one of the highest margin products that Zhongmin Baihui Department Store sells to consumers. China Maine sales teams detailed which products are sold in the store and the price points for each product compared to other snack food choices available for consumers.

Retail Outlet - Mingxiang® Snack Foods.

China Marine sales teams and their distributor also explained the "healthy snack food" sales and marketing approach the Company has successfully used to differentiate its products on retail shelves. By advertising the benefits of seafood snack foods as a healthy alternative to other high-carbohydrate and high-calorie snack foods for sale, Mingxiang® is one of the only seafood-based foods on the shelves of snack food aisles in retail stores in Xiamen.

Following the overview of Mingxiang® snack foods, the group was escorted to Walmart® and Hualian Department Store in Xiamen, which are two of the 10,000-plus retail stores selling "Hi-Power" marine algae-based beverages. Located toward the front of each store and prominently featured, a "Hi-Power" end cap display was on display compete with "Hi-Power" signage and single serve and case-pack of "Hi-Power" beverages for sale.

"Hi-Power" End Cap.

"Hi-Power" beverages sell for approximately RMB 3.50 per can and RMB 42.0 per case of 12 cans.

Manufacturing Facility Tours

China Marine manufacturers its seafood snacks at its dedicated 20,000 ton production facility in Shi Shi. Seafood harvested from the local port are cleaned, portioned, seasoned, dried and packaged at the Shi Shi facilities by approximately 300 factory workers working for two shifts, 7 days a week. The 20,000 ton facility is currently operating at about 50% utilization rate. As a HAACP approved facility, workers are required to work in a clean environment with strict control at decontamination stations. From an observation deck overlooking the factory floor, analysts and investors were able to see workers completing production runs on the processing floor.

Mingxiang Foods Factory Floor.

Also located on the observation deck is a showroom used to demonstrate to distributors and retailers suggested point of sale and promotion ideas for Mingxiang® foods and "Hi-Power" beverages. In total, China Marine produces 29 varieties of seafood jerky at its facilities which it sells to 19 exclusive distributors in 7 provinces throughout China.

China Marine Mingxiang® Foods Product Line.

Guests were encouraged to try a variety of China Marine foods and beverages. The most popular for international guests from the US has been the dried BBQ Shrimp Mingxiang® product.

"Hi-Power" beverages are manufactured and canned at two of Fujian's top bottling facilities. In one of these bottling facilities, a factory production manager showed investors the sorting phase of the production run of "Hi-Power" beverages.

Sorting Line at "Hi-Power" Bottling Facility.

"Hi-Power" beverages are then palletized and shipped to distributors directly from the bottling facility. Orders received are produced and shipped within a month.

"Hi-Power" Orders Preparing for Shipment. Cold Storage Facility Tour and Update

China Marine experienced a delay to its previously reported construction schedule due to the building approval process and registration with the local government and provincial representatives. As reported on the Company's second quarter conference call, the Company now expects the cold storage facility to be operational in the second half of 2011. Construction of the foundation of the facility is underway beginning with the foundation of the multi-storey cold storage facility.

Prepping for Laying the Foundation at the Cold Storage Facility.

The cold storage facility will provide chipped ice, ambient cold storage and blast freezing services for business in the local fishing port and serve as a main cold storage facility for China Marine's current operations and frozen marine catch business segments. Once fully operational, the Company anticipates additional earnings of $4.0 million on an annual basis from their new business segment.

"We appreciate everyone who joined us for our Shareholders' Meeting and Investor Day last month," began Chairman Liu of China Marine. "For some of the attendees, it was their first time in Fujian province and probably the first time they have visited one of their investments in Asia. I hope they left with a better understanding of why we're so excited about our future. In addition to meeting with investors in the US, we are happy to host any current or prospective shareholders in China. We look forward to updating all of our investors on the Company's progress again soon," Liu concluded.

[chinaprofi]

A NEW CHANCE FOR CHINA MARINE FOOD

http://seekingalpha.com/article/256677-a-new-chance-for-chin…

[R-BgO]

immer weiter runter...

[R-BgO]

ein Trauerspiel: http://www.china-marine.cn/ni/0511-052231_050712_CMFO_Q12012…

[R-BgO]

heute mit -90% das Handtuch geworfen

[R-BgO]

over-and-out

[R-BgO]

lebt ja immer noch?

[abbi4]

Antwort auf Beitrag Nr.: 46.592.873 von R-BgO am 09.03.14 13:07:28

Hi R-BgO,

scheinst ja hier ein alleinunterhalter zu sein
Leider stecke ich noch im Schlamassel.
Mit 1000 Anteilen zu 0,9.

Leider hab ich keine Nachrichten über diese Aktie.
Hast du aktuelle Infos.

Gruß
abbi4

[abbi4]

Hallo,

ist hier noch jemand investiert.

Gruß
abbi4

[abbi4]

Kann jemand den Anstieg von 0,10 auf 0,25 erklären.???
Ist noch jemand investiert ????

Gruß
abbi4

[abbi4]

schon wieder ....
die Aktie ist echt rätselhaft . Schon wieder ein Anstieg auf 0,273. Noch 4 Cent und ich bin raus.

Wer ist noch investiert.

Gruß
abbi4

[R-BgO]

Antwort auf Beitrag Nr.: 46.592.873 von R-BgO am 09.03.14 13:07:28

Zitat von R-BgO: lebt ja immer noch?

und immer noch

[R-BgO]

Antwort auf Beitrag Nr.: 55.074.433 von R-BgO am 03.06.17 17:32:57

langt jetzt

over-and-out

[R-BgO]

Friedhof aus Prinzip